3.3 MahaRERA Conciliation Forum & Dispute Redressal Mechanism

3.3 MahaRERA Conciliation Forum & Dispute Redressal Mechanism

Real estate transactions often involve significant financial commitments, leading to potential friction between homebuyers (allottees), promoters, and real estate agents regarding construction delays, quality defects, refund claims, or misrepresentation. To provide an efficient, cost-effective alternative to formal litigation, MahaRERA pioneered India's first MahaRERA Conciliation and Dispute Redressal Forum in 2018 under Section 32(g) of the RERA Act.

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The MahaRERA Conciliation Forum Structure

The Conciliation Forum is designed to foster amicable out-of-court settlements through voluntary mediation before parties engage in formal adversarial proceedings.

1. Bipartite Bench Composition

Unlike traditional judicial courts, each MahaRERA Conciliation Bench consists of two equal conciliators:

• Consumer Association Representative: Appointed from recognized homebuyer advocacy organizations (e.g., Mumbai Grahak Panchayat [MGP]).
• Promoter Association Representative: Appointed from self-regulatory real estate developer bodies (e.g., CREDAI-MCHI, NAREDCO, or BANM).

This balanced composition ensures that both homebuyer rights and commercial realities of real estate development are understood during proceedings.

2. Geographical Benches

Conciliation benches are established across key urban centers in Maharashtra:

• Mumbai Metropolitan Region (MMR) (Mumbai, Thane, Navi Mumbai)
• Pune
• Nagpur
• Nashik
• Chhatrapati Sambhajinagar (Aurangabad)

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Step-by-Step Conciliation Process & Workflow

The conciliation process follows a structured digital and hearing workflow:

Step 1: Filing Application Online

An aggrieved homebuyer or promoter files a conciliation application online through the MahaRERA Web Portal under the Conciliation Tab by paying an online processing fee of ₹1,000 + GST.

Step 2: Notice & Respondent Consent

The MahaRERA Conciliation Secretariat sends an automated notice to the respondent (developer or allottee). Conciliation is voluntary; the respondent must log into the portal and provide explicit consent to participate within 7 to 14 days.

• If Respondent Refuses: The conciliation process is closed as failed, and the applicant receives an automatic option to convert the case into a formal complaint under Section 31.

Step 3: Hearing & Mediation

Upon consent, the case is assigned to a regional Conciliation Bench. Hearing notices are issued electronically. Parties appear in person or via video conference before the two-member bench. Legal practitioners are generally discouraged, allowing direct dialogue between buyer and developer.

Step 4: Execution of Terms of Settlement

If a mutual agreement is achieved (e.g., revised payment schedule, agreed possession date, or partial refund settlement):

• The bench drafts a formal Terms of Settlement (Settlement Agreement).
• Both parties and both bench members sign the document.
• The settlement is uploaded onto the MahaRERA portal and submitted to the Authority for formal ratification under Section 73 of the Arbitration and Conciliation Act, 1996.

Step 5: Statutory Binding & Enforcement

Once approved by MahaRERA, the Terms of Settlement carries the legal weight of an official order passed by the Authority. If either party fails to comply with the agreed terms, the aggrieved party can file an execution application under Section 40 of RERA, leading to enforcement through recovery of dues as arrears of land revenue by the District Collector.

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Statutory Dispute Redressal Hierarchy under RERA

When conciliation is unfeasible or fails, disputes enter the formal statutory adjudication framework established by RERA:

Level 1: MahaRERA Authority / Adjudicating Officer (Section 31 / 71)
       │
       ▼ (Appeal within 60 Days)
Level 2: Maharashtra Real Estate Appellate Tribunal - MREAT (Section 43 / 44)
       │
       ▼ (Appeal on Question of Law within 60 Days)
Level 3: High Court of Bombay (Section 58)

Level 1: MahaRERA Authority & Adjudicating Officer

• Jurisdiction: Adjudicates complaints regarding breaches of RERA provisions, delays, non-registration, and refund claims (Section 31). Adjudicating Officers (retired district judges) hear claims for compensation and damages under Sections 12, 14, 18, and 19 (Section 71).
• Filing Fee: ₹5,000 online filing fee.
• Disposal Timeframe: Statutory target of 60 days from date of filing.

Level 2: Maharashtra Real Estate Appellate Tribunal (MREAT)

• Jurisdiction: Hears appeals against any order, decision, or direction issued by the MahaRERA Authority or Adjudicating Officer under Section 43.
• Location: Headquartered in Mumbai.
• Appeals Deadline: Must be filed within 60 days from the receipt of the order.
• Mandatory Pre-Deposit Rule (Section 43(5)): When a promoter files an appeal against an order favoring an allottee, the appeal shall not be entertained by MREAT unless the promoter deposits:
  • 100% of the penalty imposed, OR
  • At least 30% of the total amount payable to the allottee (including interest and compensation), or a higher percentage as decided by the Tribunal, up to 100%.

Level 3: High Court of Bombay

• Jurisdiction: Any person aggrieved by any decision or order of MREAT may file an appeal to the High Court of Judicature at Bombay under Section 58.
• Grounds: Appeal can only be filed on a substantial question of law (not on factual disputes).
• Timeframe: Must be submitted within 60 days of communication of MREAT's decision.

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Ethical Role of Real Estate Agents in Dispute Prevention

As licensed intermediaries, real estate agents play a crucial role in preventing disputes from arising:

• Pre-Transaction Verification: Always verify project completion dates, sanctioned floor plans, and escrow compliance on the MahaRERA portal before taking clients for site visits.
• Transparent Representation: Never make false statements regarding project launch dates, promised amenities, or guaranteed returns (prohibited under Section 10(c)).
• Guidance Towards Conciliation: When disputes occur regarding minor payment delays or handover schedules, agents should advise buyers and developers to utilize the ₹1,000 Conciliation Forum rather than entering lengthy litigation.

Dispute Redressal Forums Comparison Matrix

The table below compares the key attributes, costs, composition, and legal enforceability across all dispute redressal levels available under RERA in Maharashtra.