Moneycontrol
HomeNewsBusinessReal Estate

NCLT should inform real estate regulator before taking up a RERA registered case: Maharashtra RERA chief

"If RERA is able to resolve the matter within three to four months ‘good’, if not, then the NCLT can take it up," said Gautam Chatterjee.

February 14, 2019 / 04:42 pm IST
Story continues below Advertisement

Vandana Ramnani Moneycontrol News

Concerned over the issue of forum shopping by some homebuyers, Maharashtra RERA chief Gautam Chatterjee has suggested that if NCLT decides to take up a real estate case that is a RERA registered project, it should first refer the matter to the respective real estate regulator before it decides to address the issue.

The main objective of RERA is to ensure that pending real estate projects are completed, remove the existing information asymmetry and bridge the trust deficit that exists between homebuyers and developers, he said addressing a seminar on How has RERA Changed the Game for Real Estate at Credai Youthcon 2019.

Story continues below Advertisement

"Admitting of a case under NCLT means moratorium under section 14 which means for six to nine months nothing in the project will happen. If a project comes under IBC it means it has become insolvent. It may not go under liquidation but experience shows that wherever projects are resolved under IBC, they have been resolved with a haircut of 30 percent to 50 percent. Are we saying that homebuyers, also  creditors, go back home with a 50 percent haircut? RERA expects the house to be completed and given to the homebuyers," he said.

Therefore, any matter that is being heard by RERA, if it goes to the NCLT and before NCLT decides to admit it, it should be referred to the concerned RERA, who should be given time to resolve it, he said.