Errant developers' property will be sold to compensate buyers

Home-buyers who have been cheated by unscrupulous, fly-by-night builders may have some succour in sight with the state planning to amend the Maharashtra Protection of Interest of Depositors (MPID) Act to ensure that the properties of these developers will be sold to refund money to consumers.

This was announced by chief minister Devendra Fadnavis in the state legislative assembly on Tuesday on a question by Prashant Thakur (BJP- Panvel), who raised the issue of people being cheated in a housing project at Chipale in Panvel.

The Khandeshwar police have arrested developer Anil Pote in a case of cheating.

Fadnavis pointed out that cases of cheating were coming to light from Thane and Navi Mumbai. Unscrupulous elements claim any land as their own and set up boundaries, demarcating it. They will later took money from consumers and cheat them. He said that, at times, the names given by these people were also false.

"We will create a task force against these crimes. Action will be taken immediately," said Fadnavis.

He said that the Supreme Court (SC) had upheld the MPID Act, which enabled the auction of seized properties of the accused to return money to investors.

However, this law was applicable to investors and not buyers of property. Fadnavis said they were planning to amend the MPID Act to include such crimes to enable the government to sell the property of those involved in these cases and return money to investors.

The law and judiciary department has been asked to submit a report on the amendment in one month.