Mumbai, Mar 8 (TOI): CM Devendra Fadnavis said on Wednesday the state is considering bringing builders under the ambit of MPIDA, the law that protects investors and is currently used against those floating Ponzi schemes.
NCP legislator Kiran Pawaskar raised the issue of M/s N D Devcon Pvt Ltd in the legislative council and said the firm had taken up construction activity in Kanjurmarg and duped consumers to the tune of Rs7 crore.

Asked about action taken against the builder, Fadnavis said the developer had been held and efforts were on to bring back and take action against another two accused based abroad.

When Pawaskar said the builder was yet to return flatbuyers’ money and had not completed the project either, Fadnavis said it was true that most builders become even more brazen after being jailed. “They think there is nothing worse that can happen to them after that. The state government is now considering amending the MPIDA so that such developers who do not return money nor deliver flats to consumers are included. It will allow their properties to be auctioned,” he said.

BJP MLC Praveen Darekar said that several tenanted buildings had been brought down and their redevelopment not completed. Fadnavis said there were many such complaints before the Economic Offences Wing (EOW), and the government was considering a policy whereby tenants will be given an opportunity to complete the project. “If they are unable to do so, Mhada will take over the project and complete it,” he said.

The EOW, which handles cases under MPIDA in Mumbai, has sought the opinion of the special court hearing these cases in the city if they can invoke the law against Bhagtani Developers in a case. If the court allows EOW to do so, Bhagtani Developers could be the first builder in the city to be booked under the stringent Act.