Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam

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Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.

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Who has ever heard of the Fire Department approving the demolition of Refuge Areas—areas that were once vital for issuing Part OCs in October 2022 ?
Despite multiple complaints to BMC Chiefs, the CM (past and present), and even a letter from the PMO to the then CS (now MAHARERA Chairman) to intervene, no action has been taken. E-office document E-6089042 was closed without resolution.
Even more concerning is the alteration of plans being approved in flats occupied since 2021 based on the OCs recieved in March 2021 and October 2022—without the owners' consent—at the builder’s behest to further harass residents and for pocketing some persoanl gains ? Is BMC authorised to amend plans in occupied flats after part OCs without flat owners consent. Is this acceptable? The Supreme Court’s recent December 2024 ruling emphasizes the protection of homebuyers' rights, yet BMC’s Building Proposal and the Fire Department are actively bypassing laws, exploiting unchecked loopholes.
This is more than a systemic failure—it’s a blatant disregard for citizens' rights and a serious violation of justice.
CBI and ED should also be engaged for such crimes as this would unearth 1000 of crores from corrupt office bearers in BMC and possibly in MAHARERA too.
The MAHARERA portal unequivocally lists The Kollage project as Residential, consistent with all previous BMC approvals. Yet, in a shocking turn of events, a commercial entity—Saraswat Co-Op Bank—now operates within an area originally sold to buyers as a Grand Lobby. Buyers were charged for 5,100 sq. ft. as a common amenity, only to see it stealthily converted into a commercial premises. This constitutes a serious breach of trust and a clear violation of regulatory norms.
To uncover the truth, RTI applications and subsequent appeals were filed with MAHARERA, seeking a straightforward answer: Was an application for a change of building plans ever submitted under Section 14(2) of the MAHARERA Act, and did MAHARERA approve it?
Despite the simplicity of this inquiry, MAHARERA officials have chosen to remain silent, refusing to provide any response—even after the appeal. Instead, they hide behind vague statements, suggesting that the complainants refer to the very portal that explicitly categorizes the project as Residential. This deliberate evasion raises serious concerns about transparency and accountability within MAHARERA.
Adding to the confusion, the leadership page of the MAHARERA website prominently displays the photograph of the Additional Chief Secretary (ACS) for Housing. However, upon visiting the concerned MAHARERA officials, we are astonishingly told that the ACS Housing has no control over their operations. If true, then why mislead the public by displaying their image on the portal?
The burning question remains: Who holds MAHARERA accountable for its inaction and evasiveness? Who will take responsibility for allowing builders to exploit regulatory loopholes while homebuyers continue to suffer?
MAHARERA today stands as one of the most ineffective regulatory bodies, failing in its core duty to protect homebuyers' interests. Despite being confronted with undeniable evidence of its own non-compliances and errors, no corrective action has been taken. Instead, extensions are granted to builders in exchange for what can only be speculated, with little to no scrutiny of the documents submitted. While one might attribute this to a shortage of manpower, the glaring absence of intent to rectify mistakes speaks volumes about the agency's priorities.
A seasoned advocate once advised against pursuing the MAHARERA route, citing an alleged "bazaar" that operates every evening—where cases scheduled for the next day are reportedly influenced based on the financial heft placed on certain tables.
Names remain undisclosed for obvious reasons, but the phrase "make hay while the sun shines" perfectly captures the prevailing scenario. If MAHARERA is indeed committed to transparency—by announcing actions such as freezing bank accounts and suspending project registrations—then why do they shy away from publicly naming and shaming the offenders?
The Kollage Case: A Testament to MAHARERA's Failures
A prime example of MAHARERA's inefficiency is The Kollage project in Andheri East. The builder, Zire Rushi Construction, was granted a third extension based on false and misleading submissions—brought to MAHARERA's attention well in advance. Yet, no action was taken. The extension has now lapsed, and it's only a matter of time before the builder returns with another request, likely accompanied by additional "incentives," and walks away with yet another extension instead of facing strict scrutiny.
The project remains incomplete, without a full OC, even after the last Part OC was granted in October 2022. Shockingly, only one additional floor has been constructed since then.
The question remains: Is MAHARERA truly fulfilling its mandate, or has it become a facilitator of delays and deception, enabling builders to exploit homebuyers with impunity?
While equally Guilty are HFCs who are giving project loans to such Project developers & to buyers also.
Builders openly making Advertisements for Parking Charges,inspite of SC guidelines.