Maharashtra housing legislation not in public interest: Prabhu

The existing Maharashtra Ownership Flats Act,1963 (MOFA) is in operation since 1964.

Written by Agencies | Mumbai | Published: March 28, 2012 10:55:17 pm

The Maharashtra Societies Welfare Association has opposed the proposed Maharashtra Housing (Regulation and Development) Act,saying it was not in the public interest.

The existing Maharashtra Ownership Flats Act,1963 (MOFA) is in operation since 1964 and provisions on regulatory authority and appellate tribunal can be included by amending it,Ramesh S Prabhu,Chairman of the Association said.

“In MOFA,there is a provision of criminal proceedings against the developer who cheats buyers. In the proposed legislation,the provision of criminal proceedings has been dropped which is not a good sign,” he said.

Under section 11 of MOFA,the provision for granting the conveyance of land and building in favour of the Society within four months of its registration is provided. The provision of deemed conveyance of land and building whether layout,single plot or township is provided.

In the proposed bill,a layout plot has been defined as a plot of land having an area of 1000 sq meters or more,he said,adding the developer planning to benefit from increase in FSI will not develop a small portion of the plot and delay the conveyance.

The new law,instead of protecting the consumers,will snatch away the buyer’s legitimate right of owning the land,he said. “The proposed bill is not in the interest of public at large,” Prabhu said.

As per MOFA,only carpet area area can be sold and no common areas can be sold,he added.

With the introduction of concepts like independent area,restricted common area and utility area,developers will start designating the open areas or free of FSI areas as independent area,car parking area and utility area and will sell them to flat purchasers,Prabhu said.

The proposed bill does not provide for making the list of flats booked,the person who has booked the flats,the price agreed upon and the amount due etc. on the regulator’s website to maintain transparency,he said.

“The developer gets the access to website maintained by regulator within 7 days of application even when the projects are not approved. The developer is required to upload duly approved plan within 72 hours. There is no accountability of regulators also,” Prabhu said.

In MOFA,only MHADA was excluded but in the proposed law all special scheme development without properly defining them are excluded such as SRA,repair board building,tenant landlord,CIDCO,collector land and BMC. There is no level playing field for government and private builders,” he added.

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