Maharashtra Government to bring transparency in Housing sector
The Maharashtra government decided to replace the existing Maharashtra Ownership Flats (Regulations of Promotion of Construction, Sale, Management, and Transfer) Act, 1963 with the Maharashtra Housing (Regulation and Promotion of Construction, Sale, Management and Transfer) Act, 2011. The Act will be presented before the state cabinet for approval in the coming days. The new act claims to bring more transparency in property transaction in the housing sector. According to the state housing department, this Act will ensure protection of buyers’ interest. The Act will also contain new provisions to facilitate deemed conveyance in layouts that involve two or more buildings.
Under the new Act the developers will have to register themselves with a three-member regulatory authority and will have to post the details of contemporary project, on the authority's website that will be available for public viewing. The advertisements for the sale or transfer of flats can be issued only after this registration. During the registration details of the title of the land, approved plans, common areas and amenities, including recreation grounds and playgrounds etc have to be given.
If the developer fails to keep his promise, the flat buyers can approach the authority that has all the powers to deregister the builder and bar him from taking up new projects in the event of a default. The Authority is to be headed by a retired government official of the rank of principal secretary. The panel is also empowered to impose fine up to Rs 10 lakh and prosecute habitual offenders. The members will also have the authority to judge a case if a fiat-buyer defaults on payment. The panel's orders could be challenged before an appellate authority which will be led by a retired High Court judge.