Activists and citizens have been demanding Maharashtra government to shelve the new Bill, which according to them would fail to protect flat buyers and housing societies, while builders would go away scot-free
Several activists, led by the Mumbai Grahak Panchayat (MGP), have urged Maharashtra governor K Shankarnarayan to return the new Housing Bill to the Legislature for reconsideration.
“The Maharashtra Housing (Regulation and Development) Bill, 2012, passed by both houses of the Legislature contains several provisions which will shower unjust benefits on builders and would fail to protect buyers and housing societies. Therefore Hon’ble Governor should decline to sign the Bill and return it to the Legislature for reconsideration,” MGP said in a release.
On 16th July, the Maharashtra Legislative Assembly cleared the Housing (Regulation and Development) Bill, 2012, which aims to regulate and promote construction, sale, management and transfer of flats on ownership basis and to establish the Housing Regulatory Authority (HRA) and Housing Appellate Tribunal (HRT).
Advocate Shirish Deshpande, chairman, MGP, said various provisions of the new Housing Bill would take away the rights and benefits that are available to buyers and housing societies under the earlier Maharashtra Ownership Flats (Regulation of the Promotion, Construction, Sale, Management and Transfer) Act, 1963 (MOFA).
He claimed that a provision of imprisonment for serious offences of builders, which existed in MOFA have been dropped in the new Bill and after lot of pressure, the government has agreed to provide imprisonment of up to three years that too only in case of non-compliance of the orders of the HRA or the HRT.
“This will not deter builders from indulging in various unfair and deceptive practices because originally the HRA can award only penalties and it is non-compliance of such orders on penalties that would invite imprisonment and that too at the discretion of the HRA,” Adv Deshpande said.
Activists and citizens have been demanding that the government shelve the new Bill and strengthen MOFA instead, and a public hearing be organised on the issue.
Earlier while speaking with Moneylife, Ramesh S Prabhu, chairman, Maharashtra Societies Welfare Association, said that it will be more helpful for the consumers if the provisions related to regulatory authority or Appellate Tribunal are incorporated in the MOFA itself, instead of the Act being replaced by a new legislation which is evidently pro-builder.
As per the new Bill, registering the housing project and displaying it on the website of the Housing Regulatory Authority becomes mandatory for the promoter. The promoter will have to pay fees not exceeding Rs50,000 along with the application for registration.
Pointing out some of the grey areas in the new Bill, Mr Prabhu said, “Builders may just register multiple projects under separate aliases online after registration. The documents that are required for registration have to be self-attested by the builder; and registration will be done before getting them validated by any other authority.”
The delegation of MGP that met the Maharashtra governor also highlighted that the original Bill presented in April 2012 expressly allowed refund of the flat buyer’s money with interest from the date/s when money was paid to the builder. However, the Bill was amended and the Joint Selection Committee dropped this important provision thereby making the buyer less secured and vulnerable to get refund, MGP said.
The MGP also expressed its shock and surprise about a provision in the new Bill, which allows the builder to have a proportionate share in additional floor space index (FSI) taking into account any future increase by the government policy and rules even after executing the conveyance.
Here are the proposed changes suggested by the MGP to the Governor...
The delegation, led by Adv Deshpande and Dr Ramdas Gujarathi, president, MGP, pointed out several short-comings in the Housing Bill, while emphasising that in present form, the Bill will not be able to protect buyers and erring builder would be let off with miniscule penalties for their mischief and violations.
On 7th August, Moneylife Foundation has organised a discussion on the new Housing Bill. Two of the boldest voices in real estate space, Adv Vinod Sampat and Pankaj Kapoor of Liases Foras would address the gathering at Pu La Deshpande Kala Academy (Mini Theatre), Ravindra Natya Mandir, Near Siddhivinayak Temple, Prabhadevi, Mumbai between 6pm and 8pm. For more details
click here
