Maharashtra Debates Future of MOFA: Builders and Housing Federations Clash

Published: November 29, 2025 | Category: Real Estate Maharashtra
Maharashtra Debates Future of MOFA: Builders and Housing Federations Clash

Pune, 29th November 2025: The future of the Maharashtra Ownership Flats Act (MOFA), 1963, has become a major point of contention as the state cooperation department prepares to submit its evaluation by the end of December. The report will help the state government determine whether the six-decade-old law should be retained with modifications or scrapped altogether.

The review was commissioned by the state housing department amid strong and conflicting positions from builders and housing societies. Developers argue that MOFA has become redundant, while federations representing cooperative housing societies fear the move could destabilise more than one lakh registered societies in the state.

Cooperation Commissioner and Registrar of Cooperative Societies, Deepak Taware, who chaired a meeting of stakeholders in Pune on November 24, said the department has asked all concerned organisations to send their written feedback. “We have sought their responses within a week. Once received, a consolidated assessment will be forwarded to the government before December ends,” Taware stated.

Builder groups, led by Credai Maharashtra, have demanded that MOFA be repealed, claiming the housing industry is already governed by modern legislation such as the Real Estate (Regulation and Development) Act (RERA) and cooperative housing regulations. According to Credai Maharashtra vice-president Aditya Javdekar, RERA offers a complete regulatory framework for the real estate sector. “Several provisions of MOFA are repeatedly invoked during deemed conveyance cases despite High Court rulings. After more than seven years of RERA enforcement, MOFA no longer serves its original purpose,” he said.

Developers suggested that only a few administrative clauses could be retained, similar to how limited provisions of the repealed Urban Land Ceiling Act continue to remain operational. However, housing federations believe that removing MOFA could severely weaken homebuyer protections, especially in redevelopment projects and legacy cases predating RERA.

Advocate Shreeprasad Parab, expert director at the Maharashtra State Cooperative Housing and Apartment Federation, termed MOFA “a social welfare law rooted in constitutional values like cooperative independence, fair housing rights, and justice for flat purchasers.” He emphasised that MOFA continues to operate alongside RERA by legal design. “Sections 88 and 89 of RERA clearly acknowledge the ongoing relevance of MOFA. Key functions such as the formation of cooperative societies and ensuring conveyance rely on state-level legal backing. Eliminating MOFA would create a serious legislative gap,” Parab explained.

He further pointed out that provisions in MahaRERA’s rules directly draw strength from MOFA. “Under Rule 9, deemed conveyance becomes enforceable against errant developers because MOFA provides that mechanism. Repealing MOFA will indirectly require changes to a central Act — something that is neither feasible nor advisable at this stage,” Parab added.

With both sides preparing detailed submissions, the state’s final call on MOFA is expected to shape the regulatory framework for lakhs of homebuyers and developers across Maharashtra in the coming years.

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Frequently Asked Questions

1. What is the Maharashtr
Ownership Flats Act (MOFA)? A: The Maharashtra Ownership Flats Act (MOFA), enacted in 1963, is a law that governs the ownership and management of cooperative housing societies in Maharashtra. It provides a framework for the formation and operation of these societies, ensuring fair practices and protections for homebuyers.
2. Why is MOF
under review? A: MOFA is under review because the state government is considering whether the law is still relevant and necessary, given the existence of modern regulations like RERA. There are strong opinions from both builders and housing federations, leading to a detailed evaluation by the state cooperation department.
3. What are the main arguments against retaining MOFA?
Builders and developer groups argue that MOFA has become redundant and that the real estate sector is adequately regulated by RERA and other modern laws. They claim that MOFA no longer serves its original purpose and could be simplified or repealed.
4. What are the main arguments for retaining MOFA?
Housing federations and cooperative societies believe that MOFA provides essential protections for homebuyers, especially in redevelopment projects and legacy cases. They argue that MOFA complements RERA and ensures the formation and conveyance of cooperative societies, which are crucial for homebuyer rights.
5. What is the expected outcome of the review?
The outcome of the review will depend on the feedback from stakeholders and the final assessment by the state government. The decision could lead to the retention of MOFA with modifications, partial repeal, or complete scrapping of the law, significantly impacting the regulatory framework for real estate in Maharashtra.