Maharashtra Debates Repeal 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Builder groups, led by Credai Maharashtra, have demanded that MOFA be repealed, claiming the housing industry is already governed by modern legislation such as the Real Estate (Regulation and Development) Act (RERA) and cooperative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Developers suggested that only a few administrative clauses could be retained, similar to how limited provisions of the repealed Urban Land Ceiling Act continue to remain operational.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 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.