Maharashtra Moves to Safeguard Flat Owners with MOFA Amendment

MUMBAI: The state has tabled an amendment to the Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 1963, to safeguard the interests of flat owners and housing societies developed under the Real Estate (Regulation and Development) Act, 2016, or RERA.

The amended law would make it mandatory for builders developing and redeveloping projects under RERA to provide a conveyance deed within the stipulated three-month period. This move is aimed at ensuring that flat owners have legal ownership and can manage their properties effectively.

The amendment, proposed by the state housing department headed by Deputy Chief Minister Eknath Shinde, was tabled in the legislature recently. Under the current RERA regulations, developers are required to provide a conveyance deed three months after obtaining the occupation certificate (OC). However, there are no provisions for criminal action against builders who fail to comply with this requirement. As a result, many projects completed under RERA in the last decade have not received conveyance deeds, leaving flat owners in a legal limbo.

An amended MOFA would make projects developed under RERA eligible to receive deemed conveyance. Mumbai, in particular, has thousands of real estate projects developed under RERA, and the lack of conveyance deeds has been a significant concern for many flat owners.

A housing society is granted 'deemed conveyance' of their property through a legal process when the builder or landowner fails to provide the conveyance deed within the stipulated timeframe. This ensures that the society can manage and maintain the property without the builder's interference.

Former Housing Secretary Sitaram Kunte welcomed the proposed amendment, stating that it would provide relief to thousands of flat owners. 'There is no provision in RERA to deal with the conveyance deed, so bringing it under the purview of MOFA is the need of the hour,' he said. Kunte further emphasized the importance of a provision for deemed conveyance for RERA-registered properties, noting that it will be essential in other cities across the country in the future.

The amendment is expected to bring greater transparency and accountability to the real estate sector in Maharashtra, ensuring that flat owners have the legal rights and protections they deserve. With thousands of projects affected, this move is seen as a significant step towards addressing the long-standing issues in the real estate market.