Maharashtra Proposes Amendment to Protect Flat Owners Under RERA

MUMBAI: The Maharashtra government has taken a significant step to protect the interests of flat owners and housing societies by proposing an amendment to the Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 1963. This move aims to safeguard properties 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 a stipulated three-month period. The amendment, proposed by the state housing department headed by Deputy Chief Minister Eknath Shinde, was tabled in the legislature.

Despite RERA requiring developers to provide conveyance three months after obtaining the occupation certificate (OC), there is currently no provision for criminal action against builders who fail to comply. As a result, many projects completed under RERA in the last decade have not received conveyance, nor do they qualify for deemed conveyance.

An amended MOFA would make projects developed under RERA eligible to receive deemed conveyance. Mumbai, a city with thousands of real estate projects developed under RERA, stands to benefit significantly from this amendment.

A housing society is provided 'deemed conveyance' of their property via a legal process when the builder or landowner fails to provide conveyance within the stipulated timeframe. This ensures that flat owners have legal rights over their properties, even if the builder does not fulfill their obligations.

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 this amendment, noting that a provision for deemed conveyance for RERA-registered properties is essential not only in Mumbai but across the country in other cities as well. This move is expected to bring greater transparency and accountability in the real estate sector, ensuring that flat owners are not left in legal limbo.

The amendment is a crucial step towards protecting the rights of homeowners and ensuring that developers adhere to their legal responsibilities. It is a positive development for the real estate market and a significant win for consumer rights in Maharashtra.