Maharashtra Proposes MOFA Amendment to Protect Flat Owners Under RERA

MUMBAI: The state of Maharashtra has taken a significant step to protect the interests of flat owners and housing societies developed under the Real Estate (Regulation and Development) Act, 2016 (RERA). The state has tabled an amendment to the Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 1963, commonly known as MOFA. This amendment aims to mandate builders to provide conveyance deeds within a stipulated three-month period.

The proposed amendment, introduced by the state housing department led by Deputy Chief Minister Eknath Shinde, was tabled in the legislature recently. The move is designed to address a critical gap in RERA, which does not provide for criminal action against builders who fail to comply with the conveyance requirement. As a result, many RERA-compliant projects completed in the last decade have not received conveyance deeds, leaving flat owners in a legal limbo.

Under the current RERA framework, developers are required to provide conveyance deeds within three months of obtaining the occupation certificate (OC). However, the lack of enforcement mechanisms has led to numerous instances where builders have delayed or avoided this responsibility. The amended MOFA aims to fill this gap by making it mandatory for builders to provide conveyance deeds within the specified timeframe and by introducing provisions for deemed conveyance.

Mumbai, being one of the largest real estate markets in India, has thousands of projects developed under RERA. The proposed amendment would ensure that these projects can benefit from the deemed conveyance provision, which is a legal process that grants housing societies ownership of their property when the builder or landowner fails to provide conveyance within the stipulated period.

Former housing secretary Sitaram Kunte has welcomed the proposed amendment, stating that it is a crucial step in addressing the conveyance issues faced by 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,” Kunte said. He further emphasized that a provision for deemed conveyance should be extended to RERA-registered properties, which would benefit flat owners across the country.

The amendment is expected to bring much-needed relief to thousands of flat owners who have been waiting for their conveyance deeds. It will also set a precedent for other states to consider similar measures to protect the rights of property owners in RERA-compliant projects. The housing sector in Maharashtra, particularly in Mumbai, is a significant contributor to the state’s economy, and this amendment is seen as a positive step towards ensuring transparency and accountability in the real estate market.

The move to amend MOFA is part of a broader effort by the Maharashtra government to streamline the real estate sector and protect the interests of consumers. With this amendment, the state aims to create a more equitable and transparent environment for all stakeholders, including builders, flat owners, and housing societies. The proposed changes are expected to undergo further scrutiny and debate in the legislature before being enacted into law.

For flat owners and housing societies, the amendment offers hope and a clear path to securing their property rights. It is a significant step towards ensuring that the promises made by developers under RERA are upheld, and that the legal framework is robust enough to protect the interests of all parties involved.