Mumbai Grahak Panchayat Urges Governor to Intervene in MOFA Amendment

Mumbai Grahak Panchayat (MGP) has raised concerns over the amended Maharashtra Ownership Flats Act (MOFA), urging the Governor of Maharashtra to intervene. The organization seeks an urgent appointment to present its objections to the Bill, which was recently passed by the State Legislature.

In a letter dated December 15, addressed by Advocate Shirish Deshpande, the chairman of MGP, it was stated that the MOFA Amendment Bill was passed without any discussion in either House and without inviting public suggestions or objections. “No suggestions or objections were invited from the public before introducing the Bill, thereby denying citizens and stakeholders their rightful participation in the legislative process,” reads the letter.

The consumer body is particularly concerned about the amendment's provision to make MOFA inapplicable to projects registered with the Maharashtra Real Estate Regulatory Authority (MahaRERA), except for limited provisions such as deemed conveyance. This change, according to MGP, effectively grants immunity from criminal prosecution to promoters and developers of MahaRERA-registered projects, even in cases involving alleged fraud, financial irregularities, cheating, or criminal breach of trust.

The dilution of criminal liability under Section 13 of MOFA has also raised significant concerns. This section has historically acted as a deterrent against unscrupulous builders. MGP argues that, as a consequence, promoters will no longer be liable for criminal prosecution under Section 13 of MOFA in cases of fraud, financial irregularities, cheating, or criminal breach of trust involving homebuyers’ hard-earned money. This will make lakhs of homebuyers unsafe and insecure.

MGP has also raised concerns about the retrospective application of the amendments from May 1, 2017. This provision would provide immunity to developers who are currently facing or have previously faced criminal proceedings under MOFA. The organization described the retrospective effect as contrary to public policy and detrimental to consumer protection.

Terming the Bill inconsistent with the objectives of MOFA, MGP has urged the Governor to refer the MOFA Amendment Bill back to the State Legislature with directions to first invite public comments by calling for suggestions and objections from stakeholders.

The consumer body also recalled its earlier role in making representations before a parliamentary committee, which had led to the repeal of the Maharashtra Housing (Regulation and Development) Act, 2014, and the implementation of the Real Estate (Regulation and Development) Act in Maharashtra. MGP's efforts in the past have been instrumental in ensuring fairer and more transparent practices in the real estate sector.

To get details on exclusive and budget-friendly property deals in Mumbai and surrounding regions, do visit: https://budgetproperties.in/