Rank Builder | Soon, A New Act To Help Home Buyers

The Maharashtra Ownership Flats (Regulations of Promotion of Construction, Sale, Management, and Transfer) Act, 1963, which was meant to provide relief to flat buyers against abuses and malpractices in the construction, sale and transfer of flats, will be scrapped. It is likely be replaced with the Maharashtra Housing (Regulation and Promotion of Construction, Sale, Management and Transfer) Act, 2011 , which the state housing department claims will be more effective in protecting the interests of buyers. It will contain provisions for the setting up of a regulatory authority for the sector. To be applicable for construction projects across the state, the new Act will also contain new provisions to facilitate deemed conveyance in layouts that involve two or more buildings.

The proposal is likely to be tabled before the state cabinet for an approval in the next few days. The government had initially thought of amending the existing Act to incorporate the changes, but the plan was ruled out as it would have meant introduction of a large number of new rules.

Once the new Act is implemented, developers will have to register themselves with the three-member regualtory authority. They will also have to post the details of every of their projects on the authority's website, which will be made available for public viewing. Only after that can advertisements for the sale or transfer of flats be issued. The "full disclosure" will include details of the title of the land, approved plans, common areas and amenities, including recreation grounds and playgrounds, among others.

In case a developer fails to keep his promises, flat buyers can approach the authority, which will have the power to deregister the builder and bar him from taking up any new project in the event of a default. To be headed by a retired government official of the rank of prinicipal secretary, the panel will also be empowered to impose fine up to Rs 10 lakh and prosecute habitual offenders. The members will also have the authority to judge a case if a flat-buyer defaults on payment.

The panel's orders could be challenged before an appellate authority, which will be led by a retired High Court judge.