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Monday, 16 April 2012

ISSUES ARISING FROM THE PROPOSED MAHARASHTRA HOUSING ACT-2012


Dear Readers,

The Govt of Maharashtra has tabled Maharashtra Housing (Regulation and Promotion) Act, 2012 on 11th April 2012 in the Assembly. Most of the news papers have carried the news that the bill has been introduced to protect the interest of consumers by bringing the regulatory Authority and Appellate Authority to deal with the flat purchasers issues/ problems.

The clause wise analysis of bill will bring out the actual fact, that the bill is going to protect the developers and many loopholes are kept wherein the consumers can be taken for a ride by the unscrupulous builders. I want each of the group members to read the complete Bill and also the analysis which has been carried out by the team of experts of Maharashtra Societies Welfare Association of which I am the chairman.

The loopholes have to be plugged. The bill if implemented as Act, the following further complications/ issues will arise:

1) If the builder has violated certain provisions and the registration of his project is cancelled, how the flat purchaser who has invested lakhs or crores of rupees is to purchase a dream house is not mentioned.

2) All the civil court jurisdiction is bared to the flat purchasers but to implement the decision of the Regulatory Authority or Appellate Authority, the same procedure adopted to execute civil court decreee has to be initiated. Which means, the Regulatory Authority or the Appellate Authority do not have powers to implement their own orders/ decrees.

3) In order to get the project registered with the regulator, the self attestation of the builder on the plan or the attestation from the Architect is sufficient. The same need not be approved by the local authority. Once it is project is placed in the website, the developer / builder can advertise and collect the advance from the consumers without the approval of the plan from Municipal corporation or approval Authority.  As and when the project is  approved, the same need to be loaded in the website within 72 hours of its approval. This will completely mislead the consumers.

4) The developer or the builder need not have any minimum criteria to register as the Developer. In fact, there is no provision to register the  builder but only provision to upload the projects undertaken by any developer on the government website and the same is treated as registration of the project.

Many loopholes and many issues arising from the proposed Act, which is completely against the existing law of the Land" Maharashtra Ownership Flats Act, 1963, Against the provisions of Supreme Court and High Court Judgements and also the proposed central Government  Real Estate Regulatory Act,"

I request the every citizen of Maharashtra to raise their voice against the said new Act and also send their inputs.

Please go through the comparative  analysis of the same given in this edition

With Best Regds.

Ramesh S. Prabhu
MSWA - Chairman

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