Real estate bill ignored by consumer activists
Mumbai- Although the sate and central government is making fresh norms to protect home buyers from the greedy builders but consumer activists feels that they are very much comfortable with the existing laws.
They doubt the success of new laws and believe that the existing laws are enough to guard them from frauds.
The existing law is the Maharashtra Ownership Flats Act, 1963 which regulates the promotion, construction, sale and transfer of flats. It is commonly known as MOFA which says that the flat price must be computed on the basis of carpet area. The same thing is currently proposed in the Real Estate Bill of regulation and development.
According to the chairman of Maharashtra Societies Welfare Association developers continue to sell the flats on build-up area. Moreover building plans and registration of flats are approved by government agencies on built-up area.
Yet another example can be stated which shows the poor execution of MOFA’s section 4. This section says that builder must register the agreement after he receives 20 percent of the cost of flat in Mumbai or anywhere in the state. But in real, builders do not register even after receiving 90 percent of the flat cost. Builders even sell parking space and also include it in the flat cost , which is completely against MOF section 3 and 4.
Although the new laws are hard to implement but the central law may make few amendments which are must for transparent functioning. On one hand, MOFA manages transactions between builders and consumers while the central bill covers civic officials and banks. The central real estate bill will help a flat owner to know about the approvals or any mortgage on land immediately. But the biggest challenge lies in maintaining data on a website.
Activists feel that the government is weakening their rights under MOFA by raising a new bill. Activists are demanding to strengthen their part in MOFA by introducing sections for a regulatory authority or appellate tribunal.
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Flats in Mumbai, home buyers in India, Maharashtra Ownership Flats Act, MOFA, Mumbai, Real estate bill, register building agreement, sale and transfer of flats
[...] Real estate bill ignored by consumer activists [...]
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