Mumbai, Dec 20: The Mumbai Grahak Panchayat (MGP) has written to the Governor of Maharashtra, seeking his intervention in the recently passed amendment to the Maharashtra Ownership Flats Act (MOFA), expressing serious concerns over its implications for homebuyers. The organisation has sought an urgent appointment to present its objections to the Bill, which was passed by the State Legislature.
Bill passed without public consultation, claims MGP
In its letter dated December 15, addressed by Advocate Shirish Deshpande, the chairman of MGP, it 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.
MOFA proposed to be inapplicable to MahaRERA projects
According to the consumer body, the amendment seeks to make MOFA inapplicable to projects registered with the Maharashtra Real Estate Regulatory Authority (MahaRERA), except for limited provisions such as deemed conveyance.
Immunity from criminal prosecution alleged
MGP argued that this 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.
Dilution of Section 13 raises concern
The organisation further objected to the dilution of criminal liability under Section 13 of MOFA, which it said has historically acted as a deterrent against unscrupulous builders.
Homebuyers’ safety at stake, says consumer body
“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,” the letter stated.
Objection to retrospective application of amendment
MGP also raised concern over the retrospective application of the amendments from May 1, 2017, stating that this would provide immunity to developers who are currently facing or have previously faced criminal proceedings under MOFA. The organisation described the retrospective effect as contrary to public policy and detrimental to consumer protection.
Governor urged to refer Bill back to Legislature
Terming the Bill inconsistent with the objectives of MOFA, MGP 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.
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Past role of MGP in housing law reforms recalled
The consumer body also referred to 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.
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