MOFA gets more teeth

Source: DNA
The President of India has recently approved several amendments in the Maharashtra Ownership of Flats Act
Vinod Sampat. Mumbai
On 25th February, 2008, the President of India approved several amendments in the Maharashtra Ownership of Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 2005. The highlights of the amendments along with the specific section are as follows:
• Builder/s will have to execute the conveyance.
• Power is given to the District Deputy Registrar to act as Competent Authority: Section 5A
• Power is given to Competent Authority for registration of Co-operative Society under the provisions of Maharashtra Co-operative Societies Act, 1960: Section 10(1)
• It is the duty of the promoter (builder) to file with the competent authority within the prescribed period, a copy of the conveyance executed by him: Section 11(2)
• If the promoter fails to execute the conveyance in favour of the co-operative society, company or associations or apartment owners as the case may be, then the flat purchasers can approach the competent authority with a true copy of the registered agreement of all the flat purchasers, including Occupation Certificate and Registration Certificate of the society. Then, in such circumstances, the co-operative society, company or association is the document produced before him and after giving a reasonable opportunity to the promoter, if satisfied will issue a certificate to the Sub-Registrar or any other Registration Officer under the Registration Act, 1908, certifying that it is a fit case for enforcing unilateral execution of conveyance deed conveying the right, title and interest of the promoter in the land and the building in favour of the applicant, as deemed conveyance: Section 11(4) • The sub registrar after receipt of the certificate issued by the competent authority along with the unilateral instrument of conveyance can issue summons to the promoter to show cause why the unilateral instrument should not be registered as deemed conveyance. However, reasonable opportunity of being heard may be given to the promoter. If the Sub-Registrar is satisfied then he will register the unilateral conveyance as 'deemed conveyance': Section 11(5) The 'competent authority' has been created who has powers to award criminal imprisonment to the builder/ s for a period not less than six months and not more than one year and/ or along with fine ranging from Rs 10,000 to 50,000: Section 13 (3) (a) and 13 (3) (b)
• The builder/s if convicted will not be able to carry on construction activities for a period of five years. However, the disqualification shall not affect the permission for construction of flats already granted: Section 13 (4), 13 (5) and 13 (6).
• The competent authority shall be deemed to be a public servant as per the provisions of Indian Penal Code: Section 13B
• Proceedings before the competent authority shall be aimed to be judicial proceedings as per the provisions of Indian Penal Code: Section 13C
• The competent authority shall be deemed to be a Civil Court for certain purposes: Section 13D
• No action can be taken against the competent authority for acts done in good faith by the competent authority: Section 13E The above said notification
can result in about 50,000 societies in Maharashtra getting conveyance of the property in their favour. This will provide a big relief to crores of people residing in Maharashtra. It will also result in Maharashtra Ownership Flats Act getting more teeth.
Advocate Vinod C. Sampat is President, Co-operative Societies Residents, Users and Welfare Association