The state assembly on Monday cleared the Maharashtra Housing (Regulation and Development) Act, 2012, which will bring in transparency in realty deals and protect the interest of flat purchasers.
An independent housing regulatory authority will be set up to regulate all realty deals and adjudicate disputes between the home buyer and the developer.
Builders who do not comply with the authority's orders can be sent to jail for three years or fined up to Rs. 10 lakh. The legislation also has provision for penalty of Rs. 10,000 for home buyers for not complying with the sale deed.
"Maharashtra is the first state to enact this law. We hope this changes public perception that the government and public representatives favour developers," said minister of state for housing Sachin Ahir.