Developers who fleece consumers or abandon projects could face three years in jail. On Friday, joint select committee submitted a report with changes to the Maharashtra Housing (Regulation and Development) Act, 2012, which aims at setting up an independent regulatory authority to hear complaints against developers. The bill is now likely to be passed in this session of the state legislature.
In addition to allowing the housing regulator to send unscrupulous developers to jail, the committee has empowered the regulator to hand over an abandoned project to a group of home buyers, who can hire a contractor to finish the work. The committee has also increased defect liability period of a developer from three years to five years.
The joint select committee has also amended another clause that earlier allowed a promoter to cut off essential services like power and gas to flat owners if dues were not paid within three months. Among the 26 changes are provisions aimed at ushering greater clarity in dealings, such as demarcating carpet area and independent areas such as pocket terrace, garbage chute as different from common areas.