The state housing department is likely to present the long-pending proposal for setting up the Housing Regulatory Authority before the cabinet this month.
The government will have to amend the existing Maharashtra Ownership Flays Act 1963, to set up the authority - which aims at protecting buyers from unscrupulous builders and bring in greater transparency in real estate deals.
State housing secretary Gautam Chatterjee on Friday presented the proposed amendment before chief minister Prithviraj Chavan.
The bill was to be tabled in the monsoon session of the state legislature. However, the state cabinet did not want to clear the bill hurriedly.
The Housing Regulatory Authority, a quasi-judicial body, with powers to penalise builders for cheating buyers, was first mentioned in the state's housing policy.
However, the move to set up the authority met with opposition from builders and hence had not made it to the state legislature.
Now, with Union ministry of housing and poverty alleviation's draft bill ready, the state government has little option but to enact the housing regulatory law soon.
The proposed authority will make it mandatory for developers to register their projects and also give details such as cost, construction plan and timeline.
These will be made public on the regulatory body's website.
If there are complaints that builders have not adhered to promises made while selling the flat - such as giving possession on time, providing all amenities promised and adhering to the size of the flat - then the regulatory authority can adjudicate the dispute and penalise the builders.
Buyers can also approach he authority if the developer is not selling the flat on carpet area basis.
However, unlike the energy regulatory commission, this authority will not have powers to regulate the housing prices.
A senior official however pointed out, "In a deficit market, this authority will work as a watchdog and make real estate purchases more transparent and will ensure buyers are not cheated."