RERA comes to the rescue of homebuyers in Maharashtra | real-estate | Hindustan Times
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RERA comes to the rescue of homebuyers in Maharashtra

The legislation helps do away with relaxations to be provided to builders under MHRDA

real estate Updated: Sep 12, 2016 11:45 IST
Real Estate (Regulation and Development) Act, 2016 (RERA) helps do away with relaxations to be provided to builders under Maharashtra Housing (Regulation and Development) Act, 2012.
Real Estate (Regulation and Development) Act, 2016 (RERA) helps do away with relaxations to be provided to builders under Maharashtra Housing (Regulation and Development) Act, 2012. (Kunal Patil)

Section 7 of Maharashtra Ownership of Flats Act, 1963 (MOFA) does not allow the promoter to alter the structure of a flat without the consent of the purchaser or make any additions in the structure of the building without the consent of all the purchasers in the complex.

This position was sought to be diluted under the Maharashtra Housing (Regulation and Development) Act, 2012 (MHRDA) by permitting the builder to make alterations or additions to the flat without previous consent of all apartment owners. What this meant was that the promoter who was entitled to construct additional area resulting out of additional floor space index (FSI) being made available, could make alterations and additions to the flats/buildings by virtue of making ambiguous disclosures under the agreement, says Sudip Mullick, partner, Khaitan & Co.

MHRDA also proposed that the promoter be permitted to amend, modify and vary the layout including recreation ground, garden and playground disclosed along with the building plans, from time to time in accordance with development control regulations, including utilisation of the full development potential available without prior consent of all homebuyers.

Further, under MHRDA, the promoter was to be entitled to carry out further construction of new buildings in case of a layout or township development after obtaining approvals from local authority, without the prior consent of all the homebuyers.

The relaxations proposed to be provided to the promoters under MHRDA will not be applicable after implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA). Section 92 of RERA, which has come into force, repeals MHRDA. If the aforesaid sections of MHRDA had been notified, buyers’ consent could have been sought indirectly by the promoters using ‘innovative’ language which would have confused them (buyers), say legal experts.