3 Years' Jail for the Builder!
In the last budget session, Maharashtra Government introduced the Maharashtra Housing (Regulation and Development) Bill 2012. In a great hurry. Without inviting comments from the citizens. Activists called it pro-builder Bill.
So, a 19-member joint select committee of the Maharashtra state legislature was formed to give "property buyer friendly paint" to the Bill. This joint committee has recommended a few "attractive" amendments to the Maharashtra Housing (Regulation and Development) Bill 2012. Like 3 years imprisonment for the builder for not obeying the Housing Appellate Tribunal!
Sachin Ahir, minister of state for housing, is going to reintroduce "The Bill", along with the recommendations, in the legislative assembly today. "The Bill" will replace the Maharashtra Ownership of Flat Act (MOFA) that has been in force since 1962.
Gang of 3!
If you look at the recommendations, you will realize that The Bill is nothing but the government's way of decorating the trap set by the builders to catch the naive property buyers. An effort to make the scared property buyers "feel safe" to give away hard earned money - for free - to finance the builder's business.
The Maharashtra Housing (Regulation and Development) Bill 2012 is nothing but Maharashtra Government's contribution towards promoting the idea of 'booking a flat' and helping the builders to take prisoners. Assisting housing finance companies to convert the property buyers into slaves for life. To trap the vulnerable property buyers who are threatened by the irrational property price rise and are desperate to own a home at any cost.
All these efforts, to establish a 'Housing Regulatory Authority' and a 'Housing Appellate Tribunal', 'Maharashtra Housing (Regulation and Development) Bill 2012', are nothing but Maharashtra Government's way to pay back to it's partners - builders & banks - for the revenue it earns from the stamp duty, registrations charges & VAT from the property buyers.
The government always plays the role of 'a good cop' when it deals with it's citizens. So, now, there would be a Housing Appellate Tribunal. In case of a dispute with the builder, a flat owner can go to the tribunal. If the builder disobeys the tribunal, he can face 3 years imprisonment.
This provision of 3 years imprisonment existed in the old Maharashtra Ownership Flats Act (MOFA, 1963) too! But do you know of any builder who was imprisoned? No! Because regulating the real estate industry is just a farce. Main motto of the government is to promote the idea of booking and to assure uninterrupted supply of interest free funds from the property buyers to the builders.
Risks Involved in Booking a Flat:
So, for me Maharashtra Housing (Regulation and Development) Bill 2012 is nothing more than the a warning to all those who are not aware about the risks involved in booking a flat. To get the idea, please, have a look at the recommendations:
1) The builder cannot make any alteration to a flat once it is sold - without the flat purchaser's consent.
2) The builder cannot add a floor or a wing to a building - without the flat purchaser's consent.
3) Any amenity promised - such as a garden - cannot be altered.
4) If the builder fails to give possession of a flat within the promised period or abandons a project, he will not only have to refund the amount with 15% interest, but also have to pay a penalty.
5) If the housing regulator is satisfied that the builder is unable to complete a project, the regulator can let the property buyers come together and appoint contractors and consultants to complete construction of the project.
6) A flat purchaser can demand rectification of any defect within five years of the purchase.
7) Preserving open space is mandatory, it cannot be used as a parking lot.
8) Fire safety systems in high rise buildings are mandatory too.
9) The builder can not make changes to recreation facilities without the consent of the property buyers.
10) If the purchaser fails to pay any outgoings for over three months, the builder can cut off essential services - like water, power and gas - only after the matter is heard by a competent authority.
11) The builder cannot sell 10 per cent flats in each building. These flats will be retained by housing regulatory body till the completion & occupation certificate is obtained by the builder. The list of these 10 per cent flats will be displayed on the government website so that no property buyer will buy them.
12) No pre-launch bookings! As per The Bill, the builder can not sell the flats , accept the bookings, before the plans are approved by the authority.
Now, the builder has to submit the plans, get sanctions & commencement certificates, display the plan on government's website and then only can accept bookings.
Moral of the story:
So on & so forth. In short, it's not about a Maharashtra Housing (Regulation and Development) Bill 2012 or about a good builder and a bad builder. It's all about the way you buy the property. When you book a flat, you buy a concept on paper. While implementing that concept, anything can happen. Sometimes, may be because of genuine, valid reasons. But, for sure, mostly, at your cost. However, your builder would not be sent to jail even for a day. But, you suffer for life. Am I right, Mr. Sachin Singh, the first citizen of Nanded City Pune?
So, point is, don't get trapped! Let the builder build, obtain the completion & occupation certificate, and send a limozin for you!!
1) TUESDAY, JULY 17, 2012
Maharashtra Housing (Regulation and Development) Bill 2012 - "The Trap is Set!"
1) MONDAY, JUNE 25, 2012
Invite me for a cup of tea!
2) Errant builders could face 3 years jail in flat dispute
3) ‘Housing Act will lead to endless court battles’
4) Maharashtra Bill to set up real estate watchdog
5) Maharashtra Housing Regulation and Development Bill - Will it help?
6) Proposed Maharashtra Housing Bill has many loopholes: Experts
7) Amended hsg bill empowers buyers
8) Public meeting to discuss & deliberate on the proposed Maharashtra Housing ( Regulation and Development) Act, 2012
9) Maharashtra Bill Proposes Criminal Proceedings On Erring Developers
10) 'Housing regulatory law to benefit builders, buyers'
11) While Mumbai realtors complain, new launches propel sales
12) Housing bill focuses on safety issue
13) ISSUES ARISING FROM THE PROPOSED MAHARASHTRA HOUSING ACT-2012
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