Realty factor: Vinod Sampat
By Vinod Sampat Senior advocate and expert on realty and property related issues
Q.Who are included in the definition of Promoter, as per the provisions of the MOF Act?
A. Section 2(c) of the MOF Act defines promoters. Promoter means and includes partnership firm, body or association of persons, irrespective of the fact whether it is registered or not.
The intention behind the body or association should be to construct block or buildings or flats or apartments for the purpose of selling some or all of them, to the persons or to a Company, Co-operative Society or other Associations of Persons.
It also includes his assignees. Where the person who builds and the person who sells are different persons, it includes both of them. It is also not necessary that the builder should necessarily be the owner of such plot.
Q.Can conveyance be done for free hold land. As regards lease hold land which document has to be executed?
A. Yes, conveyance has to be executed for free hold land. For lease hold land deed of assignment is executed for the remaining period of the lease.
Q.What are the powers of the competent authority under the MOF Act?
A. The powers of the competent authority under the MOF Act are stipulated in section 5,10, 11, and 13. The exercise of the aforesaid powers the competent authority will result in their being more transparency in the construction industry. Builders used to take the flat purchasers for granted. Now they will become more disciplined and accountable.
Q. What are the offences which are committed by promoters?
A. Section 13 of the MOF Act stipulates the offences which are committed by the promoter.