While builders rushed to register under it, real estate experts warn not to ignore MOFA
Around 9,072 projects were registered across Maharashtra yesterday evening. Pic for representation
With the deadline for registrations under the Real Estate (Regulation and Development) Act - RERA getting over yesterday, real estate experts have cautioned builders to also adhere to the Maharashtra Ownership Flat Act (MOFA), 1963, guidelines, which otherwise are being ignored across Maharashtra in the light of RERA. There is a misperception about choosing one. This might land the builders in trouble, as real estate experts say both RERA and MOFA will continue to be effective.
ADVERTISEMENT
Interestingly, if there is a conflict between the provisions of RERA and MOFA, then provisions of RERA will prevail. RERA is a central act, while MOFA is a state act.
Also read: Only 10% projects have signed up with RERA
Experts speak
Speaking to mid-day, property expert advocate Vinod Sampat said, "Many flat purchasers and builders are not aware that they have to comply with RERA as well as MOFA. MOFA makes a mention of the balance FSI. MOFA requires the builders to compulsorily execute a tripartite agreement if the property is not transferred in the name of builders. Invariably the property is not standing in the name of the developers. This is on account of the fact that earlier development agreements attracted stamp duty of 1 per cent. If conveyance was taken, the stamp duty payable was 5 per cent. If one looks at Intimation of Disapproval (IOD) the permission for development is given in the name of the developer acting as constituted attorney of the property owner."
Also read: Mumbai: Poor show for real estate registration worries RERA
Vilas Kothari, president of Maharashtra Chamber of Housing Industry (MCHI), Raigad added, "Certain norms which were not covered under MOFA have now been covered under RERA, for instance no developer/builder can advertise or print the brochure of ongoing projects without having RERA registration number. Under RERA builders have to pay interest to the flat purchaser, which was not the case in MOFA."
Advocate Sanjay Chaturvedi admits that while MOFA was indeed the oldest act, many builders did not adhere to its norms.
Vikram Mehta, president Confederation of Real Estate Brokers' Association of India (CREBAI) said, "Some lawyers and real estate experts are of the belief that MOFA and RERA will go hand in hand, and others say after RERA, MOFA has been repelled. Clarity is expected to come in soon."
Also read: Mumbai: Real estate launches hit after the implementation of RERA
Official speak
Vasant Prabhu, secretary MahaRERA said until 8 pm yesterday, they had around 9,072 projects registered across Maharashtra, and around 7,249 brokers.
Prabhu added, Mumbai city has 414 projects registered, followed by Mumbai suburban with 1,606 registrations. Thane including Navi Mumbai has 1,132 registrations. The registrations were to go on till 12 am.
In Bombay high court
According to advocate Vinod Sampat, "There were three petitions including those filed by DB Realty and Neelkamal, challenging the requirement of registering ongoing projects, especially in cases where almost 90 percent construction is over, and all their rights and obligations are frozen prior to onset of RERA, saying it impinges Article 19(1)(g) of the Constitution. In both the cases the court has not given any interim relief. The court has asked state and RERA authorities to reply in three week's time.
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
