Maharashtra is reviewing whether to repeal the 1963 Maharashtra Ownership Flats Act (MOFA). Builders push for scrapping, citing RERA, while housing federations warn that repeal could harm flat owners and over 2 lakh apartment units. Expert input is being collected
Commissioner for Cooperation and Registrar of Cooperative Societies, Deepak Taware, has asked both sides to submit written arguments within a week and will file his report in two weeks. File pic/Satej Shinde
The debate over 'ease of business' versus protecting flat owners under the Maharashtra Ownership Flats Act (MOFA) has reignited, with the state government once again examining whether the six-decade-old law should be repealed. While the builder lobby has pushed for its scrapping, housing federations have warned that doing so would severely compromise the rights of ordinary flat purchasers.
To assess both sides, the State Commissioner for Cooperation held a high-level meeting on November 24 with CREDAI Maharashtra, the State Housing Federation and other stakeholders. A detailed report will soon be submitted to the state government. mid-day had first flagged the issue in two earlier reports in 2022.
Developer lobby backs repeal
Representing CREDAI Maharashtra, Vice President Aditya Javdekar said the real estate sector was already “over-regulated” and did not need multiple overlapping laws.
According to Javdekar:
>> RERA alone offers strong and adequate regulation
>> MOFA is misused by authorities during deemed conveyance, despite high court rulings against it
>> Provisions for society formation and conveyance vary across MOFA, RERA and Housing Cooperative Law
>> After almost a decade of RERA’s implementation, MOFA has “outlived its purpose”. However, certain sections needed for administrative and legal purposes could be retained (similar to the approach taken with the ULC Act (Urban Land Ceiling and Regulation Act).
A meeting was convened by the Commissioner of Cooperation to discuss on repeal of the MOFA Act, wherein the State and District Federation Directors, along with representatives of CREDAI, were present on November 24. Pic/By Special Arrangement
“CREDAI has always supported the smooth conveyance of completed projects to societies, as mandated by RERA. All provisions required for this already exist under RERA. MOFA should therefore be repealed,” Javdekar said.
Housing federations oppose
Housing activists and the State Housing Federation strongly disagreed. Advocate Shreeprasad Parab, expert director, argued that repealing MOFA would hurt the common man and destabilise Maharashtra’s housing framework.
Parab said:
>> MOFA is a social welfare law, not merely a regulatory statute
>> It aligns with constitutional principles of distributive justice and cooperative autonomy
>> Redevelopment depends on MOFA, which confers legal title through conveyance or deemed conveyance.
>> Scrapping the law without safeguards would affect more than 1.25 lakh societies and 2 lakh apartment units, leading to litigation and delays.
“MOFA is not just a regulatory statute; it is a vital social welfare law that protects the rights of millions of cooperative and apartment residents in Maharashtra. Repealing it without ensuring proper title transfer will have grave consequences,” Parab said.
‘Both sides will be heard’
Commissioner for Cooperation and Registrar of Cooperative Societies, Deepak Taware, who chaired the meeting, told mid-day: “Before submitting my report, it was essential to consult key stakeholders, including both CREDAI and the housing federations. One side argued that MOFA is critical for the sector and that RERA lacks the competence to safeguard pre-RERA societies. The other suggested consolidating all provisions into a single act for ease of business.” Taware has asked both sides to submit written arguments within a week and will file his report in two weeks.
Experts weigh-in
Advocate Godfrey Pimenta, who practices in MahaRERA, said, “Repealing MOFA would harm flat buyers, as it currently provides essential protections. For instance, Section 4 mandates that sale agreements specify key details such as possession date, carpet area and a title certificate from an advocate confirming land ownership. Sections 11 and 11A allow flat purchasers to claim conveyance, with deemed conveyance as a fallback.
Section 13 penalises developers for violations, including failing to maintain separate accounts or register agreements before accepting advances. While RERA strengthens real estate regulation, it does not fully replace MOFA’s protections, especially for older projects. Repealing MOFA without alternative safeguards would favour developers, leaving buyers vulnerable.”
CA Ramesh Prabhu, founder chairman of MahaSEWA, said, “MOFA 1963 was India’s first law to regulate the sale, transfer and management of flats in multistorey projects before, during or after construction. It has undergone several amendments to close loopholes, making violations both criminal and civil offences. MOFA protects existing members and new purchasers in redevelopment projects, which RERA does not cover.
Key provisions include maintaining separate accounts, forming societies and executing conveyance within four months, with deemed conveyance as a backup. Promoters, facing stricter compliance under MOFA, want it repealed, but numerous High Court and Supreme Court judgments uphold it. Housing federations and consumer bodies oppose its repeal, as it would nullify key court rulings and harm public interest.”
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