Maharashtra govt mulls repeal of MOFA, fate of over 1.25L co-op housing societies uncertain

With the state government contemplating the repeal of the Maharashtra Ownership of Flats Act MOFA 1963 the fate of over 125 lakh registered cooperative housing societies in the state seems to hang in the balanceThe repeal of the law may impact the future redevelopment of societies where the conveyance or deemed conveyance procedure has not been initiated A conveyance deed is a vital document that transfers the ownership of a building and the plot on which it is built from a developer or landowner to a society Deemed conveyance a concept introduced by the Maharashtra government in 2008 can be obtained under MOFA by a society through the competent authority if the developer doesnrsquot transfer the ownership right within the stipulated timeAlso read Maharashtra to start best cooperative housing society award soonAdvocate Shreeprasad ParabHighly placed officials in Mantralaya have confirmed to midday that a letter was issued to the cooperative commissioner on September 21 by Anoop Kumar principal secretary cooperation and marketing on the subject of repealing MOFAldquoIt seems the state government is seriously considering repealing the MOFA The letter has specifically asked the cooperative commissioner to furnish details on the actual number of cooperative housing societies registered in the state and the number of societies where the deemed conveyance process is completed and pending for the years 1962 to 1999 2000 to 2010 and after 2010 to daterdquo a source revealedldquoThe letter further asks about the steps taken by the cooperative department for the successful completion of the deemed conveyance process the number of cases pending before the Bombay high court with regards to deemed conveyance and the consequences on cooperative housing societies if MOFA is repealed by the state government The cooperative department is expected to reply to the state government at the earliest on the points raised aboverdquo the source saidMOFA is the only power vested with the common man to take on errant developers while exercising their right to receive their conveyance deed Some of its provisions are still in force where the Real Estate Regulatory Authority RERA of 2016 is silent Interestingly with the introduction of RERA the Maharashtra Housing Regulation and Development Act of 2012 was repealed but not MOFAHousing societies are registered under the Maharashtra Cooperative Societies Act 1960 Representation photoIt is a known fact that developer associations and bodies in Maharashtra have time and again proposed that the state government repeal MOFA as they were concerned about not having a unified legal regime that governs builders even after RERA was introducedAn official from the cooperative department who did not wish to be identified said ldquoThe present system of getting conveyance of land is working well albeit at a slow pace but it will pick up MOFA is the only recourse available to flat owners and cooperative societies to get their land and building conveyed in the name of the society and is the only remedy for them in case of a dispute which makes it a deterrent The developer lobby may be insisting on the repeal of MOFA in the backdrop of provisions under RERA but I feel the government should think about the common flat owners and should not allow MOFA to be repealedrdquo Anil Kawade the cooperative commissioner was not available for commentState federation reactsThe State Housing Federation the parent body of cooperative housing societies in the state is yet to receive official communication from either the state government or from the cooperative commissioner on the issue but when contacted by midday the federation expressed its dismay and threatened to vehemently oppose any potential move to repeal MOFAAdvocate Shreeprasad Parab expert director at the State Housing Federation said repealing the law would be a failure on the part of the state to protect the interests of the public at large and would push the cooperative movement into the preindependence era ldquoIt will ruin the fate of over 120 crore people residing in these societies as those in the process of opting for redevelopment will be at the mercy of the developer forever And if the MOFA gets repealed the developers would once again muzzle the common man the state housing federation which is waiting for an official communication on the issue fearsrdquo he saidldquoThe provisions of formation of cooperative societies without the cooperation of the developer and also the provisions of transfer of title without the developerrsquos cooperation as stated in MOFA are beneficial to the public at large in Maharashtrardquo Parab saidWhy it shouldnrsquot be repealedIn the state of Maharashtra there are more than 125000 registered housing societies which have more than 3000000 members and more than 12000000 residents These societies are registered under the Maharashtra Cooperative Societies Act 1960 RERA came into effect on May 1 2016 with no provisions for the unilateral formation of housing societies and it also has no provisions for unilateral deemed conveyance Also RERA has a prospective effect and not a retrospective effect therefore if MOFA is repealed the societies and their members will be at the mercy of the developers for the transfer of title of their property Parab saidAlso without a conveyance deed housing societies will not be eligible for redevelopment and if MOFA is repealed housing societies whose buildings are dilapidated prior to the enactment of RERA cannot be redeveloped without conveyance deeds said the advocate3000000Approx members of registered housing societies in state