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The state of Maharashtra in India is reviewing a draft bill called the Maharashtra Transfer of Title in Real Estate Project Bill, which is expected to replace the existing Maharashtra Ownership of Flats Act (MOFA), 1963. The new bill is aimed at dealing with conveyance deeds of housing societies not covered under the Real Estate (Regulation and Development) Act (RERA). The state cooperation minister, Atul Save, said that his department is studying the draft of the new bill and will discuss it with all stakeholders before giving the final approval.
The proposed bill emphasizes the execution of conveyance deeds by developers within three months, and it includes a mandatory occupancy certificate (OC) for carrying out conveyance deeds. This is different from the existing MOFA, which allows deemed conveyance without an OC after giving a self-declaration that it will be done later. The department officials have clarified that the draft bill will be discussed with all stakeholders before giving the final nod.
Developers' bodies have demanded the replacement of MOFA with the new bill. However, consumer forums have expressed concern that the new act might be toothless and should not be repealed. The chairman of the Maharashtra Society Welfare Association, Ramesh Prabhu, said that the developers' major concern pertained to Section 13 of MOFA, which stipulates that promoters indulging in violations were liable to criminal prosecution. He added that repealing MOFA would encourage wrongdoers.
On the other hand, Abhay Kele, secretary of the National Real Estate Development Council, the developers' body that demanded the repeal of MOFA, said that it was time to simplify the working of the real estate sector by repealing MOFA. The president of the Confederation of Real Estate Developers' Association of India (Credai), Sunil Furde, said that if the housing department was considering a new act in place of MOFA, it should be simplified for implementation.
In conclusion, the proposed Maharashtra Transfer of Title in Real Estate Project Bill is expected to replace the existing MOFA, which has been in effect since 1963. The new bill is aimed at dealing with conveyance deeds of housing societies not covered under RERA. However, consumer forums have expressed concern that the new act might be toothless, while developers' bodies have demanded the repeal of MOFA. The state cooperation department officials have clarified that the draft bill will be discussed with all stakeholders before giving the final nod.
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