PUNE: The Akhil Bharatiya Grahak Panchayat has called on Chief Minister Devendra Fadnavis to rigorously implement the provisions of the Maharashtra Ownership of Flats (MOFA) Act. They are demanding the immediate retraction of recent amendments, which they label unjust, anti-consumer, and contrary to the public interest. These changes reportedly provide “legal immunity” to builders by removing criminal liabilities for violations.
The organization emphasizes that law enforcement and relevant authorities should take criminal actions against errant builders and reaffirm ownership and conveyance rights for homebuyers throughout Maharashtra.
In a comprehensive memorandum directed to the CM on December 31, the consumer group cautioned that these amendments threaten the fundamental aim of MOFA—to safeguard flat purchasers—and will lead to widespread injustice for ordinary citizens.
Vijay Sagar, an officebearer of the Grahak Panchayat, stated that the state’s decision to revise MOFA and exclude projects registered under RERA after May 1, 2016, has diluted the effectiveness of the law. “The government has removed the deterrent effect of legal penalties. Builders who breach agreements, abandon projects, or extort money are now shielded from legal repercussions,” Sagar informed TOI.
The memorandum highlighted that nearly ten vital MOFA provisions, which previously mandated imprisonment, fines, and criminal prosecution, were omitted in the amendments. This includes Section 13 (1), which prescribed up to three years of imprisonment or fines for violations of Sections 3, 4, 5, 10, and 11, along with Section 11, which required builders to transfer land and buildings to housing societies or flat purchasers’ associations, and Section 14, which imposed criminal liability on company directors, partners, managers, and other officials.
Additional provisions rendered ineffective include timely possession following an occupancy certificate, mandatory display of sanctioned plans at construction sites, full disclosure of project details, execution and registration of sale agreements after receiving a maximum of 20% of the flat cost, and maintaining buyers’ advance payments in separate bank accounts.
The letter also stated that by nullifying Section 13, the state has effectively provided legal protection for builder offenses.
