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Decision on repeal of Maharashtra Ownership of Flats Act (MOFA) yet to be made

#Law & Policy#India#Maharashtra
Last Updated : 28th Jun, 2023
Synopsis

The Maharashtra government has not yet reached a decision regarding the repeal of the Maharashtra Ownership of Flats Act (MOFA), 1963, according to Deputy Chief Minister Devendra Fadnavis. While developers' organizations have called for the Act's repeal, numerous citizens and consumer groups have voiced their support for its continuation. The housing department has not engaged in discussions with all stakeholders and is considering their opinions before making a final decision. Repealing MOFA would impact housing societies and buildings not covered under the Real Estate (Regulation and Development) Act (RERA), which were governed by MOFA until the implementation of RERA.

Last week, the Deputy Chief Minister of Maharashtra, Devendra Fadnavis, stated that the state government has not yet reached a decision regarding the repeal of the Maharashtra Ownership of Flats Act (MOFA), 1963. While developers' organizations have called for the Act's repeal, numerous citizens and even the cooperation department have voiced their support for its continuation.




Officials from the housing department also confirmed that they have not reached a conclusion as they have not engaged in discussions with all stakeholders on the matter. Consumer groups have recently dispatched multiple appeals to the housing department, urging them not to repeal MOFA. These groups hope that the government will refrain from making any announcements regarding the Act ahead of the local polls or general elections.



Ramesh Prabhu, Chairman of the Maharashtra Societies Welfare Association, has submitted appeals to both the cooperation department and the housing department, requesting that the Act not be repealed. Prabhu emphasized that repealing MOFA would result in a grave injustice to the housing societies where millions of people reside.



Projects that are not registered under the Real Estate (Regulation and Development) Act (RERA) are currently governed by MOFA. From 1963 until the implementation of RERA, thousands of buildings were constructed under MOFA. Repealing the Act would deprive such buildings, as well as new buildings not covered under RERA, of the benefits and protection provided by MOFA.



The fate of MOFA remains uncertain as the state government deliberates the contrasting opinions of developers' bodies, consumer groups, and other stakeholders. Further discussions and consultations are expected to take place before a final decision is reached.

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