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Consumer groups in Maharashtra have raised serious concerns over recent amendments to the Maharashtra Ownership of Flats Act (MOFA), stating that the changes weaken legal protections for homebuyers. The amendments remove criminal liability for builders in cases of violations such as delayed possession, misuse of buyer funds, or non-registration of conveyance, effectively granting them legal immunity. Critics warn that excluding projects registered under RERA after May 1, 2016, reduces MOFA's relevance for many developments, leaving buyers of legacy and redevelopment projects vulnerable. Authorities are being urged to restore key provisions to safeguard public interest.
Consumer body Akhil Bharatiya Grahak Panchayat has formally asked Maharashtra Chief Minister Devendra Fadnavis to withdraw recent amendments to the Maharashtra Ownership of Flats Act (MOFA), describing them as anti-consumer and unjust. The group highlighted that the amendments effectively remove criminal liability for builders who fail to comply with core provisions, thereby undermining the Act's original purpose of protecting flat purchasers. Authorities have been urged to direct police and relevant departments to take action against defaulting developers and to restore homebuyers ownership and conveyance rights across the state. Advertisement
The memorandum submitted to the CM pointed out that nearly ten key MOFA provisions were removed in the amendments. Sections that prescribed imprisonment or fines for violations of Sections 3, 4, 5, 10, and 11, as well as sections mandating the conveyance of land and buildings to housing societies or flat purchasers associations, were nullified. Provisions imposing criminal liability on company directors, partners, managers, and other officials were also removed, effectively granting legal protection to builders offences.
Other critical requirements rendered ineffective include ensuring timely possession after an occupation certificate, compulsory display of sanctioned plans at construction sites, disclosure of complete project details, registration of sale agreements after accepting no more than 20% of the flat's cost, keeping buyer advances in separate bank accounts, construction strictly as per approved plans, formation of housing societies within three months, and execution of conveyance within four months of society registration. Consumer representatives argue that removing these obligations neutralizes the law's enforcement mechanism and reduces accountability.
The group further criticized the exclusion of projects registered under the Real Estate (Regulation and Development) Act (RERA) after May 1, 2016, stating that this limits MOFA's applicability mainly to legacy and redevelopment projects. While RERA covers many modern developments, MOFA still remains relevant for ongoing and older projects, where buyers may face delays or legal ambiguities without these protections.
Industry representatives have previously suggested that some MOFA provisions might overlap with RERA requirements. However, consumer advocates maintain that these protections are necessary to prevent misuse and ensure buyers rights are not compromised, particularly in cases where developers abandon projects or fail to comply with agreements.
The controversy underscores the ongoing tension between updating older regulations and maintaining effective consumer safeguards. Stakeholders are closely watching whether the government will reconsider these amendments and restore essential provisions to protect homebuyers interests.
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