Maharashtra Bill proposes criminal proceedings on erring developers

Promoters and developers of housing properties in Maharashtra will face criminal proceedings and a penalty of up to Rs 1 crore for delays and lapses in the implementation of such projects, according to a new bill tabled in the state assembly.

These provisions have been incorporated in the revised bill to repeal the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963. The government on Friday tabled the bill, which also proposes to establish Housing Regulatory Authority (HRA) and the Housing Appellate Tribunal.

"The objective is to promote planned and healthy development and construction, sale, transfer and management of flats, residential buildings and other similar properties with a view to protecting public interest in relation to the conduct and integrity of promoters and other persons," Minister of State for Housing Sachin Ahir, who tabled the bill in the state assembly, told Business Standard.

The minister said he had presented the bill in the budget session, which was referred to a joint select committee for consideration. According to the minister, the joint select committee, which had received over 3,000 suggestions and objections, gave its reports by inserting new provisions with regard to criminal proceedings and providing the status of a civil court to the Housing Appellate Tribunal.

Ahir said the Tribunal would have powers to summon any agency, including the BrihanMumbai Municipal Corporation and the Maharashtra Housing and Area Development Authority for delays in the implementation of projects. "In the earlier bill, it was referred as a project, but now promoters and developers have been included, who will attract criminal proceedings for delays and lapses. This will usher in transparency and discipline in the transactions of flats and put a check on abuses and malpractices," the minister noted.

Further, no person can start any transaction, including sale or marketing for sale of flats in a new project without displaying such flats on the website of the HRA. It would be the responsibility of the promoter to enter the details on the website.

More, HRA will have powers to cancel the registration of a project, if it is declared by a court that the contract or power of attorney or the writing from which the promoter derives the right to the land of development, is invalid.