Mumbai – The Maharashtra government approved the Maharashtra Housing Regulatory Authority Bill on Tuesday. This law was pending for approval from last many years. People from all walks of life have welcomed this decision which is expected to control the builders. Maharashtra has become the first state to implement this kind of law in the country. The law will come into existence from May 1, 2017.
When asked to Ramesh Prabhu, president of Maharashtra Societies Welfare Association, termed this law as historic. He also added that flat owners who feel cheated by the builder would now be able to approach the Housing Regulatory Authority.
Adv Vinod Sampat, president of Co-operative Societies Residents, Users and Welfare Association, also welcomed this decision of the government and said that government should allocate enough fund for smooth and proper functioning of this authority.
Important points of this law:
- To be implemented from May 1, 2017.
- Aggrieved persons can now approach the Authority if they feel being cheated by the builder.
- It is mandatory for the Authority to pronounce its judgment within 60 days.
- Every builder has to register himself with the Authority.
- The builder would not be able to sell flats from non-registered project.
- The money taken from the buyer should be used in that project only.
- It is binding on the builder to keep 70% project cost in a special bank account.
- The builder would require the consent of engineer, architect and chartered accountant to withdraw money from this special bank account.
- It is also being made mandatory for the builder to tell the buyer the exact time period required to complete the housing project.
- The builder will have to furnish reasons for re-registration if he fails to complete the project on time.
- The said project can be cancelled if a builder fails to fulfil his assurance of project’s timely completion.
- In this case, the special bank account of the builder would be sealed.
- The flat owners can complete this project and can even form their society from the account sealed by the Authority.