‘State allows builder to sell car parking’

Mumbai: Days after the state cabinet approved a legislation meant to improve transparency in the housing sector, activists have objected to certain "grey areas". 

    The cabinet approved the Maharashtra Housing (Regulation and Promotion of Construction, Sale, Management and Transfer) Act, which contains provisions for the formation of a housing authority and an appellate tribunal. To be put up for approval before the state legislature during the budget session, the 
Act will replace the existing Maharashtra Ownership Flats Act (MOFA), 1963, which was also meant to provide relief to flat purchasers against malpractices by developers in construction, sale and transfer of flats. 
    Provisions of the MOFA have been included in the new Act. Activists, however, observed that some modifications or new clauses introduced went against the "interests of a flat purchaser". 
    Ramesh Prabhu, chairman, Maharashtra Societies' Welfare Association (MSWA), alleged that the new Act recognizes the right of a builder to sell car parking areas to flat purchasers. 
    Objecting to a clause which states that the builder should mention the proportionate price of parking spaces separately in the agreement, Prabhu claimed that there existed a Supreme Court directive in this regard, which prohibited selling of car parking. 
AGAINST FLAT BUYERS? 
ACTIVISTS SAY: 

• Clause in new housing regulation Act on separate mention of price of parking spaces violates Supreme Court directive 

• New Act allows builder to sell utility areas like flower beds, dry balconies and pocket terraces 

• Provision to amend layout could lead to developer 'fleecing' flat buyers 

• Condition for formation of cooperative society not present in previous legislationMORE TRANSPARENCY IN HOME DEALS: STATE 'Open space can be misused' 
Mumbai: Activists have decried 'grey areas' in the new housing regulation Act. Advocate Vinod Sampat, president of Cooperative Societies', Residents and Users Welfare Association, said the clause relating to pricing of parking lots "completely disregards the SC directive". 
    State officials however said that the provision was only meant to bring in more transparency in home deals. Even the model guidelines formulated by the Centre in this regard make a similar provision, an official added. 
    Chairman of MSWA Ramesh Prabhu further alleged that the new Act recognizes the right of the developer to sell utility areas like dry balconies, flower beds, pocket terraces, which were not provided for in MOFA. The official however said that these spaces are anyway being sold. 
    Activists opposed another clause which permitted promoters/developers to amend or modify the layout including recreation grounds, gardens and playgrounds. Prabhu said that this too contradicted another SC verdict. Sampat said that this could amount to "fleecing" of the flat buyer. "A flat purchaser often buys a house on the basis of the open space shown in the layout. By allowing developers to amend plans, the state is only facilitating an exercise wherein he can construct on that open space," he said. 
    Prabhu also objected to a condition imposed for the formation of a cooperative society. "It states that for the registration of a society, all flat owners have to pay the full consideration amount towards the purchase and other amounts. This means, if the developer chooses to keep amounts payable by one or two flat buyers pending, the registration of the society and the conveyance of the land and building will become difficult," he said. Sampat alleged that the MOFA Act did not contain this provision. 
    Both also objected to the provision stating that it would not be necessary for the promoter to obtain consent of permission from flat purchasers for utilizing FSI, TDR and or additional FSI in a bigger sized (layout) plot. A state official however said that this was only applicable for FSI and TDR remaining after conveyance of common amenities to a federation of societies, and buildings to individual societies.