Soon a bill to protect flat buyers from errant bldrs

Mumbai: A bill to rein in errant builders and protect the rights of flat purchasers is likely to be tabled in the state assembly shortly. 

    The state government has proposed Housing Regulatory Authority and a Housing Appellate Tribunal to protect "public interest" and monitor the "conduct and integrity" of promoters, builders and those engaged in the construction industry. Under the law, when approved, developers who fail to comply with some of the stringent provisions of the proposed Act could be fined up to Rs 1 crore. The Act, however, will not cover a majority of residents because it does not pertain to people, whose buildings are being redeveloped, including tenants living in over 16,000 Mhada properties. "Flats or buildings constructed for providing permanent alternative accommodation to existing occupants of redevelopment projects shall not be governed by the provisions of this Act," said the draft bill. It will also not apply to Maharashtra Housing and Area Development Authority (Mhada) and boards established under the Mhada Act. 

    Officials reasoned that the Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) Act 1963, was not effective 

enough in protecting flat buyers from malpractices. "Flat purchasers could only approach consumer forum or civil courts. The new Housing Regulatory Authority will ensure effective implementation of the Act," an official said. 

    The proposed Maharashtra Housing (Regulation and Development) Act states that a builder must disclose the nature of his project, including the title of the land. The developer will also "disclose information relating to number and size of plots, layout plan, carpet areas, and utility areas of the flat, FSI/TDR/additional FSI consumed in the building." Builders will have to register the project and display it on the website of the Housing Regulatory Authority. 

    Besides, they will also have to put up on the website the time schedule of completion of the phase of each project. They will have to "specify in writing the date by which possession of the flat is to be handed over". "No transaction, including sale or marketing for sale, of apartments/flats in a new project without registration of the project and displaying such apartments/flats on the web site of Housing Regulatory Authority. No person shall start any transaction including sale or marketing for sale of apartments or flats in a new project or phase of such project without displaying such apartments /flats on the website," it said.