State set to punish errant builders with 3 years jail

All-Party Panel Adds Teeth To New Housing Regulatory Bill Mumbai: In a move that could streamline the fragmented housing sector, a housing regulatory authority and a housing appellate tribunal are close to becoming reality, possibly within a year. Along with transparency, flat buyers can expect redressal in case of a dispute. A developer could face up to three years imprisonment for failing to comply with the orders of the tribunal.      In a major amendment to the Maharashtra Housing (Regulation and Development) Bill, 2012, the 19-member joint select committee of the state legislature has recommended imprisonment as punishment along with Rs 10 lakh penalty. The panel has also made open space mandatory, but it can't be used as a parking lot.  HOUSE THAT?  Joint select committee of legislators' suggested changes to the Bill      Compulsory open space in buildings must be maintained; it cannot be used for parking      No additional floors or wings can be added, no alterations to the flat can be made without the previous consent of the persons who have agreed to take the flats      Conveyance will be made to society only, and not person to person      The term 'independent areas within a flat' is to be dropped as it is already covered under carpet area and utility area      If an amenity such as a garden is promised then it cannot be altered without the consent of those who have agreed to purchase the flats      Promoter will have to pay a penalty along with refund of amount paid with interest for failure to give possession Punishment For Non-ComplianceImprisonment of up to three years and a penalty of Rs 10 lakh 'Hsg Act will lead to endless court battles'  Mumbai: The select members' committee has justified thetoughsanctions againsterrant builders in the amended housing regulatory Bill, saying "there was a provision made in the Maharashtra Ownership Flats Act (MOFA, 1963) to award punishment of three years imprisonment. Hence, there is no objection to making a provision in thisAct aswell''.      Apart from safeguarding open spaces (barred from being used as parking lots), the other important amendment is that the developer cannot make any alteration to a flat once it is sold without the purchaser's consent and no floor or wing can be addedto a building without their consent. Similarly, an amenity promised such as a garden cannot be altered. Also, if a developer fails to give possession of a flat within the promised period or abandons a project, he will not only have to refund the amount with 15% interest, but alsohaveto pay a penalty.Aflat purchaser can demand rectification of any defectwithin five yearsof the purchase.      The Bill, along with the recommendations, will be reintroduced in the legislative assembly on Monday. Sachin Ahir, minister of statefor housing, said the government had made a sincere attempt to correct the system. "We have worked very hardtobring a housing regulatory authority. Since legislators from all partieswere membersof thejoint select committee, the Bill with the recommended changes should notface any opposition."      Activist Krishnaraj Rao, though, warned that the imprisonment clause would make the authority and tribunal ineffective. "The problem with MOFA was that everything had to go to court. Did anybody ask how many builders were imprisoned? The tribunal is a quasi-judicial body and cannot hand out imprisonment. So invariably the matter will go to court. It will not be a prompt system,'' he said.      Rao said since the quantum of penalty to be paid for notfulfilling a promisehas not been defined, this too would leadtodisputes andultimately end up in court. "There is a lack of vision. Once a matter goes to court one can only imagine the number of years it will take for a decision. The builder will be under no obligation to pay till the court gives its verdict. It will be a very costly affair for theconsumer,'' hesaid.      Lawyer and activist Y P Singh said non-compliance of MOFA provisions invites three years imprisonment which is a cognizable and nonbailable offence under the Criminal Procedure Code. "This is to ensure that the police use their powers of arrest and raid to gather evidence. Under the new recommendations, the imprisonment is for non-compliance of the tribunal orders, which means contempt of the orders. So there will be no investigation. It serves no purpose rather makesthe process very expensive."      Singh said this should be an additional remedy and not replace the existing provision as otherwise "the fear of law will become less". Devendra Phadanvis, a BJP legislator who was an invitee to the committee, said while they were apprehensive about the imprisonment clause, the minister has assured them the government would monitor the implementation of the law for ayear andthen suo motubring in amendments.The quantum of penalty, he said, would be definedin the rules.  HOMING IN  Joint select committee's recommended changes to the Bill, which will be reintroduced in the assembly on Monday      Compulsory open space in buildings; it cannot be used for parking purpose      Conveyance will be made to society only, and not a person      The term 'independent areas within a flat' is to be dropped as it is already covered under carpet area and utility area      No additional floors or wings can be added or alterations made without the consent of flat buyers      A flat buyer can demand defect rectification within five years of the purchase and not just three years      All documents for every phase of development certified by the chartered engineer or chartered architect must be submitted to the Housing Regulatory Authority      Names and addresses of the architect and turnkey contractor should be disclosed      Responsibility of authorized agents and brokers appointed by promoter will be fixed