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The amendment makes it mandatory for developers to execute the conveyance deed, the document transferring the plot to the housing society or the flat purchasers. In case of failure to do so, developers could end up facing imprisonment for a period ranging from six months to a year as well as a fine of up to Rs 50,000. Furthermore, such a developer will not be given permission to undertake any new construction project for a period of five years.
Several builders hold on to the conveyance deed for decades after sale of flats because in case the building is later taken up for redevelopment or if the plot has some some unutilised Floor Space Index, the builder could tap that in the future.
The amendment now gives the district deputy registrar the power to act as a competent authority. If the developer fails to execute the deed in favour of the housing society, residents can approach the competent authority with stamp duty and other registration documents. The authority can in turn direct the sub-registrar to issue a deemed conveyance and at the same time penalise the builder with a jail term and fine.
According to Vinod Sampat, president of the Co-operative Societies Residents, Users and Welfare Association, every society seeking to go in for redevelopment had to pay large sums of money to their original developer in the absence of a conveyance deed in their name. “This is a huge respite for about 50,000 societies in Maharashtra that were held to ransom by builders. The MOFA Act was till now only a paper tiger, it has now finally got some real powers,” said Sampat.
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My Builder at Airoli, Navi Mumabi has covered my terrace ans sold upper room resulted out of that to another person. by covering the terrace i got one enclosed room. he has taken full amount of the room from me as well as from the person staying above me. builder has mentioned the total area that resulted after terrace covering. now there is deviation in area that is written in sale deed and actually under possesion.Does MOFA act protect purchasers in this regard. we have formed society under MOFA act as the builder did not give the co-operation. Please advice on my e-mail. Thanks
My Builder at Kamothe, Navi Mumabi refuses to add date of posswession in agreement. On checking, I found most of buiders do the same thing. Does MOFA act protect purchasers in this regard, in case the agreement is signed without date? The building is 90% ready. Please advice on my e-mail. Thanks