The Maharashtra Housing (Regulation and Development) Act, 2012
Maharashtra · state statute
Open in Lexace · Ask the AI about this act2014 : Mah. II] 1
THE MAHARASHTRA HOUSING (REGULATION AND DEVELOPMENT)
ACT, 2012
[Text as on 22nd August 2024]
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CONTENTS
PREAMBLE.
SECTIONS.
1. Short title, extent and commencement.
2. Definitions.
3. Disclosures to be made by promoter.
4. Registering the project and displaying it on the website of Housing Regulatory Authority.
5. No transaction, including sale or marketing for sale, of flats in new project without
registration of the project and displaying it on website of Housing Regulatory Authority.
6. Responsibility of the promoter to enter record or de tails on the website of Housing
Regulatory Authority.
7. Cancellation of registration.
8. Issuing of advertisement or prospectus inviting advance or deposit.
9. Promoter before accepting advance payment of deposit, beyond twenty per cent., to enter
into agreement and agreement to be registered.
10. Effect of non-registration of agreement.
11. Responsibilities of promoter.
12. Promoter to maintain separate account of sums taken as advance or deposit and to be
trustee therefor and disburse them for purposes for which given.
13. Responsibility for payment of outgoings till property is transferred.
14. No alterations or additions without consent after plans are disclosed.
15. Defects noticed within five years to be rectified.
16. Effect of non-completion of project.
17. No mortgage, etc., to be created without consent of parties after execution of agreement for
sale.
18. Promoter to take steps for formation of co-operative society, company, Apex Body or
Federation.
19. Promoter to convey title, etc., and execute documents according to agreement.
20. General liabilities of flat purchaser.
21. Appointment of Competent Authority.
22. Establishment of Housing Regulatory Authority.
23. Composition of Housing Regulatory Authority.
24. Term of office of Chairperson and other Members of Housing Regulatory Authority.
25. Administrative powers of the Chairperson.
26. Removal of Chairperson and Member of Housing Regulatory Authority from office in
certain circumstances.
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27. Officers of Housing Regulatory Authority.
28. Meetings of Housing Regulatory Authority.
29. Functions of Housing Regulatory Authority.
30. Powers of Housing Regulatory Authority to call for information, conduct investigations, etc.
31. Powers of Housing Regulatory Authority to issue directions.
32. Power of Housing Regulatory Authority consequent upon cancellation of registration.
33. Measures to be taken by Housing Regulatory Authority for planned development
and promotion of housing sector.
34. Power of Housing Regulatory Authority to regulate its own procedure.
35. Vacancies, etc., not to invalidate proceedings of Housing Regulatory Authority.
36. Establishment of Housing Appellate Tribunal.
37. Term of office of Chairperson and Members and service conditions.
38. Removal of Chairperson and Member of Housing Appellate Tribunal from office in certain
circumstances.
39. Officers of Housing Appellate Tribunal.
40. Appeals to Housing Appellate Tribunal.
41. Powers and functions of Housing Appellate Tribunal.
42. Appeal to High Court.
43. Order passed by Housing Appellate Tribunal to be executable as a decree.
44. Penalty for contravention of section 4.
45. Penalty for contravention of sections 6, 16 or 17.
46. Penalty for non-payment by the allottee or flat or unit purchaser or organization.
47. Penalty for non -compliance of orders or directions of Housing Regulatory Authority
or Housing Appellate Tribunal.
48. Penalty for contravention of other provisions of this Act or rules made thereunder.
49. Penalty for non-compliance by promoters.
50. Miscellaneous provisions with respect to Competent Authority, Housing Regulatory
Authority or Housing Appellate Tribunal.
51. Power to make rules.
52. Power to make regulations.
53. Act to be in addition to Transfer of Property Act, 1882 and to override contract to the
contrary.
54. Act not to apply to certain Authority and Boards.
55. Removal of difficulty.
56. Repeal and savings.
SCHEDULE I
SCHEDULE II
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Act, 2012
MAHARASHTRA ACT No. II OF 20141
[THE MAHARASHTRA HOUSING (REGULATION AND DEVELOPMENT) ACT, 2012.]
[This Act received the assent of the Hon‟ble President on the 17th February 2014; assent was
first published in the Maharashtra Government Gazette, Part IV, on the 24th February 2014.]
An Act to regulate and promote the construction, sale, management and transfer of flats
on the ownership basis in the State of Maharashtra and to establish the Housing
Regulatory Authority and Housing Appellate Tribunal and to provide for
matters connected therewith or incidental thereto.
WHEREAS the Maharashtra Ownership Flats (Regulation of the promotion of construction, sale,
management and transfer) Act, 1963 (Mah. XLV of 1963), though enacted to provide for relief to flat
purchasers against sundry abuses, malpractices and difficulties related to the construction, sale,
management and transfer of flats, it is noticed by the State Government that, the said Act did not
provide for an effective implementing arm for its various statutory provisions, as the flat purchasers
could only approach consumer forum or civil court for acts of omission or commission regarding
provisions of the said Act;
AND WHEREAS the Go vernment considers it expedient to remove information asymmetry by
ensuring full disclosure by promoters or developers and also to ensure compliance of agreed terms and
conditions while registering, monitoring and regulating housing projects by the Housing Regulatory
Authority and to usher in transparency and discipline in the transactions of flats and put a check on
abuses and malpractices;
AND WHEREAS it is also considered expedient to establish the Housing Regulatory Authority
and the Housing Appellate Tribunal for ensuring effective implementation of the law and to promote
planned and healthy development and construction, sale, transfer and management of flats, residential
buildings, and other similar properties, with a view to protecting, on the one ha nd, public interest in
relation to the conduct and integrity of promoters and other persons engaged in the development of
such flats, residential buildings and other similar properties, and, on the other, facilitating the smooth
and speedy construction and maintenance of such flats, buildings and properties;
AND WHEREAS it is expedient to make a comprehensive law to regulate and provide for
promotion of the construction, sale, management and transfer of flats on the ownership basis in the
State of Maharashtra, and to establish the Housing Regulatory Authority and the Housing Appellate
Tribunal for effective implementation thereof and also to provide for matters connected therewith or
incidental thereto; it is hereby enacted in the Sixty-third Year of the Republic of India as follows :—
1. Short title, extent a nd commencement. — (1) This Act may be called the Maharashtra
Housing (Regulation and Development) Act, 2012.
(2) It extends to the whole of the State of Maharashtra.
(3) It shall come into force on such date as the State Government may, by notification in the
Official Gazette, appoint and different dates may be appointed for different provisions and any
reference in any such provision to the commencement of this Act shal l be construed as a reference to
the coming into force of that provision.
2. Definitions.— In this Act, unless the context otherwise requires,—
(a) “advertisement” means visible representation made to the general public either through
announcement or di splay or in any other manner whatsoever, offering for sale a flat or plot or
inviting persons to take such flat or plot on ownership basis and to make advances or deposits for
such purposes;
(b) “apartment” and “apartment owner” shall have the same meanin gs as respectively
assigned to them in the Maharashtra Apartment Ownership Act, 1970 (Mah. XV of 1971);
1 For Statement of Objects and R easons of the L. A. Bill No. XV of 2012 , See Maharashtra Government Gazette , 2012,
Extraordinary, Part V-A, dated 11th April 2012, pages 34-35.
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(c) “Apex Body” or “Federation” means an independent body formed by and consisting of
all the co-operative societies or companies or Condominiums or any other legal entity, constituted
of the flat purchasers in various buildings with or without wings located within a layout, where
each such co-operative society or company or condominium or any other legal entity, as the case
may be, shall co -operate in t he maintenance and administration of common areas and amenities
and facilities provided in the layout but shall independently retain control of its own internal
affairs and administration in respect of each of the buildings for which they are formed;
(d) “carpet area” shall have the same meaning as assigned to it in the relevant Development
Control Regulations;
(e) “common areas and amenities and facilities of a layout” means the areas, amenities and
facilities intended for common use of apartment owners in a layout and includes park,
recreational ground, play ground, open space, path, pathway, alleyway or garden located outside
the area of any building or buildings, street lights, securities, water and electric supply, sewerage,
drainage, public works, fi re fighting systems and works, water tanks, other utilities and services,
and the like, provided or to be provided by the promoter within the layout but shall not include
parking spaces or garages;
(f) “Competent Authority” means the Competent Authority appointed under section 21;
(g) “compulsory open space” means the minimum open space permitted and approved to be
kept as such while constructing a building or buildings by the local Planning Authority under the
Development Control Regulations or under any law for the time being in force;
(h) “conveyance” means the legal instrument of transferring property, property rights, and
title from one person or legal entity to another person or legal entity through registered deed and
shall include lease, sub-lease or assignment;
(i) “development”, with its grammatical variations and cognate expressions, means to carry
out development of building or the making of any material change in any building and includes
redevelopment;
(j) “development charges” means the cost of external development work to be carried out by
the local authority;
(k) “development works” means the internal development works and external development
works;
(l) “external development works” means infrastructure work such as roads and road
systems, landscaping, water supply, sewerage and drainage systems, electricity supply
transformer, sub-station or any other work which may have to be executed by the local authority;
(m) “flat” means a separate and self -contained set of premises used or intend ed to be used
for residence, office, show -room, shop, godown or for carrying on any industry or business and
the premises forming part of the building and includes an apartment.
Explanation.— If provision is made for sanitary, washing, bathing or other co nveniences as
common to two or more sets of premises, the premises shall be deemed to be separate and
self-contained ;
(n) “Housing Appellate Tribunal” means the Housing Appellate Tribunal established under
section 36;
(o) “Housing Regulatory Authority” means the Housing Regulatory Authority established
under section 22;
(p) “internal development works” includes roads, footpaths, water supply, sewers, drains,
tree planting, street lighting, provision for community buildings and for treatment and disp osal of
sewage and sullage water or any other work in the boundary of a layout necessary for its proper
development;
(q) “layout” means the schematic planning and,—
(i) development of more than one building, except for building accessory to the main
building, proposed on any land; or
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(ii) development or redevelopment of any tract of land admeasuring two thousand
square meters or more in a residential or commercial or in an industrial zone, including its
division or sub-division into plots;
(r) “limited common areas and facilities of a building” means entrance hall, staircases, lift,
common passages on every floor, fire fighting systems within building including fire chute,
refuge areas, garbage disposal area includings garbage chute, service floors or te rraces above the
upper most floor of the building and includes all areas in the building except parking spaces and
utility areas;
(s) “local authority” means the local authority as defined under clause ( 15) of section 2 of
the Maharashtra Regional and Town Planning Act, 1966 (Mah. XXXVII of 1966);
(t) “marketing” means advertising for sale and promotion for sale of any flat or land in any
project by the promoter;
(u) “Member”, in relation to the Housing Regulatory Authority, means the member of the
Housing Regulatory Authority and includes the Chairperson thereof; and, in relation to the
Housing Appellate Tribunal, means the member of the Housing Appellate Tribunal and includes
the Chairperson thereof;
(v) “open space” means an area forming an integral part of a site left open to the sky;
(w) “parking space” means an enclosed or unenclosed, covered or open area which is
sufficient in size to park vehicles;
(x) “prescribed” means prescribed by rules made under this Act;
(y) “project” means a housing project under this Act;
(z) “promoter” means a person, a developer or builder and includes a partnership firm o r
limited liability firm or any body or association of persons whether registered or not and who
constructs or causes to be constructed a block or bu ilding of flats for the purpose of disposing of
by sale or otherwise some or all of them to other person, or to a company, co -operative society or
other association of persons, and includes his assignees, and where the person who builds and the
person who disposes of are different persons, the term includes both;
(za) “Registrar” means the Registrar as defined in the Maharashtra Co -operative Societies
Act, 1960 (Mah. XXIV of 1961) or as the case may be, in the Companies Act, 1956 (1 of 1956);
(zb) “regulations” means the regulations made under section 52;
(zc) “Schedule” means the Schedule appended to this Act;
(zd) “to construct a block or building of flats” includes converting a building or part thereof
into flats;
(ze) “Township” means an area,—
(i) where more than one layout is proposed or approved on any land; and
(ii) where the land under development admeasures forty hectares or more at one place,
continuous, unbroken and uninterrupted;
(zf) “utility area” means dry balconies, flower beds, cupboard niches, elevation boxes,
decks, pocket terraces, open spaces, and the like, within or attached to a flat.
3. Disclosures to be made by promoter.— (1) Notwithstanding anything contained in any other
law for the time being in force, a promoter who intends to construct or is constructing or constructs a
block or building of flats, which is not for his personal use, shall, in all transactions with persons
intending to take or taking one or more of su ch flats, be liable to give or produce, or cause to be given
or produced, the information and the documents mentioned hereinafter in this section and also as may
be prescribed.
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(2) A promoter, who constructs or is constructing or intends to construct such block or building of
flats, shall,—
(a) make full and true disclosure of the nature of his title to the land on which the flats are
constructed or are to be constructed; such title to the land as aforesaid having been duly certified
by an Attorney-at-law, or by an Advocate of not less than three years standing, and having been
duly entered in the property card or extract of Village Forms VI or VII and XII or an y other
relevant revenue record :
Provided that, if such land is owned by another person, a duly registered copy of the
agreement or Power of Attorney, as the case may be, by which the owner, including his legal
heirs, executors and administrators, of such land has granted to the promoter or assigns the
development rights of the real estate project, shall also be disclosed;
(b) make full and true disclosure of all encumbrances on such land, including any right, title,
interest or claim of any party in or over such land;
(c) make full and true disclosure of his enterprise details such as name, registe red address,
type of enterprise, registration details under which it is registered;
(d) disclose the name and address of the architect, structural engineer and contractor
including turn-key contractor, if any, retained for construction of the building or flats;
(e) disclose the information relating to the number and size of plots, layout plan, carpet
areas, and utility areas of the flat, Floor Space Index or the Transfer of Development Rights or
additional Floor Space Index consumed in the building of whi ch flats are under sale and limited
common areas and facilities of the building and common areas and amenities and facilities of the
layout proposed to be provided therefor;
(f) give inspection, on seven days‟ notice or demand, of the plans, structural de sign and
specifications of the building in which flats are being offered for sale or are being marketed, built
or to be built on the land, duly certified by an Architect till such time as they are approved by the
local authority, and when such plans and sp ecifications, having been approved by the local
authority, which he is required to do under any law for the time being in force, then such
approved plans and specifications;
(g) disclose the building -wise time schedule of completion of each phase of the p roject
which shall always be subject to force majeure event;
(h) disclose the time schedule for connecting the project with the municipal services such as
sewerage, water supply, electricity, drainage, and the like, as applicable, which shall always be
subject to force majeure event;
(i) disclose the nature of fixtures and fittings with regard to the flooring and sanitary fittings
and the provision for one or more lifts provided or to be provided, with particulars in respect of
the brand of the items of f ixtures, fittings and lift if they are branded or otherwise the price range
of the items, if not branded;
(j) disclose on reasonable notice or demand, if the promoter is himself the builder, the
prescribed particulars in respect of the design, the type of concrete, the materials to be used in the
construction of the building and the technology, prefabricated, precast, earthquake resistant, and
the like, and if the promoter is not himself the builder, disclose, on such notice or demand, all
agreements, and where there is no written agreements, the details of all agreements, entered into
by him with the architect, structural engineer and contractors including turn -key contractors,
regarding the prescribed particulars in respect of design, materials and constr uction of the
building;
(k) specify in writing the date by which possession of the flat with all the amenities is to be
handed over;
(l) prepare and maintain a list of flats with their numbers built or to be built;
(m) prepare and maintain list of parking spaces provided or to be provided, and identified by
separate numbers;
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(n) state in writing, the nature of the organization of persons to be constituted and to which
title is to be passed, and the terms and conditions governing such organization of per sons, who
have taken or are to take the flats;
(o) display or keep all the documents, plans or specifications or copies thereof referred to in
clauses (a), (b), (c), (d), (e) and ( f) at the site and at the promoter‟s registered office and permit
inspection thereof to persons intending to take or taking one or more flats;
(p) disclose the names, addresses and contact numbers of the agents, property dealers,
brokers or middlemen, if any, by whatever name called, duly authorized by the promoter;
(q) give such other information and documents as may be prescribed.
(3) In case of a layout, in addition to the provisions of sub -section (2), the promoter shall also
disclose,—
(a) the phase-wise layout plan of the housing project;
(b) the plan of phase of the development works in which flats for sale is marketed in the
project;
(c) the details of the parts of the colony or apartments and the appurtenant areas that are
intended to be kept as common areas, amenities and facilities of l ayout in respect of the phase
being offered for sale or marketed;
(d) aggregate area in square meters of the parks, recreational grounds, gardens and
play-grounds in a layout.
4. Registering the project and displaying it on the website of Housing Regul atory
Authority.— (1) Every promoter of the project shall make an application, in the prescribed form, to
the Housing Regulatory Authority for registration of the project and for displaying the project on the
website of the Housing Regulatory Authority, al ongwith such fees, not exceeding fifty thousand
rupees, as may be prescribed:
Provided that, no such registration and displaying of the project or phase of such project shall be
required,—
(i) when the area of the land proposed to be developed into a project or phase of such project
does not exceed two hundred fifty square meters;
(ii) when the total number of flats proposed to be developed into a project inclusive of all
phases is less than five;
(iii) where the promoter has received occupation certific ate from the concerned local
authority in respect of development of such flats or the building in such project or phase of the
project prior to coming into force of this section;
(iv) where the project is a renovation, repair, reconstruction or redevelopm ent project which
does not involve fresh or new allotment of flats or marketing for sale of flats.
Explanation.— For the purposes of this Act,—
(i) where any project is proposed to be marketed and sold in phases, then every such
phase shall be considered as an independent project;
(ii) if a single purchaser of all the flats in a project duly registered by the Housing
Regulatory Authority intends to dispose of such flats, by sale or otherwise, then, such single
purchaser shall also be required to register and display the project under the provisions of
this Act.
(2) The promoter shall enclose following documents alongwith the application under
sub-section (1), namely :—
(a) chartered engineer‟s or chartered architect‟s authenticated copy of the proposed
development of each phase of the project;
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(b) proof of submission of plan for approval of local authority. Approval and sanction from
the local authority, as and when available, obtained in accordance with the building regulations
and other laws as are a pplicable, for the project being offered for sale or marketed and such
approval and sanction shall be submitted or uploaded on website within seventy -two hours of
obtaining the same from the local authority.
(3) The Housing Regulatory Authority shall, wit hin seven days of obtaining the application for
the registration of the project from the promoter, register and allot a password to the promoter for
access of the website of the Housing Regulatory Authority.
5. No transaction, including sale or marketing for sale, of flats in new project without
registration of the project and displaying it on website of Housing Regulatory Authority.— (1) No
promoter shall start any transaction including sale or marketing for sale of flats in a new project or phase
of such project without displaying such flats on the website of the Housing Regulatory Authority :
Provided that, for projects that are ongoi ng on the date of commencement of this section and
where the occupation certificate is still to be obtained, the promoter shall make application to the
Housing Regulatory Authority for registration of its project within such period as may be prescribed.
(2) No promoter shall start sale of a prescribed percentage of flats the area of which shall not
exceed ten per cent. of the total area of each of the building in every new project (hereinafter referred
to as “Retained Flats”), till occupation certificate f rom the local authority in respect of that building is
obtained by the promoter. The details of such flats shall be displayed on the website of the Housing
Regulatory Authority, before the start of any transaction including marketing. The promoter shall be
entitled to sell “Retained Flats”, in each of the building only after receipt of occupation certificate or
building completion certificate from the local authority for that building.
6. Responsibility of the promoter to enter record or details on the web site of Housing
Regulatory Authority.— The promoter shall, on receiving the password from the Housing Regulatory
Authority, through a system of self -entry, access the website and enter the required details of the
housing project, within such period as may be prescribed.
7. Cancellation of registration. — (1) The Housing Regulatory Authority may cancel the
registration of the project, if it is declared by the court of law that the contract, agreement, or power of
attorney or instrument or writing from which the promoter derives the right to the land or development
of the land, is invalid :
Provided that, no order of cancellation of registration of the project under this sub-section shall be
issued by the Housing Regulatory Authority unless a reasonable oppo rtunity of being heard is given to
the promoter.
(2) Upon issuing the order of cancellation, the Housing Regulatory Authority shall debar the
promoter from accessing its website in respect of the project so cancelled.
8. Issuing of advertisement or pros pectus inviting advance or deposit .— No promoter shall
issue or publish an advertisement or prospectus, offering for sale or otherwise, any flat or inviting
persons who intend to take such flats to make advance payments or deposits, without displaying the
project or phase on the website of the Housing Regulatory Authority.
9. Promoter before accepting advance payment of deposit, beyond twenty per cent., to enter
into agreement and agreement to be registered. — (1) Notwithstanding anything contained in any
other law for the time being in force, a promoter who intends to construct or constructs a block or
building of flats all or some of which are taken or to be taken on ownership basis or otherwise, shall,
before, he accepts any sum of money as advance payme nt or deposit exceeding twenty per cent. of the
sale price, enter into a written agreement for sale with each of such persons who are to take or have
taken such flats, and the agreement shall be registered under the Registration Act, 1908 (XVI of 1908)
(hereinafter, in this section, refer red to as “the Registration Act” ) and such agreement shall be in the
prescribed form.
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(2) The agreement to be entered into under sub-section (1) shall contain, inter alia, the particulars
as specified in clause (a) of this sub-section and to such agreement there shall be attached the copies of
the documents specified in clause (b) thereof,—
(a) particulars,—
(i) the plans and specifications approved by the local authority and all other approvals
required under any law, as applicable;
(ii) the date by which the possession of the flat is to be handed over to the purchaser;
(iii) the extent of the carpet area of the flat;
(iv) the extent of the utility area;
(v) the total price of the flat including the proportionate price of the limited common
areas and facilities and parking spaces which should be shown separately, to be paid by the
purchaser of flat; and the intervals at which instalments thereof may be paid;
(vi) allotment of fixed parking space to the flat purchaser:
Provided that, no parking spaces shall be allotted in minimum open space;
(vii) the nature of the organization to be constituted of the pers ons who have taken or
are to take the flats ;
(viii) the nature, extent and description of limited common areas and facilities of a
building;
(ix) the aggregate area of park, garden, recreation ground and playground proposed to
be provided for in a lay-out;
(x) the nature, extent and description of common areas and amenities and facilities of a
lay-out, if any;
(xi) statement of the use for which the flat is intended and restriction on its use, if any;
(xii) percentage of undivided interests in the limited common areas and facilities of the
building, pertaining to the flat agreed to be sold;
(b) copies of documents,—
(i) the certificate by an Attorney -at-law or an Advocate under clause ( a) of
sub-section (2) of section 3;
(ii) Property Card or extract of Village Forms VI or VII and XII or any other relevant
revenue record showing the nature of the title of the promoter to the land on which the flats
are constructed or are to be constructed;
(iii) the plans and specifications of the flats approved by the local authority.
(3) Any agreement for sale entered into under sub -section (1) shall be presented, by the promoter
or by any other person competent to do so under section 32 of the Registration Act, at the proper
registration office for registration within the time allowed under sections 23 to 26 (both inclusive) of
the Registration Act and execution thereof shall be admitted before the registering officer by the person
executing the document or his representative, assignee or agent, duly authorized, as laid down in
sections 34 and 35 of the Registration Act also within the time aforesaid:
Provided that, on presenting a document for registration, as aforesaid, if the person executing
such document or his representative, assignee or agent does not appear before the registering officer
and admit the execution of the document, then the registering officer shall cause a summons to be
issued under section 36 of the Registration Act, requiring the executants to appear at the registration
office, either in person or by duly authorized power of attorney holder, at a time fixed in the summons .
If the executants fail to appear in compliance with the summons, the execution of the document shall
be deemed to be admitted by them and the registering officer may proceed to register the document
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accordingly. If the executants appear before the regist ering officer as required by the summons but
deny execution of the document, then the registering officer shall, after giving them a reasonable
opportunity of being heard, if satisfied that the document has been executed by them, proceed to
register the document accordingly.
10. Effect of non-registration of agreement.— Where an agreement for sale entered into under
sub-section ( 1) of section 9, remains unregistered for any reason, then, notwithstanding anything
contained in any law for the time being in force, or in any judgment, decree or order of any Court, it
may be received as evidence of a contract in a suit for specific performance under Chapter II of the
Specific Relief Act, 1963 (47 of 1963), or as evidence of part performance of a contract for th e
purposes of section 53A of the Transfer of Property Act, 1882 (IV of 1882), or as evidence of any
collateral transaction not required to be effected by registered instrument.
11. Responsibilities of promoter.— (1) When any person makes an advance or a deposit on the
basis of the information contained in the advertisement or prospectus and sustains any loss or damage
by reason of any wilful untrue statement included therein, then he shall be compensated by the
promoter for any loss that he may have sustained consequent to such information:
Provided that, if the person affected on account of such wilful untrue statement, withdraws
from the project, the entire amount paid by such person shall be returned to him alongwith
interest at the prescribed rate but not exceeding fifteen per cent., per annum.
(2) Promoter shall take all those measures provided in Schedule I for protection and safety of a
building.
(3) (a) It shall be the responsibility of the promoter to obtain the occupation certificate or building
completion certificate in respect of the building from the concerned local authority as per the building
regulations in force and make a copy thereof available to the flat purchasers or unit holders
individually or to an organization which is the authori zed collective body of flat purchasers or unit
holders, as the case may be.
(b) The promoter shall not allow persons to take possession until occupation or completion
certificate, as the case may be, where such certificate is required to be given under an y law, is
duly given by the local authority and no person shall take possession of a flat until such
occupation or completion certificate has been duly given by the local authority.
(4) After the possession of the building or flat is handed over to the fl at purchasers or unit
holders, the flat purchasers or unit holders shall not be permitted to carry out any additions or
alterations in the flat or building and the promoter shall not be responsible, if additions and alterations
are done in the flat, or bui lding by the flat purchasers or unit holders or occupier, in violation of the
building regulations.
(5) (i) It shall be the responsibility of the promoter to provide essential services such as water
supply, electricity, light in passages and staircases, li fts and sanitary services as per agreement to the
flat purchasers or unit holders of the building or flat or to any person in authorised occupation thereof
till such time and in such manner as specified in the agreement of sale and such services shall not,
except with just and sufficient notice, be cut -off, withheld, or curtailed. The aforesaid responsibility is
subject to the service provider providing the same. If the service provider is unable to provide the
aforesaid services, then the promoter shall not be responsible to provide the same.
(ii) The details of the essential supplies and services referred to in clause ( i) above shall be
kept by the promoter in the form of a statement and shall be made available on demand to the flat
purchasers or unit holders or organization of flat purchasers or unit holders.
(iii) If the allottee or flat or unit purchaser or organization fails to pay the outgoings to the
promoter, which are payable by the allottee or flat or unit purchaser or organization under this
Act, for a period of more than three months, then the promoter may approach the Competent
Authority, who may, after giving notice of not less than seven days to such allottee or flat or unit
purchaser or organization, as the case may be, cut -off, withold or in any manner curtail or reduce
any essential supply or service enjoyed by such allottee or flat or unit purchaser or organization in
the project.
2014 : Mah. II] The Maharashtra Housing (Regulation and Development) 11
Act, 2012
(6) In case the promoter is undertaking a redevelopment project, the provisions of this Act shall
apply only in relation to the flats or buildings which are for marketing or sale in open market. The flats
or buildings which are entirely constructed for provi ding permanent alternate accommodation to
existing occupants of redevelopment project shall not be governed by the provisions of this Act, but
shall be governed by the statute under which such schemes are being framed.
12. Promoter to maintain separate a ccount of sums taken as advance or deposit and to be
trustee therefor and disburse them for purposes for which given. — The promoter shall maintain
building-wise separate account in any bank of sums taken, by him, from persons intending to take or
who have taken flats, deposits including any sums so taken towards the share capital for the formation
of co -operative society or a company or towards the outgoings, including ground rent, if any,
municipal or other local taxes, taxes on income, water charges, electricity charges, revenue assessment,
interest on any mortgage or other encumbrances, if any; and he shall hold the said moneys for the
purposes for which they were given and shall disburse the moneys for those purposes and shall, on
demand in writing by an officer appointed, by general or special order, by the State Government for the
purpose, make full and true disclosure of all transactions in respect of that account.
The promoter shall also follow the instructions specified in Schedule II. The promoter shall get
the accounts maintained for heads mentioned in Schedule II, as provided under this section, audited
from a Chartered Accountant registered with the Institute of Chartered Accountants of India.
13. Responsibility for payment of outgoings till property is transferred.— A promoter, while
he is in possession and where he collects from persons, who have taken over flats or are to take over
flats, sums for the payment of outgoings, shall pay all outgoings, including ground rent, municipal or
other local taxes, taxes on income, water charges, electricity charges, revenue assessment, interest on
any mortgage or other encumbrances, if any, until he transfers the property to the persons taking over
the flats, or to the organization of any such persons. Wher e any promoter fails to pay all or any of the
outgoings collected by him from the persons who have taken over flats or are to take over flats, before
transferring the property to the persons taking over the flats or to the organization of any such persons,
the promoter shall continue to be liable, even after the transfer of the property, to pay such outgoings
and penal charges, if any, to the authority or person to whom they are payable and shall be responsible
for any legal proceedings which may be initiated by such authority or person.
14. No alterations or additions without consent after plans are disclosed. — (1) In case the
development consists of single building then after the plans and specifications of the building, as
approved by the local authority as aforesaid, are disclosed or furnished to the person who agrees to take
one or more flats, the promoter shall not,—
(a) make any alteration in the structure described therein in respect of the flat or flats which
are agreed to be taken, without the previous consent of that person;
(b) construct any additional floors or wings in the structure of the building or wing, not
disclosed in the agreement, without the previous consent of all the persons who have agreed to
take the flats in such building or wing:
Provided that, any alteration or addition required by any government authorities or due to
change in law or which are disclosed in the agreement, shall not require previous consent of any
or all persons who have agreed to take flats in such building.
(2) (a) In case the development is being carried out on a layout or Township, then after the plans
and specifications of the building, as approved by the local authority as aforesaid, are disclosed or
furnished to the person who agrees to take one or more flats, the promoter shall not,—
(i) make any alteration in that structure described therein in respect of the flat or flats
which are agreed to be taken, without the previous consent of that person;
(ii) construct any additional floors or wings in the structure of the building or wing, not
disclosed in the agreement, without the previous consent of all the persons who have agreed
to take the flats in such building or wing;
12 The Maharashtra Housing (Regulation and Development) [2014 : Mah. II
Act, 2012
(iii) make any modification in the location of the recreation ground or garden or park
or playground without the co nsent of those persons who have agreed to take flats on the
basis of disclosure of the location of such recreation ground or garden or park or playground
and such fact is mentioned in writing in the agreement for sale of such flat by the promoter.
(b) Subject to provisions of clause ( a) above, the layout including recreation ground, park,
garden and playground disclosed alongwith the building plans, can be amended, modified and
varied by the promoter, from time to time, in accordance with the Development C ontrol
Regulations including for the utilization of the full development potential available, from time to
time.
(c) In case of development under a layout or Township, the promoter shall be entitled to
further construction of any new building in the layout or Township at any time after obtaining
approval of the local authority in accordance with the building rules or building bye -laws or
Development Control Regulations made under any law for the time being in force:
Provided that, the promoter shall not re duce the approved compulsory open spaces of the
building or shall not reduce the aggregate area of park, recreational ground, playground and
garden in the approved layout in which persons agree to take one or more flats, without the
previous consent of all such persons, except that such alteration or amendment is required by the
authorities or due to change in applicable laws.
15. Defects noticed within five years to be rectified. — If any defect in the building or material
used, or if any unauthorized change in the construction is brought to the notice of the promoter, within
a period of five years from the date of handing over possession of flats, it shall, be rectified by the
promoter without further charge to the persons who have agreed to take the flat s and in other cases,
where the defect or change can not be rectified, such persons shall be entitled to receive reasonable
compensation for such defect or change. Where there is a dispute regarding any defect in the building
or material used or any unauthorized change in the construction, the matter shall, wit hin a period of
five years from the date of handing over possession, on payment of such fee as may be determined by
the Housing Regulatory Authority, be referred for decision to such officer not below the rank of an
Executive Engineer as the State Government may, by general or special order, specify in this behalf.
16. Effect of non -completion of project. — (a) If the promoter fails to complete construction
and obtain occupation certificate of any building or buildings in the project in accordance with the
terms of the agreement by the date specified or any further date agreed to by the parties or as may be
decided by the Housing Regulatory Author ity, the Housing Regulatory Authority may, after giving
reasonable opportunity of being heard to the applicant and the promoter, and on being satisfied that the
promoter is not able to complete the construction and obtain occupation certificate, pass an appropriate
order to enable completion of the construction of that building and obtain occupation certificate
thereof. Such order of the Housing Regulatory Authority may, inter-alia, provide for,—
(i) formation and registration of a legal entity of sixty per cent. of the flat purchasers in the
manner as may be prescribed who have come before the Housing Regulatory Authority ;
(ii) appointment of the legal entity as an escrow agent for taking over possession of the
building and area appurtenant thereto, in the manner as may be prescribed ;
(iii) directing the Competent Authority to transfer the Retained Flats in the na me of the
escrow agent within such period and in the manner as may be prescribed ;
(iv) authorizing escrow agent to appoint contractors, consultants and other agencies required
to complete the construction and obtain occupation certificate on such terms a nd conditions as
may Excerpt shown. Open the full act in Lexace.
Lex