LexThe Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 1963
Maharashtra · state statute
Open in Lexace · Ask the AI about this act1963 : Mah. XLV] 1
THE MAHARASHTRA OWNERSHIP FLATS (REGULATION OF THE
PROMOTION OF CONSTRUCTION, SALE, MANAGEMENT
AND TRANSFER) ACT, 1963
[Text as on 8th January 2026]
——————
CONTENTS
PREAMBLE.
SECTIONS.
1. Short title, extent and commencement.
1A. Application of Act.
2. Definitions.
3. General liabilities of promoter.
4. Promoter before accepting advance payment or deposit to enter into agreement and
agreement to be registered.
4A. Effect of non-registration of agreement required to be registered under section 4.
5. 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.
5A. Competent Authority.
6. Responsibility for payment of outgoings till property is transferred.
7. After plans and specifications are disclosed no alteration s or additions without consent
of persons who have agreed to take the flats; and defects noticed wi thin three years to
be rectified.
7A. Removal of doubt.
8. Refund of amount paid with interest for failure to give possession within specified time or
further time allowed.
9. No mortgage, etc., to be created without consent of parties after exec ution of agreement
for sale.
10. Promoter to take steps for formation of co-operative society or company.
11. Promoter to convey title, etc., and execute documents, according to agreement.
11A. Deemed conveyance.
12. General liabilities of flat-taker.
12A. Manager not to cut off, withheld, curtail or reduce essential supply or service.
13. Offences by promoters and consequences on conviction.
13A. Power of Magistrate to pass sentences under this Act.
13B. Competent Authority to be public servant.
13C. Proceedings before Competent Authority to be judicial proceedings.
13D. Competent Authority deemed to be Civil Court for certain purposes.
13E. Indemnity for acts done in good faith.
2 The Maharashtra Ownership Flats (Regulation of the [1963 : Mah. XLV
promotion of construction, sale, management
and transfer) Act, 1963
14. Offences by companies.
15. Power to make rules.
16. Act to be in addition to Transfer of Property Act and to over-ride contract to the contrary.
17. Application of certain provisions to flats already in existence.
18. Act not to apply to Housing and Area Development Authority and Boards.
1963 : Mah. XLV] The Maharashtra Ownership Flats (Regulation of the 3
promotion of construction, sale, management
and transfer) Act, 1963
LIST OF AMENDMENT ACTS
1. Amended by Mah. 29 of 1964
2. Amended by Mah. 1 of 1966
3. Amended by Mah. 2 of 1968
4. Amended by Mah. 11 of 1970
5. Amended by Mah. 15 of 1971
6. Amended by Mah. 5 of 1973
7. Amended by Mah. 53 of 1974 (1-1-1975)
8. Amended by Mah. 66 of 1977
9. Amended by Mah. 1 of 1979
10. Amended by Mah. 6 of 1982 (12-2-1982)
11. Amended by Mah. 13 of 1983
12. Amended by Mah. 5 of 19841 (1-2-1984)
13. Amended by Mah. 9 of 1981
14. Amended by Mah. 6 of 19852 (20-2-1985)
15. Amended by Mah. 12 of 1986 (30-1-1986)
16. Amended by Mah. 36 of 1986 (13-4-1987)
17. Amended by Mah. 15 of 19903 (17-3-1990)
18. Amended by Mah. 10 of 19954 (1-4-1995)
1 Sections 4 and 5 of Mah. 5 of 1984 read as follows :—
“4. Validating provisions. — (1) Where any agreement for sale was entered into, or was purported to be entered into
under section 4 of the principal Act and such agreement was not registered under the Registration Act before the
commencement of this Act, then notwithstanding anything contained in any law for the time being in force or in any
judgement, decree or order of any Court, such agreement shall not be invalid or ineffective, merely on the ground that it was
not registered as required by the said section 4, and shall be deemed always to have been valid and enforceable, if such
document is duly presented for registration on or before the 31 st December 1984 and registered under the said section 4 as
amended by this Act.
(2) In computing any period of limitation prescribed by any law for the time being in force, for the purpose of taking any
legal proceeding for enforcing any rights or liabilities arising from any agreement for sale deemed to be valid and enforceab le
under sub-section (1) or for execution or enforcing any other documents depending on or connected with such agreement for
sale, the period from the date on which such agreement is entered into and the date on which it is registered under section 4 of
the principal Act as amended by this Act shall be excluded.
5. Savings.— Nothing in this Act shall render any person liable to be convicted of any offence under the principal Act,
in respect of anything done or omitted to be done, before the commencement of this Act, if such act or omission was not an
offence under the principal Act but for the amendments made in the principal Act, by this Act.”.
2 Maharashtra Ordinance No. III of 1985 was repealed by Mah. 6 of 1985, s. 3(1).
3 Maharashtra Ordinance No.VI of 1990 was repealed by Mah. 15 of 1990, s. 3(1).
4 Sections 3 and 4 of Mah. 10 of 1995 read as follows :—
“3. Savings.— Nothing in this Act shall render any person liable to be convicted of any offence in respect of anything
done or omitted to be done, during the period commencing on the 1 st day of April 1995 and ending on the date of publication
of this Act in the Official Gazette, if such act or omission was not an offence but for the retrospective extensions of duration
of the principal Act, by this Act.
4. Removal of doubt.— For the removal of doubt, it is hereby declared that the principal Act, which was to expire after
the 31 st March 1995 having been retrospectively extended from the 1 st April 1995 shall be deemed never to have expired at
any time and all its provisions as amended and extended by this Act shall, subject to the provisions of section 3 of this Act, be
deemed to be continuously in force.”.
Note.- The date mentioned in the bracket indicates the date of commencement of the Act.
4 The Maharashtra Ownership Flats (Regulation of the [1963 : Mah. XLV
promotion of construction, sale, management
and transfer) Act, 1963
19. Amended by Mah. 49 of 20001 (1-4-2000)
20. Amended by Mah. 37 of 20052, 3 (1-4-2005)
21. Amended by Mah. 4 of 2008 (25-2-2008)
22. Amended by Mah. 23 of 2008 (12-5-2008)
23. Amended by Mah. 65 of 20254 (31-12-2025)
1 Sections 3 and 4 of Mah. 49 of 2000 read as follows :—
“3. Savings.— Nothing in this Act shall render any person liable to be convicted of any offence in respect of anything
done or omitted to be done, during the period commencing on the 1 st day April 2000 and ending on the date of pu blication of
this Act in the Official Gazette, if such act or omission was not an offence but for the retrospective extension of duration of
the principal Act, by this Act.
4. Removal of doubt.— For the removal of doubt, it is hereby declared that the pri ncipal Act, which was to expire after
the 31 st March 2000 having been retrospectively extended from the 1 st April 2000 shall be deemed never to have expired at
any time and all its provisions as amended and extended by this Act shall, subject to the provis ions of section 3 of this Act, be
deemed to be continuously in force.”.
2 Sections 4 and 5 of Mah. 37 of 2005 read as under :—
“4. Savings.— Nothing in this Act shall render any person liable to be convicted of any offence in respect of anything
done or omitted to be done, during the period commencing on the 1 st day April 2005 and ending on the 16th May 2005, if such
act or omission was not an offence but for the retrospective extension of duration of the principal Act, by this Act.
5. Removal of doubt.— For the removal of doubt, it is hereby declared that the principal Act, which was to expire after
the 31 st March 2005, having been retrospectively extended with effect from the 1 st April 2005 by this Act, shall be deemed
never to have expired at any time and all its provisions as amended and extended by this Act shall, subject to the provisions of
section 4 of this Act, be deemed to be continuously in forces.”.
3 Maharashtra Ordinance No. III of 2005 was repealed by Mah. 37 of 2005, s. 6.
4 Sections 5 and 6 of Mah. 65 of 2025 reads as under :—
5. Validation and savings. — Notwithstanding anything contained in any judgement, decree or order of any court or
authority to the contrary or anything done or purporting to have been done or any action taken or p urporting to have been
taken or any proceedings instituted under any provision of the principal Act, before the commencement of the Maharashtra
Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) (Amendment and Vali dation)
Act, 2025 (Mah. LXV of 2025), including any notification, order, notice or circular issued or rules made or deemed
conveyance executed and registered, decisions taken, any proceedings instituted or orders passed or directions issued by the
Competent Authority or the concerned Registration Officer as per the provisions of the principal Act, shall be deemed to be
and shall be deemed always to have been duly and validly issued, made, executed, registered, taken, done or instituted, in
accordance with the law as if the provisions of the principal Act, as amended by this Act, had been continuously in force at all
material times and accordingly, no suit, prosecution or other legal proceedings shall lie in any court or before any tribunal or
other authority on the ground that, the provisions of the said principal Act prior to such commencement did not provide for
unilateral deemed conveyance in respect of real estate projects registered under the Real Estate (Regulation and Development)
Act, 2016 (16 of 2016).
6. Power to remove difficulties. — (1) If any difficulty arises in giving effect to the provisions of the principal Act, as
amended by this Act, the State Government may, as occasion arises, by an order published in the Official Gazette , do
anything, not inconsistent with the provisions of the principal Act, which appears to it to be necessary or expedient for the
purpose of removing the difficulty:
Provided that, no such order shall be made after expiry of the period of two years from the date of comm encement
of this Act.
(2) Every order made under sub -section (1) shall be laid, as soon as may be, after it is made, before each House of the
State Legislature.
Note.- The date mentioned in the bracket indicates the date of commencement of the Act.
1963 : Mah. XLV] The Maharashtra Ownership Flats (Regulation of the 5
promotion of construction, sale, management
and transfer) Act, 1963
MAHARASHTRA ACT No. XLV OF 19631
[THE MAHARASHTRA OWNERSHIP FLATS (REGULATION OF THE PROMOTION OF
CONSTRUCTION, SALE, MANAGEMENT AND TRANSFER) ACT, 1963.]
[This Act received the assent of the President on the 12th December 1963; assent was first published in
the Maharashtra Government Gazette, Extraordinary No. 49, Part IV, on the 16th December 1963.]
An Act to regulate 2[* *] in the State of Maharashtra, the promotion of the construction of,
the sale and management, and the transfer of flats on ownership basis.
WHEREAS, it has been brought to the notice of the State Government that, consequent on the
acute shortage of housing in the several areas of the State of Maharashtra, sundry abus es, malpractices
and difficulties relating to the promotion of the construction of, and the sale and management and
transfer of flats taken on ownership basis exist, and are increasing;
AND WHEREAS, the Government in order to advise itself as respects the manner of dealing with
these matters, appointed a committee by Government Resolution in the Urban Development and Public
Health Department, No. S. 248-79599-F, dated the 20 th May 1960, to inquire into and report to the
State Government on the several matt ers referred to aforesaid with the purpose of considering
measures for their amelioration;
AND WHEREAS, the aforesaid Committee has submitted its report to Government in June 1961,
which report has been published for general information;
AND WHEREAS, it is now expedient after considering the recommendations and suggestions
made therein, to make provision during the period of such shortage of housing, for the regulation of the
promotion of the construction, sale and management and transfer of flats taken o n ownership basis in
the State of Maharashtra; It is hereby enacted in the Fourteenth Year of t he Republic of India as
follows :—
1. Short title, 3[extent and commencement].— (1) This Act may be called the Maharashtra
Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) Act,
1963.
(2) It extends to the whole of the State of Maharashtra.
(3) This section shall come into force at once; and the remaining provisions of this Act shall come
into force in 4[such] areas, and on dates as the State Government may, by notification in the
Official Gazette, appoint, and different dates may be appointed for different areas.
5[* * *]
6[1A. Application of Act.— This Act shall not apply to the real estate projects to which the Real
Estate (Regulation and Development) Act, 2016 (16 of 2016) is applicable, except sections 5A, 11A,
13B, 13C, 13D and other provisions relating to the Competent Authority.]
2. Definitions.— In this Act, unless the context otherwise requires,—
7[(a) “Competent Authority” means a Competent Authority appointed under section 5A;]
1 For Statement of Objects and Reasons of the L. A. Bill No. XXVII of 1963, see Maharashtra Government Gazette, 1963,
Extraordinary No. 29, Part V, dated the 8th August 1963, page 117.
2 The words “for certain period” were deleted by Mah. 37 of 2005, s. 2.
3 These words were substituted for the words “extent, commencement and duration” by Mah. 37 of 2005, s. 3(b).
4 Greater Bombay on 10 th day of February, 1964 ( vide G.N., U.D. & P.H. D., No. FOE. 1062/432/ Unification ( a), dated
the 8th February 1964).
5 Sub-sections (4) and (5) were deleted the by Mah. 37 of 2005, s. 3(a).
6 Section 1A was inserted and shall be deemed to have been inserted with effect from the 1 st May 2016 by Mah. 65 of
2025, s. 2.
7 Clause (a) was inserted by Mah. 4 of 2008, s. 2(a).
6 The Maharashtra Ownership Flats (Regulation of the [1963 : Mah. XLV
promotion of construction, sale, management
and transfer) Act, 1963
1[(a-1) “Flat” means a separate and self -contained set of premises used or intended to be
used for residence, or offic e, show-room or shop or godown 2[or for carrying on any industry or
business] (and includes a garage), the premi ses forming part of a building 3[and includes an
apartment.]
Explanation.— Notwithstanding that provisions is made for sanitary, washing, bathing or
other convenience as common to two or more sets of premises, the premises shall be deemed to
be separate and self-contained;
(b) “prescribed” means prescribed by rules made under this Act;
(c) 4[“promoter” means a person and includes a partnership firm or a body or association of
persons whether registered or not] who constructs or causes to be constructed a block or building
of flats 5[or apartments] for the purpose of selling some or all of them to other persons, or to a
company, co-operative society or other association of persons, and includes his as signees; and
where the person who builds and the person who sells are different persons, the term includes
both;
(d) “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 6Companies Act, 1956 (I of 1956);
(e) “to construct a block or building of flats 7[or apartments]” includes to convert a building
or part thereof into flats 8[or apartments];
9[(f) t he expressions, “apartment” and “apartment owner ” shall have the meanings,
respectively assigned to them in the Maharashtra Apartment Ownership Act, 1970
(Mah. XV of 1971).]
3. General liabilities of promoter.— (1) Notwithstanding anything in any other law, a promoter
who intends to construct or constructs a block or building of flats, all or some of which are to be taken
or are taken on ownership basis, shall in all transactions with persons intending to take or taking one or
more of such flats, be liable to give or produce, or cause to be given or pr oduced, the information and
the documents hereinafter in this section mentioned.
(2) A promoter, who constructs 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 wh ich 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, 10[and having
been duly entered in the Property card or extract of Village Forms VI or VII and XII or any other
relevant revenue record;]
(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) give inspection in seven days ’ notice or demand, of the plans and specifications of the
building built or to be built on the land; such plans and specifications having been approved by
the local authority which he is required so to do under any law for the time being in force;
(d) disclose the nature of fixtures, fittings and amenities (including the provision for one or
more lifts) provided or to be provided;
1 Clause (a) was renumbered by Mah. 4 of 2008, s. 2(a).
2 These words were inserted and shall be deemed always to have been inserted by Mah. 36 of 1986, s. 2.
3 These words were added by Mah. 15 of 1971, Schedule.
4 These words were substituted for the words and figure “promoter” means “person” by Mah. 4 of 2008, s. 2(b).
5 These words were inserted by Mah. 15 of 1971, Schedule.
6 Now see the Companies Act, 2013.
7 These words were inserted by Mah. 15 of 1971, Schedule.
8 These words were inserted by Mah. 15 of 1971, Schedule.
9 Clause (f) was added by Mah. 15 of 1971, Schedule.
10 These words were added by Mah. 36 of 1986, s. 3(a).
1963 : Mah. XLV] The Maharashtra Ownership Flats (Regulation of the 7
promotion of construction, sale, management
and transfer) Act, 1963
(e) disclose on reasonable notice or demand if the promoter is himself the builder, the
prescribed particulars as respects the design and the materials to be used in the construction of the
buildings, and if the promoter is not himself the builder disclose, on such notice or demand, all
agreements (and where there is no written agreement the details of all agreements) entered into by
him with the architects and contractors regarding the design, materials and construction of the
building;
(f) specify in writing the date by which possession of the flat is to be hande d over (and he
shall hand over such possession accordingly);
(g) prepare and maintain a list of flats with their numbers already taken or agreed to be
taken, and the names and addresses of the parties, and the price charged or agreed to be charged
therefor, and the terms and conditions if any on which the flats are taken or agreed to be taken;
(h) state in writing, the precise nature of the organisation of persons to be constituted and to
which title is to be passed, and the terms and conditions governing such organisation of persons,
who have taken or are to take the flats;
(i) not allow persons to enter into possession until a completion certificate where such
certificate is required to be given under any law, is duly given by the local authority (and no
person shall take possession of a flat until such completion certificate has been duly given by the
local authority);
(j) make a full and true disclosure of all outgoings (including ground rent if any, municipal
or other local taxes, taxes on income, wat er charges and electricity charges, revenue assessment,
interest on any mortgage or other encumbrances, if any);
(k) make a full and true disclosure of such other information and documents in such manner
as may be prescribed; and give on demand true copies of such of the documents referred to in any
of the clauses of this sub-section as may be prescribed at a reasonable charge therefor;
1[(l) display or keep all the documents, plans or specifications (or copies thereof) referred to
in clauses (a), (b) and (c), at the site and permit inspection thereof to persons intending to take or
taking one or more flats;
(m) when the flats are advertised for sale, disclose inter-alia in the advertisement the
following particulars, namely :—
(i) the extent of the carpet area of the flat including the area of the balconies which
should be shown separately;
(ii) the price of the flat including the proportionate price of the common areas and
facilities which should be shown separately, to be paid by th e purchaser of flat; and the
intervals at which the instalments thereof may be paid;
(iii) the nature, extent and description of the common areas and facilities; and
(iv) the nature, extent and description of limited common areas and facilities, if any;]
2[(n) sell flats on the basis of the carpet area only:
Provided that, the promoter may separately charge for the common areas and facilities in
proportion to the carpet area of the flat.
Explanation.— For the purposes of this clause, the carpet area of the flat shall include the
area of the balcony of such flat.]
4. Promoter before accepting advance payment or deposit to enter into agreement and
agreement to be registered.— 3[(1)] Notwithstanding anything contained in any other law, a promoter
1 These clauses were added by Mah. 36 of 1986, s. 3(b).
2 Clause (n) was added by Mah. 23 of 2008, s. 2.
3 Section 4 was renumbered as sub-section (1) of that section by Mah. 5 of 1984, s. 2(1).
8 The Maharashtra Ownership Flats (Regulation of the [1963 : Mah. XLV
promotion of construction, sale, management
and transfer) Act, 1963
who intends to construct or constructs a block or building of flats, all or some of which are to be taken
or are taken on ownership basis, shall, before, he accepts any sum of money as advance payment or
deposit, which shall not be more than 20 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 1[the Registration Act, 1908 (XVI of 1908) (hereinafter in this section referred to as
“the Registration Act”)] 2[and such agreement shall be in the prescribed form.]
3[(1A) The agreement to be prescribed and sub -section (1) shall contain inter alia the particulars
as specified in clause ( a); and to such agreement there shall be attached the copies of the documents
specified in clause (b),—
(a) particulars,—
(i) if the building is to be constructed, the liability of the promoter to construct it
according to the plans and specifications approved by the local authority where such
approval is required under any law for the time being in force;
(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 including the area of the balconies which
should be shown separately;
(iv) the price of the flat including the proportionate price of the common areas and
facilities which should be shown separately, to be paid by the purchaser of flat; and the
intervals at which instalments thereof may be paid;
(v) the precise nature of organi sation to be constituted of the persons who have taken
or are to take the flats;
(vi) the nature, extent and description of limited common areas and facilities;
(vii) the nature, extent and description of limited common areas and facilities, if any;
(viii) percentage of undivided interest in the common areas and facilities appertaining
to the flat agreed to be sold;
(ix) statement of the use of which the flat is intended and restriction of its use, if any;
(x) percentage of undivided interests in the limited common areas and facilities, if any,
appertaining to the flat agreed to be sold;
(b) copies of documents,—
(i) the certificate by an Attorney-at-law or 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 flat as approved by the concerned local
authority.]
4[(2) 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 regis tration, within the time allowed under sections 23 to 26 (both inclusive) to
the said Act and execution thereof shall be admitted before the registering officer by the person
1 These words, figures and brackets were substituted for the words and figures “the Indian Registration Act, 1908”
by Mah. 5 of 1984, s. 2(1).
2 These words were substituted for the portion beginning with the words “and such agreement” and en ding with the words
“may be prescribed” by Mah. 36 of 1986, s. 4(a).
3 Sub-section (1A) was inserted by Mah. 36 of 1986, s. 4(b).
4 Sub-section (2) was added by Mah. 5 of 1984, s. 2(2).
1963 : Mah. XLV] The Maharashtra Ownership Flats (Regulation of the 9
promotion of construction, sale, management
and transfer) Act, 1963
executing the document or his representative, assign or agent as laid down in sec tions 34 and 35 of the
said Act also within the time aforesaid:
Provided that, where any agreement for sale is entered into, or is purported to be entered into,
under sub -section ( 1), at any time before the commencement of the Maharashtra Ownership Flats
(Regulation of the promotion of construction, sale, management and transfer) (Amendment and
Validating Provisions) Act, 1983 (Mah. V of 1984) , and such agreement was not presented for
registration or was presented for registration but its execution was not admitted before the registration
officer by the person concerned, before the commencement of the said Act, then such document may
be presented at the proper registration office for registration, and its execution may be admitted, by any
of the persons conc erned referred to above in this sub -section, on or before the 31 st December 1984,
and the registering officer shall accept such document for registration, and register it under the
Registration Act, as if it were presented, and its execution was admitted, within the time laid down in
the Registration Act:
Provided further that, on presenting a document for registration as aforesaid if the person
executing such document or his representative, assign or agent does not appear before the registering
officer and admit the execution of the document, the registering officer shall cause a summons to be
issued under section 36 of the Registration Act requiring the executant to appear at the registration
office, either in person or by duly authorised agent, at a time fixed in the summons. If the executant
fails to appear in compliance with the summons, the execution on the document shall be deemed to be
admitted by him and the registering officer may proceed to register the document accordingly. If the
executant appears before the registering officer as required by the summons but denies execution of the
document, the registering officer shall, after giving him a reasonable opportunity of being heard, if
satisfied that the document has been executed by him, proceed to register the document accordingly.]
1[4A. Effect of non -registration of agreement required to be registered under
section 4.— Where an agreement for sale entered into under sub -section ( 1) of section 4, whether
entered into before or after the commencemen t of the Maharashtra Ownership Flats (Regulation of the
promotion of construction, sale, Management and transfer) (Amendment and Validating Provisions)
Act, 1983 (Mah. V of 1984) , remains unregistered for any reason, then notwithstanding anything
contained in any law for the time being in force, or in any judgement, 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 (XLVII of 1963 ), or as evidence of part performance of a contract for the
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.]
5. 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. — The promoter shall maintain a
separate account in any bank of sums taken, by him, from persons intending to take or who have taken
flats, as advance or deposit, 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.
2[5A. Competent Authority. — The State Government may, by notification in the Official
Gazette appoint an officer, not below the rank of the District Deputy Registrar of Co-operative
Societies, to be the Competent Authority, for an area or areas to be specified in such notification an d
1 This section was inserted by Mah. 5 of 1984, s. 3.
2 Section 5A was inserted by Mah. 4 of 2008, s. 4.
10 The Maharashtra Ownership Flats (Regulation of the [1963 : Mah. XLV
promotion of construction, sale, management
and transfer) Act, 1963
different officers may be appointed as Competent Authority for different local areas, for the purposes
of exercising the powers and performing the duties under sections 5, 10 1[, 11 and 11A] of this Act.]
6. Responsibility for payment of outgoings till property is transferred.— A promoter shall,
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 even thereafter, 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 property to the persons
taking over the flats, or to the organisation of any such persons, 2[where 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 organisation of a ny
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 to
be responsible for any legal proceedings which may be taken therefor by such authority or persons].
7. After plans and specifications are disclosed no alteration s or additions without consent
of persons who have agreed to take the flats; and defects noticed within 3[three years ] to
be rectified.— (1) After the plans and specifications of the building as approved by the local authority
as aforesaid, are disclosed or furnished to the persons who agrees to take one or more flats, the
promoter shall not make—
(i) any alteration in the structures describe d therein in respect of the flat or flats which are
agreed to be taken, without the previous consent of that persons;
4[(ii) any other alterations or additions in the structure of the building without the previous
consent of all the persons who have agreed to take the flats in such building.]
(2) Subject to sub-section (1), the building shall be constructed and completed in accordance with
the plans and specifications aforesaid; and 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 wit hin a period of
5[three years] from the date of han ding over possession, it shall wher ever possible be rectified by the
promoter without furth er charge to the persons who have agreed to take the flats, and in other cases
such person shall be entitled to re ceive reasonable compensation for such defect or change. Where
there is a dispute as regards any defect in the building or material used, or any unauthoris ed change in
the construction, 6[or as to whether it is reasonably possible for the promoter to recti fy any such defect
or change, or as regards the amount of reasonable compensation payable in respect of any such defect
or change which cannot be, or is not rectified by the promoter,] the matter shall, on payment of such
fee as may be prescribed, 7[and within a period of three years from the date of handing over possession,
be referred for decision,—
(i) in an urban agglomeration as defined in clause ( n) of section 2 of the Urban Lan d
(Ceiling and Regulation) Act, 1976 (33 of 1976) , to such competent auth ority authorised by the
State Government under clause (d) of section 2 of that Act, and
(ii) in any other area, to such Deputy Chief Engineer, or to such other Officer of the rank
equivalent to that of Superintending Engineer in the Maharashtra Service of Engineers, of a
Board established under section 18 of the Maharashtra Housing and Area Development Act, 1976
(Mah. XXVIII of 1977),
1 These figures, word and letter were substituted and shall be deemed to have been substituted with effect from the 1st May
2016 for the word and figures “and 11” by Mah. 65 of 2025, s. 3.
2 This portion was added and was deemed always to have been added by Mah. 36 of 1986, s. 5.
3 These words were substituted for the words “a year” by Mah. 36 of 1986, s. 6(c).
4 Clause (ii) was substituted and was deemed always to have been substituted by Mah. 36 of 1986, s. 6(a).
5 These words were substituted and were deemed always to have been substituted for the words “one year”
by Mah. 36 of 1986, s. 6(b)(i).
6 These words were deemed always to have been inserted by Mah. 11 of 1970, s. 3.
7 This portion was substituted for the portion beginning with the words “be referred” and ending with the words
“shall be final” by Mah. 36 of 1986, s. 6(b)(ii).
1963 : Mah. XLV] The Maharashtra Ownership Flats (Regulation of the 11
promotion of construction, sale, management
and transfer) Act, 1963
as the State Government may, by general or special order, specify in this behalf. Such competent
authority, Deputy Chief Engineer or, as the case may be, the other officer of a Board shall, after
inquiry, record his decision, which shall be final].
1[7A. Removal of doubt. — For the removal of doubt, it is hereby declared that clause ( ii) of
sub-section (1) of section 7 having been retrospectively substituted by clause ( a) of section 6 of the
Maharashtra Ownership Flats (Regulation of the promotion of construc tion, sale, management and
transfer) (Amendment) Act, 1986 (Mah. XXXVI of 1986) (hereinafter in this section referred to as “the
Amendment Act”), it shall be deemed to be effective as if the said clause (ii) as so substituted has been
in force at all mate rial times; and the expression “ or construct any additional structures” in clause (ii)
of sub-section (1) of section 7 as it existed before the commencement of the Am endment Act and the
expression “constructed and completed in accordance with the plans a nd specifications as aforesaid”
and “any unauthorised change in the construction” in sub-section (2) of section 7 shall, notwithstanding
anything contained in this Act, or in any Agreement, or in any judgement, decree or order of any Court,
be deemed never to apply or to have applied in respect of the construction of any other additional
building or structures constructed or to be constructed under a scheme or project of development in the
layout after obtaining the approval of a local authority in accordance with the building rules or building
bye-laws or Development Control Rules made under any law for the time being in force.]
8. Refund of amount paid with interest for failure to give possession within specified time
or further time allowed.— If—
(a) the promoter fails to give possession in accordance with the terms of his agreement of a
flat duly completed by the date specified, or any further date or dates agreed to by the parties, or
(b) the promoter for reasons beyond his control and of his agen ts, is unable to give
possession of the flat by the date specified, or the further agreed date and a period of three months
thereafter, or a further period of three months if those reasons still exist,
then, in any such case, the promoter shall be liable on demand (but without prejudice to any other
remedies to which he may be liable) to refund the amounts already received by him in respect of the
flat (with simple interest at nine per cent. per annum from the date he received the sums till the date the
amounts and interest thereon is refunded), and the amounts and the interest shall be a charge on the
land and the construction if any thereon in which the flat is or was to be constructed, to the extent of
the amount due, but subject to any prior encumbrances.
9. No mortgage, etc., to be created without consent of parties after execution of agreement
for sale.— No promoter shall, after he executes an agreement to sell any flat, mortgage or create a
charge on the flat on the land, without the previous consent of the persons who take or agree to take the
flats, and if any such mortgage or charge is made or created without such previous consent after the
agreement referred to in section 4 is registered, it shall not affect the right and interest of such persons.
10. Promoter to take steps for formation of co -operative society or company. — 2[(1)] As
soon as a minimum number of persons required to form a Co -operative society or a company have
taken flats, the promoter shall within the prescribed period submit an a pplication to the Registrar for
registration of the organisation of persons who take the flats as Co -operative society or, as the case
may be, as a company; and the promoter shall join, in respect of the flats which have not been taken, in
such application for membership of a Co -operative society or as the case may be, of a company.
Nothing in this section shall affect the right of the promoter to dispose of the remaining flats in
accordance with the provisions of this Act:
3[Provided that, if the promoter fails within the prescribed period to submit an application to the
Registrar for registration of society in the manner provided in the Maharashtra Co -operative Societies
Act, 1960 (Mah. XXIV of 1961) , the Competent Authority may, upon receiving an applica tion from
1 Section 7A was inserted by Mah. 36 of 1986, s. 7.
2 Section 10 was renumbered as sub-section (1) of that section and sub-section (2) was added by Mah.15 of 1971, Sch.
3 These provisos were added by Mah. 4 of 2008, s. 5.
12 The Maharashtra Ownership Flats (Regulation of the [1963 : Mah. XLV
promotion of construction, sale, management
and transfer) Act, 1963
the persons who have taken flats from the said promoter, direct the District Deputy Registrar, Deputy
Registrar or, as the case may be, Assistant Registrar concerned, to register the society:
Provided further that, no such direction to register any society under the preceding proviso shall
be given to the District Deputy Registrar, Deputy Registrar or, as the case may be, Assistant Registrar,
by the Competent Authority without first verifying authenticity of the applicants , request and giving
the concerned promoter a reasonable opportunity of being heard.]
1[(2) If any property consisting of building is constructed or to be constructed 2[and the promoter
submits such property to the provisions of the Maharashtra Apartment Ownership Act, 1970
(Mah. XV of 1971), by executing and registering a Declaration as provided by that Act] then the
promoter shall inform the Registrar as defined in the Maharashtra Co -operative Societies Act, 1960
(Mah. XXIV of 1961), accordingly; and in such cases, it shall not be lawful to form any co-operative
society or company 3[* * *].]
11. Promoter to convey title, etc., and execute documents, according to agreement. — 4[(1)]
A promoter shall take all necessary steps to complete his title and convey to the organisation of
persons, who take flats, which is registered either as a co -operative society or as a company as
aforesaid or to an association of flat takers 5[or apartment owners], his right, title and interest in the
land and building, and execute all relevant documents therefor in accordance with the agreement
executed under section 4 and if no period for the execution of the conveyance is agreed upon, he shall
execute the conveyance within the prescribed period and also deliver all documents of title relating to
the property which may be in his possession or power.
6[(2) It shall be the duty of the promoter to file with the Competent Authority, within the
prescribed period, a copy of the conveyance executed by him under sub-section (1).
(3) If the promoter fails to execute the conveyance in favour of the Co -operative society formed
under section 10 or, as the case may be, the Company or the association of apartment owners , as
provided by sub-section (1), within the prescribed period, the members of such Co-operative society or,
as the case may be, the Company or the association of apartment owners may, make an application, in
writing, to the concerned Competent Authority a ccompanied by the true copies of the registered
agreements for sale, executed with the promoter by each individual member of the society or the
Company or the association, who have purchased the flats and all other relevant documents (including
the occupation certificate, if any), for issuing a certificate that such society, or as the case may be,
Company or association, is entitled to have an unilateral deemed conveyance, executed in their favour
and to have it registered.
(4) The Competent Authority, on receiving such application, within reasonable time and in any
case not later than six months, after making such enquiry as deemed necessary and after verifying the
authenticity of the documents submitted and after giving the promoter a reasonable opportuni ty of
being heard, on being satisfied that it is a fit case for issuing such certificate, shall issue a certificate to
the Sub -Registrar or any other appropriate Registration Officer under the Registration Act, 1908
(16 of 1908), certifying that it is a f it case for enforcing unilateral execution, of conveyance deed
conveying the right, title and interest of the promoter in the land and building in favour of the
applicant, as deemed conveyance.
(5) On submission by such society or as the case may be, the Company or the association of
apartment owners, to the Sub -Registrar or the concerned appropriate Registration Officer appointed
under the Registration Act, 1908 (16 of 1908), the certificate issued by the Competent Authority
1 Section 10 was renumbered as sub-section (1) of that section and sub-section (2) was aExcerpt shown. Open the full act in Lexace.