Despite pressure from the builders lobby to repeal the Maharashtra Ownership of Flats Act (MOFA), 1963, the state housing department is moving to strengthen the law in the interest of housing societies. A key amendment has been proposed to extend the provision of deemed conveyance to housing projects registered under the Real Estate (Regulation and Development) Act (RERA), addressing long-standing challenges faced by hundreds of flat owners and societies unable to obtain conveyance from developers.

The housing department has proposed amending MOFA by incorporating under it the conveyance-deed requirements currently governed by RERA. While buildings constructed before 2016 — when RERA came into effect — are entitled to deemed conveyance, post-2016 projects have no such safeguard. The amendment would allow newer housing societies to obtain ownership of the land on which their buildings stand.

Deemed conveyance enables a housing society to secure legal ownership of its land when a developer fails to execute conveyance within the statutory timeframe. Without this, flat owners face major hurdles, especially during redevelopment.

A Mantralaya official noted that RERA does not mandate deemed conveyance and lacks any provision compelling developers to hand over conveyance within three months of receiving an occupation certificate. Over the last decade, many RERA-completed projects have neither received conveyance nor qualified for deemed conveyance. Unlike MOFA, RERA does not carry criminal liability for non-compliance, resulting in frequent delays by developers.

The housing department has forwarded the proposal to the law and judiciary department. Once cleared, it will be tabled in the state legislature. Since RERA is a central Act and cannot be amended by the state, the changes will instead be made within MOFA.

Former housing secretary Sitaram Kunte welcomed the amendment, saying it would bring much-needed relief to thousands of flat owners. He noted that RERA contains no provision governing conveyance deeds, making it essential to bring such requirements within MOFA. He added that the deemed conveyance clause introduced during his tenure had also faced strong pushback from the builder lobby.

Kunte emphasised that while RERA is a central Act, additional protections for RERA-registered properties are necessary. He recalled that early efforts to introduce RERA-like provisions under MOFA in the 2000s had been similarly opposed by developers.

Pankaj Kapoor, MD of Liases Foras Real Estate Rating & Research, said the amendment would safeguard the interests of housing societies. Once a building receives an occupation certificate, he explained, the developer largely falls outside RERA’s jurisdiction. This makes deemed conveyance difficult under RERA, enabling builders to withhold land ownership to retain control. Bringing deemed conveyance under MOFA would therefore be beneficial for flat owners.

The housing department has also rejected demands to repeal MOFA and submitted an affidavit to this effect in 2023.