Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 1963
No: 45 Dated: Dec, 16 1963
THE MAIIARASHTRA OWNERSHIP FLATS (REGULATION OF THE PROMOTION OF CONSTRUCTION, SALE, MANAGEMENT AND TRANSFER) ACT, 1963
ACT No. XLV OF 1963
An Act to regulate, 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 abuses, 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. Section 248-79599-F, dated the 20th May, 1960, to inquire into and report to the State Government on the several matters 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 on ownership basis in the State of Maharashtra;
It is hereby enacted in the Fourteenth Year of the Republic of India as follows :-
1. Short title, 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 such areas, and on such dates as the State Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different areas.
2. Definitions. - In this Act, unless the context otherwise requires,-
(a) "Competent Authority" means a Competent Authority appointed under section 5A
(a-1) "Flat" means a separate and self-contained set of premises used or intended to be used for residence, or office, show-room or shop or godown or for carrying on any industry or business (and includes a garage), the premises forming part of a building and includes an apartment.
Explanation. - Notwithstanding that provision is made for sanitary, washing, bathing or other conveniences 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) "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, 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 assignees; 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, (Maharashtra XXIV of 1961) or, as the case may be, in the Companies Act, 1956;
(e) "to construct a block or building of flats or apartments" includes to convert a building or part thereof into flats or apartments;
(f) the expressions, "apartment" and "apartment owner" shall have the meanings, respectively assigned to them in the Maharashtra Apartment Ownership Act, 1970.
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 produced, 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 which the flats are constructed, or are to be constructed; such title to the land as aforesaid having been duly certified by an Attorney-ab-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 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 on seven day's 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;
(e) disclose on reasonable notice or demand if the promoter is himself the builder, the prescribed particulars as respect the design and the materials to be used in the construction of the building, 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 buildings;
(f) specify in writing the date by which possession of the flat is to be handed 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, water 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;
(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 the 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.
(n) sell flat 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.