The Mofa Act 1963: Section 1: Short Title, Extent, Commencement and Duration
The Mofa Act 1963: Section 1: Short Title, Extent, Commencement and Duration
MOFA ACT 1963
Maharashtra Ownership of Flats (Regulation of the Promotion of Construction Sale
Management and Transfer Act 1963
An act to regulate for a certain period, 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. S. 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 fiats taken on a ownership basis in the State of Maharashtra; It is hereby
enacted in the Fourteenth Year of the Republic of India as follows:
SECTION 1:
SHORT TITLE, EXTENT, COMMENCEMENT AND DURATION
(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.
(4) This Act shall remain in force up to and inclusive of the 31st day of March 21995
and shall then expire.
(5) Section 7 of the Bombay General Clauses Act, 1904, shall apply upon the expiry of
this Act, as if it had then been repealed by a Maharashtra Act.
SECTION 2:
DEFINITION
In this Act, unless the context otherwise requires –
(a) ‘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 for carrying on any
industry or business] (and includes a garage), the premises forming part of a
building 2[and includes an apartment].
Explanation. ‐ Notwithstanding that provisions 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 “who constructs or causes to be constructed a block
or building of flats; 3[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 re different persons, the term includes both;
(d) “Registrar” means the Registrar as defined in the Maharashtra Co operative
Societies Act, 1960, or, as the case may be, in the Companies Act, 1956;
(e) To construct a block or building of flats 4[or apartments] includes to convert a
building or part thereof into flats 4[or apartments;
5(f) the expressions, “apartment” and” apartment owner” shall have the meanings,
respectively assigned to them in the Maharashtra Apartment Ownership Act,
1970.
SECTION 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
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 ale 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, have been duly entered in
the property, card or extract of Village Forms V or VII and X 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 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;
(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 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);
1. These words are added by Mah. 36 of 1986, s, 3(a).
(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 document;
in such a 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) (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 j 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 installments
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.
SECTION 4:
PROMOTER BEFORE ACCEPTING ADVANCE PAYMENT OR DEPOSIT TO CUTER
INTO AGREEMENT AND AGREEMENT TO BE REGISTERED
(1) [Notwithstanding anything contained 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, 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 not be
registered under 2[the Registration Act, 1908 (hereinafter in this section
referred to as “the Registration Act”)] 3[and such agreement shall be in the
prescribed form.]
(1A) The agreement to be prescribed under sub‐section (1) shall contain inter alias
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,
1. Section 4 was renumbered as subsection (of that section by Mah.5 of 1984,
s.2 (I).
2. These words, figures and brackets were substituted for the words and
figures “the Indian Registration Act,1908’, ibid. s.2(1)
3. These words were substituted for the portion beginning with the words
and such agreement” and ending with the words ‘may prescribed” by Mah.
36 of 1986. s.4 (a).
4. Subsection (1A) was inserted, by Mah 36 of 1986. S 4(b)
(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 installments thereof may be
paid;
(v) The precise nature of the organisation to be constituted of the persons
who have taken or are to take the flats;
(vi) The nature, extent and description of the 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 for which the flat is intended and restriction on 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.
(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 registration, within the time
allowed under sections 23 to 26 (both inclusive) of the said Act and execution
thereof shall be admitted before the registering officer by the person executing
the document or his representative, assign or agent as laid down in sections 34
and 35 of the said Act also within the time aforesaid:
1. Subsection (2) was added by Mah. 5 of 1984, s. 2(2).
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
Maharashwa Ownership Flats (Regulation of the promotion of construction, sale,
management and transfer) (Amendment and Validating Provisions) Act, 1983,
and such agreement was not presented for registration, or was presented for
registration but its execution was not presented 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 concerned referred to
above in this sub‐section, on or before the3lstDeceruber 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 executants 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 of 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.
SECTION 4A:
EFFECT OF NONREGISTRATION OF AGREEMENT REQUIRED TO BE REGISTERED
UNDER SECTION 4
Where an agreement for sale entered into under sub‐section 4, whether entered into
before or after the commencement of the Maharashtra Ownership Flats (Regulation of
the promotion of construction, sale, management and transfer) (Amendment and
Validating Provisions) Act, 1983, remains unregistered for any reason, then
notwithstanding anything contained in any law for the time being in force, or 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, or as
evidence of part performance of a contract for the purposes of section 53A of the
Transfer of Property Act, 1882, or as evidence of any collateral transaction not required
to be effected by registered instrument.]
SECTION 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 accounting 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
SECTION 6:
RESPONSIBILITY FOR PAYMENT OF OUTGOING STILL 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 ever
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 the property to the persons
taking over the flats, or to the organisation of any such persons.
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 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 to be responsible for any legal proceedings which may be taken therefor by
such authority or person.
SECTION 7:
ALTER PLANS AND SPECIFICATIONS ARE DISCLOSED NO ALTERATIONS OR
ADDITIONS WITHOUT CONSENT OF PERSONS WHO HAVE AGREED TO TAKE THE
FLATS; AND DEFECTS NOTICED WITHIN [THREE YEARS] TO BE RECTIFIED
(1) After the plans and specifications of the building, as approved by the local
authority as aforesaid, are disclosed of furnished to the person who agree to take
one or more fiats, the promoter shall not make ‐
(i) Any alteration in the structures described therein in respect of the flat or
flats which are agreed to be taken, without the previous consent of that
person;
(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 fiats 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 unauthorised change in the construction is
brought to the notice of the promoter within a period of 3[three years] from the
date of handing over possession, it shall wherever possible be rectified by the
promoter without further charge to the persons who have agreed to take the
flats, and in other cases such person shall be entitled to receive reasonable
compensation for such defect or change. Where there is a dispute as regards any
defect in the building or material used, or any unautorised change in the
construction 4[or as to whether it is reasonably possible for the promoter to
rectify 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 Stand within a period of three years from the date of handing
over possession, be referred for decision –
1. The words Three Years substituted in Marginal note by Mali. 36o 1986, s.
6
2. Clause ii) was substituted ibid., s. 6
3. For the words One Year the words Three Years subs. s. 6(6II)
4. These words were deemed always to have been inserted by Mah. 11 of
1970. s,
(i) In an urban agglomeration as defined in clause (n) of section 2 of the
Urban Land ( Ceiling and Regulation) Act, 1976, to such competent
authority authorised by the Sate 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, as the State
Government may, by general or special order, specify in this behalf. Such
competent authority, Deputy Chief Engineer or, as the ease may be, The
other officer of a Board shall, after inquiry, record his decision, which
shall be final.
SECTION 7A:
REMOVAL OF DOUBT
For the removal of doubt, it is hereby declared that clause (ii) of sub‐section (I) of
section 7 having been retrospectively substituted by clause (a) of section 6 of the
Maharashtra Ownership Flats (Regulation of the promotion of construction, sale,
management and transfer) (Amendment) Act, 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 had been in force at all material 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 Amendment Act and the expressions “constructed and
completed in accordance with the plans and specifications 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 judgment,
decree or order of any court, be deemed never to apply or to have applied in respect of
the construction of any other additional buildings 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.
SECTION 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 reason beyond his control and of his agents, is unable to give
possession of (he flat by the date specified, or a 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 percent 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.
SECTION 9:
NO MORTGAGE ETC., TO BE CREATED WITHOUT CONSENT OF PARTIES AFTER
EXECUTION OF AGREEMENT FOR SALE
No promoter shall, after he execute an agreement to sell any fiat, mortgage or create a
charge on the flat or 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.
SECTION 10:
PROMOTER TO TAKE STEPS FOR FORMATION OF COOPERATIVE SOCIETY OR
COMPANY
(1) As soon as a minimum number of persons required to form a co‐operative
society or a company have taken fiats, the promoter shall within the prescribed
period submit an application to the Registrar for registration of the organisation
of persons who take the flats as a 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 effect the right’ of the
promoter to dispose of the remaining flats in accordance with the provisions of
this Act.
(2) If any property consisting of building or buildings is constructed or to be
constructed 2[and the promoter submits such property to the provisions of the
Maharashtra Apartment Ownership Act, 1970, by executing and registering a
Declaration as provided by that Act] then the promoter shall inform the Registrar
as define in the Maharashtra Co operative Societies Act, 1960, accordingly; and in
such cases, it shall not be lawful to form any co‐operative society or company.
1. Section 10 was renumbered as sub‐section (1) of that section and sub‐
section (2) was added by Mah. 15 of 1971. Sch.
2. This portion was substituted for the portion beginning with “and the
apartment takers propose to submit” and ending with “as required by that
Act” by Mali. 53 of 1974, s. 6(a).
3. The words “and each apartment owner shall be entitled to the exclusive
ownership and possession of his apartment as provided in the first
mentioned Act”, were deleted, ibid. S. 6
SECTION 11:
PROMOTER TO CONVEY TITLE, ETC. AND EXECUTE DOCUMENTS, ACCORDING TO
AGREEMENT
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 [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.
SECTION 12:
GENERAL LIABILITIES OF FLATTAKER
(1) Every person who has executed an agreement to take a flat shall pay at the
proper time and place the price, his proportionate share of the Municipal taxes,
water and electricity charges, ground rent (if any) and other public charges in
accordance with his agreement with the promoted and where the co operative
society or company of persons taking the flats is to be constituted, co‐operative
in the formation of such society or company, as the case may be.
(2) Any person who has executed an agreement to take a flat and who, without
reasonable excuse, fails to comply with or contravenes sub section (1) shall, on
conviction, be punished with fine which may extend to two thousand rupees.
SECTION 12A:
MANAGER NOT TO CUTOFF, WITHHOLD, CURTAIL OR REDUCE ESSENTIAL SUPPLY
OR SERVICE
(1) No person, who is a promoter, or who is in‐ charge of management or connected
with the management of a block or building of flats, whether as member of a
managing committee. director, secretary or otherwise, or is responsible for the
maintenance thereof (herein after in this section referred to as the manager”)
shall, without just and sufficient cause, either by himself or through any person,
cut off, withhold, or in any manner curtail or reduce, any essential supply or
service enjoyed by the person who has taken a flat (or by any person in
occupation thereof through or under him) in respect of the flat taken or agreed
to be taken by him.
(2) The person who has taken or agreed to take the flat or the occupier may, if the
manager has contravened the provisions of sub‐section (I), make an application
to the Court for a direction to restore such supply or service.
(3) If the Court on enquiry finds that the applicant or the person through or under
whom he is in occupation has been in enjoyment of the essential supply or
service, and that it was cut off or withheld or curtailed or reduced by the
manager without just and sufficient cause, the Court shall make an order
directing the manager to restore such supply or service before a date to be
specified in the order.
(4) The manager who fails to restore the supply or service before the date so
specified, shall for each day during which the default continues thereafter, be
liable upon a further direction by the Court to that effect, to fine which may
extend to one hundred rupees.
(5) Notwithstanding anything contained in any law for the time being in force
(a) In Greater Bombay, the Court of Small Causes, Bombay,
(b) In any area for which a Court of Small Causes is established under the
Provincial Small Cause Courts Act, 1887, such Court, and
(c) Elsewhere, the Court of the Civil Judge (Senior Division), shall have
jurisdiction to decide any application made under sub‐section (2), and no
other Court shall have jurisdiction to entertain such application. No
appeal shall lie from any order made on such application; but in Greater
Bombay a bench of two judges of the Court of Small Causes, Bombay
which shall not include the Judge who made such order, and elsewhere
the District Court, may for the purpose of satisfying itself that the order
made was according to law, call for the case in which such order was
made and the Bench or Court aforesaid or the District judge or any Judge
to which the case may be referred by the District Judge, shall pass such
order with respect thereto as it or he thinks fit.
(6) Any manager who contravenes the provisions of sub‐section (1) shall, on
conviction be punished with imprisonment for a term which may extend to three
months, or with fine, or with both.
(7) The offence under sub‐section (6) shall be cognizable, and shall not be triable by
any Court inferior to that of a 1[Metropolitan Magistrate, or a Judicial Magistrate
of the First Class].
Explanation I. ‐ In this section, essential supply or service includes the supply of
water, electricity, lights in passages and on stair‐cases, and lifts and conservancy
or sanitary service.
Explanation II. ‐ For the purposes of this section, withholding any essential
supply or service shall include acts or omissions attributable to the manager on
account of which the essential supply or service is cut off by the local authority
or any other competent authority.
1. These words were substituted for the words “Presidency Magistrate or a
Magistrate of the First Class” by Mah.12 of 1986, s. 3.
SECTION 13:
OFFENCES BY PROMOTERS
(1) Any promoter who, without reasonable excuse, fails to comply with, or
contravenes, the provisions of section 3,4, 5 (save as provided in sub‐section (2)
of this section), 10 or 11 shall, on conviction, be punished with imprisonment for
a term which may extend to three years or with fine, or with both.
(2) Any promoter who commits criminal breach of trust of any amount advanced or
deposited with him for the purposes mentioned in section 5 shall, on conviction,
be punished with imprisonment for a term which may extend to five years, or
with fine, or with both.
(3) Any promoter who, without reasonable excuse, fails to comply with, or
contravenes, any other provision of this Act or of any rule made thereunder,
shall, if no other penalty is expressly provided for the offence, be punished, on
conviction, with imprisonment for a term which may extend to one year, or with
fine which may extend to ten thousand rupees, or with both.
SECTION 13A:
POWER OF MAGISTRATE TO PASS SENTENCES UNDER THIS ACT
Notwithstanding anything contained in the Code of Criminal Procedure, it shall be
lawful for a Metropolitan Magistrate or a Judicial Magistrate of the First Class to pass on
any person convicted of any offence under this Act a sentence of imprisonment or of
fine or both as provided in the relevant section of this Act, in excess of his powers under
section 27 of the said Code.
SECTION 14:
OFFENCES BY COMPANIES
(1) If the person committing an offence under this Act is a company, every person
who at the time the offence was committed was in charge of, and was
responsible to the company for the conduct of business by the company, as well
as the company, shall be deemed to be guilty of the offence and shall be liable to
be proceeded against and punished accordingly:
Provided that, nothing contained in this sub‐section shall render any such person
liable to such punishment provided in this Act if he proves that the offence was
committed without his knowledge or that he exercised all due diligence to
prevent the commission of such offence.
(2) Notwithstanding anything contained in sub‐section (1), where an offence under
this Act has been connected with the consent or connivance of, or is attributable
to any negligence on the part of any director, manager, secretary or other officer
of the company, such director, manager, secretary or other officer shall also be
deemed to be guilty of that offence and shall be liable to be proceeded against
and punished accordingly.
Explanation. ‐ For the purposes of this section, ‐‐
(a) “Company” means a body corporate and includes a firm or other
association of individual and
(b) “Director” in relation to a firm means a partner in the firm.
SECTION 15:
POWER OF MAKE RULES
(1) The Stare Government may, subject to the condition of previous publication, by
notification in the Official Gazette, make rules for carrying into effect the
provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power such
rules may provide for all or any of the following matters, namely ‐
(a) under section 3, the particulars as respects the design and the materials
to be used in the construction of the building and the other information
and documents to be disclosed, the manner in which disclosure to be
made and the documents of which true copies shall be given by the
promoter,
1. Clause (b) was substituted for the original by Mah 36 1986. s. 9.
(b) Under section 4, the form of agreement;
(c) Under section 10, the period within which the promoter shall submit an
application for registration of a co‐operative society or a company;
(d) Under section 11, the period within which the promoter shall execute the
conveyance;
(e) Any other matter which has to be, or may be, prescribed by rules.
(3) Every rule made under this section shall be laid as soon as may be after it is
made before each House of the State Legislature while it is in session for a total
period of thirty days which may be comprised in one session or in two successive
sessions, and it, before the expiry of the session in which it is so laid or the
session immediately following, both Houses agree in making any modification in
the rule or both Houses agree that the rule should not be made, and notify such
decision in the Official Gazette, the rule shall from the date of publication of such
notification have effect only in such modified form or be of no effect, as the case
may be; so however that any such modification or annulment shall be without
prejudice to the validity of anything previously done or omitted to be done under
that rule.
SECTION 16:
ACT TO BE IN ADDITION TO TRANSFER OF PROPERTY ACT AND TO OVER RIDE
CONTRACT TO THE CONTRARY
The provisions of this Act, except where otherwise provided, shall be in addition to the
provisions of the Transfer of Property Act, 1882, and shall take effect notwithstanding
anything to the contrary contained in any contract.
SECTION 17:
APPLICATION OF CERTAIN PROVISIONS TO FLATS ALREADY IN EXISTENCE
As respects flats which on the commencement of this Act have already been
constructed, or converted, the provisions of sections2, 6,8,9,10,11, 12,13,14,15 and l6
apply with the following modifications, that is to say
(a) In section 2, in clause ( the words “means a person who constructs” shall be read
as if the words “means a person who has constructed” had been substituted;
(b) In section 8, if the date specified or agreed to has already passed at the
commencement of this Act, then the promoter shall give possession within three
months from such commencement of this Act; and if for any reasons beyond his
control and of his agent, the promoter has been unable to give possession of the
flat within three months from such commencement, he shall give possession
thereof within a period of three months thereafter, or a further period of three
months if those reasons still exist; and thereafter the promoter shall be liable on
demand to refund the amounts on the terms and conditions provided in the said
section;
(c) In section 9, the words and figure “after the agreement referred to in section 4 is
registered” shall be read as if the words “after the commencement of this Act”
had been substituted;
(d) In section 10, the words “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” shall be read as if the words “Where the minimum
number of persons required to form a co‐operative society or a company have
taken flats, the promoter shall within three months from the commencement of
this Act” had been substituted;
(e) In section 11, the words and figure “in accordance with the agreement executed
under section 4” shall be read as if the words “in accordance with any agreement
made in respect thereof” had been substituted and the words “within the
prescribed period” shall, be read as if the words “within three months from the
commencement of this Act” had been substituted.
SECTION 18:
ACT NOT TO APPLY TO HOUSING AND AREA DEVELOPMENT AUTHORITY AND
BOARDS
Nothing in this Act shall apply to the Maharashtra Housing and Area Development
Authority and the Boards established under the Maharashtra Housing and Area
Development Act, 1976.