Lawmakers should protect buyers’ interest

court

In the present scenario there must be a regulatory mechanism to make sure that a developer could not sell off a house until the legal approvals were in place and that residential units got the right to the land when there was a violation of law by the developer.

There is a urgent need for a change in the law to ensure that developments has been done according to the plan and the developer has to provide the rights to the societies in case of a breach of law on flat sales.

The Campa Cola case highlighted the lack of law to protect hapless flat buyers.

Under the Maharashtra Ownership of Flats Act (Mofa), a developer cannot ink a sale deal until the plans are approved and flat-buyers can assume that all the provisions are in place. The Campa cola owners thought that approvals were coming and nothing was mentioned on their deeds. But the Mofa provides compensation only in the case of breach or for refunds. It is not authorized to allow illegal constructions.

Citing the Campa Cola case, a revision to the laws is required to deal with a situation, where illegal constructions eventually razing of illegal floors ought to take away the buyer s’ right.

The city civil court has upheld the BMC’s demolition orders in an interim application in a suit filled by the residents. The case is still pending in the court.

The apex court earlier this year held the buyers saying they have consciously acquired the illegal flats and the only remedy is to file a suit against the flat owners and the developers for return of money.

Demolition of illegal structures may be the immediate consequence.

 

It is most vital to protect owners with a controlling mechanism for sale of flats, to be followed by a deposit on duties collected from investors, pending completion and lawful timely certificated hand-over of the new construction, coupled with liquidated penalties for delays, defaults.