Mumbai Grahak Panchyat (MGP), the consumer rights group, has raised 52 objections to draft rules framed by Maharashtra government under central government’s Real Estate (Regulation and Development) Act and criticised them as anti-consumers and builder friendly.
Though the Act is passed by the Parliament, the Act allows states to frame the rules suitable to local conditions as housing is a subject in the concurrent list of the constitution.
One of the main objections raised by MGP concerns the registration of a housing project with the state real estate regulator. MGP states that a developer should be allowed to register their project with state real estate regulator only after he has all requisite permissions in place for the entire project. If he is allowed to register the project in absence of all permissions for the entire project, it could allow the developer to misuse the provision and project a misleading picture through advertisements to potential customers that the entire project has received all clearances.
The consumer protection group has also objected to the provision in the Act allowing builders to collect 30% of flat cost at the time of registration and 45% at the time of completion of construction up to plinth level. MGP claims that it is in clear violation of central government’s law and suggested that the builder should be allowed to collect only 15% of amount at the time of signing agreement to sale and 20% amount when plinth level construction is completed.
The MGP has stated that allowing builder to cancel the agreement in case of single default in payment of instalment is completely against the interest of consumers and asked to increase this limit to five.
Similarly it has also objected to the rule which allows a builder to terminate contract by giving just seven day notice and that too by an email. The MGP said that instead of this provision, the customer must be given 15 days clear notice and that too by register post AD.
The MGP has also objected to the provision of allowing builder to sale the flat on completion of seven days period mentioned in notice, but allowing him to return the money of customer after six months that too without interest. It suggested that the sale of flat should be allowed only after full payment is made to customer and that too within 15 days of termination of the contract.
The MGP has also claimed that allowing builders to form a society only after occupation of the flats is gross violation of central government’s act.
It has also stated that a builder should be allowed to go ahead with the project only after he has obtained entire FSI for the project. If he is allowed to register the project without having entire permissible FSI in his hand for the project, it will delay the project and could lead to possible deception of customers.
The group has also objected to the steep fee of Rs.10,000 in case consumer wants to approach an adjudication officer in case of a dispute with the builder and suggested that this fee should be lowered to Rs.1,000.
The MGP chairman Shirish Deshpande said, “Though officially the date for filing suggestions and objections is over on December 31, we have demanded that, this period should be increased by at least month as Marathi translation of these rules became available only in last week of December. How can the state finalise the rules without allowing major section of its population understand the rules?” he asked.
[Source:-Mumbai mirror]
