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The poll bound Congress-NCP government in Maharashtra has set ball rolling for the establishment of regulatory authority and appellate tribunal for the housing sector under the provisions of the Maharashtra Housing (Regulation and Development) Act 2012.
The government on July 9 has issued a notification for the formation of a five member search committee chaired by the chief secretary to recommend names of the chairman and members of the housing regulatory authority.
Another five member search committee headed by the chief secretary has been formed to suggest names of chairman and members of the appellate tribunal.
The President of India had given its assent in February to the Maharashtra Housing (Regulation and Development) Act 2012.
A senior official, who did not want to be named, told Business Standard '''The government intends to put in place both these bodies by August before the code of conduct for ensuing assembly election will come into effect. The notification on search committees was issued after the government had released notification on July 8 to make effective relevant provisions of the Maharashtra Housing (Regulation and Development) Act 2012.''
The official informed that Housing Appellate Tribunal will be set up where appeals against the order of the housing regulatory authority can be filed within 60 days of the date of order.
The proposed housing regulatory authority will have powers of a civil court and it can sentence errant developers to a prison term of up to three years and impose fines of up to Rs 1 crore. The Maharashtra Housing (Regulation and Development) Act 2012 will be applicable to all new and under construction residential, commercial and retail projects that are yet to get an occupancy certificate.
Further, it will be binding on the developers to register their project on the website of the regulatory authority and then and then only they will be allowed to sell and market it. Builders will have to disclose title, layout, construction schedule and date of possession. The developers will be pulled up for misleading claims.
Moreover, for every project promoter will have to open a separate bank account and the amount received will have to be utilized for that project only. Promoter will make full disclosure of the transactions to a state government officer. After disclosure of the building plans no alteration or addition will be allowed without consent of the purchaser(s).
