Long before the Real Estate (Regulation and Development) Act 2016 (RERA) came into existence, home buyers in Maharashtra were protected by the Maharashtra Ownership Flats Act (MOFA) of 1963.

MOFA, just like the Real Estate (Regulation and Development) Act 2016 aims at protecting the interest of flat purchasers by bringing in transparency and discipline in transactions of flats by putting a check on malpractices.

However, RERA has brought back the trust of homebuyers in the market by consolidating the sector and plucking out unscrupulous players.

If we take a closer look at both the acts, it is evident that MOFA mostly covers only structural defects in a building or if any defective material has been used. Whereas, under RERA action is taken even in cases of defect in workmanship, quality, provision of services, or any other obligation that was made at the time of agreement for sale along with structural defects. Therefore, increasing the scope of defects that homebuyers can seek redressal for.

Under the MOFA, there was no specific time period within which the promoter had to rectify the defect or give compensation for it, but RERA has a specific duration within which the promoter has to rectify the defect or pay compensation.

The RERA Act also established the institution of a reliable, speedy redressal mechanism. The act enables homebuyers to register a complaint against promoters and the authority resolves the matter within 60 days.

The MOFA Act is an important piece of legislation as it lays down the responsibilities of real estate developers and builders with respect to flats sold by them and conversely the rights of flat purchasers within the State.

However, the RERA has made the provisions far more stringent for the developers and beneficial to the flat buyers.

The Maharashtra State Police Department along with the Government in 2016 had made additions to the MOFA of 1963 and the Maharashtra Regional and Town Planning Act, 1966 following the enactment of the RERA. As per the circular, builders flouting the rules of the act were liable to be jailed for 3 years, 5 years or 9 years depending upon the nature of the violation of the Act.

Some of the violations under MOFA for which the builder can be jailed are:

1) If the plan approved by the Brihanmumbai Municipal Corporation is not displayed on the builder's website.

2) If the builder fails to execute the agreement according to registration law even after taking 20% amount of the flat price.

3) Not keeping the advance amount taken from the flat purchasers in the bank in a separate account.

4) If the construction is not as per the approved plan.

5)If the builder did not apply for Registration of Cooperative Housing Society within four months.

6) If the conveyance of land & building is not done within 4 months of registration of the society.

There has been a lot of uncertainty as to whether builders can be booked under the MOFA following the implementation of RERA, but lawyers have maintained that the MOFA is still in force.