PUNE: Consumer activists and members of housing societies have welcomed the government's recent intention to implement the three-year old amendment to the Maharashtra Ownership Flats Act 1963. The amendment makes it mandatory for builders to transfer ownership of land to the respective society, in the form of a conveyance deed. The penalty for errant builders, as per the new amendment, could go upto a year's imprisonment and a fine of up to Rs 50,000.
Considering the fact that a sizable number of the 30,000-odd housing societies in Pune lack a conveyance deed, citizens say the implementation comes not a moment too soon.
Consumer activist Sudhakar Velankar, who is the founder president of the Grahak Hitavardhani, said, "We were practically a part of the entire process that brought about the amendment. Once the exact regulations are gazetted, we plan to hold a meeting of housing societies to apprise them of the same. Pune has approximately 30,000 housing societies and a majority of them do not have conveyance, sometimes even as many as twenty years after they were built."
Technically, point out the activists, the absence of a formal transfer of land to the society means the builder, in the eventuality of the building deteriorating over the years, can rebuild it and sell to someone else!
"I have seen several cases wherein the managing committee of a said society labour under the illusion that they are the owners of the society. But legally speaking, unless there is a proper conveyance deed, they have no right to govern. They are merely agents of the builder," said Velankar. It also means that each time an individual wants to sell his flat, he has to obtain a no-objection certificate from the builder.
Advocate Aruna Nafadey said, "If the state government were indeed serious about the implementation of the said amendment, it would have gone about things differently. There ought to be a clause in the law that if the conveyance is not issued within a stipulated time period--say the four months from the completion certificate---the housing society should be able to approach a civil court, file an application and obtain a declaration which would be registered with the registrar of stamps as conveyance. This is easier than complaining to the Registrar of Housing Societies."
Nafadey further added that the state government ought to ensure that the document is accepted by the revenue and other authorities for change of name in titles. "The state government should direct the municipal corporation/other planning authorities to ensure that a builder who does not give a conveyance in a said time period, is not granted sanction for another project. It just does not seem fair that a builder be given a chance to start afresh, even as he leaves a set of people in the lurch."
Both Velankar and Nafadey urged flat purchasers and housing societies to be more pro-active in the assertion of their rights from the outset--instead of waiting for things to go wrong. "It is your life's savings invested in the home. Take a little more interest in the legalities of the matter. Even if there is no unity within the society members, a single pro-active member has the option of asking for the conveyance."
For his part, builder Rohit Gera said: At an objective level, given the fact that many housing societies have not been conveyed over the years, there is a need for a legislation that will promote the speedy transfer of land to the housing society. That said, this is a solution which needs thinking through and working out. Otherwise, it would just result in a fresh set of problems for house owners."
Gera illustrated his point further. "For instance, if one is building a 100 acre township, the methodology of going about things needs to be really clear. What is one to do? Build every five acres, give them a compound wall and security? Will that solve things or work out well? I don't think so."
Similarly, he said, in case of a fly-by-night operator, speedy transfer of land to the society would mean an easy exit point from other associated responsibilities like water, property tax and so on. "Therefore, I would call for a further dialogue on the issue."