January 3, 2026: Homebuyer groups in Maharashtra have raised strong objections to recent amendments to the Maharashtra Ownership of Flats Act (MOFA), arguing that the changes significantly weaken long-standing consumer protections. The Akhil Bharatiya Grahak Panchayat (ABGP) has submitted a memorandum to Chief Minister Devendra Fadnavis, urging the state government to roll back what it terms anti-consumer and unjust provisions.
According to the consumer body, the amendments effectively remove criminal liability for developers who violate key provisions of MOFA, undermining the Act’s original intent of safeguarding flat purchasers. The group has called on the government to instruct the police and relevant authorities to initiate action against errant developers and to restore the ownership and conveyance rights of homebuyers across Maharashtra.
The memorandum highlights that nearly ten crucial provisions have been eliminated. These include sections that earlier provided for imprisonment or monetary penalties for violations related to disclosures, agreements, and delivery obligations. Provisions mandating the conveyance of land and buildings to cooperative housing societies or associations of flat purchasers have also been nullified. Additionally, criminal liability earlier applicable to company directors, partners, managers, and officials has been removed, a move critics say offers undue legal protection to builders.
Several compliance-related requirements have also been rendered toothless. These include assurances of timely possession after obtaining an occupation certificate, mandatory display of approved plans at project sites, full disclosure of project details, limits on advance payments before registration of sale agreements, maintenance of buyer funds in separate bank accounts, adherence to sanctioned plans, timely formation of housing societies, and execution of conveyance within prescribed timelines. Consumer groups argue that stripping these obligations weakens enforcement and reduces accountability.
The amendments have also excluded projects registered under the Real Estate (Regulation and Development) Act (RERA) after May 1, 2016, narrowing MOFA’s applicability largely to older and redevelopment projects. While industry voices cite overlap between MOFA and RERA, consumer advocates insist that MOFA remains critical for protecting buyers, particularly in stalled or legacy developments.
The issue highlights the broader challenge of modernising regulatory frameworks without eroding essential consumer safeguards, as stakeholders await the government’s response on whether these provisions will be reinstated.
