The powerful builders' lobby, fearing the circular would open
floodgates of police complaints against them by aggrieved flat buyers, wants
the government to cancel it.
Mumbai: The state police has not withdrawn its
circular directing senior cops to register cases against builders who cheat
buyers, special inspector general of police Prabhat Kumar told TOI on Thursday.
It will, however, legally examine it further for
any loopholes following a letter from the state home department to the director
general of police on Wednesday stating that the circular is "inconsistent
with provisions of the Act".
The powerful builders' lobby, fearing the circular
would open floodgates of police complaints against them by aggrieved flat
buyers, wants the government to cancel it.
Those opposing the circular are bodies such as the
Marathi Builders Association, Pune, Maharashtra Chambers of Housing
Industry-CREDAI and National Real Estate Development Council. Developers
complained that holding builder solely responsible is a dangerous sign for
business, especially when there are frequent changes in building rules and
regulations. Construction industry sources said the general belief is that the circular
has been scrapped following the home department's letter. In fact, sources said
there is pressure on the BJP-led government to cancel it.
Kumar, who issued the circular, said the police
will continue to take action against errant builders under the provisions of
law. "The home department has not directed us to withdraw the circular. It
has only pointed out some lacunae. We will legally examine it again following
the home department's observation," he said.
Kumar has sought action against builders under the
Maharashtra Ownership Flat Act (MOFA)-1963. However, the state housing
department said the police cannot use MOFA because this Act has now been
scrapped and replaced by the Real Estate (Regulation & Development) Act.
2016. The state law and judiciary department, however, opined that certain
sections of MOFA are still in force. After looking at both opinions the home
department cautioned that the DG's circular seeking action under MOFA may be
contrary to these opinion.
Sudip Mullick, a partner with the construction
practice of law firm Khaitan & Co, had earlier told TOI that the old law,
MOFA, is still in force in the state. "The government has only notified
certain sections of RERA. The relevant sections of the new Act (like provisions
of action to be taken against builders for delay, etc) have still not been
notified by the state. MOFA has not been repealed," he said.
Early
this month, the state police directed police stations across Maharashtra to
register complaints against builders who cheat flat buyers and violate building
norms. The circular said complaints include builders failing to hand over
possession on time to buyers or developers who deliver apartments without
procuring the mandatory building occupation certificate.
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