Maharashtra Act No. XLV of 1963

(ii)
GOVERNMENT OF MAHARASHTRA
LAW AND JUDICIARY DEPARTMENT
MAHARASHTRA ACT No. XLV OF 1963.
The Maharashtra Ownership Flats

(Regulation of the promotion of construction,
sale, management and transfer)
Act, 1963.
(As modified upto 29th March 2016.)

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MUMBAI AND PUBLISHED BY THE DIRECTOR, GOVERNMENT
PRINTING, STATIONERY AND PUBLICATIONS,
MAHARASHTRA STATE, MUMBAI 400 004.
2016
[Price : Rs.15.00]
i
THE MAHARASHTRA OWNERSHIP FLATS

(REGULATION OF THE PROMOTION OF
CONSTRUCTION, SALE, MANAGEMENT AND
TRANSFER) ACT,1963.
MAHARASHTRA ACT No. XLV OF 1963.
CONTENTS PAGES
PREAMBLE.
SECTIONS.
1. Short tital, extent and commencement. .. .. .. 3

2. Definitions. .. .. .. 3
3. General liabilities of promoter. .. .. .. 4
4. Promoter before accepeting advance payment or deposit to enter 5
into agreement and agreement to be registered.
4A. Effect of non-registration of agreement required to be registered 7
under section 4.
5. Promoter to maintain separate account of sums taken as advance 7
or deposite and to be trustee therefore and disburse them for
purposes for which given.
5A. Competent Authority. .. .. .. .. 7
6. Responsibility for payment of outgoing till property is transferred. 7
7. After plans and specifications are disclosed no alteration or 8
additions without consent of persons who have agreed to take the
flats; and defects noticed within three years to be rectified.
7A. Removal of doubt. .. .. .. .. 9
8. Refund of amount paid with interest for failuer to give possession 9
within specificed time or further time allowed.
9. No mortgage, etc., to be created without consent of parties after 9
execution of agreement for sale.
10. Promoter to take steps for formation of co-operative society or 10
company.
11. Promoter to convey title, etc., and execute documents, according to 10
agreement.
12. General liabilities of flat-taker. .. .. .. .. 11
12A. Manager not to cut off, with hold, curtail or reduce essential supply 12
or service.
13. Offences by promoters and consequences on conviction. .. 13
13A. Power of Magistrate to pass sentences under this Act. .. 14
13B. Cometent Authority to be public servent. .. .. .. 14
13C. Proceedings before Competent Authority to be judicial proceedings. 14
H 41451
(ii)
PAGES
13D. Competent Authority deemed to be Civil Court for certain 14
Purposes.
13E. Indemnity for acts done in good faith. .. .. .. 14
14. Offences by companies. .. .. .. .. 14
15. Power to make rule. .. .. .. .. 15
16. Act to be in addition to Transfer of Property Act and to over-ride 15
contract to the contrary.
17. Application of certain provisions to flats already in existence. .. 15
18. Act not to apply to housing and Area development Authority and 16
Boards.
1963 : Mah. XLV] Maharashtra Ownership Flats (Regulation of the promotion of 1
construction, sale, management and transfer) Act, 1963
1
MAHARASHTRA ACT NO. XLV OF 1963 .
[The Maharashtra Ownership Flats (Regulation Of The
Promotion Of Construction, Sale, Management And Transfer)
Act, 1963.]
[Received the assent of the President on the
12th day of December 1963; assent first published in the Maharashtra
Government Gazette, Part IV, on the
16th day of December 1963.]
Amended by Mah. 29 of 1964.
1 of 1966.
2 of 1968.
11 of 1970.
15 of 1971.
5 of 1973.
53 of 1974 (1-1-1975)*
66 of 1977.
1 of 1979.
6 of 1982 (12-2-1982)*.
13 of 1983.
5 of 1984 (1-2-1984 )
Amended by Mah. 9 of 1981
6 of 1985(20-2-1985)*
1
For Statement of Objects and Reasons, see Maharashtra Government Gazette,1963, Part V,
pages 117.
* This indicates the date of commencement of Act.
Section 4 and 5 of Mah. 5 of 1984 read as follows :
4. (1) Where any agreement for sale was entered into, or was purported to be Validating
entered into under section 4 of the principal Act and such agreement was not registered under the provisions.
Registration Act before the commencement of this Act, then notwithstanding anything contained
in any law for the time being in force or in any judgement, decree or order of any Court, such
agreement shall not be invalid or ineffective, merely on the ground that it was not registered as
required by the said section 4, and shall be deemed always to have been valid and enforceable, if
such document is duly presented for registration on or before the 31st December 1984 and registered
under the said section 4 as amended by this Act.
(2) In computing any period of limitation prescribed by any law for the time being in
force, for the purpose of taking any legal proceeding for enforcing any rights or liabilities arising
from any agreement for sale deemed to be valid and enforceable under sub-section (1) or for
execution or enforcing any other documents depending on or connected with such agreement for
sale, the period from the date on which such agreement is entered into and the date on which it is
registered under section 4 of the principal Act as amended by this Act shall be excluded.
5. Nothing in this Act shall render any person liable to be convicted of any offence under the Savings.
principal Act, in respect of anything done or omitted to be done, before the commencement of this
Act, if such act or omission was not an offence under the principal Act but for the amendments
made in the principal Act, by this Act.
Maharashtra Ordinance No.III of 1985 was repealed by Mah. 6 of 1985. s. 3(1).
H 41451a
2 Maharashtra Ownership Flats (Regulation of the promotion of [1963 : Mah. XLV
12 of 1986 (30-1-1986)*
36 of 1986 (13- 4 -1987)*
15 of 1990(17-3-1990)*
10 of 1995 (1- 4 -1995)*
49 of 2000@ (1- 4 -2000)*
37 of 2005@@(1- 4 -2005)*
4 of 2008
23 of 2008
Maharashtra Ordinance No.VI of 1990 was repealed by Mah. 15 of 1990. s. 3(1).
Maharashtra Ordinance No.III of 2005 was repealed by Mah. 37 of 2005. s. 6.
Sections 3 and 4 of Mah. 10 of 1995 read as follows :
Savings. 3. Nothing in this Act shall render any person liable to be convicted of any offence in
respect of anything done or omitted to be done, during the period commencing on the 1st day of
April 1995 and ending on the date of publication of this Act in the Official Gazette, if such act or
omission was not an offence but for the retrospective extensions of duration of the principal Act, by
this Act.
Removal 4. For the removal of doubt, it is hereby declared that the principal Act, which was to
of doubt.
expire after the 31st March 1995 having been retrospectively extended from the 1st April 1995
shall be deemed never to have expired at any time and all its provisions as amended and extended
by this Act shall, subject to the provisions of section 3 of this Act, be deemed to be continuously in
force.
@ Sections 3 and 4 of Mah. 49 of 2000 read as follows :
respect of anything done or omitted to be done, during the period commencing on the 1st day April
2000 and ending on the date of publication of this Act in the Official Gazette, if such act or omission
was not an offence but for the retrospective extension of duration of the principal Act, by this Act.
Removal 4. For the removal of doubt, it is hereby declared that the principal Act, which was to
of doubt.
expire after the 31st March 2000 having been retrospectively extended from the 1st April 2000
shall be deemed never to have expired at any time and all its provisions as amended and extended
by this Act shall, subject to the provisions of section 3 of this Act, be deemed to be continuously in
force.
@@ Sections 4 and 5 of Mah. 37 of 2005 read as under :
respect of anything done or omitted to be done, during the period commencing on the 1st day April
2005 and ending on the 16th May 2005, if such act or omission was not an offence but for the
retrospective extension of duration of the principal Act, by this Act.
Removal of 5. For the removal of doubt, it is hereby declared that the principal Act, which was to
doubt.
expire after the 31st March 2005, having been retrospectively extended with effect from the 1st
April 2005 by this Act, shall be deemed never to have expired at any time and all its provisions as
amended and extended by this Act shall, subject to the provisions of section 4 of this Act, be
deemed to be continuously in force.
An Act to regulate 1 * * in the State of Maharashtra, the
promotion of the construction of, the sale and management,
and the transfer of flats on ownership basis.
WHEREAS, it has been brought to the notice of the State Government
that, consequent on the acute shortage of housing in the several areas of the
State of Maharashtra, sundry abuses, malpractices and difficulties relating
to the promotion of the construction of, and the sale and management and
transfer of flats taken on ownership basis exist, and are increasing;
AND WHEREAS, the Government in order to advise itself as respects
the manner of dealing with these matters, appointed a committee by
Government Resolution in the Urban Development and Public Health
Department, No. S. 248-79599-F, dated the 20th May 1960, to inquire into
and report to the State Government on the several matters referred to
aforesaid with the purpose of considering measures for their amelioration;
AND WHEREAS, the aforesiad Committee has submitted its report to
Government in June 1961, which report has been published for general
information;
AND WHEREAS, it is now expedient after considering the
recommendations and suggestions made therein, to make provision during
the period of such shortage of housing, for the regulation of the promotion
of the construction, sale and management and transfer of flats taken on
ownership basis in the State of Maharashtra; It is hereby enacted in the
Fourteenth Year of the Republic of India as follows :
1. (1) This Act may be called the Maharashtra Ownership Flats Short title,
(Regulation of the promotion of construction, sale, management and transfer) 2
[extent and
Act, 1963. commence-
ment.]
(2) It extends to the whole of the State of Maharashtra.
(3) This section shall come into force at once; and the remaining
provisions of this Act shall come into force in 3[such] areas, and on dates as
the State government may, by Notification in the Official Gazette, appoint,
and different dates may be appointed for different areas.
4 * * * *
2. In this Act, unless the context otherwise requires, Definitions.

5
[(a) Competent Authority means a Competent Authority appointed
under section 5A;]
6
[(a-1) Flat means a separate and self-contained set of premises
used or intended to be used for residence, or office, show-room or shop
or godown 7[or for carrying on any industry or business] (and includes
a garage), the premises forming part of a building 8[and includes an
apartment.]
Explanation. Notwithstanding that provisions is made for sanitary,
washing, bathing or other convenience as common to two or more sets
of premises, the premises shall be deemed to be separate and
self-contained;
(b) prescribed means prescribed by rules made under this Act;
(c) 9[promoter means a person and includes a partnership firm or
a body or association of persons whether registered or not] who consructs
or causes to be constructed a block or building of flats 10[or apartments]
1
The words for certain period, were deleted by Mah.37 of 2005. S. 2.
2
These words were substituted for the words extent, comencement and duration be Mah. 37 of
2005. S. 3(b).
3
Greater bombay on 10th day of February, 1964 (vide G. N., U. D. & P. H. D., No. FOE. 1062/432/
Unification (a), dated the 8th February 1964).
4
Sub-sections (4) and (5) were deleted the by Mah. 37 of 2005, S. 3(a).
5
Clause (a) was inserted by Mah.4 of 2008, S. 2(a).
6
Clause (a) ware renumbered by Mah. 4 of 2008. S. 2(a).
7
These words were inserted and shall be deemed always to have been inserted by Mah. 36 of 1986,
S. 2.
8
This words were added, by Mah. 15 of 1971, Sch.
9
This word were substituted for the words and finger prmoter means person by Mah. 4 of
2008. S. 2(b).
10
These words were inserted by Mah.15 of 1971, Sch.
for the purpose of selling some or all of them to other persons, or to a
company, co-operative society or other association of persons, and includes
his assignees; and where the person who builds and the person who
sells are different persons, the term includes both;
(d) Registrar means the Registrar as defined in the Maharashtra Mah.
XXIV
Co-operative Societies Act, 1960, or, as the case may be, in the *Companies of
Act, 1956; 1961.
(e) to construct a block or building of flats 1[or apartments] includes I of
to convert a building or part there of into flats 1[or apartments]; 1956.
[(f) the expressions, apartment and apartment owner shall have

2 Mah.
XV of
the meanings, respectively assigned to them in the Maharashtra 1971.
Apartment Ownership Act, 1970.]
General 3. (1) Notwithstanding anything in any other law, a promoter who intends
liabilities to construct or constructs a block or building of flats, all or some of which are
of promoter. to be taken or are taken on ownership basis, shall in all transactions with
persons intending to take or taking one or more of such flats, be liable to
give or produce, or cause to be given or produced, the information and the
documents hereinafter in this section mentioned.
(2) A promoter, who constructs or intends to construct such block or
building of flats, shall
(a) make full and true disclosure of the nature of his title to the
land on which the flats are constructed, or are to be constructed; such
title to the land as aforesaid having been duly certified by an Attorney-
at-law, or by an Advocate of not less than three years standing, 3[and
having been duly entered in the Property card or extract of Village
Forms VI or VII and XII or any other relevent revenue record;]
(b) make full and true disclosure of all encumbrances on such land,
including any right, title, interest or claim of any party in or over such
land;
(c) give inspection in seven days notice or demand, of the plans and
specifications of the building built or to be built on the land; such plans
and specifications having been approved by the local authority which he
is required so to do under any law for the time being in force;
(d) disclose the nature of fixtures, fittings and amenities (including
the provision for one or more lifts) provided or to be provided;
(e) disclose on reasonable notice or demand if the promoter is himself
the builder, the prescribed particulars as respects the design and the
materials to be used in the construction of the buildings, and if the
promoter is not himself the builder disclose, on such notice or demand,
all agreements (and where there is no written agreement the details of
all agreements) entered into by him with the architects and contractors
regarding the design, materials and construction of the building;
(f) specify in writing the date by which possession of the flat is to
be handed over (and he shall hand over such possession accordingly);
(g) prepare and maintain a list of flats with their numbers already
taken or agreed to be taken, and the names and addresses of the parties,
and the price charged or agreed to be charged therefor, and the terms
and conditions if any on which the flats are taken or agreed to be taken;
(h) state in writting, the precise nature of the organisation of persons
to be constituted and to which title is to be passed, and the terms and
conditions governing such organisation of persons, who have taken or
are to take the flats;
1
These words were inserted by Mah. 15 of 1971, Sch.
2
Clause (f) was added, by Mah. 15 of 1971, Sch.
3
This words were added by Mah. 36 of 1986, s. 3(a).
* Now see Componies Act, 2013.
(i) not allow persons to enter into possession until a completion
certificate where such certificate is required to be given under any law,
is duly given by the local authority (and no person shall take possession
of a flat until such completion certificate has been duly given by the
local authority);
(j) make a full and true disclosure of all outgoings (including ground
rent if any, municipal or other local taxes, taxes on income, water charges
and electricity charges, revenue assessment, interest on any mortgage
or other encumbrances, if any);
(k) make a full and true disclosure of such other information and
documents in such manner as may be prescribed; and give on demand
true copies of such of the documents referred to in any of the clauses
of this sub-section as may be prescribed at a reasonable charge therefor;
(l) display or keep all the documents, plans or specifications (or
1[
copies thereof) referred to in clauses (a), (b) and (c), at the site and
permit inspection thereof to persons intending to take or taking one or
more flats;
(m) when the flats are advertised for sale, disclose inter-alia in the
advertisement the following particulars, namely :
(i) the extent of the carpet area of the flat including the area
of the balconies which should be shown separately;
(ii) the price of the flat including the proportionate price of the
ccommon areas and facilities which should be shown separately, to
be paid by the purchaser of flat; and the intervals at which the
instalments thereof may be paid ;
(iii) the nature, extent and description of the common areas
and facilities; and
(iv) the nature, extent and description of limited common areas
and facilities, if any;]
[(n) sell flats on the basis of the carpet area only: provided that,
2
the promoter may separately charge for the common areas and facilities
in proportion to the carpet area of the flat.
Explanation. For the purposes of this clause, the carpet area of
the flat shall include the area of the balcony of such flat.]
4. 3[(1)] Notwithstandings anything contained in any other law, a Promoter
promoter who intends to construct or constructs a block or building of flats, before
accepting
all or some of which are to be taken or are taken on ownership basis, shall, advance
payment or
before, he accepts any sum of money as advance payment or deposit, which deposit to
shall not be more than 20 per cent. of the sale price enter into a written enter into
agreement
agreement for sale with each of such persons who are to take or have taken and
such flats, and the agreement shall be registered under 4[the Registration agreement
to be
XVI of Act, 1908 (hereinafter in this section referred to as the Registration Act)] registered.
1908. 5
[and such agreement shall be in the perscribed form.].
1
These Clauses were added by Mah. 36 of 1986, S. 3(b).
2
Clause (n) was added by Mah. 23 of 2008 S. 2.
3
Section 4 was renumbered as sub-section (1) of that section by Mah. 5 of 1984, S. 2(1).
4
These words, figures and brackets were substituted for the words and figures the Indian
Registration Act, 1908, ibid., S. 2(1).
5
These words were substituted for the portion begining with the words and such agreement and
ending with the words may be prescribed by Mah. 36 of 1986, S. 4(a).
1
[(1A) The agreement to be prescribed and sub-section (1) shall contain
inter alia the particulars as specified in clause (a); and to such agreement
there shall be attached the copies of the documents specified in clause (b),
(a) particulars,
(i) if the building is to be constructed, the liability of the promoter
to construct it according to the plans and specifications approved by the
local authority where such approval is required under any law for the
time being in force ;
(ii) the date by which the possession of the flat is to be handed over
to the purchaser ;
(iii) the extent of the carpet area of the flat including the area of the
balconies which should be shown separately ;
(iv) the price of the flat including the proportionate price of the
common areas and facilities which should be shown separately, to be
paid by the purchaser of flat; and the intervals at which installments
thereof may be paid ;
(v) the precise nature of organisation to be constituted of the persons
who have taken or are to take the flats ;
(vi) the nature, extent and description of limited common areas and
facilities ;
(vii) the nature, extent and description of limited common areas
and facilities, if any ;
(viii) percentage of undivided interest in the common areas and
facilities appertaining to the flat agreed to sold ;
(ix) statement of the use of which the flat is intended and restriction
of its use, if any ;
(x) percentage of undivided interests in the limited common areas
and facilities, if any, appertaining to the flat agreed to be
sold ;
(b) copies of documents,
(i) the certificate by an Attorney-at-law or Advocate under clause
(a) of sub-section (2) of section 3 ;
(ii) Property Card or extract of village Forms VI or VII and XII or
any other relevant revenue record showing the nature of the title of the
promoter to the land on which the flats are constructed or are to be
constructed ;
(iii) the plans and specifications of the flat 4 as approved by the
concerned local authority.].
2
[(2) Any agreement for sale entered into under sub-section (1) shall be
presented by the promoter or by any other person competent to do so under
section 32 of the Registration Act, at the proper registration office for
registration, within the time allowed under sections 23 to 26 (both inclusive)
to the said Act and execution thereof shall be admitted before the registering
officer by the person executing the document or his representative, assign or
agent as laid down in sections 34 and 35 of the said Act also within the time
aforesaid:
Provided that, where any agreement for sale is entered into, or is
purported to be entered into, under sub-section (1), at any time before the
commencement of the Maharashtra Ownership Flats (Regulation of the
promotion of construction, sale, management and transfer) (Amendment and Mah-V
Validating Provisions) Act, 1983, and such agreement was not presented for o f
registration or was presented for registration but its execution was not 1984.
admitted before the registration officer by the person concerned, before the
commencement of the said Act, then such document may be presented at the
proper registration office for registration, and its execution may be admitted,
by any of the persons concered referred to above in this sub-section, on or
before the 31st December 1984, and the registering officer shall accept such
document for registration, and register it under the Registration Act, as if it
were presented, and its execution was admitted, within the time laid down
in the Registration Act:
1
Sub-section (1A) was inserted by Mah. 36 of 1986.
2
Sub-section (2) was added by Mah. 5 of 1984, s 2(2).
Provided firther that, on presenting a documnet for registration as
aforesiad if the person executing such document or his representative, assign
or agent dose not appear before the registering officer and admit the
execution of the document, the registering officer shall cause a summons to
be issued under section 36 of the Registration Act requiring the executant
to appear at the registration office, either in person or by duly authorised
agent, at a time fixed in the summons. If the executant fails to appear in
compliance with the summons, the execution on the document shall be
deemed to be admitted by him and the registring officer may proceed to
register the document accordingly. If he executant appears before the
registering officer as required by the summons but denies execution of the
doucment, the registering officer shall, after giving him a reasonable
opportunity of beging heard, if satisfied that the document has been executed
by him, proceed to register the document accordingly.]
[4A. where an agreement for sale entered into under sub-scetion (1) of
1
Effect of
section 4, whether entered into before or after the commencement of the non-
Mah.V Maharashtra Ownership Flats (Regulation of the promotion of construction, registration
of of
sale, Management and transfer) (Amendment and validating Provisions) Act, agreement
1984.
1983, remains unregistered for any reason, then notwithstanding anything required to
contained in any law for the time being in force, or in any judgement, decree be
or order of any Court, it may be received as evidence of a contract in a suit registered
under
XLVII for specific performance under Chapter II of the Specific Relief Act, 1963, or
section 4.
of as evidence of part performance of a contarct for the purposes of section 53A
1963.
IV of of the Transfer of Property Act, 1882, or as evidence of any collateral
1882. transaction not required to be effected by registered instrument.]
5. The promoter shall maintain a separate account in any bank of sums Promoter to
taken, by him, from persons intending to take or who have taken flats, as maintain
separate
advance or deposit, including any sums so taken towards the share capital account of
for the formation of co-operative society or a company, or towrads the sums taken
as advence
outgoings (including ground rent, if any, municipal or other local taxes, or deposit
taxes on income, water charges, electricity charges, revenue assessment, and to be
trustee
interest on any mortgage or other encumbrances, if any); and he shall hold therefore
the said moneys for the purposes for which they were given and shall disburse and
disburse
the moneys for those purposes and shall on demend in writing by an officer them for
appointed by general or special order by the State Government for the purposes
for which
purpose, make full and true discloure of all transactions in respect of that given.
account.
[ 5A. The State Government may, by notification in the Official Gazette Competent
2
appoint an officer, not below the rank of the District Deputy Registrar of Authority.
Co-operative Societies, to be the Competent Authority, for an area or areas
to be specified in such notification and different officers may be appointed
as Competent Authority for different local areas, for the purposes of
exercising the powers and performing the duties under sections 5, 10 and 11
of this Act ].
6. A promoter shall, while he is in possession and where he collects Responsibility
from persons who have over flats or are to take over flats sums for the for payment
payment of outgoings even thereafter, pay all outgoings (including ground of outgoings
till property
rent, municipal or other local taxes, on income taxes, water charges,
is
electricity charges, revenue assessment, interest on any mortgage other transferred.
encumbrances, if any), until he transfers property to the persons taking over
1
This section was inserted, Mah. 5 of 1984, s.3.
2
Section 5A was inserted by Mah. 4 of 2008, s.4.
H 41452
the flats, or to the organisation of any such persons, 1[where any promoter
fails to pay all or any of the outgoings collected by him from the persons who
have taken over flats or are to take over flats, before transferring the property
to the persons taking over the flats or to the organisation of any such persons,
the promoter shall continue to be liable, even after the transfer of the
property, to pay such outgoings and penal charges (if any) to the authority
or person to whom they are payable and to be responsible for any legal
proceedings which may be taken therefor by such authority or persons.]
After plans 7. (1) After the plans and specifications of the building as approved by
and
specifications thr local authority as aforesaid, are disclosed or furnished to the persons
are who agrees to take one or more flats, the promoter shall not make
disclosed no
alterations
or additions (i) any alteration in the structures described therein in respect of
without the flat or flats which are agreed to be taken, without the previous
consent of
persons consent of that persons;
who have
agreed to 2
[(ii) any other alterations or additions in the structure of the building
take the without the previous consent of all the persons who have agreed to take
flats; and
defects the flats in such building.]
noticed
within
5
[three
years] to be
rectified.
(2) Subject to sub-section (1), the building shall be constructed and

completed in accordance with the plans and specifications aforesaid; and if
any defect in the building or material used, or if any unauthorized change in
the construction is brought to the notice of the promoter within a period of
3
[three years] from the date of handling over possession, it shall wherever
possible be ractified by the promoter without further charge to the persons
who have agreed to take the flats, and in other cases such person shall
be entitled to receive reasonable compensation for such defect or change.
Where there is a dispute as regards any defect in the building or material
used, or any unauthorised change in the construction, 4[or as to whether it
is reasonably possible for the promoter to rectify any such defect or change,
or as regards the amount of reasonable compensation payable in respect of
any such defect or change which cannot be, or is not rectified by the promoter,]
the matter shall, on payment of such fee as may be prescribed, 6[and within
a period of three years from the date of handing over possession, be referred
for decision,
(i) in an urban agglomeration as defined in clause (n) of section 2 of 33 of
1976.
the Urban Land (Ceiling and Regulation) Act, 1976, to such competent
authority authorised by the State Government under clause (d) of section
2 of that Act, and
1
This portion was added and was deemed always to have been added by Mah. 36 of 1986, s.5.
2
Clause (ii) was substituted and was deemed always to have been substituted by Mah. 36 of
1986, s.6(a).
3
These words were substituted and were deemed always to have been substituted for the words
one year ibid, s 6(b)(i).
4
These words were deemed always to have been inserted by Mah. 11 of 1970, S. 3.
5
These words were substituted for the words a year by Mah. 36 of 1986, S. 6(c).
6
This portion was substituted for the portion begining with the words be referred and ending
with the words shall be final by Mah. 36 of 1986, s.6(b)(ii).
(ii) in any other area, to such Deputy Chief Engineer, or to such
Mah.
XXVIII
other Officer of the rank equivalent to that of Superintending Engineer
of in the Maharashtra Service of Engineers, of a Board established under
1977. scetion 18 of the Maharashtra Housing and Area development Act, 1976,
as the State Government may, be general or special order, specify in this
behalf. Such competent authority, Deputy Chief Engineer or, as the case may
be, the other officer of a Board shall, after inquiry, record his decision, which
shall be final.]
[7A. For the removal of doubt, it is hereby declared that clause (ii) of Removal of
1
Mah. sub-section (1) of section 7 having been retrospectively subsituted by clause doubt.
XXXVI (a) of section 6 of the Maharshtra Ownership Flats (Regulation of the
of
1986.
promotion of construction, sale, management and transfer) (Amendment) Act,
1986 (hereinafter in this section referred to as the Amendment Act), it
shall be deemed to be effective as if the said clause (ii) as so substituted has
been in force at all material times; and the expression or construct any
additional structures in clause (ii) of section (1) of section 7 as existed
before the commencement of the Amendment Act and the expression
constructed and completed in accordance with the plans and specifications
as aforesaid and any unauthorised change in the construction in sub-section
(2) of section 7 shall, notwithstanding anything contained in this Act or in
any Agreement, or in any judgement, decree or order of any Court, be deemed
never to apply or to have applied in respect of the construction of any other
additional building or structures constructed or to be constructed under a
scheme or project of development in the layout after obtaining the approval
of a local authority in accordance with the building rules or building
bye-laws or Development Control Rules made under any law for the time
being in force.]
8. If Refund of
amount
(a) the promoter fails to give possession in accordance with the paid with
interest for
terms of his agreement of a flat duly completed by the date specified, or failure to
give
any further date or dates agreed to by the parties, or possession
within
(b) The promoter for reasons beyond his control and of his agents, specified
is unbale to give possession of the flat by the date specified, or the time or
further
further agreed date and a period of three months thereafter, or a further time
period of three months if those reasons still exist, allowed.
then, in any such case, the promoter shall be liable on demand (but
without prejudice to any other remedies to which he may be laible) to
refund the amounts already received by him in respect of the flat (with
simple interest at nine per cent. per annum from the date he received
the sums till the date the amounts and interest thereon is refunded),
and the amounts and the interest shall be a charge on the land and the
construction if any thereon in which the flat is or was to be constructed,
to the extent of the amount due, but subject to any prior encumbrances.
9. No promoter shall, after he executes an agreement to sell any flat, No
mortgage
mortgage or create a charge on the flat on the land, without the previous etc., to be
consent of the persons who take or agree to take the flats, and if any such created
without
mortgage or charge is made or created without such previous consent after consent of
parties
the agreement referred to in section 4 is registered, it shall not affect the after
execution of
right and interest of such persons. agreement
for sale.
1
Section 7A was inserted by Mah. 36 of. 1986, s.7.
(G.C.P.) H 41453 (7042 42016)
Promoter to 10. 1[(1)] A soon as a minimum number of persons required to from a Co-
take steps
for operative society or a company have taken flats, the promoter shall within
formation the prescribed period submit an application to the Registrar for registration
of co-
operative of the organisation of persons who take the flats as Co-operative society or,
society or
company. as the case may be as, a company; and the promoter shall join, in respect of
the flats which have not been taken, in such application for membership of
a Co-operative society or as the case may be, of a company. Nothing in this
section shall affect the right of the promoter to dispose of the remaining flats
in accordance with the provisions of this Act :
[Provided that, if the promoter fails within the prescribed period to
2
submit an application to the Registrar for registration of society in the manner

provided in the Maharashtra Co-operative Societies Act, 1960, the Competent Mah.
XXIV
Authority may, upon receiving an application from the persons who have of
taken flats from the said promoter, direct the District Deputy Registrar, 1961.
Deputy Registrar or, as the case may be, Assistant Registrar concerned, to
register the society :
Provided further that, no such direction to register any society under
the preceding proviso shall be given to the District Deputy Registrar, Deputy
Registrar or, as the case may be, Assistant Registrar, by the Competent
Authority without first verifying authenticity of the applicants, request and
giving the concerned promoter a reasonable opportunity of being heard.]
[(2) If any property consisting of building is constructed or to be
1
constructed 3[and the promoter submits such property to the provisions of

the Maharashtra Apartment Ownership Act, 1970, by executing and registering Mah.
XV of
a Declaration as provided by that Act] then the promoter shall inform the 1971.
Registrar as defined in the Maharshtra Co-operative Societies Act, 1960, Mah.
accordingly; and in such cases, it shall not be lawful to form any co-operative XXIV
of
society or company. 1961.
4
[* * * * *]
Promoter to 11. 5[(1)] A promoter shall take all necessary steps to complete his title
convey title,
etc., and and convey to the organisation of persons, who take flats, which is registered
execute either as a co-operative society or as a company as aforesaid or to an
documents,
according to association of flat takers 6[or apartment owners], his right, title and interest
agreement.
in the land and building, and execute all relevant documents therefor in
accordance with the agreement executed under section 4 and if no period for
the execution of the conveyance is agreed upon, he shall execute the
conveyance within the prescribed period and also deliver all documents of
title relating to the property which may be in his possession or power.
1
Section 10 was renumbered as sub-section (1) of that section and sub-section (2) was added by
Mah.15 of 1971, Sch.
2
Provisos were added by Mah. 4 of 2008, S. 5.
3
This portion was substituted for the portion beginning with and the apartment takers propose
to submit and ending with as required by that Act by Mah. 53 of 1974, s. 6(a)
4
The words and each apartment owner shall be entitled to the exclusive ownership and posses-
sion of his apartment as provided in the first mentioned Act were deleted, ibid., s. 6(b).
5
Section 11 was remembered as sub-section (1) of the said section and sub-sections (2) to (5) were
inserted by Mah.4 of 2008, s. 6.
6
These words were inserted by Mah. 15 of 1971, Sch..
[(2) It shall be the duty of the promoter to file with the Competent
1
Authority, within the prescribed period, a copy of the conveyance executed

by him under sub-section (1).
(3) If the promoter fails to execute the conveyance in favour of the Co-
operative society formed under section 10 or, as the case may be, the Company
or the association of apartment owners, as provided by sub-section (1), within
the prescribed period, the members of such Co-operative society or, as the
case may be, the Company or the association of apartment owners may, make
an application, in writing, to the concerned Competent Authority accompanied
by the true copies of the registered agreements for sale, executed with the
promoter by each individual member of the society or the Company or the
association, who have purchased the flats and all other relevant documents
(including the occupation certificate, if any), for issuing a certificate that
such society, or as the case may be, Company or association, is entitled to
have an unilateral deemed conveyance, executed in their favour and to have
it registered.
(4) The Competent Authority, on receiving such application, within
reasonable time and in any case not later than six months, after making such
enquiry as deemed necessary and after verifying the authenticity of the
documents submitted and after giving the promoter a reasonable opportunity
of being heard, on being satisfied that it is a fit case for issuing such certificate,
shall issue a certificate to the Sub-Registrar or any other appropriate
16 of Registration Officer under the Registration Act, 1908, certifying that it is a
1908.
fit case for enforcing unilateral execution, of conveyance deed conveying the
right, title and interest of the promoter in the land and building in favour of
the applicant, as deemed conveyance.
(5) On submission by such society or as the case may be, the Company
or the association of apartment owners, to the Sub-Registrar or the concerned
16 of appropriate Registration Officer appointed under the Registration Act, 1908,
1908.
the certificate issued by the Competent Authority alongwith the unilateral
instrument of conveyance, the Sub-Registrar or the concerned appropriate
registration Officer shall, notwithstanding anything contained in the
16 of Registration Act, 1908, issue summons to the promoter to show cause why,
1908.
such unilateral instrument should not be registered as deemed conveyance
and after giving the promoter and the applicants a reasonable opportunity of
being heard, may on being satisfied that it was fit case for unilateral
conveyance, register that instrument as, deemed conveyance .]
12. (1) Every person who has executed an agreement to take a flat shall General
liabilities
pay at the proper time and place the price, his proportionate share of the of flat-
municipal taxes, water and electricity charges, ground rent (if any) and other taker.
public charges in accordance with his agreement with the promoter ; and
where a co-operative society or a company of persons taking the flats is to
be constituted, co-operate in the formation of such society or company, as the
case may be.
(2) Any person who has executed an agreement to take a flat and who,
without reasonable excuse, fails to comply with or contravenes sub-section
(1) shall, on conviction, be punished with fine which may extend to two
thousand rupees.
1
Sub-sections (2) to (5) were inserted by Mah. 4 of 2008, s. 6.
H 41453a
Manager [12A. (1) No person, who is a promoter, or who is in-charge of
1
not to cut
off, management or connected with the management of a block or building of
withheld, flats, whether as member of a managing committee, director, secretary or
curtail or
reduce otherwise, or is responsible for the maintenance thereof (hereinafter in this
essential section referred to as the manager ), shall, without just and sufficient
supply or
service. cause, either by himself or through any person, cut off, withhold, or in any
manner curtail or reduce, any essential supply or service enjoyed by the
person who has taken a flat (or by any person in occupation thereof through
or under him) in respect of the flat taken or agreed to be taken by him.
(2) The person who has taken or agreed to take the flat or the occupier
may, if the manager has contravened the provisions of sub-section (1), make
an application to the Court for a direction to restore such supply or service.
(3) If the Court on enquiry finds that the applicant or the person through
or under whom he is in occupation has been in enjoyment of the essential
supply or service, and that it was cut off or withheld or curtailed or reduced
by the manager without just and sufficient cause, the Court shall make an
order directing the manager to restore such supply or service before a date
to be specified in the order.
(4) The manager who fails to restore the supply or service before the
date so specified, shall for each day during which the default continues
thereafter, be liable upon a further direction by the Court to that effect, to
fine which may extend to one hundred rupees.
(5) Notwithstanding anything contained in any law for the time being in
force,
(a) in Greater Bombay, the Court of Small Causes, Bombay,
(b) in any area for which a Court of Small Causes is established
under the Provincial Small Cause Courts Act, 1887, such Court, and IX of
1887.
(c) elsewhere, the Court of the Civil Judge (Senior Division),
shall have jurisdiction to decide any application made under sub-
section (2), and no other Court shall have jurisdiction to entertain such
application. No appeal shall lie from any order made on such application;
but in Greater Bombay a bench of two judges of the Court of Small
Causes, Bombay, which shall not include the Judge who made such order,
and elsewhere the District Court, may for the purpose of satisfying
itself that the order made was according to law, call for the case in
which such order was made and the Bench or Court aforesaid or the
District Judge or any Judge to which the case may be referred by the
District Judge, shall pass such order with respect thereto as it or he
thinks fit.
1
12A was inserted by Mah. 29 of 1964, s. 2.
Section 4 of Mah. 29 of 1964 reads as under :
Retrospective 4. The amendments made by sections 2 and 3 shall be deemed to have been inserted in the
effect and principal Act and shall be deemed to have come into force in Greater Bombay, on the 10th day of
saving. February 1964; but nothing therein shall render any person liable to be convicted of any offence
in respect of any act or omission by him before the commencement of this Act, if such act was not
an offence under the principal Act, at that date, but for the provisions herein inserted. But if any
person has cut off, withheld or in any manner curtailed or reduced, any essential supply or service
in respect of any flat at any time before the commencement of the Maharashtra Ownership Flats Mah.
(Regulation of promotion of construction, sale, management and transfer) (Amendment) Act, 1964, XXIX
and continues or allows the continuance thereof after such commencement, he shall be liable to of
the penalties provided in that aforementioned section 2.. 1964.
(6) Any manager who contravenes the provisions of sub-section (1) shall,
on conviction, be punished with imprisonment for a term which may extend
to three months, or with fine, or with both.
(7) The offence under sub-section (6) shall be cognizable, and shall not
be triable by any Court inferior to that of a 1[Metropolitan Magistrate, or a
Judicial Magistrate of the First Class].
Explanation I.In this section, essential supply or service includes the
supply of water, electricity, lights in passages and on stair-cases, and lifts
and conservancy or sanitary service.
Explanation II.For the purposes of this section, witholding any essential
supply or service shall include acts or omissions attributable to the manager
on account of which the essential supply or service is cut off by the local
authority or any other competent authority.]
[13. (1) Any promoter who, without reasonable excuse, fails to comply
2
Offences by
with or contravenes, the provisions of sections 3, 4, 5 [save as provided in promoters
sub-section (2) of this section], 10 or 11 shall, on conviction be punished with 5
[and
imprisonment for a term which may extend to three years or with fine, or consequences
on
with both.
conviction.]
(2) Any promoter who commits criminal breach of trust of any amount
advanced or deposited with him for the purposes mentioned in section 5
shall, on conviction, be punished with imprisonment for a term which may
extend to five years, or with fine, or with both.
(3) Any promoter who, without reasonable excuse, fails to comply with
or, contravenes, any other provision of this Act or any rule made thereunder,
shall, if no other penalty is expressly provided for the offence, or punished,
on conviction, 3[with imprisonment for a term which shall not be less than
six months but which may extend to one year or with fine which shall not be
less than Ten Thousand rupees but which may extend to Fifty Thousand
rupees or with both.]
[(4) When any promoter is convicted of any offence under this Act,
4
except offence under section 12A, such promoter shall be disqualified from
undertaking construction of flats for a period of five years from the date of
such conviction. However, such disqualification shall not affect the permission
for construction of flats already granted before incurring such disqualification
and shall also not debar the promoter from seeking or being granted any
additional requisite permissions which may be required from the concerned
local authorities for completion of constructions already undertaken by him.
(5) The Competent Authority shall, on such conviction of a promoter
under this Act, subject to the orders of the appellate court, if any, or after
the expiry of the appeal period, forward the name of the convicted promoter
to the local authorities under his jurisdiction, with a direction that such
promoter shall not be granted permission under the relevant law for
undertaking any construction of flats during the period of such disqualification,
specifically mentioning such period.
1
These words were substituted for the words Presidencey Magistrate, or a Magistrate of the
First Class by Mah. 12 of 1986, s.3.
2
Sections 13 and 13A were substituted for the original section 13 by Mah. 36 of 1986, s. 8.
3
These words were substituted for the words with imprisonment for a term which may extent
to one year, or with fine which may extend to ten thousand rupees, or with both, by Mah. 4 of.
2008, s.7(a).
4
These sub-sections were added by Mah. 4 of 2008, s.7(b).
5
These words were inserted by Mah. 4 of 2008, s.7(c).
(6) On receiving such intimation from the Competent Authority,
notwithstanding anything contained in any other law for the time being in
force, the concerned local authority shall not grant such promoter any
permission or licence under the relevant law for construction of flats for a
period for which the promoter is so disqualified.]
Power of 13A. Notwithstanding anything contained in the Code of Criminal II of
1974.
Magistrate Procedure, 1973, it shall be lawful for a Metropolitan Magistrate or a Judical
to pass Magistrate of the First Class to pass on any person convicted of any offence
sentences
under this
under this Act a sentence of imprisonment or of fine or both as provided in
Act. the relevant section of this Act, in excess of his powers under section 27 of
the said Code.]
Competent [13B. The Competent Authority shall be deemed to be a public servant
1
Authority 45 of
to be public within the meaning of section 21 of the Indian Penal Code. 1860.
servent.
Proceedings 13C. All proceedings before a Competent Authority shall be deemed to 45 of

before
Competent be the judicial proceedings for the purposes of sections 193 and 228 of the 1860.
Authority Indian Penal Code.
to be
judicial
proceedings.
Competent 13D. Every Competent Authority shall be deemed to be a Civil Court 2 of
Authority 1974.
deemed to for the purposes of sections 345 and 347 of the Code of Criminal Procedure,
be Civil 1973.
Court for
certain
purposes.
Indemnity 13E. No suit, prosecution or any other legal proceedings shall lie against
for acts
done in any competent Authority in respect of anything which is in good faith done
good faith. or purported to be done by him under this Act.]
Offences by 14. (1) If the person committing an offence under this Act is a company,
companies.
every person who at the time the offence was committed was in charge of
and was responsible to the company for the conduct of business by the
company as well as the company shall be deemed to be guilty of the offence
and shall be liable to be proceeded against and punished accordingly :
Provided that, nothing contained in this sub-section shall render any
such person liable to such punishment provided in this Act if he proves that
the offence was committed without his knowledge or that he exercised all
due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1) where an
offence under this Act has been committed with the consent or connivance
of, or is attributable to any negligence on the part of, any director, manager,
secretary or other officer of the company, such director, manager, secretary
or other officer shall also be deemed to be guilty of that offence and shall be
liable to be proceeded against and punished accordingly.
Explanation,For the purposes of this section,
(a) company means a body corporate and includes a firm or
other association of individuals ; and
(b) director in relation to a firm means a partner in firm.
1
The Sections 13B to 13E were inserted by Mah. 4 of 2008, s. 8.
15. (1) The State Government may, subject to the condition of previous Power to
publication, by notification in the Official Gazette, make rules for carrying make rule.
into effect the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing
power such rules may provide for all or any of the following matters, namely:
(a) under section 3, the particulars as respects the design and the
materials to be used in the construction of the building and the other
information and documents to be disclosed, the manner in which
disclosure to be made and the documents of which true copies shall be
given by the promoter ;
1
[(b) under section 4, the form of agreement;]
(c) under section 10, the period within which the promoter shall
submit an application for registration of a co-operative society or a
company;
(d) under section 11, the period within which the promoter shall
execute the conveyance;
(e) any other matter which has to be, or may be, prescribed by
rules.
(3) Every rule made under this section shall be laid as soon as may be
after it is made before each House of the State Legislature while it is in
session for a total period of thirty days which may be comprised in one
session or in two successive sessions, and if, before the expiry of the session
in which it is so laid or the session immediately following, both Houses agree
in making any modification in the rule or both Houses agree that the rule
should not be made, and notify such decision in the Official Gazette, the rule
shall from the date of publication of such notification have effect only in such
modified form or be no effect, as the case may be ; so however that any such
modification or annulment shall, be without prejudice to the validity of
anything previously done or omitted to be done under that rule.
IV of 16. The provisions of this Act, except where otherwise provided, shall Act to be in
1882. be in addition to the provisions of the Transfer of Property Act, 1882, and addition to
Transfer of
shall take effect notwithstanding anything to the contrary contained in any
Property
contract. Act and to
over-ride
contarct to
the
contrary.
17. As respects flats which on the commencement of this Act have already Application
been constructed, or converted, the provisions of sections 2, 6,8,9, of certain
10,11,12,13,14,15 and 16 apply with the following modifications, that is to provisions
to flats
say, already in
(a) in section 2, in clause (c), the words means a person who existence.
constructs shall be read as if the words means a person who has
constructed had been substituted ;
(b) in section 8, if the date specified or agreed to has already passed
at the commencement of this Act, then the promoter shall give possession
within three months from such commencement of this Act; and if for any
1
Clause (b) was substituted for the original by Mah. 36 of 1986, s. 9.
reasons beyond his control and of his agent, the promoter has been
unable to give possession of the flat within three months from such
commencement, he shall give possession thereof within a period of three
months thereafter, or a further period of three months if those reasons
still exist; and thereafter the promoter shall be liable on demand to
refund the amounts on the terms and conditions provided in the said
section ;
(c) in section 9, the words and figures after the agreement referred
to in section 4 is registered shall be read as if the words after the
commencement of this Act had been substituted ;
(d) in section 10, the words As soon as a minimum number of
persons required to form a co-operative society or a company have taken
flats, the promoter shall within the prescribed period shall be read as
if the words Where the minimum number of persons required to form
a co-operative society or a company have taken flats, the promoter shall
within three months from the commencement of this Act had been
substituted ;
(e) in section 11, the words and figure in accordance with the
agreement executed under section 4 shall be read as if the words in
accordance with any agreement made in respect thereof had been
substituted, and the words within the prescribed period shall be read
as if the words within three months from the commencement of this
Act had been substituted.
Act not to [18. Nothing in this Act shall apply to the Maharashtra Housing
1
Mah.
apply to Area Development Authority and the Boards established under the XXVIII
Housing of
Maharashtra Housing and Area Development Act,1976.] 1977.
and Area
Development
Authority
and Boards.
1
Section 18 was substituted for the original by Mah. 12 of 1986, s.4.
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(ii)

LAW AND JUDICIARY DEPARTMENT

MAHARASHTRA ACT No. XLV OF 1963.

The Maharashtra Ownership Flats

(As modified upto 29th March 2016.)

THE MAHARASHTRA OWNERSHIP FLATS

1. Short tital, extent and commencement. .. .. .. 3

2. In this Act, unless the context otherwise requires, Definitions.

[(f) the expressions, apartment and apartment owner shall have

(2) Subject to sub-section (1), the building shall be constructed and

submit an application to the Registrar for registration of society in the manner

constructed 3[and the promoter submits such property to the provisions of

Authority, within the prescribed period, a copy of the conveyance executed

Proceedings 13C. All proceedings before a Competent Authority shall be deemed to 45 of

GOVERNMENT CENTRAL PRESS, MUMBAI

THE ASSTT. DIRECTOR

AND THE RECOGNISED BOOKSELLERS

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