Legal experts and consumer rights advocates have warned that recent amendments to Maharashtra’s housing laws have significantly weakened protections available to flat buyers, shifting the balance of power decisively in favour of developers particularly in redevelopment projects across urban centres.
At the centre of the concern is the dilution of enforcement provisions under the Maharashtra Ownership Flats Act (MOFA). Earlier versions of the law enabled authorities to initiate criminal proceedings against developers for serious violations. Those provisions were subsequently removed, narrowing the consequences for non-compliance and reducing deterrence, consumer lawyers argue. Compounding the issue is the Real Estate (Regulation and Development) Act (RERA), which, while designed as a consumer-facing regulator, lacks strong penal mechanisms in cases involving fraud or deliberate misrepresentation. Legal practitioners note that RERA’s scope excludes a large and growing category of affected residents occupants of old buildings undergoing redevelopment. Under the current framework, new buyers in redevelopment projects are eligible to approach RERA authorities, while original residents displaced during redevelopment are often left without regulatory remedies. This regulatory gap has become increasingly consequential as redevelopment accelerates in Mumbai, Pune, Thane and other dense urban markets where ageing housing stock is being replaced.
In cases involving alleged cheating, delay or breach of redevelopment agreements, residents are often forced to seek relief through consumer commissions or pursue criminal complaints under general penal laws. Experts say this raises both the cost and complexity of justice, discouraging many homebuyers from pursuing legitimate claims. Another recurring concern relates to delays in the formation and handover of cooperative housing societies. Despite statutory timelines prescribed under housing laws, developers frequently retain control of projects beyond completion. Consumer advocates argue this allows builders to continue leveraging development benefits linked to Transferable Development Rights (TDR) and Floor Space Index (FSI), even after possession has been handed over. Urban policy analysts warn that weakened enforcement undermines trust in redevelopment a process critical to improving safety, density efficiency and climate resilience in older city areas. Without credible penalties, compliance becomes discretionary, increasing disputes and slowing down urban renewal. Consumer groups are now calling for a review of housing laws to restore accountability mechanisms and ensure that redevelopment residents enjoy protections equal to new purchasers. They also emphasise that existing legal frameworks already allow citizens to approach consumer commissions directly, without mandatory legal representation an option that remains underutilised due to lack of awareness.
As Maharashtra’s cities continue to densify, experts argue that housing regulation must evolve to protect end-users, not just facilitate construction. Effective urban redevelopment, they stress, depends not only on floor space and financing, but on enforceable rights, transparent governance and consumer confidence.
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