Consumer Connect: 'Builder Can Be Imprisoned For Not Giving Conveyance,' Says Expert

Q. Under which law can FIR be filed against a builder for not giving conveyance in favour of the society? What punishment can such builders get for not giving conveyance? —Ramesh Ram,

Chembur

A. If a builder (promoter) fails to execute conveyance in favour of the society without any reasonable excuse, he shall be liable on conviction, to be punished with imprisonment for a term

which may extend to three years or with fine or with both. This is as per Sec 13 (1) of Maharashtra Ownership Flats (Regulation & Development) Act, 1963 or MOFA in short. Sec 11 of MOFA

makes its mandatory for the promoters to execute conveyance in favour of the society or the company or an association of flat takers or apartment owners in accordance with the agreement

executed under Sec 4 of MOFA. If no period for execution of conveyance is agreed upon, the promoter is mandated to execute conveyance within 4 months from the date of the occupancy

certificate (OC).

Contravention of this mandate under Sec 11 of MOFA enables filing of FIR against the builder. While considering such action one should ensure that the builder has no “reasonable excuse” for

not conveying the property in favour of the society. At times, there could be a litigation between the landlord and the builder which would prevent him from executing the conveyance. There

could also be a stay order from the court which prevents the builder from executing the conveyance. Hence, all facts and circumstances have to be taken into consideration before filing an

FIR against the builder.

Apart from getting imprisonment up to 3 years, such builders shall also be disqualified from undertaking construction of flats for a period of five years from the date of such conviction as

per Sec. 13(4) of MOFA. However, such disqualification shall not impact the permission for construction granted prior to the disqualification. It shall also not prevent the builder from

seeking any additional requisite permissions from the concerned local authorities for completing the construction projects already undertaken by them.

You have not given details of your case and hence I am unable to elaborate further: However, I would like to clarify that the above action in law against the builder would be possible only

if the agreement with the builder is under MOFA. There was some confusion a while ago if MOFA was repealed or still operative. The answer is that MOFA was repealed under the provision of the

Maharashtra Housing (Regulation & Development) Act, 2012. However, this Maharashtra Act now stands repealed as per Sec 92 of RERA and thus MOFA stands revived once again after May 1, 2016.

So, MOFA is alive and Kicking. brought together Christian dignitaries, leaders, and delegates from Mumbai, Vasai, and Navi Mumbai.

The programme served as an interactive forum with Sandeep Naik, the MVA candidate for the Belapur assembly constituency, and other senior Congress leaders. “Though the community is

disappointed but we remain steadfast in our support for the Congress and the MVA alliance,” said Thomas, the only Christian member of state Pradesh Congress Committee. However, it would also

be appropriate to note that MOFA does not apply to MHADA societies. For filing such a criminal complaint against a defaulting builder for not giving Conveyance, it would be advisable to

consult a criminal lawyer.

Q. What is compounding of offences? Are offences under RERA compoundable? Who has to file a complaint against any builder for offences under RERA provisions? —Alok Hardikar, Vile Parle

(East)

A. Compounding of offence means a settlement or compromise where the parties reach an amicable settlement and avoid further time-consuming prosecution. Offences under RERA are compoundable

as clearly stated in Sec.70 of RERA. The terms and conditions of such settlement and the sums to be paid in such cases are prescribed under RERA Rules. Section 80 of the RERA provides that a

court shall take cognizance of any of* fence punishable under RERA only upon receiving a written complaint by the RERA authority or by an officer authorized by the authority for this

purpose. However, it is possible that the authority may not be aware of such an offence committed by a developer or promoter. Therefore, it becomes necessary for the aggrieved allottee or

homebuyer to bring the offence to the attention of RERA authority in writing and request the authority to initiate action under Section 80 of RERA.