{"id":8487,"date":"2025-11-13T06:58:04","date_gmt":"2025-11-13T06:58:04","guid":{"rendered":"https:\/\/housiey.com\/blogs\/?p=8487"},"modified":"2025-11-13T07:42:13","modified_gmt":"2025-11-13T07:42:13","slug":"mofa-vs-rera-understanding-maharashtras-plan-to-repeal-the-mofa-act","status":"publish","type":"post","link":"https:\/\/housiey.com\/blogs\/mofa-vs-rera-understanding-maharashtras-plan-to-repeal-the-mofa-act","title":{"rendered":"MoFA vs RERA: Understanding Maharashtra\u2019s Plan to Repeal the MoFA Act"},"content":{"rendered":"<p>The Maharashtra government is reportedly considering repealing the Maharashtra Ownership of Flats Act (MoFA), 1963, a landmark legislation that has protected homebuyers\u2019 interests for over six decades. The proposal has sparked a heated debate between real estate developers, legal experts, and housing societies, as questions arise about what this move could mean for property rights in the state.<\/p>\n<blockquote><p><strong>Also Read: <a href=\"https:\/\/housiey.com\/blogs\/how-to-check-project-details-in-maharera\"><em>How to Check Project Details in Maharera<\/em><\/a><\/strong><\/p><\/blockquote>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/housiey.com\/blogs\/mofa-vs-rera-understanding-maharashtras-plan-to-repeal-the-mofa-act\/#Why_Is_the_Government_Planning_to_Repeal_the_MoFA_Act\" >Why Is the Government Planning to Repeal the MoFA Act?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/housiey.com\/blogs\/mofa-vs-rera-understanding-maharashtras-plan-to-repeal-the-mofa-act\/#What_Exactly_Is_the_MoFA_Act\" >What Exactly Is the MoFA Act?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/housiey.com\/blogs\/mofa-vs-rera-understanding-maharashtras-plan-to-repeal-the-mofa-act\/#What_Does_the_RERA_Act_Do_Differently\" >What Does the RERA Act Do Differently?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/housiey.com\/blogs\/mofa-vs-rera-understanding-maharashtras-plan-to-repeal-the-mofa-act\/#Why_Are_Developers_Calling_for_the_Repeal_of_MoFA\" >Why Are Developers Calling for the Repeal of MoFA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/housiey.com\/blogs\/mofa-vs-rera-understanding-maharashtras-plan-to-repeal-the-mofa-act\/#What_Is_%E2%80%98Unilateral_Deemed_Conveyance_and_Why_Is_It_Important\" >What Is \u2018Unilateral Deemed Conveyance\u2019 and Why Is It Important?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/housiey.com\/blogs\/mofa-vs-rera-understanding-maharashtras-plan-to-repeal-the-mofa-act\/#What_Are_Legal_Experts_Saying_About_the_Proposed_Repeal\" >What Are Legal Experts Saying About the Proposed Repeal?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/housiey.com\/blogs\/mofa-vs-rera-understanding-maharashtras-plan-to-repeal-the-mofa-act\/#Could_a_Partial_Repeal_or_Integration_Be_the_Middle_Path\" >Could a Partial Repeal or Integration Be the Middle Path?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/housiey.com\/blogs\/mofa-vs-rera-understanding-maharashtras-plan-to-repeal-the-mofa-act\/#The_Bottom_Line\" >The Bottom Line<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Why_Is_the_Government_Planning_to_Repeal_the_MoFA_Act\"><\/span><strong>Why Is the Government Planning to Repeal the MoFA Act?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">According to reports, the state government is evaluating whether MoFA has become redundant after the implementation of the <\/span><b>Real Estate (Regulation and Development) Act (RERA)<\/b><span style=\"font-weight: 400;\"> in 2017.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Developers argue that both laws cover similar aspects\u2014such as project disclosures, fund usage, and buyer protection\u2014creating <\/span><b>overlapping provisions<\/b><span style=\"font-weight: 400;\"> that lead to confusion and procedural delays.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The move follows persistent representations from <\/span><b><em><a href=\"https:\/\/housiey.com\/blogs\/credai-assures-homebuyers-gst-rate-cuts-to-lower-property-costs-especially-in-smaller-cities\">CREDAI<\/a><\/em>-MCHI<\/b><span style=\"font-weight: 400;\">, the apex body of real estate developers in Maharashtra. The group has been urging the government since 2020 to repeal MoFA, citing \u201cdual compliance\u201d issues for builders. The <\/span><b>state cooperation department<\/b><span style=\"font-weight: 400;\"> has already sought the cooperation commissioner\u2019s opinion, who is expected to submit a detailed report soon.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Exactly_Is_the_MoFA_Act\"><\/span><strong>What Exactly Is the MoFA Act?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><b>Maharashtra Ownership of Flats Act (MoFA), 1963<\/b><span style=\"font-weight: 400;\">, was one of the earliest laws in India to safeguard flat buyers. It made it mandatory for builders to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Provide written agreements specifying the <\/span><b>layout plan<\/b><span style=\"font-weight: 400;\">, <\/span><b>carpet area<\/b><span style=\"font-weight: 400;\">, <\/span><b>total cost<\/b><span style=\"font-weight: 400;\">, and <\/span><b>possession date<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use the money collected from buyers only for the same project.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Form housing societies and transfer the <\/span><b>ownership of land and building<\/b><span style=\"font-weight: 400;\"> to the buyers once construction is complete.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Essentially, MoFA was designed to ensure that buyers got what they were promised, shielding them from misleading claims and project delays.<\/span><\/p>\n<blockquote><p><strong>Also Read: <a href=\"https:\/\/housiey.com\/blogs\/maharera-latest-rules-ensuring-clearer-delivery-timelines-and-homebuyer-protection\"><em>MahaRERA Latest Rules Ensuring Clearer Delivery Timelines and Homebuyer Protection<\/em><\/a><\/strong><\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"What_Does_the_RERA_Act_Do_Differently\"><\/span><strong>What Does the RERA Act Do Differently?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The RERA Act, introduced in Maharashtra through MahaRERA in 2017, was a game-changer for the real estate sector. It aims to make homebuying transparent and accountable.<\/p>\n<p><span style=\"font-weight: 400;\">Key provisions include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mandatory registration of all housing projects before advertising or selling units.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Full disclosure of approved layouts, project timelines, and financial details.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A system for homebuyers to track project progress online through the <\/span><em><a href=\"https:\/\/housiey.com\/blogs\/maharera-2025-rera-maharashtra-registration-complaint-projects-agents\"><b>MahaRERA portal<\/b><\/a><\/em><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Strict regulations ensuring that <\/span><b>70% of buyer funds<\/b><span style=\"font-weight: 400;\"> are used exclusively for the registered project.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A grievance redressal mechanism enabling quick dispute resolution.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">RERA brought <\/span><b>transparency, accountability, and digital monitoring<\/b><span style=\"font-weight: 400;\"> into a space once plagued by unregulated practices.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Are_Developers_Calling_for_the_Repeal_of_MoFA\"><\/span><strong>Why Are Developers Calling for the Repeal of MoFA?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Developers claim that having both MoFA and RERA in effect leads to duplication and confusion. They argue that RERA is comprehensive enough to regulate the real estate sector effectively on its own.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Former <\/span><b>CREDAI-MCHI president Nayan Shah<\/b><span style=\"font-weight: 400;\"> explained that the coexistence of two similar laws has created unnecessary complexities:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cRERA was introduced to modernize real estate regulation. Many MoFA provisions now overlap with RERA. If deemed conveyance is a concern, the same can be addressed within RERA itself.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Developers insist that MoFA\u2019s continuation adds no tangible benefit, especially when most new projects are registered under RERA.<\/span><\/p>\n<blockquote><p><strong>Also Read: <a href=\"https:\/\/housiey.com\/blogs\/what-rights-do-buyers-have-under-rera-in-2025\"><em>What Rights Do Buyers Have Under RERA in 2025?<\/em><\/a><\/strong><\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"What_Is_%E2%80%98Unilateral_Deemed_Conveyance_and_Why_Is_It_Important\"><\/span><strong>What Is \u2018Unilateral Deemed Conveyance\u2019 and Why Is It Important?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">One of MoFA\u2019s key features is the <\/span><b>Unilateral Deemed Conveyance<\/b><span style=\"font-weight: 400;\"> clause.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">This provision allows a housing society to legally transfer the ownership of land and building in its name\u2014even without the builder\u2019s cooperation\u2014if the developer delays or refuses to execute the conveyance deed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This mechanism has been a <\/span><b>lifeline for thousands of housing societies<\/b><span style=\"font-weight: 400;\"> in Maharashtra, enabling them to gain rightful ownership after years of builder neglect.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If MoFA is repealed without incorporating this clause into RERA, <\/span><b>experts warn that a major legal vacuum could arise<\/b><span style=\"font-weight: 400;\">, leaving older societies without a clear remedy.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Are_Legal_Experts_Saying_About_the_Proposed_Repeal\"><\/span><strong>What Are Legal Experts Saying About the Proposed Repeal?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Legal professionals are urging caution. They argue that MoFA\u2019s repeal could unintentionally weaken buyer protections\u2014especially for <\/span><b>societies formed before RERA came into force<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Advocate and solicitor <\/span><b>Trupti Daphtary<\/b><span style=\"font-weight: 400;\"> highlighted this concern:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe MoFA provision for unilateral deemed conveyance should continue for societies not registered under RERA. For RERA-registered projects, the society can approach the RERA authority. Repealing MoFA entirely would create a vacuum, as RERA lacks a corresponding clause for pre-RERA projects.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Experts believe that while RERA is robust, MoFA\u2019s <\/span><b>Maharashtra-specific provisions<\/b><span style=\"font-weight: 400;\">\u2014like those ensuring the formation of housing societies and clear land conveyance\u2014should not be discarded without suitable replacement mechanisms.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Could_a_Partial_Repeal_or_Integration_Be_the_Middle_Path\"><\/span><strong>Could a Partial Repeal or Integration Be the Middle Path?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Some policy observers suggest a <\/span><b>balanced approach<\/b><span style=\"font-weight: 400;\">\u2014rather than repealing MoFA entirely, the government could <\/span><b>retain key buyer-protection clauses<\/b><span style=\"font-weight: 400;\"> and integrate them into RERA.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">This would preserve the safeguards that have historically benefited flat purchasers while simplifying compliance for developers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The government\u2019s final decision will likely depend on the <\/span><b>commissioner\u2019s report<\/b><span style=\"font-weight: 400;\">, which is expected to weigh the practical implications for both <\/span><b>homebuyers and builders<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<blockquote><p><strong>Also Read: <a href=\"https:\/\/housiey.com\/blogs\/what-penalties-do-developers-face-for-rera-violations-in-2025\"><em>What Penalties Do Developers Face for RERA Violations in 2025?<\/em><\/a><\/strong><\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"The_Bottom_Line\"><\/span><strong>The Bottom Line<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The debate over MoFA\u2019s repeal is not just about scrapping an old law\u2014it\u2019s about defining how <\/span><b>Maharashtra\u2019s real estate ecosystem<\/b><span style=\"font-weight: 400;\"> evolves in the era of RERA.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">While developers seek uniformity and ease of compliance, homebuyers and housing societies fear losing the <\/span><b>protective legal umbrella<\/b><span style=\"font-weight: 400;\"> that MoFA provided for decades.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Until a final call is made, one thing remains clear: the outcome of this policy decision will reshape how <\/span><b>property ownership, society formation, and land conveyance<\/b><span style=\"font-weight: 400;\"> are handled in Maharashtra for years to come.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Maharashtra government is reportedly considering repealing the Maharashtra Ownership of Flats Act (MoFA), 1963, a landmark legislation that&hellip;<\/p>\n","protected":false},"author":5,"featured_media":8495,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[70],"tags":[3722,3720,3723,3721],"class_list":["post-8487","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","tag-maharashtra-real-estate-laws","tag-mofa-act-maharashtra","tag-mofa-and-rera-comparison","tag-rera-act-maharashtra"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>MoFA vs RERA: Understanding Maharashtra\u2019s Plan to Repeal the MoFA Act<\/title>\n<meta name=\"description\" content=\"Maharashtra may repeal MoFA after RERA\u2019s rise, but experts warn of legal gaps for older housing societies. 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