MOFA is applicable to all old projects

MOFA is applicable to all old projects

Ahmed Ali| TNN | Feb 5, 2017, 06.30 AM IST

Some Advocates and Police Officers try to avoid filing FIRs under MPFA on the pretext that MOFA has been replaced by RERA. This is not a fact.
As today’s news item shows, MOFA is still alive and applicable.


MUMBAI: There is more trouble in the offing for the Jain brothers of Kamla Landmarc, a construction company, who have been arrested for duping investors. The EOW of Mumbai police has written to the ED about possible money laundering involving proceeds from the fraud that they suspect has touched Rs 200 crore.

Jitendra Jain, his brother Jinendra and brother-in-law Ketan Shah were arrested last November for duping investors by accepting bookings but not handing over flats or godowns, and forging property documents like commencement certificate and other development documents from BMC. So far, 16 FIRs have been registered against them. “As our investigation is on, more and more complaints are pouring in. Till now, there are around 150 victims who have been duped. We expect around six-seven more offences to be registered,” said a police officer.

The trio will find it difficult to obtain bail, claimed cops, because the police have invoked stringent sections of the 
Maharashtra Ownership of Flats Act (MOFA) in almost all the cases. Now, if ED begins a probe into money laundering, their woes will continue.

The police have frozen 200 bank accounts with Rs 8 crore linked to the builder brothers, FDs worth Rs 6 crore in various banks, 23 properties across the city and seven high-end cars.

Giving examples of the fraud, cops said the Jains accepted bookings for two industrial godowns at Hindustan Naka in Kandivli from two garment traders, but did not give them possession even after the deadline. During inquiries, it transpired that the builder brothers had sold 448 galas in the building, but only 107 agreements were registered, and only 96 were issued allotment letters. It also emerged that BMC had given permission for five floors, but the builders added two more. The BMC has served a demolition notice. In all, 200 were duped of Rs 21 crore.


In another case, the builder accepted bookings from 25 buyers and constructed a 17-floor highrise — Shimmer society in Santacruz (west) — though he had CC permission for only five floors. The buyers approached the Bombay high court, which directed the police to book the Jains. “In most of these offences, the modus operandi is almost same,” said police inspector Rajendra Pardeshi, who is heading the probe team that includes police officers Vishal Padir and Vikrant Shirshaat.

Lokayukta, Maharasthra  –  How to file Complaint


Lokayukta, Maharasthra  –  How to file Complaint with

Complaints of corruption and grievance against public servants in the state can be lodged online. The office of the Lokayukta, the state’s anti-corruption ombudsman, has launched its website.

While inaugurating the website a few months ago, Lokayukta Justice (retired) M L Tahaliyani said: “Most problems facing the country today are due to the disease of corruption that is growing at a rapid pace. The lokayukta functions to protect the interest of the common man and receives complaints from big scams to smaller grievances about pensions not being paid. The website is a way to take the office of the lokayukta closer to the people to make it more effective. The message has to go out to everyone that dishonesty does not pay.”



A grievance has to be filed within 12 months of the date on which the action complained against became known to the complainant.



An allegation can be made within 3 years from the date on which the action complained against is said to have taken place

 How to lodge Complaints Online

Citizens can file complaints through the Lokayukta’s website address :

The site at present includes information about the law, the ways to lodge a complaint and the format in which a complaint should be lodged.

The office of the Lok Ayukta, Maharashtra receives between 6,000 and 7,000 complaints a year. These include grievances as well as allegations of corruption.

As of now, the Lokayukta has only powers to recommend action. But a Complaint often resolves the problem.

The website address is :

SDO Palghar Arrested by ACB, Thane While Taking Bribe Of Rs 50 Lakhs


SDO Palghar Arrested by ACB, Thane While Taking Bribe Of Rs 50 Lakhs

Fri, 25 Nov 2016-09:10am , PTI


In one of the biggest bribe cases of bribery, after the demonetisation, the Anti-Corruption

Bureau (ACB), Thane  arrested three persons including the Sub Divisional Officer (SDO) of

Palghar on Thursday for allegedly accepting a bribe of Rs 50 lakhs for giving favourable

ruling in land-related cases.


ACB Thane unit arrested SDO Palghar, Shivaji Davbhat (46), Nayab Tehsildar

Satish Manivade (57) and Jayesh Patil (25). Jayesh worked as Davbhat’s driver, an ACB

official said.



Probe cases on builders in 90 days, says Bombay High Court

Probe cases on builders in 90 days, says Bombay High Court


Published  Nov 20, 2016, 1:09 am IST

Updated  Nov 20, 2016, 7:20 am IST

The Bombay High Court expressed surprise that two years has been completed but a charge sheet had not been filed yet.


Mumbai: If the police officer investigating any case against a builder fails to finish the investigation within 90 days and files the charge sheet, he will be answerable to the commissioner of police directly. The Bombay high court has directed the Mumbai police commissioner to evolve a mechanism to ensure that investigation of offences against builders and developers is completed within 90 days.

On failing to do so, the commissioner shall seek an explanation from the investigating officer (IO) on why he failed to complete the investigation.

The court also directed that if the commissioner feels the answer by the IO isn’t satisfactory then adverse remark should be made in the records of such officer which will be confidential.

This direction has been given by the division bench of Justice V.M. Kanade and Justice Nutan Sardesai who were hearing a criminal writ petition under which Shekhar Puranik, a builder, had approached the court for quashing of a criminal proceeding against him which was initiated by the Tardeo police station for duping a woman.

According to the petition, a woman had registered a complaint with the Tardeo police against Puranik alleging he had sold her flat to another person. For that he had duplicated signatures on the documents.

On October 14, the complainant and the builder had settled the matter between them and the builder had paid Rs 16 lakh to the woman.

On cross verification with the complainant, she stated that if she continues with the matter, she and her husband will have to go the court every month and there was no guarantee that the matter would be disposed of within a reasonable period of time.

She further stated that moreover if she had deposited this amount in the bank, in five years the same amount would have doubled.

The court also expressed surprise that two years has been completed but a chargesheet had not been filed yet. The police had informed the court that hand-writing expert’s opinion was not obtained in time and therefore, the chargesheet had not been filed. The court was not satisfied with the answer and directed the commissioner of police to inquire into the matter.

Brief Description of the Decision:




Shri Shekhar P. Puranik & Others.  …    Applicants.        
The State of Maharashtra & Anr.   … Respondents.       

­­­ Mr. S. Sathyanarayanan, Advocate for the Applicants. 
Mr.     Rupesh   Zade  a/w.   Shailesh   Chavan,   Advocate   for   the Respondent No.2.

Shri  Patel S. Y., A.S.I. to Tardeo Police Station is present.        ­­­   

CORAM :  V. M. KANADE   AND   Ms. NUTAN D. SARDESSAI,JJ.                          
DATE   :  16th NOVEMBER, 2016

Associate Member of Housing Society can be member of Managing Committee

Kalpit Mankikar

| TNN | Feb 2, 2015, 04.44 AM IST



In many old societies, senior citizens owned flats but would not show interest, and associate members were barred from participating in managing committee proceedings.

Section 2 (19) of the Maharashtra Cooperative Societies Act says an associate member jointly holds a share of the society with others, but whose name is not first in the share certificate. Rule 56M of the Maharashtra Cooperative Societies Rules, 1961, and Section 2 (19) (b) of the Maharashtra Cooperative Societies Act, 1960, state an associate member can vote and participate in elections but cannot become an office-bearer of the society where his name appears as an associate member in the society register. 


The state cooperative election authority (SCEA) has clarified that a housing society’s associate members can be part of the managing committee. This will be a shot in the arm for old cooperative housing societies as more residents can participate in their housing complex’s affairs.

Builder constructs illegal flat on car parking area and sells it

Builder constructs illegal flat on car parking area and sells it


The Maharashtra State Consumer Commission has ordered Shreekrishna Developers – a builder to pay to a buyer –  the complainant Rs 26 lakh, the 2012 (year of filing the complaint) value of a 525 sq feet flat in the vicinity. The buyer who had taken possession of the flat in 2005 after buying it for Rs 4.95 lakh, realized that anomaly after the society refused to induct him as a member.

“From perusal of the occupancy certificate, it is seen that after getting the occupancy certificate from the corporation, the opponent (Shreekrishna Developers) has constructed the flat without the sanction of the municipal corporation. Thus, there is a clear-cut deficiency in service on the part of the opponent who also adopted unfair trade practice by carrying out the unauthorized construction and allotting the same to the complainant,“ the Maharashtra State Consumer Disputes Redressal Commission said.

The spot where the flat was constructed was to be used for parking. The space will now be handed back to the society .

The complaint was filed by flat purchaser Sunil Gade in 2012. Gade told the commission that after receiving a negative response from the society about his membership, he approached the builder. When he got no response from the builder, he issued a notice through an advocate in November 2011and requested the builder to regularise the flat from the Navi Mumbai Municipal Corporation (NMMC) at its costs. Gade however, received a reply with the remark “not claimed“. In the commission, the builder submitted that Gade himself had chosen to stay on the ground floor. It contended that as the flat was constructed on Gade’s request and the possession had already been handed over, there was no deficiency in service.

The builder further stated that if Gade did not want to continue living in the flat, he could take back his entire payment along with interest and surrender the flat.

The full decision dt. 4 October 2016 is available at the following link:


Non Judicial Stamp Papers do not have any Expiry Period – Supreme Court

NON JUDICIAL STAMP PAPERS DO NOT HAVE ANY EXPIRY PERIOD BEING USED FOR A DOCUMENT                                            Supreme Court


The Supreme Court has held that there is no expiry period  for use of Non Judicial Stamp Paper.

In this case, the Trial Court and the High Court have doubted the genuineness of the agreement dated 5.1.1980 because it was written on two stamp papers purchased on 25.8.1973 and 7.8.1978. The learned counsel for first respondent submitted that apart from raising a doubt about the authenticity of the document, the use of such old stamp papers invalidated the agreement, as the stamp papers used in the agreement of sale were more than six months old, they were not valid stamp papers and consequently, the agreement prepared on such ‘expired’ papers was also not valid.

Apex Court held that that the Indian Stamp Act, 1899 nowhere prescribes any expiry date for use of a stamp paper. Section 54 merely provide that a person possessing a stamp paper for which he has no immediate use (which is not spoiled or rendered unfit or useless), can seek refund of the value thereof by surrendering such stamp paper to the Collector provided it was purchased within the period of six months next preceding the date on which it was so surrendered. The stipulation of the period of six months prescribed in section 54 is only for the purpose of seeking refund of the value of the unused stamp paper, and not for use of the stamp paper. Section 54 does not require the person who has purchased a stamp paper, to use it within six months. The stamp papers do not have any expiry period. Section 54 does not require the person who has purchased a stamp paper, to use it within six months. Therefore, there is no impediment for a stamp paper purchased more than six months prior to the proposed date of execution, being used for a document.

Supreme Court of India  
Citation:(2008) 4 SCC 530:AIR 2008 SC 1541

 Thiruvengada Pillai vs Navaneethammal & Anr on 19 February, 2008

Bench: R. V. Raveendran, P.Sathasivam


Order of Consumer Forums – What happens if not complied with


A large number of cases are coming up in various Consumer Fora against the builders. They tend to take matters very lightly and tend to disobey them…..
I am reproducing an order of the State Commission, Maharashtra. The concerned builder was sent to jail for three years, unless he complies with the order before that……..



Execution Application No. EA/13/10 (Arisen out of order dated 3rd February, 2012 in CC/05/20)

  1. Manherlal C. Shah 47, Carnac Siding Road, Iron Market, Masjid Bunder (East), Mumbai 400 009. New Add:- 101A, Walkeshwar Road, 11, New Indrabhuwan, Near White House, Mumbai – 400006 …..                                                           Executant(s)


1.     M/s. Siddhivinayak Builders (Proprietorship) Tulsi Tower, Second Floor, 51st Road, T.P.S. III, Borivali (West), Mumbai – 400 092. New Add – Benzer Tower, 2nd Floor, Near Sanskruti Enclave, 90ft Road, Next To IBPS, Borivali East, Mumbai 400101

2.      Mr Nitin N. Mehta (Partner of M/s Siddhivinayak Builders ) 1, Homestead, 16, Dattatryaya Road, Santacruz (W), Mumbai 54 New Add Benzer Tower, 2nd floor, Near Sanskruthi Enclave, 90ft Road, Next To IBPS Borivali E Mumbai ……………………………………………………………………………………….Opponent/Accused(s)


Mr. Justice A.P. Bhangale, President ….Heard Submission of both the sides on execution application u/sec 27 of Consumer Protection Act, 1986.


1. By final order complaint no. CC/05/20 was allowed and opponents were directed to deliver possession of Flat No.702, C- Wing, situate on 7th Floor, having carpet area of 732 sq.ft. in the building known as “Emerald Court to the complainant. While giving possession, occupation certificate was also to be ensured by the Opponents with supply of water and electricity and complainant was required to pay an amount of Rs.17,000/- in view of Clause 45 of the agreement dated 18/08/1997 as stated in Clause 4 of the judgment and award in the Complaint No.CC/05/20. At the time of receiving possession, the executant was and is ready and willing to pay the sum of Rs.17,000/- payable according to Clause 4 of the operative order. Compensation in the sum of Rs.1,00,000/- is payable by the opponent as per Clause 5 of operative part of the final order and litigation costs in the sum of Rs.10,000/- as per Clause 6. of the operative part of the final order.


2. In execution application in defence the opponents have stated that they (the opponent) cannot give possession of the flat (aforesaid flat) because the opponent sold the flat to third party. This cannot be valid excuse for non-compliance of the final order passed by this Commission. Ld.Advocate for the Opponents has sought to adduce some copies of documents to pray for time for compliance of final order, tried to show deed of rectification (phtostate copy), we are not impressed by such evasive submissions in respect of final order passed by us. Once order is made final, passed by the State Commission, it is duty of the 3/4 opponent to obey it and no such excuse can be pleaded which cannot be acceptable by any reasonable prudent person; the accused has to undergo jail custody. There is long standing tendency on the part of the builders/developers in city of Mumbai and Suburban areas to enter into agreement in respect of innocent flat purchaser and then to create interest in third parties, inter alia, with a view to avoid statutory obligations under Maharashtra Ownership of Flats Act, 1963 (‘MOFA’ in short). According to law we cannot accept any such excuse for non- obedience of the final order which was passed by us long back on 3rd February, 2012. When final order despite challenged in superior Forum or Court remains final there can be no excuse for non-compliance thereof by the opponents. Hence, once it is brought to our notice that final order is not yet obeyed deliberately though understood by the opponent. Possession of the flat is not given as directed, we have no other option to remand opponent/accused Mr. Nithin Mehta to imprisonment with a direction that until and unless final order is complied with the opponent/accused shall remain remanded to the jail custody and shall be sent to undergo imprisonment alike civil detenue in the jail.


  1. We make it clear that in the event opponent want to comply with the final order, reference be made to us through the Superintendent of Jail concerned and Complainant, if reports compliance of final order, we can immediately consider releasing the opponent/accused from detention. The jail custody shall continue for a period of three years maximum period unless and until final order is complied with by the opponents in view of Section 27 of the Consumer Protection Act, 1986. 4/4 4. At this stage, the Ld.Advocate for the opponent/accused has filed an application for bail u/sec 389 of Cr.P.C. on the ground that Commission had taken up the matter for final hearing in the execution proceedings and directed detention of the opponent/accused to the jail custody until the compliance of the final order. Since, our order is self explanatory and since the opponent/accused disobeyed the final order despite the fact that the final order is not complied since long despite evidence recorded in execution proceedings as to whey final order remained disobeyed, no justification was found for deliberate disobedience of final order. Hence, we are not inclined to grant bail as prayed for because we will not suspend our aforesaid order as it would be sending wrong signal to opponent to continue to disobey the order and deprive of the consumers of their legal right. Hence, application is rejected. Certified Copy of the order be expedited. Order accordingly.

                                            [HON’BLE Mr.Justice A.P. Bhangale]                              PRESIDENT
[HON’BLE MR. Narendra Kawde]  MEMBER

   Pronounced Dated 13th June, 2016.

25 flat buyers kept hanging by builder for 22 yrs – get justice in two years


The Consumer Forums are taking a much needed tough stand against erring builders who think they are above the law and are resorting to all kinds of unfair and illegal practices…


Swati Deshpande| TNN | Updated: Sep 23, 2016, 08.08 AM IST



MUMBAI: The Maharashtra  State Consumer Commission has come to the rescue of 25 flat buyers who put their service class life savings in booking small homes 22 years ago, only to be asked to cough up Rs 41.5 lakhs each, almost ten times the original price, to get possession. The commission said the escalated demand was nothing but “pressure tactics” and “unfair trade practice” by the builder to get the buyers to accept his offer of Rs 14 lakh and cancel the bookings in “Rajendra Kunj’ a project in Borivli (east).

The commission directed the builder, Truly Creative Developer Pvt Ltd, to hand over possession of flats in two months at the original price and with all agreed amenities. The order is to also pay damages of Rs 50,000 each to 25 buyers for the mental agony that the unprecedented delay has caused them.

The flats were booked between 1994 and 1998 by 112 persons, mostly employees of Excel Industries, at prices that ranged between Rs 4 lakh and Rs 6 lakh. Most had paid over 50% of the flat’s cost. In 2011, the developer demanded Rs 41 lakh more from each buyer and said the market rate in the vicinity was around Rs 80 lakh for similar-sized flats. The developers, Rajendra Barde and Dattatray Barde, directors of the firm, also initially offered them an 8% return on the money they had already paid. The lawyer for the buyers, Dilip Kulkarni, argued that it was not money, but flats they wanted, as entitled in law. The builder wants the buyers out so that he can sell the flats at the current market rate which would attract a price of around Rs 1 crore, they argued.

The commission panel presided over by judicial member Usha Thakare and Dhanraj Khamatkar observed that in some cases, “flats were booked in 1994, agreements executed in 2005. And no possession handed over till date”. The buyers had approached the commission in 2013. The work was stopped for a year in 1998 and three years since 2005 after disputes landed in the city civil court. But there was no stay on construction between 1999 and 2005 and since 2008. Yet the building is far from complete.

The builder’s lawyer, Ajay Karwath, resorted to every legal arsenal to have the buyers’ complaint dismissed. He questioned their status as consumers, calling them investors, and even challenged the jurisdiction of the commission which can hear claims above Rs 20 lakh. The commission said the buyers had claimed damages of Rs 60 lakh with interest. Hence, the jurisdiction was not flawed, and they were all employees who purchased small flats for their residence with a valid agreement and continued to pay amounts which the builder demanded over the years, hoping for completion and possession, hence they were consumers. “They would not have waited for 16 years to get possession if they were investors.”


Link to the full news:

One Avigna Park, the first cluster development project in Mumbai……….in serious trouble……………..

One Avigna Park, the first cluster development project in Mumbai……….in serious trouble…………….

Mumbai: FIR against builder for FSI fraud that cost govt Rs 2,000 cr

Cops registered FIR against directors of the firm that constructed the 61-storey super luxury project — One Avighna Park at Currey Road — for allegedly forging…
Read the entire story at the following link: