Maharashtra proposes new law to protect home buyers

Mumbai: The Maharashtra government is piloting a law to protect the interests of apartment buyers, state governor K. Sankaranarayanan said yesterday.

Speaking at an event in Shivaji Park, Dadar, to mark Maharashtra Day, which coincided with International Labour Day, the governor also announced that the state had constructed 6,948 houses for mill workers at affordable rates.

The houses for mill workers had been constructed by the Maharashtra Housing and Area Development Authority, with the cost of each unit reduced from Rs834,000 (Dh57,496) to Rs750,000, he said. The houses would be assigned through a lottery system, he added.

Highlighting the state's efforts to ensure transparency in property transactions and curb malpractices, he said the new Maharashtra Housing (Regulation and Development) Act 2012 was a big step forward.

"The proposed Act provides for establishing a Housing Regulatory Authority and Housing Appellate Tribunal. This will remove information asymmetry by ensuring full disclosure by promoters or developers and also ensure compliance of agreed terms and conditions between developers and the buyers," he said.