(Authored by Anil Nair) The Maharashtra Legislative Assembly recently passed the Maharashtra Housing (Regulation and Development) Bill. This is the first such Bill to be passed by any state, which sets up a housing regulator to regulate property transactions. The Bill seeks to set up a Housing Regulatory Authority to provide for relief to flat purchasers against sundry abuses, malpractices and difficulties related to the construction, sale, management and transfer of flats. According to news reports, the government felt that existing laws were not effective in protecting the interests of the flat purchasers and allowed the promoters to avoid statutory obligations imposed on them. The Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 1963 did not provide for an effective implementing arm for its various statutory provisions, as the buyers could only approach consumer forum or civil court for acts of omission or commission regarding its provisions. The current Bill passed by the Maharashtra Assembly proposes to repeal the 1963 Act. As per the Statement of Objects and Reasons of the Bill, the Regulatory Authority will strive to encourage growth and promotion of a healthy, transparent, efficient and competitive real estate market. The Bill specifies several conditions to be fulfilled by the developer to further transparency and fairness. All projects proposing to develop more than four flats or of land area exceeding 250 square meters have to submit and update details of the project on the website of the Housing Regulatory Authority. Developers would be required to disclose detailed information regarding the project including:
Failure to give possession of the flat on the agreed date would require repayment of the full amount paid by the buyer with interest. The Authority would also be empowered to penalise the developer up to an amount of one crore rupees for non-compliance with provisions in the Bill. Among other initiatives to assist the real estate industry, the Housing Regulatory Authority would promote rating of projects and of promoters, by the association of promoters, to improve the confidence level of investors and consumers through self-regulation. The full text of the Bill is available on the Government of Maharashtra website.
Parliament is considering a proposal to change the process of appointment of judges to the Supreme Court and High Courts. A Constitutional Amendment Bill has been introduced in Rajya Sabha that enables the formation of a Judicial Appointments Committee (JAC), and states that the composition and functions of the JAC will be detailed in a law enacted by Parliament. The appointments will be made according to the recommendations of the JAC. This body replaces the current process of “consultation” with the Chief Justice of India (CJI) and other senior judges. An ordinary Bill has also been introduced in Rajya Sabha which seeks to establish the JAC. The composition of the JAC will be the CJI, the next two judges of the Supreme Court in terms of seniority, the law minister and two eminent persons. These two eminent persons will be selected by a collegium consisting of the CJI, the prime minister and the leader of opposition in the Lok Sabha. In case of High Court Judges, the JAC will consult with the chief minister, the governor of the state and the Chief Justice of the High Court. The new system is widening the selection committee. It includes representatives of the executive and senior judiciary, as well as two persons who are jointly selected by the executive (PM), judiciary (CJI), and the legislature (leader of opposition). However, it may be diluting some of the safeguards in the Constitution. At a later date, the composition of the JAC can be amended by ordinary majority in Parliament. [For example, they can drop the judicial members.] This is a significantly lower bar than the current system which requires a change to the Constitution, i.e., have the support of two thirds of members of each House of Parliament, and half the state assemblies. The 120th Constitution Amendment Bill and the JAC Bill are listed for consideration and passing in Rajya Sabha today. Given that these Bills propose fundamental changes to the process of appointments to key constitutional bodies, it is important that there be a wide debate. The Rajya Sabha must refer these Bills to the Standing Committee for careful examination of various issues. I have written a piece on this issue in the Indian Express today.
