(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.
Anirudh and Chakshu Friday's issue of Indian Express carried an op-ed article by the Director of PRS on the issue of the re-establishment of the Legislative Council (upper house) in Tamil Nadu. The article (a) traces the history of the legislature in Tamil Nadu, (b) the efficacy of having upper houses in state legislatures, (c) arguments for and against having legislative councils in state legislatures, and looks at the larger issue of how efficiently state legislatures perform their expected role. General information on Legislative Councils in India: The Legislative Council (Vidhan Parishad) of a state comprises not more than one-third of total number of members in legislative assembly of the state and in no case less than 40 members (Legislative Council of Jammu and Kashmir has 36 members vide Section 50 of the Constitution of Jammu and Kashmir). Elections: (a) About 1/3rd of members of the council are elected by members of legislative assembly from amongst persons who are not its members, (b) 1/3rd by electorates consisting of members of municipalities, district boards and other local authorities in the state, (c) 1/12th by electorate consisting of persons who have been, for at least three years, engaged in teaching in educational institutions within the state not lower in standard than secondary school, and (d) one-twelfth by registered graduates of more than three years standing. Remaining members are nominated by Governor from among those who have distinguished themselves in literature, science, art, cooperative movement and social service. Legislative councils are not subject to dissolution but one-third of their members retire every second year. The points below provide more information on the Tamil nadu legislative Council: - The Government of India Act, 1935 established a bicameral legislature in the province of Madras. - May 14, 1986 [eigth assembly] the government moved a resolution for the dissolution of the Legislative Council. The resolution was passed. - The Tamil Nadu Legislative Council(Abolition) Bill, 1986 was passed by both the Houses of Parliament and received the assent of the president on the 30th August 1986. The Act came into force on the 1st November 1986. The Tamil Nadu Legislative Council was abolished with effect from the 1st November 1986. - February 20, 1989, [ninth Assembly] a Government Resolution seeking the revival of the Tamil Nadu Legislative Council was moved and adopted by the house - The Legislative Council Bill, 1990 seeking the creation of Legislative Councils of the Tamil Nadu and Andhra Pradesh was introduced in Rajya Sabha on the 10th May 1990 and was considered and passed by the Rajya Sabha on the 28th May 1990. But the Bill could not be passed by the Lok Sabha. - October 4, 1991, [tenth Assembly] a Government Resolution was adopted in the Assembly to rescind the Resolution passed on the 20th February 1989 for the revival of the Legislative Council in the State of Tamil Nadu. - July 26, 1996, [eleventh Assembly], a Government Resolution seeking the revival of the Tamil Nadu Legislative Council was moved and adopted by the house.
