THE MAHARASHTRA OWNERSHIP OF FLATS (REGULATION OF THE PROMOTION OF CONSTRUCTION, SALE, MANAGEMENT AND TRANSFER) (AMENDMENT) ACT, 1963.

2. Definitions. - In this Act, unless the context otherwise requires,-

1[(a)     “Competent Authority” means a Competent Authority appointed under section 5A;]

2[(a-1] “Flat” means a separate and self-contained set of premises used or intended to be used for residence, or office, or show-room or shop or godown 3[ or for carrying on any industry or business] (and includes a garage), the premises forming part of a building 4[and includes an apartment].

                        Explanation.-Notwithstanding that provision is made for sanitary, washing, bathing or other conveniences as common to two or more sets of premises, the premises shall be deemed to be separate and self-contained;

(b)               “prescribed” means prescribed by rules made under this Act;

(c)                5[“promoter” means a person and includes a partnership firm or a body or association of persons, whether registered or not] who constructs or causes to be constructed a block or building of flats 6[or apartments] for the purpose of selling some or all of them to other persons, or to a company, co-operative society or other association of persons, and includes his assignees; and where the person who builds and the person who sells are different persons, the term includes both;

(d)               “Registrar” means the Registrar as defined in the Maharashtra Co-operative Societies Act, 1960, (Mah. XXIV of 1961.) or, as the case may be, in the Companies Act, 1956(I of 1956);

(e)                To construct a block or building of flats 1[or apartments] includes converting a building or parting thereof into flats 2 [or apartment].

3[(f)     the expressions, “apartment” and “apartment owner” shall have the meanings, respectively assigned, to them in the Maharashtra Apartment Ownership Act, 1970 (Mah.XV of 1971).    

                                                                NOTES                                                                                                          

v     The definition by the use of the expression seems to be exhaustive. Section 15 empowers the State Government to make rules which have to be notified before making them effective as provided in sub-section (1). In addition to the general power, particular matters are provided foe having regard to sections 3, 4, 10 and 11 having regard to the provisions contained in sub-section (2). Sub-section (e) extends the rule making powers to matters covered by the rules also.

v     It must be noted that the definition by use of expression “means” seeks to be exhaustive. Construction activities inherently claim assimilation of several activities and association of several persons from several fields. This makes the task of undertaking construction work a task of organizing skills and persons. Persons who undertaking to promote construction work through organization of skill and person have to take steps as may be required in construction work. Legally speaking, the activities divide themselves into preliminary steps for construction and steps taken after construction work is over. ‘Promoters’, ‘developers’ are all terms of art and when sought to be regulated by statute by expressing the words like ‘promoter’, ‘developers’ are used to indicate that certain legal relationship are built or are to be built in activities or for activities which otherwise may not be subjected to regulatory powers under the statute. In India, landlord tenancy was known ever since the property rights are known, but tenancy landlord, co-operatives or tenants’ co-operatives are concepts of present day origin. This being so, steps which bring out such relationship between landlords or tenants and/or between tenants have to be defined for being regulated. Even before co-operative societies are formed, certain steps are taken when construction work is to be undertaken. This being so, this definition indicates the persons who take preliminary steps to collect together persons like tenants or landlords as also funds, etc. to promote a step in the direction of construction of houses. As defined, promoters are those who construct or cause to construct blocks, flats, etc. as defined. The activities of construction involved investment of large funds. Developers/promoters while taking such assignments do it as profit making undertakings. In the situation of shortage, construction in more space becomes desirable but such construction involves high costs. This state of affairs has to be resolved by making allowance to such promoters/ developers to obtain profits out of the construction made. Such returns of their investment takes shape in terms of flats/blocks which are built which being made available in open markets fetching high price. This motivation is taken care of while encouraging construction activities and the definition defines such promoters in terms of the activities undertaken both advantageous in terms of overcoming shortage of houses as also of getting returns from construction work. This also takes care of old buildings being re-developed and new constructions taking place. In the extra FSI or TDR as the case may be, the flats/blocks constructed when sold in open market fetch prices and appropriation of such prices giving return for the investment in construction becomes the motivation for undertaking such assignments. This aspect of human nature is brought out in the definition and promoter as defined could be a person who undertakes construction of flats/blocks for purpose of selling some or all of them to third parties as set out. In the business organization, associates assigning as well as selling agents may form into a group and when such is the case, all of them are included in the definition of a promoter.

It is relevant to note that having regard to provisions made under laws relating to municipality and/or town planning, various steps have to be taken whenever a construction activity is undertaken. In the context of shortages, permissions are required from such bodies as may be prescribed as also town planning needs plans being approved. Grant of FSI and TDR in the context of shortage are subject to regulatory powers and these as well as other activities many a times are subjected to regulatory powers. With a view to bring such steps within the regulatory powers, a definition of a person like promoter requires consideration.

This definition (c) refers to construction of blocks or flats or apartments. This definition has to be read also along with the definition contained in sub-clause (e).

Sub-clause (e) as defined construction of block or building of flats is extended to conversion of a building or part thereof into flats/apartments as set out.

To be continue…