Maharashtra Eyes MOFA Repeal as RERA Framework Reshapes Property Regulation

The Maharashtra government has initiated an examination of proposals to repeal the Maharashtra Ownership of Flats Act, 1963 (MOFA), citing significant overlap with the Real Estate (Regulation and Development) Act, 2016 (RERA). The potential move has triggered intense discussions among real estate developers, housing society federations, and homebuyer advocacy groups across the state.

Understanding MOFA and Its Historical Context

MOFA represents Maharashtra-specific legislation that has governed the promotion, sale, management, and transfer of flats within the state for over six decades. The Act was designed to safeguard flat buyers and mandates build-and-transfer obligations for property promoters, establishing a framework that predates modern real estate regulation.

In contrast, RERA functions as a central law applicable across India, designed to introduce transparency, accountability, and timely delivery standards to real estate projects nationwide. Supporters of the RERA framework argue that with its comprehensive provisions now in force, MOFA has become largely redundant, with many of its provisions either replicated or superseded by the newer legislation.

However, opponents have raised concerns that repealing MOFA could leave certain housing societies and older projects without adequate legal protection, particularly those registered under MOFA that may not fall under RERA registration requirements.

Critical Issues in the Debate

The discussion surrounding MOFA's potential repeal centers on several key areas of concern. Project registration and oversight mechanisms differ significantly between the two frameworks, with RERA mandating registration for most real estate projects and implementing stricter compliance protocols compared to MOFA's earlier regime.

Definitions of carpet area present another point of contention, as MOFA and RERA employ different measurement standards, directly affecting pricing structures and buyer rights. An applicability gap exists for certain projects, especially older developments that were governed exclusively under MOFA. Industry experts warn that a blanket repeal without transitional safeguards may create significant rights gaps for existing property owners.

Legal scholars have noted potential statutory conflict and overlap between the two Acts. Some experts point to a possible implied repeal of MOFA through RERA due to overlapping subject matter and the doctrine of repugnancy in constitutional law. The stakeholder response has been divided, with developers seeking legal simplification, while housing societies, consumer groups, and cooperatives express concerns over the protection of long-standing rights established under MOFA.

Next Steps in the Process

The state's housing department is expected to launch comprehensive stakeholder consultations involving housing society federations, developer associations, and consumer forums. Any formal repeal or amendment will likely require a government notification and may include transitional provisions specifically addressing projects currently governed under MOFA.

Legal clarification is anticipated regarding how existing MOFA-registered projects and unregistered societies will transition into a RERA-only regulatory framework. The decision's outcome could significantly influence key residential micro-markets in Maharashtra, particularly within the Mumbai Metropolitan Region, by establishing clear regulatory standards for older housing stock and new redevelopment projects.

Impact on Key Stakeholders

For homebuyers, if MOFA faces repeal, purchasers in older projects will need to verify which regulatory framework governs their units and ensure protections remain intact through the transition. The change requires vigilant monitoring to prevent inadvertent loss of buyer safeguards.

Housing societies and cooperatives operating under MOFA must closely monitor the transition period and secure critical rights related to conveyance, building management, and ownership in the emerging regulatory environment.

For developers and investors, a unified legal regime could streamline compliance requirements and reduce regulatory risk. However, the transition period may generate uncertainty in redevelopment, conveyance processes, and registration of older building blocks, particularly affecting major redevelopment projects across the state.

Looking Ahead

The debate over MOFA's repeal reflects Maharashtra's broader evolution in real estate regulation, marking a transition from legacy legislative frameworks to modern regulatory structures aligned with national standards under RERA. The state government's decision in the coming months will prove pivotal in clarifying the legal status of thousands of flats, housing societies, and redevelopment projects throughout the region.

The outcome will establish precedent for how states balance modernization of property laws with protection of existing stakeholder rights, particularly in complex urban real estate markets like Mumbai's evolving property landscape.

Disclaimer: This article is for informational purposes only and should not be considered legal advice. Property buyers, housing societies, and developers are advised to consult qualified legal professionals and monitor official government notifications regarding any changes to MOFA or RERA regulations. The information presented reflects developments as of November 8, 2025, and regulatory frameworks are subject to change.