Builders want circular withdrawn

City builders are lobbying with the state to withdraw the circular issued by the state special inspector general of police directing every police station to take action against errant builders by registering complaints and further initiating penal action against them. Builders claim the circular is just another ploy that would help police officers to extort money from them for any small reason.

After Prabhat Kumar, special inspector general of police, issued the circular, several top builders this week had meetings with officials from the housing and home department at Mantralaya. The builders also met Mr Kumar over getting clarification from him on the circular that was issued.

The circular stated that complaint should be registered against builders who fail to hand over possession on time to buyers or deliver flats without obtaining occupation certificate (OC).

“We have met several officials from the home and housing department that such circulars are very disturbing as they will result in police officials blackmailing them for every small reason, further increasing the chances of they extorting money from us. We have requested the home department officials to withdraw the circular,” said a top builder, who did not wish to be named and who attended the meeting with home department officials.

The circular had stated that action could be taken against builders under the Maharashtra Ownership Flat Act (MOFA), 1963. The state had cited that after a delegation of activists had made representation and highlighting various laws under which the police could initiate action against builders.

“What was the need of coming out with a circular when the laws are already in place Also, when the state is going to regulate the real estate fraternity with the Real Estate (Regulation and Development) Act 2016 (or RERA) what is the need of temporary mechanism of MOFA that was not implemented properly The circular is for the whole state, and builders body will jointly seek legal opinion on whether the circular could be challenged in the court of law,” said a spokesperson for the Builders’ Association of India (BAI).

Meanwhile a home department official said, “The law is already in place and there is no point even if the circular is withdrawn. It was just a communication sent to all the police commissioners and nothing more should be read out of it. There is no question of withdrawing the circular.”