7 March 2018

MAHARASHTRA APARTMENT OWNERSHIP (AMENDMENT) BILL, 2018

The Maharashtra Apartment Ownership (Amendment) Bill, 2018 (Bill) has been recently introduced before the Legislative Assembly proposing to amend the Maharashtra Apartment Ownership Act, 1970 (Act). This update briefly summarises the changes proposed in the Bill.

1. Change in the definition of apartment: The definition of “apartment” is proposed to be modified on the lines of the Real Estate (Regulation and Development) Act, 2016 to mean a separate and self-contained part of any immovable property. The Act requires an apartment to have a direct exit to a public street, road or highway or to a common area leading to such public street, road or highway which is no longer required under the Bill.
2. Requirement of majority consent: In the following areas, the Bill now proposes only the consent of a majority of the apartment owners unlike the Act which requires consent of all the apartment owners:
   • alteration of the undivided interest of each apartment owner in the common areas and facilities;
     
     
   • re-development of a building. Re-development is not contemplated under the Act;
     
     
   • any work which would jeopardize the soundness or safety of the property, reduce the value thereof or impair any easement or hereditament or for adding any material structure or to excavate any additional basement or cellar;
     
     
   • removal of property under Section 14 of the Act;
     

3. Contents of Declaration: Under the Bill, the Declaration must include provisions as to percentage of majority of votes by apartment owners which shall be determinative of whether to rebuild, repair, restore or sell the property in the event of damage or destruction of all or part of the property. Presently, a Declaration in the Act consists of only percentage of votes and not percentage of majority of votes.
   
   
4. Repair of damaged property: Under the Bill, within sixty days of the date of damage or destruction to all or part of the property, the Association of Apartment Owners by majority must repair the property otherwise the property is deemed to be owned in common by the apartment owners. Under the Act this task is entrusted to the Association of Apartment Owners.

MHCO COMMENT:

The Bill has been introduced to address the urgent need of repair and re-construction of certain buildings covered by the Act. It has been extremely challenging to obtain the consent of all the members of the Association of Apartment Owners for such purpose. If such buildings are not re-constructed or re-developed in time, there is a likelihood of risk of life to the residents of such buildings. With a view to overcome such problems and difficulties, the Bill has been proposed to ease the process of repair/re-construction/re-development of dilapidated buildings, after obtaining the consent of majority of apartment owners.

The views expressed in this update are personal and should not be construed as any legal advice. Please contact us directly on +91 22 40565252 or legalupdates@mhcolaw.com for any assistance.