Part-1: Great Real Estate Robbery: How Builders & Bureaucrats are Bleeding You Dry
Imagine saving every penny for years, dreaming of your own home in bustling Maharashtra. You finally buy a flat, move in with your family, and think, “This is mine.” But guess what? It’s not. The land and building? Still owned by the shady builder who sold it to you. And the government? They’re too busy looking the other way while corruption feasts on your hard-earned money. Also Read: Decoding Deemed Conveyance Scam – From Loopholes to Lifelines
This isn’t some Bollywood thriller. This is the ugly reality of “Deemed Conveyance” in Maharashtra – a system designed to fix a problem but twisted into a massive corruption racket. It’s a slap in the face to every common man who’s ever been duped into thinking the law protects them. Builders delay handing over ownership (conveyance) on purpose, bureaucrats wink and nod, and you, the flat owner, end up paying through the nose to “consultants” who are nothing more than glorified bribe collectors. We’re talking crores vanishing into thin air, all while the Prime Minister preaches transparency and digitization. Hypocrisy much?
Let’s break it down like we’re chatting over chai. The real estate sector in India is bloated with over 40% taxes, making homes unaffordable for the average Joe. Prices are sky-high because corruption is baked into every brick. Builders know they can exploit loopholes to keep control of the land – especially for future profits from increased Floor Space Index (FSI). The law says they must transfer ownership within four months of your housing society’s registration. But do they? Hell no. And why should they, when no one’s hauling them to jail?
Here’s the bombshell: The Maharashtra Ownership Flats Act (MOFA), 1963, Section 13, screams that failing to execute conveyance is a crime. Builders can face fines, up to three years in prison, or both. The Real Estate (Regulation and Development) Act (RERA), 2016, Section 17, doubles down on this, mandating title transfer and slapping similar penalties for defiance. So, why aren’t these crooks behind bars? Why are they holding your land hostage while you scramble to pay extra? Because the government refuses to enforce the law. It’s like having a loaded gun but choosing to tickle the criminal instead. This deliberate inaction emboldens builders to conspire with officials, turning a simple process into a extortion empire.
Enter the “Deemed Conveyance” – the so-called savior when builders ghost you. Sounds helpful, right? Wrong. It’s the perfect setup for more graft. Your society has to apply to the authorities, but instead of a straightforward fix, you’re forced to hire a “consultant.” These middlemen charge Rs. 10,000 to Rs. 12,000 per flat – or more. For a 200-flat society? That’s a cool Rs. 20 lakhs to Rs. 24 lakhs vanishing into “consultancy fees.” And that’s just the tip. Add GST, and it’s legalized looting.
Take Ekta Lokmilan CHS Ltd. in Mumbai – a real-life horror story. They coughed up Rs. 6,000 per flat in cash (off the books, mind you) to a consultant who promised the moon but vanished like a ghost. No conveyance, no accountability. Now, they’re shelling out Rs. 12,000 per flat for a “better” consultant. Better at what? Negotiating bribes? It’s absurd. A few brave souls in the society raise hell about this forced corruption, but the Managing Committee waves an AGM resolution like a magic wand. “Majority rules,” they say, while everyone’s conscience takes a nap.
We’re Indians – resilient, innovative, but apparently addicted to corruption. It doesn’t prick anyone’s soul anymore. The magnitude? Mind-boggling. Billions siphoned off nationwide, yet authorities shrug: “Corruption is here to stay, good, bad, or ugly.” If you bury your head in the sand like an ostrich, you’ll never see the evil. But open your eyes, and it’s a brazen challenge to the system: “Fight us if you can.” Well, it’s time we did.
This isn’t just about flats; it’s about dignity. Builders and bureaucrats are playing monopoly with your life savings, and the government is the referee who’s in on the fix. How long will we let them? In Part 2, we’ll dive into the nitty-gritty of how this scam works – and how to smash it once and for all.
Author Bio
