The Maharashtra Chamber of Housing Industry (MCHI), an association representing leading builders, on Thursday unveiled a “code of conduct” for its members. The new guidelines will make transactions between the developer and the client transparent.
MCHI honorary secretary Boman Irani said, “Any member found guilty of violating the code will have to face a redressal committee comprising three managing committee members. If the member fails to implement remedial measures suggested by the panel, he may be suspended,” he said
MCHI president Paras Gundecha said the code of conduct aimed to promote “highest standards of quality and service” in the industry and ensure transparent and fair-dealing among developers, promoters and buyers. The body formally adopted the code at its 29th annual general meeting on Tuesday in the presence of municipal commissioner Subodh Kumar. The code of conduct deals with five major clauses; full disclosure on property title, agreement for sale on carpet area basis, possession details, any additional charges, arbitration and mediation. “The code came into force from September 13,” an MCHI official said.
The code states: “The developer shall disclose the carpet area of the premises in accordance with provision of MOFA Act. Any area that is specific to the flat / premises exclusively to be enjoyed by the owner will also be disclosed and whether chargeable separately.” “In case, completion of the building is delayed beyond the period stipulated under the sale agreement with the flat purchaser, the developer shall return all moneys along with interest as specified in the agreement,” the code added.
The code also stipulates that developer shall incorporate a clause in the agreement that in the event of nonpayment of installments or other components of the sale price, forfeiture shall be as per mutually agreed terms. “But it will be limited to 20% of the amount of consideration (both towards land and construction),” it stated.

Source: Sep 16, 2011, TNN