Deemed conveyance can't be denied due to delay on part of the builder: HC
MUMBAI: In a significant ruling strengthening the rights of homebuyers, the Bombay high court (HC) on Friday held that a developer's failure to complete a housing project within the stipulated time cannot be used as a reason to deny flat owners their right to deemed conveyance under the Maharashtra Ownership Flats Act (MOFA), 1963.
Deemed conveyance refers to the legal transfer of land and building title from the builder to the housing society, even without the builder's cooperation, once the society is formed and other legal conditions are met.
Justice Amit Borkar, presiding over a single-judge bench, passed the order while allowing a petition filed by an association of three cooperative housing societies. The group had challenged a decision by the competent authority rejecting their application for deemed conveyance.
The dispute dates back to 1995, when Abhinav Real Estate Pvt Ltd (now Neelkanth Realtors Pvt Ltd) undertook the development of 52,609 sq m of land in Majiwada, Thane. This development plan was reaffirmed in 2002. Eventually, eight residential buildings housing 740 flats and 29 commercial units were constructed and sold to individual buyers. Housing societies — Rameshwar CHS (2004), Mansarovar CHS (2005), and Girija CHS (2011) — were formed under MOFA.
In 2024, frustrated by the builder's prolonged failure to execute conveyance deeds, the three societies joined forces and formed an association to seek deemed conveyance from the competent authority under MOFA.
However, the builder opposed the move, arguing that the association was formed improperly and that it was already facing de-registration proceedings. The competent authority rejected the application, citing that the land was part of a larger layout and that the builder had plans for further development using additional Floor Space Index (FSI) and Transferable Development Rights (TDR).
Justice Borkar dismissed the developer's contentions, stating, 'The right of flat purchasers to receive conveyance crystallises once the society is formed. This right does not depend on any vague promises or future intentions of the promoter to construct additional buildings or complete an entire layout.'
He added, 'Once a reasonable time has passed, the promoter is legally bound to convey the property. In this case, the promoter has neither completed the remaining development nor provided any concrete plan to do so. They cannot be permitted to use their own delay as a shield to obstruct the rights of the society.'
The court directed the District Deputy Registrar, Cooperative Societies, Thane, to issue a deemed conveyance certificate to the association, effectively granting ownership rights to the housing societies.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
United News of India
11 hours ago
- United News of India
UK Foreign Secretary David Lammy in New Delhi, to meet PM Modi, EAM
New Delhi, June 7 (UNI) UK Foreign Secretary David Lammy is visiting New Delhi today, to further advance the India-UK relationship during talks with Prime Minister Narendra Modi, External Affairs Minister S Jaishankar, besides other government officials. His visit comes after the two nations agreed on the Free Trade Agreement, which is set to increase trade by more than pounds 25 billion every year. Foreign Secretary Lammy will meet with Prime Minister Modi on his second visit to India to discuss ongoing economic and migration partnership, a statement from the British HC said. The Foreign Secretary will also welcome progress in the migration partnership, including ongoing work on safeguarding citizens and securing borders in both countries. Addressing migration remains a top priority for the government - the Foreign Secretary is focused on working internationally with global partners to secure the UK's borders at home. Foreign Secretary David Lammy said: 'Signing a free trade agreement is just the start of our ambitions - we're building a modern partnership with India for a new global era. We want to go even further to foster an even closer relationship and cooperate when it comes to delivering growth, fostering innovative technology, tackling the climate crisis and delivering our migration priorities, and providing greater security for our people.' The Foreign Secretary will also meet with leading figures in Indian business to discuss how we can unlock even greater investment by Indian business in the UK. Our investment relationship supports over 600,000 jobs across both countries, with over 950 Indian-owned companies in the UK and over 650 UK companies in India. In 2023-24, India was the UK's second largest source of investments in terms of number of projects for the fifth consecutive year. Talks will also take stock of progress, following a commitment by the UK and Indian Prime Ministers to take forward an ambitious UK-India Comprehensive Strategic Partnership. The trade deal is a key example of the progress being made since the last meeting between the Foreign Secretary and his Indian counterpart. It follows the signing of the UK-India Programme of Cultural Cooperation Agreement in May and pounds 400 million of trade and investment wins boosting the British and the Indian economy at the Economic and Financial Dialogue in April. The Foreign Secretary is also expected to address the recent escalation in tensions following the Pahalgam terrorist attack and how the welcomed sustained period of peace can be best supported in the interests of stability in the region. On May 2, the UK and India signed a new UK-India Programme of Cultural Cooperation to boost collaboration across the arts and culture, creative industries, tourism and sport sectors. The agreement will open the door for increased UK creative exports to India and enable more partnerships between UK and Indian museums and cultural institutions, helping to grow UK soft power. At the 13th UK-India Economic and Financial Dialogue (EFD) in April, Chancellor Rachel Reeves welcomed pounds 400 million of trade and investment wins set to boost the British and the Indian economy and deliver economic growth and security for working people. David Lammy travelled to India on his first official visit as Foreign Secretary in July last year, when he announced the landmark UK-India Technology Security Initiative. UNI RN
Time of India
a day ago
- Time of India
Odisha HC junks plea against LIC over public auction of cancelled flat allotments
CUTTACK : Orissa high court has given a clean chit to Life Insurance Corporation of India (LIC) for reinitiating, through public auction, the sale of flats which were first allotted to policyholders through a draw of lots, and subsequently cancelled in 2014. A petition was filed by a policyholder who had deposited Rs 1 lakh and was among the successful applicants in the draw of lots, before the allotments were cancelled. The petition sought HC's intervention, alleging that LIC is now attempting to profit from the same flats by hiking its cost to Rs 80.54 lakh from the earlier Rs 58.10 lakh, which amounts to arbitrary and exploitative conduct unbecoming of a state entity. While dismissing the plea, Justice S K Panigrahi said the court cannot ignore the practical realities of urban development, land classification, and escalating construction costs. "It is not open to a writ court (HC) to freeze pricing or enforce historic transactions when the statutory and legal framework has significantly changed over a decade," Justice Panigrahi stated in the judgment uploaded on May 29. He pointed out that LIC, being a public authority, is entitled to re-value and dispose of its assets in a lawful, transparent manner, and "no mala fide can be imputed to its decision to conduct an e-auction in 2025." According to case records, in early 2014, LIC had launched a housing scheme for the allotment of 75 flats at Jeevan Bima Nagar, Phase-II, Chandrasekharpur in Bhubaneswar . Policyholders could submit applications depositing Rs 1 Lakh. LIC, on its part, submitted that the cancellation of allotment was compelled by the govt's instruction not to register flats without Record of Rights (RoR). The ROR was unavailable in 2014 and was only obtained in 2024, after due mutation and reclassification of land. After obtaining legal possession and clearances, LIC reinitiated the sale through public auction as required for fair disposal. Given the time lapse and cost escalation, the current pricing reflects present-day market and construction realities, it stated. While dismissing the petition, Justice Panigrahi also ruled that without a sale agreement, registration, or part-performance beyond a token application fee, no enforceable legal right is vested in the petitioner. Justice Panigrahi further clarified that the HC does not sit to enforce broken promises, expectations, or incomplete transactions between private parties and state instrumentalities unless a public duty, statutory violation, or glaring arbitrariness is demonstrably shown.
Time of India
2 days ago
- Time of India
HC junks plea against LIC over public auction of cancelled flat allotments
Cuttack: Orissa high court has given a clean chit to Life Insurance Corporation of India (LIC) for reinitiating, through public auction, the sale of flats which were first allotted to policyholders through a draw of lots, and subsequently cancelled in 2014. A petition was filed by a policyholder who had deposited Rs 1 lakh and was among the successful applicants in the draw of lots, before the allotments were cancelled. The petition sought HC's intervention, alleging that LIC is now attempting to profit from the same flats by hiking its cost to Rs 80.54 lakh from the earlier Rs 58.10 lakh, which amounts to arbitrary and exploitative conduct unbecoming of a state entity. While dismissing the plea, Justice S K Panigrahi said the court cannot ignore the practical realities of urban development, land classification, and escalating construction costs. "It is not open to a writ court (HC) to freeze pricing or enforce historic transactions when the statutory and legal framework has significantly changed over a decade," Justice Panigrahi stated in the judgment uploaded on May 29. He pointed out that LIC, being a public authority, is entitled to re-value and dispose of its assets in a lawful, transparent manner, and "no mala fide can be imputed to its decision to conduct an e-auction in 2025." According to case records, in early 2014, LIC had launched a housing scheme for the allotment of 75 flats at Jeevan Bima Nagar, Phase-II, Chandrasekharpur in Bhubaneswar. Policyholders could submit applications depositing Rs 1 Lakh. LIC, on its part, submitted that the cancellation of allotment was compelled by the govt's instruction not to register flats without Record of Rights (RoR). The ROR was unavailable in 2014 and was only obtained in 2024, after due mutation and reclassification of land. After obtaining legal possession and clearances, LIC reinitiated the sale through public auction as required for fair disposal. Given the time lapse and cost escalation, the current pricing reflects present-day market and construction realities, it stated. While dismissing the petition, Justice Panigrahi also ruled that without a sale agreement, registration, or part-performance beyond a token application fee, no enforceable legal right is vested in the petitioner. Justice Panigrahi further clarified that the HC does not sit to enforce broken promises, expectations, or incomplete transactions between private parties and state instrumentalities unless a public duty, statutory violation, or glaring arbitrariness is demonstrably shown.
