In a landmark ruling, the Bombay High Court has delivered a significant judgment regarding the grant of Deemed Conveyance to housing societies. The court's decision, handed down by Justice Sandeep Marne, reinforces the rights of housing societies in cases where flat purchase agreements stipulate the transfer of land rights from promoters. This ruling is poised to have far-reaching implications for the real estate sector in Maharashtra.
Legal Obligations and Competent Authority's Role
A report in Hindustan Times mentioned that the ruling underscores the legal obligations outlined in the Maharashtra Ownership Flats Act (MOFA), 1963. According to Section 11 of MOFA, promoters are obligated to finalize their title and transfer land rights to housing societies. Furthermore, the Competent Authority, as per Section 11(3) of the Act, is empowered to intervene when promoters fail to fulfill these obligations. However, the court clarified that the Competent Authority should refrain from intervening in title disputes between original owners and promoters.
Challenges Faced by New Manoday Co-operative Housing Society
The case brought before the court involved the New Manoday Co-operative Housing Society, situated in Kanheri village, Borivali East. The society's application for unilateral deemed conveyance of 1,583 square meters of land was rejected by the Competent Authority on October 18, 2023. Additionally, a directive from the Cooperation Minister on January 24, 2024, sought the de-registration of the New Manoday housing society, further complicating matters.
Legal Disputes and Judicial Intervention
The rejection of the society's application stemmed from a civil dispute among the legal heirs of the original landowners regarding the properties, including the land on which the society building was erected in 1977. Despite the society's efforts to secure unilateral deemed conveyance, the legal heirs pursued de-registration, leading to protracted legal battles. However, Justice Marne's ruling emphasized the Competent Authority's limited role and directed them to issue the unilateral deemed conveyance to the housing society.
Implications and Future Outlook
The Bombay High Court's ruling marks a significant victory for housing societies seeking Deemed Conveyance in Maharashtra. By reaffirming the rights of housing societies and clarifying the Competent Authority's role, the judgment sets a precedent for similar cases across the state. Moreover, it underscores the importance of upholding contractual agreements and protecting the interests of homebuyers and housing society members. This decision is expected to streamline conveyance procedures and provide clarity to stakeholders within the real estate sector.
Share
Tweet
