Builders cannot withhold transfer of ownership indefinitely: Bombay HC
A developer cannot indefinitely withhold a deemed conveyance certificate — transfer of ownership to buyers — from a housing society, ruled the Bombay high court.mumbai Updated: Dec 21, 2016 15:45 IST
A developer cannot indefinitely withhold a deemed conveyance certificate — transfer of ownership to buyers — to a housing society, ruled the Bombay high court.
The HC rejected the plea of a city developer, Indra Constructions Private Limited, who challenged an October 2015 order of the district deputy registrar and competent authority under the Maharashtra Ownership Flats Act (MOFA), 1963. The order granted the deemed conveyance to six cooperative housing societies at Magathane in Borivli.
“In my view, the unilateral deemed conveyance cannot be stalled at the behest of owner/developer who completed the construction in 1978. The owner failed to execute the conveyance in favour of the respondent No 3 to 8 (the six housing societies) for the last 30 years,” said Justice RM Savant.
Invoking section of the MOFA, the judge said the developer is bound to execute a conveyance certificate within four months of the registration of a housing society. “And in this case, the construction work was completed in 1978 and the six cooperative housing societies were registered in 1985. But they were still awaiting the execution of the deed,” the judge said.
He also rejected the developer’s contention to use some space at these societies, mentioned in the sale deeds.