Builders cannot reserve authority on conveyance deed: consumer forum | mumbai | Hindustan Times
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Builders cannot reserve authority on conveyance deed: consumer forum

Builders or developers cannot reserve absolute authority regarding the execution of conveyance in favour of the housing society, the Mumbai Suburban District Consumer Disputes Redressal Forum ruled on Wednesday.

mumbai Updated: May 05, 2012 01:28 IST
Kanchan Chaudhari

Builders or developers cannot reserve absolute authority regarding the execution of conveyance in favour of the housing society, the Mumbai Suburban District Consumer Disputes Redressal Forum ruled on Wednesday.

The bench of forum president JL Deshpande and member Deepa Bidnurkar held that builders/developers cannot incorporate such a condition into their agreement with flat purchasers as it is against the provisions of Maharashtra Ownership of Flats Act (MOFA), 1960.

The forum was hearing a complaint lodged by Shree Vallabh Anand Co-operative Housing Society from Malad West alleging deficiency on part of their land owner Patel Construction Company and developer, Bliss Constructions, for failing to execute conveyance in its favour.

Patel Construction Company had engaged Bliss Constructions for the construction of two buildings on their property opposite Goregaon Sports Club at Malad West. The developer constructed the two buildings, termed D and E wings and sold the flats to various purchasers, who formed a separate society in October 2010. They approached the consumer forum in March 2009, after repeated requests for executing conveyance got no response.

Section 11 of MOFA mandates builders / developers to execute conveyance in favour of the housing society as per the terms incorporated into their agreement. The forum found the developer had incorporated a clause into the agreement under which he had reserved absolute authority and discretion in the matter of executing conveyance.

The forum held both of them liable to pay compensation to the housing society, and directed them to pay additional amount of Rs500 per day if they fail to get conveyance executed within three months from the date of receiving the order.