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Maharashtra makes it easier to obtain deemed conveyance, 10k societies in Mumbai to benefit

mumbai Updated: Sep 20, 2017 15:24 IST
Naresh Kamath
Naresh Kamath
Hindustan Times
Mumbai news,real estate,deemed conveyance

(HT picture for representation)

Approximately 10,000 cooperative housing societies across Mumbai can heave a sigh of relief, as they can now get the deemed conveyance—which is the ownership right of the plot on which their houses are built.

The state in its Government Regulation (GR) issued on Tuesday eased rules scrapping the mandatory condition of having the Occupation Certificate (OC) or the Building Completion Certificate (BCC)needed for deemed conveyance. Now, these housing societies just need documentary evidence like formation of society or payment of property tax by the society.

In addition, they have to give an indemnity bond stating that they will take responsibility for the building and adhere to all required rules and regulations.

According to the Maharashtra Societies Welfare Association (MSWA), this was a positive step. “In many cases, the builders exited the project without getting the OC, and the residents had to bear the brunt. This relaxation will ensure that majority of the societies get deemed conveyance,” said Ramesh Prabhu, Chairman, MSWA. Theere are 30,000 such societies across the state which will benefit from the move.

It is mandatory for land owners or developers to convey the title of the plot within four months of the formation of the housing society. In many cases, the builders fail to convey the title of properties to the housing societies, in the hope of availing more floor space index (FSI) that may become available in future, or to avail the benefits accrued to them in case the property is redeveloped.

If the builder fails to convey the property, the Maharashtra Ownership Flats Act (MOFA) allows societies to apply for deemed conveyance. For societies, however, having OC was mandatory and was insisted upon by the officials of the cooperative registrar’s office. OC is given only when the building is complete in all respects and complied with mandatory norms laid by the governement authorities to make it ready for occupation. Since the builders abandon the projects before complying with the norms and conditions, OCs are not given to the societies. Developers just hand over the possession and exit the project, leaving the residents high and dry.

A managing committee member from a well known society in Andheri said that the GR will pave a way for smooth redevelopment. “We will no longer have to depend on the builder who exited from the project decades ago for the deemed conveyance. It will be easy for the society now to become the owner of the plot and accrue the benefits,” said the committee member who refused to come on record.

First Published: Sep 20, 2017 15:12 IST