No OC, No Problem! Bombay HC Empowers Flat Buyers with Deemed Conveyance Rights

Case Details: ALJ Residency Co-operative Housing Society Ltd.

The High Court's judgment stemmed from a petition filed by ALJ Residency Co-operative Housing Society Ltd., located in Pali Naka, Bandra West. The society had challenged the District Deputy Registrar’s (DDR) decision dated January 30, 2017, which rejected its application for deemed conveyance under the Maharashtra Ownership of Flats Act, 1963 (MOFA).

Key Allegations Against the Developer

The society alleged non-compliance by the developer, M/s Bhati Homes Pvt. Ltd., in transferring ownership rights as mandated under MOFA. The DDR had rejected the application citing:

• Absence of an agreement for sale.

• Incomplete commencement certificates.

• Alleged illegality of construction, including unauthorized floors.

• Pending litigation and discrepancies in CTS numbers.

The Bombay HC's Observations

1. OC Not Mandatory for Deemed Conveyance
   Section 11(3) of MOFA requires submission of registered agreements and relevant documents, including an OC “if any.” The court clarified that the absence of an OC cannot impede the grant of deemed conveyance.

2. Flaws in DDR’s Rejection Order
   The High Court criticized the DDR’s rejection for procedural lapses, noting the Competent Authority failed to issue a defect notice (Form VIII) before dismissing the application. The court held that the application was complete and the rejection unsustainable.

3. Deemed Conveyance and Unauthorized Construction
   Justice Sharmila Deshmukh clarified that granting deemed conveyance does not legalize unauthorized construction. Instead, it merely transfers the promoter’s title to flat purchasers, enabling the society to regularize or redevelop the structure, if permissible.

4. 2018 Government Resolution
   The court referred to a 2018 Government Resolution that allows societies without OCs to file a self-declaration and apply for OCs after obtaining deemed conveyance. This offers a pathway for societies to address compliance issues post-conveyance.

Implications of the Judgment

1. Empowers Housing Societies
   
   Societies can now apply for deemed conveyance even if developers fail to secure OCs, ensuring their rights are not hindered.
   

2. Encourages Regularization and Redevelopment
   
   With deemed conveyance, societies can take ownership of the property, allowing them to regularize the structure or proceed with redevelopment if needed.
   

3. Promoters Held Accountable
   
   The court criticized developers for resisting conveyance while neglecting their statutory obligations, emphasizing that such defenses cannot penalize flat buyers.

How Captain Realtors Can Help

At Captain Realtors, we simplify the complexities of property ownership:

1. Deemed Conveyance Assistance
   

   • Guidance on applications under MOFA.

   • Help with self-declarations and compliance under the 2018 GR.
     

2. Legal Expertise
   

   • Support in addressing issues like incomplete approvals or unauthorized construction.

   • Collaboration with legal professionals to protect buyers' rights.
     

3. Redevelopment Solutions
   

   • Assistance with securing developers for redevelopment.

   • Transparent processes to ensure smooth ownership transitions.
     

Conclusion: Securing Your Ownership Rights

The Bombay High Court’s ruling is a victory for homebuyers, ensuring their rights are safeguarded despite lapses by developers. At Captain Realtors, we stand by you to make the process of property ownership and redevelopment seamless and stress-free.

Need assistance with deemed conveyance or redevelopment?
📞 Contact us at 9699446510

Let’s turn your dream home into a secure reality!