Developer's Objections on Future Development Rights Dismissed; Conveyance Ordered for 16,584.55 sq.mtrs Land
In a significant ruling, the Bombay High Court has upheld the decision of the Competent Authority to grant deemed conveyance to three cooperative housing societies—Kalpita Enclave Building Nos. A to H, J, K, L, and M—on a land parcel initially measuring 21,736 sq.mtrs. The court, presided by Justice Sandeep V. Marne, has directed the conveyance of 16,584.55 sq.mtrs, excluding portions earmarked for public infrastructure and encroached areas.
The legal battle initiated by Kiran Builders Pvt. Ltd., challenged the unilateral deemed conveyance order dated 15 May 2017, which was passed by the District Deputy Registrar, Co-operative Societies-3, Mumbai. The petitioner sought to block the conveyance citing potential future development rights for additional buildings, namely N and P, which were initially planned but not constructed due to limitations in available FSI.
Justice Marne, however, found no merit in the developer's objections, emphasizing that the developer cannot delay the conveyance indefinitely on speculative future FSI availability. The court referred to established precedents, notably the judgments in Lakeview Developers v. Eternia Co-operative Housing Society Ltd. and Rajkumar Gulati v. S.D. Corporation Pvt. Ltd., which underscore the obligation of developers to fulfill conveyance commitments without indefinite postponement based on potential FSI.
The judgment also rectified an error by the Competent Authority in conveying the entire land parcel. After considering the areas surrendered for a DP road, reserved for a municipal market and a primary school, as well as land taken for road widening and encumbered by slums, the court directed the conveyance of 16,584.55 sq.mtrs. The societies voluntarily relinquished claims on these reserved and encumbered portions to expedite the process.
The decision is seen as a victory for the cooperative housing societies, which had been awaiting the conveyance for several decades since the construction of their buildings. The order mandates the Competent Authority to issue the revised conveyance certificate within three months, with parties scheduled to appear before the authority on 24 June 2026.
Bottom line:-
Maharashtra Ownership Flats Act (MOFA) - Deemed conveyance of land to cooperative housing societies - Competent Authority empowered to issue deemed conveyance even after withdrawal of civil appeal - Developer cannot delay conveyance indefinitely citing potential future development rights or FSI availability.
Statutory provision(s): Maharashtra Ownership Flats Act, 1963 (MOFA) Section 11
