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Deemed Conveyance: A boon for housing societies

Friday, March 31, 2017

We recently discussed about conveyance in detail. But, recent statistics show that nearly 70% of housing societies in Mumbai have not received conveyance of land and building from the builders in favour of the society. Ramesh S. Prabhu discusses a way around the issue

Many developers, it is said, deliberately delay the conveyance deed procedure even though the project is completed and sold out. That is why so many housing societies in Mumbai are struggling to get conveyance. That has also delayed the redevelopment of some of the old and dilapidated buildings. Developers have sold  the flats, still they want to hold the ownership rights of the layout. That helps developers to be a rightful part of the redevelopment of that particular plot. But, the concept of deemed conveyance can definitely  stop this malpractice.

Receiving Conveyance
Under Section 11 of Maharashtra Ownership Flat Act, 1963 (MOFA) is very clear that the Promoter / Builder has to give the conveyance of the land and building to the legal bodies within the prescribed period. Rule No. 9 has clearly stated that the builder should give conveyance within 4 months of formation of the legal bodies. However, it has come to the knowledge of the government that very few builders easily handover the conveyance. Since there is no remedial provision given in MOFA, the aggrieved parties are required to go to the different court as under:

  •     With the CivilCourt under the Specific Relief Act, 1963
  •     With the Criminal Court to punish the builder u/s 13 of MOFA
  •     With the Consumer Court under Consumer Protection Act, 1986 as the flat purchaser is considered to be the consumer under the said act.

However, it is noticed that justice under the above legal remedies is not that easy and it consumes the time of the office bearers and is also very costly affair. Thus,  representations came from different corners that a quasi judicial authority be created to hear conveyance grievances and that after hearing the parties, the competent authority should be able to grant the conveyance certificate and also execute the unilateral conveyance deed on behalf the builder / land owner who are not co-operating for executing the conveyance to get the same registered under Registration Act, 1908 and then transfer the property in the revenue record i.e. 7/12 or property card as the case may be.

Procedure to obtain Deemed Conveyance order
1.     Society to apply with documents and prescribed fees/ court fees

2.    Competent Authority to verify documents from his officials or the authorised officer and obtain the report to that effect.

3.     To issue compliance notice in form No. VIII to the applicant to remove the defects in the application within 30 days.

4..     Competent authority to finally verify documents submitted in response to compliance notice and if proper in all respect, to admit the application or reject the same and on admitting the application, register the same in the appropriate register.

5.     Enquiries if any will be conducted and spot visit will be done by officials of competentauthority or his authorised officer wherever required.

6.    To admit any person as intervening party in response to Public Notice or who claim to be interested parties against the application and decide about the same by the competent authority

7.     Interested party to file its say and also deliver a copy to the applicant and all other parties made in the application.

8.    Receive the written reply from the applicant and other opponents based on the submission made by the interested party in response to public notice.

9.    Oral arguments of the applicant, opponents and the interested parties on the submissions made by each of them and to submit the necessary documents in support of their arguments.

10.    Speaking order and certificate of Deemed Conveyance to be issued by competent authority or speaking order for rejecting the application.

11. Competent authority to  execute the Conveyance Deed and register and  issue a letter regarding the exemption of his appearance before him to admit the execution before the sub-registrar of assurance at the time of registration of the same.

12. Deemed Conveyance order shall be passed or application for the same could be rejected within a period 6 months from the date of receipt of application by the competent authority subject to receipt of relevant documents.

After going through the above flow chart one has to remember that the deemed conveyance will be granted only after following the law of natural justice and is being done under the provisions of civil court proceedings.

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