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Deemed Conveyance without OC: Major boon for societies

Friday, September 29, 2017

Recently, the government issued a notification stating that to obtain deemed conveyance Occupation Certificate is not required. Ramesh S. Prabhu explains what this means for housing societies

Though the deemed conveyance was initially started in 2010, in the last seven years about 2500 deemed conveyance orders have been passed due to the stringent norms for submission of the documents. One of the documents is Occupation certificate or Building Completion certificate. The developers for one or the other reasons do not obtain the OC and give the possession of the flats. These documents are to be given by the developer to the housing society and thereafter they grant the conveyance of land and building to the registered co-operative housing society. There are nearly 20,000 co-operative housing societies in Mumbai who are not able to get the conveyance due to lack of OC or building completion certificate or non cooperation from the builder and the land owner. It is always beneficial for the builder not to give the conveyance to take up redevelopment or retain the additional Floor space index, Transfer of Development Rights etc. On getting the conveyance, the society becomes the exclusive owner of the land and then all future FSI and TDR will be with the society and also go for the redevelopment.  

Role of RERA
There was a great hope to the flat purchasers that the implementation of Real Estate (Regulation and development ) Act, 2016 shall compel the developers to provide the OC and conveyance. As per the rough estimate there are nearly 3,00,000 buildings in Maharashtra without OC and in Mumbai city, the same is more than 15,000 buildings. Considering such a huge problem Gautam Chatterjee, chairman, MahaRERA had recommended to the government of Maharashtra, to relax the requirement of OC to grant the deemed conveyance. He also has recommended that once the conveyance is obtained without OC, the societies will be able to get the OC by fulfilling the least requirements. Thus all the pending issues can be resolved.

The recent judgment of Maharashtra Real Estate Regulatory Authority (MahaRERA), stating that buildings which occupied without Occupation certificate(OC) are not covered under RERA and are not required to be registered has surprised every one and all.  

Therefore, on 18th September 2017, the government has issued a notification stating that to obtain the deemed conveyance Occupation certificate or building completion certificate is not required. The societies need to give the proof of having taken the possession of the flats such as Municipal corporation or gram panchayat proper tax bills or water bills and an undertaking to the authority that all the liabilities related to the building regulation shall be at the responsibility of the society. This is going to ease the process of deemed conveyance. The societies should at the earliest obtain the conveyance of their land and building.

What is Deemed Conveyance ?
After the expiry of four months of formation of the legal body, the land and building is deemed to have been conveyed to the legal body and to bring the same in the revenue record, a competent authority has been designated who will hear the parties on the basis of applications received from the aggrieved party and transfers the title in favour of the legal body, passing the necessary order and Deemed Conveyance Certificate and will appoint an authorised officer to execute on behalf of non-co-operative builder or the land owner. Getting the title of land and building by adopting the above procedure is known as Deemed Conveyance.

(Ramesh S. Prabhu is Chairman, Maharashtra Societies Welfare Association)

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