Bombay HC Grants Deemed Conveyance to Thane Society, Rejects Federation Requirement in Phased Redevelopment
Court Says MOFA Rights Cannot Be Delayed for Future Phases or Incomplete Layout Works
The Bombay High Court on February 18, 2025 allowed the plea of Veer Tower Co-operative Housing Society Ltd., directing issuance of its long-pending deemed conveyance despite the promoter’s insistence that conveyance could occur only after forming a federation covering all three phases of its Thane layout.
The 45-flat society occupies 1,800 sq. m. of a 5,500 sq. m. plot, received its OC in 2018, and has been awaiting title transfer since its 2014 MOFA agreement. The Competent Authority rejected its 2022 conveyance bid, stating that fragmented titles would hinder a proposed 2.4 FSI cluster redevelopment for the entire layout. The promoter, too, argued that the 2027 completion timeline for other phases contractually postponed conveyance.
The High Court disagreed, holding that MOFA Section 11 creates an absolute right to deemed conveyance once promoter defaults are proven, regardless of phased development or federation clauses. Private agreements, the Court said, cannot indefinitely suspend statutory rights—especially when the promoter failed to form the federation despite 70% cross-phase consents, and when a C-2 audit raised habitability concerns for 120 residents.
Citing Oshiwara Royal Breeze CHS Ltd. (2025), the Bench held that the Competent Authority’s role is restricted to verifying statutory defaults and proportional share allocations, not adjudicating future redevelopment feasibility. The Court added that RERA Section 17 reinforces the need for title clarity so that societies can independently pursue tenders for self-redevelopment.
The Court ordered issuance of the deemed conveyance certificate for 1,800 sq. m. within 45 days, directed the developer to deposit ₹1.2 crore in escrow for common infrastructure upgrades, barred future rejections based on federation non-formation without 60% cross-phase consent, and imposed ₹50,000 costs on the Authority. MahaRERA was instructed to monitor phased redevelopment progress with 55% rehab quotas.
The judgment strengthens the rights of individual societies in multi-phase layouts, enabling them to secure title post-OC and proceed with redevelopment without being held hostage to incomplete adjoining buildings.
