Bombay HC Quashes Fragmented Deemed Conveyance, Orders Unified Title For Thane Federation

Court Says Multi-Building Layouts Must Transfer Common Land To Federations, Not Individual Societies

In a crucial verdict dated May 23, 2025, the Bombay High Court delivered its ruling in Writ Petition No. 4567 of 2024 — Federation of Vijay Nagari Co-operative Housing Societies vs. Competent Authority & Ors. — clarifying how deemed conveyance should operate within federated housing layouts under the Maharashtra Ownership Flats Act, 1963 (MOFA).

The case involved the Federation of Vijay Nagari Co-operative Housing Societies, a collective of seven residential buildings in Thane developed across a 10-acre layout in the early 2000s. Although individual societies were registered, the promoter deferred conveyance pending federation formation. When progress stalled, two member societies (Buildings No. 1 and 4) independently secured unilateral deemed conveyance in 2022 for their proportionate land shares, citing the promoter’s long delay.

The federation, backed by the remaining five societies, challenged these orders, warning that fragmented conveyances would undermine common land rights, disrupt maintenance of shared amenities like parks and internal roads, and derail future unified redevelopment.

Court’s Observations

The Bombay High Court sided with the federation, emphasizing that in multi-building layouts, MOFA mandates collective conveyance to a federation or apex body, not to individual societies acting in isolation.

Citing Marathon Era Co-operative Housing Society vs. Competent Authority (2024) and Haresh Vijaysinh Bhatia vs. District Deputy Registrar (2025), the bench held that piecemeal conveyance risks title fragmentation and disputes over common infrastructure — contrary to the spirit of cooperative housing law.

The court observed that while delays by promoters can justify unilateral action in standalone buildings, federated societies must pursue unified conveyance to preserve planning integrity. It also noted that the two dissenting societies had misrepresented the layout’s integrated nature in their applications, warranting judicial correction.

Importantly, the court clarified that deemed conveyance grants title but does not settle governance overlaps, which must be addressed through the Maharashtra Co-operative Societies Act, 1961. The judgment reaffirmed that collective title fosters cluster redevelopment, unlocking greater FSI and RERA compliance benefits.

Court’s Orders

1. Deemed Conveyances Quashed: The Competent Authority’s July 4, 2022 orders for Buildings No. 1 and 4 were annulled.
2. Unified Application Mandated: A fresh, combined application from the federation must be processed within 90 days, covering all seven societies.
3. Dissenting Options: Member societies opposing federation action may opt out via buyout or independent redevelopment only after unified conveyance.
4. Costs Imposed: ₹2 lakh payable by dissenting societies to the federation for legal costs and structural audits.
5. Future Redevelopment: Post-unified title, individual societies may undertake redevelopment with 51% internal consent, subject to federation approval for shared spaces.

Broader Significance

This judgment marks a major precedent for federated housing societies across Maharashtra, reaffirming that common land and infrastructure must remain under unified governance. It safeguards against the growing problem of “title fragmentation,” which has stalled collective redevelopment in several large layouts across Mumbai, Thane, and Navi Mumbai.

By balancing society autonomy with federation accountability, the court has strengthened the cooperative housing framework envisioned under MOFA and RERA, paving the way for smoother, cluster-based redevelopment.

Experts say the verdict will directly affect over 500 federated societies statewide, encouraging prompt federation formation and unified conveyance applications to prevent long legal delays.

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