Bombay HC Upholds Society’s Right To Deemed Conveyance Despite Incomplete Layout

Court Rejects Promoter’s Objections, Says Delay Violates Flat Owners’ Statutory Rights Under MOFA

In a decisive ruling on May 8, 2025, the Bombay High Court dismissed a developer’s challenge in Writ Petition No. 5234 of 2025 — Vijay Co-Op. Housing Society Ltd vs. District Deputy Registrar, Co-Op. Societies & Ors. — affirming that housing societies are entitled to deemed conveyance even within incomplete layouts under the Maharashtra Ownership Flats Act, 1963 (MOFA).

The case concerned Vijay Co-Op. Housing Society Ltd. in Borivali, Mumbai, which represents residents of one building within a five-building layout completed in phases. Despite the building’s completion in 2016 and the society’s registration in 2017, the promoter withheld conveyance, citing pending construction of the other four buildings and a clause mandating full layout completion before title transfer.

In 2023, the society sought unilateral deemed conveyance under Section 11 of MOFA, which was granted in 2024 by the District Deputy Registrar, conferring ownership of their proportionate land share (1,500 sq. m.). The promoter challenged the decision, arguing that partial conveyance would disrupt future cluster redevelopment and violate their property rights under Article 300A of the Constitution.

Court’s Observation

The High Court rejected the promoter’s claims, ruling that individual buildings are entitled to conveyance once completed and occupied, irrespective of broader layout plans. It clarified that layout-wide clauses cannot override statutory timelines under MOFA, which mandate title transfer within a reasonable period — typically four years after completion.

Citing Haresh Vijaysinh Bhatia vs. District Deputy Registrar (2025 SCC OnLine Bom 456) and Marathon Heights CHS vs. Competent Authority (2024), the bench held that developers cannot indefinitely withhold title by invoking incomplete phases as justification. The judgment observed that the promoter’s inaction since 2019 (only 20% progress on other buildings) demonstrated mala fide intent to retain control and obstruct redevelopment.

The court also dismissed the Article 300A argument, stating that deemed conveyance enforces a legal duty under MOFA, not an unconstitutional deprivation of property. It emphasized that ownership of the remaining plots remains unaffected, while the conveyed portion lawfully transfers to the cooperative society.

Court’s Orders

1. Deemed Conveyance Upheld: The Competent Authority’s order dated February 15, 2024, was affirmed.
2. Registrar Execution: The Sub-Registrar must complete conveyance registration within 45 days.
3. Promoter Restrained: The developer is barred from interfering in the society’s land use for self-redevelopment.
4. Costs Imposed: ₹4 lakh costs levied on the promoter, to be used for the society’s structural audit and redevelopment feasibility study.
5. Federation Formation: The society must explore federation creation within six months for managing shared layout areas, with RERA assistance if required.

Broader Impact

The ruling marks a turning point for societies in incomplete or phased layouts, reaffirming that delay in conveyance undermines flat owners’ rights and project sustainability. By empowering societies to claim their legal share of land, the court reinforces Maharashtra’s policy focus on self-redevelopment and urban renewal.

Legal experts say the judgment will directly influence over 300 partial projects in Greater Mumbai, compelling promoters to separate building-wise conveyance and avoid stalling redevelopment. It also aligns with the 2019 Government Resolution that encourages societies to seek title independently to secure bank funding.

This case thus strengthens society autonomy and housing accountability, ensuring that promoter delays no longer block redevelopment or ownership transfer in Mumbai’s 16,000+ aging cooperative structures.

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