Bombay High Court Upholds Partial Deemed Conveyance for Housing Societies in Multi-Building Layouts
Justice G.S. Patel Clarifies MOFA Rights Amid Overlaps with RERA and Unnotified Housing Acts
In a landmark decision shaping Maharashtra’s redevelopment and property ownership law, the Bombay High Court has reaffirmed that housing societies in multi-building layouts are entitled to partial deemed conveyance for their completed buildings — even if the overall project remains unfinished.
The ruling, delivered on April 18, 2024, by Justice G.S. Patel in Marathon Era Co-operative Housing Society Ltd. & Anr. vs. Marathon Nextgen Realty Ltd. & Ors. (Writ Petition No. 9116 of 2013 and connected matters), addresses one of the most debated issues under the Maharashtra Ownership Flats Act, 1963 (MOFA) — whether societies in large township-style projects can unilaterally obtain land ownership for their portions.
The Case: Societies vs. Developer Delays
The petitioners — Marathon Era and Gulmohar Lokmilan Co-operative Housing Societies — sought deemed conveyance for their buildings within a vast mixed-use layout developed by Marathon Nextgen Realty Ltd. Despite occupation for several years, the developer had withheld conveyance, citing ongoing construction and project segmentation.
The Competent Authority (DDR) had rejected the societies’ applications, arguing that conveyance could not be processed while the overall layout was incomplete and citing confusion over MOFA’s validity after later laws like the Maharashtra Housing (Regulation and Development) Act, 2012 (MHRD Act) and RERA (2016).
Court’s Findings and Analysis
Justice Patel delivered a detailed interpretation of legislative continuity, clarifying the coexistence of MOFA and RERA for pre-RERA projects.
- MOFA Still Applies: Although the MHRD Act was intended to replace MOFA, it was never notified, meaning MOFA continues to govern housing conveyance. RERA’s repeal of the MHRD Act does not erase MOFA’s provisions.
- Partial Deemed Conveyance Valid: The court ruled that societies are entitled to conveyance of their completed buildings and proportionate land shares, even if the overall layout remains unfinished. Developers cannot use pending phases to indefinitely delay conveyance.
- RERA Does Not Extinguish MOFA Rights: For older projects, RERA ensures transparency but does not override statutory conveyance rights under Section 11 of MOFA.
- Competent Authority’s Duty: The Court directed the DDR to grant conveyance certificates within three months, ensuring registration of unilateral deeds for completed buildings. Developers must assist by supplying documents, or face penalties under Section 13 of MOFA.
Directions Issued by the Court:
- Competent Authority to process conveyance within 3 months for the petitioners’ completed structures.
- Developers required to cooperate and submit all relevant documents.
- Non-compliance may result in penal action (up to 3 years imprisonment or fine).
- Clarified that deemed conveyance rights exist independently of ongoing construction or later regulations.
Why This Case Matters
The judgment safeguards society ownership rights in large layouts and prevents developers from exploiting incomplete phases to block conveyance. It reinforces that deemed conveyance under MOFA Section 11(3) is a statutory and enforceable right, not a discretionary one.
By recognizing partial conveyance, the Court has cleared the path for maintenance, bank loans, and redevelopment permissions for societies long trapped in legal limbo — particularly in Mumbai, Thane, and Navi Mumbai’s integrated projects.
The verdict aligns with earlier rulings like Tirupati Shopping Centre Premises Co-op. Society Ltd. vs. Shabayesha Construction Co. (2021), ensuring that cooperative housing interests prevail over developer inertia.
