Supreme Court Affirms Deemed Conveyance Rights For Mumbai Society, Dismissing Developer’s SLP
Apex Court Says Promoters Cannot Stall Title Transfer Once Certificate Is Issued Under MOFA
The Supreme Court of India has delivered a landmark ruling that strengthens the legal position of housing societies seeking deemed conveyance, dismissing an appeal filed by Jaydeep Developers against Lok Everest Co-operative Housing Society Ltd. in Civil Appeal No. 7482 of 2025.
The judgment—pronounced on 10 November 2025—marking one of the year’s most consequential real estate rulings, confirms that once a deemed conveyance certificate is granted under MOFA Section 11, the promoter cannot challenge or obstruct title transfer through collateral litigation, redevelopment-related excuses, or technical objections.
Developer’s Objections Rejected Amid Long Delay In Conveyance
The dispute concerns a 132-flat Borivali West housing society built in 1987 on a 3,500 sq. m. plot. The promoter had failed to execute conveyance, defaulting on a promised ₹3.4 crore corpus and obtaining only partial OCs in 1992.
When the society initiated steps for 2.8 FSI self-redevelopment during a 2024 C-1 structural audit, it sought deemed conveyance, backed by 82% SGM approval.
Jaydeep Developers argued before the Bombay High Court—and later the Supreme Court—that:
- alleged unauthorized FSI additions existed
- redevelopment liabilities were unresolved
- the society’s unilateral conveyance ignored promoter rights
- the Competent Authority’s decision required reconsideration
The High Court had dismissed these claims in March 2025, stressing that “promoter non-compliance cannot delay or defeat conveyance”, a view consistent with over 1,200 Borivali-area filings.
Supreme Court: Deemed Conveyance Is Indefeasible, No Collateral Attacks Permitted
The Supreme Court bench upheld the High Court ruling in full, reiterating the principle that MOFA Section 11 creates an indefeasible statutory right for societies.
The Court expressly stated:
- Once the Competent Authority issues a deemed conveyance certificate, the promoter cannot reopen the matter through SLPs, technical objections, redevelopment excuses, or pending disputes.
- Only proven fraud can justify reopening conveyance—not structural irregularities or FSI disagreements.
- Redevelopment or self-redevelopment cannot be used as a “shield” by the builder to resist conveyance.
The Court cited the Veer Tower CHS and Flagship Infrastructure judgments, emphasizing that the judiciary will not entertain “collateral challenges designed to delay conveyance”.
The ruling aligns MOFA with RERA Section 17, strengthening the requirement that clean title is essential before redevelopment tenders.
Orders: 30-Day Handover, Escrow Deposit & Costs Impose
The Supreme Court passed decisive operational directions:
- SLP dismissed; High Court order fully upheld.
- Conveyance certificate stands final.
- Promoter must hand over all title documents within 30 days.
- ₹3.4 crore to be deposited in an escrow, adjustable toward the society’s redevelopment corpus.
- BMC may proceed with IOD without promoter NOC.
- ₹2 lakh costs imposed on Jaydeep Developers for “frivolous obstruction”.
- Statewide prohibition on similar collateral challenges once certificates are issued.
- MahaRERA to monitor quarterly all conveyance-linked redevelopment tenders.
Why The Judgment Matters
This ruling is expected to reshape Mumbai’s redevelopment landscape, with major consequences:
- Provides near-absolute certainty to societies awaiting conveyance before redevelopment.
- Ends promoter-led delay tactics in 950+ pending Mumbai cases.
- Strengthens the legal foundation for fsI-driven upgrades and self-redevelopment models.
- Enhances resident protection in aging buildings amid citywide cluster renewal.
- Sharply narrows the scope for SLPs under Article 136 in deemed conveyance disputes.
For thousands of cooperative housing societies, the ruling is a powerful new safeguard ensuring title security and smoother redevelopment pipelines.
