In a significant victory for flat buyers across Maharashtra, the Bombay High Court has set aside a rejection order and directed the authorities to grant deemed conveyance to a cooperative housing society, underscoring that builders cannot indefinitely delay handing over legal ownership of land and buildings. This ruling in Writ Petition No. 12078 of 2025 (Kartik Regency Cooperative Housing Society Ltd. vs. State of Maharashtra & Ors.) serves as a powerful reminder and tool for thousands of housing societies struggling with non-conveyance issues under the Maharashtra Ownership Flats Act, 1963 (MOFA).
The Core Issue: Builders’ Failure to Convey Title
Under MOFA (Section 11), once a builder sells flats and buyers form a cooperative society, the promoter is legally bound to execute a conveyance deed transferring the land and building title to the society. If the builder refuses or delays, the society can apply for deemed conveyance — an automatic legal transfer ordered by the Competent Authority (usually the Deputy Registrar of Cooperative Societies).
Many societies face prolonged delays, disputes over membership, pending appeals against registration, or claims of future development consents, leading to rejection of applications. This leaves flat owners without clear title, hindering loans, redevelopment, or resale.
Case Background: Kartik Regency in Belapur, Navi Mumbai
- The building (Kartik Regency) was constructed on ~1479.10 sq m land (CTS Nos. 100, 101, 103–107) with Commencement Certificate (Sept 13, 2007) and Occupation Certificate (March 21, 2009).
- Builders (Vijay Agre & Vidya Vijay Agre) sold most flats before the OC but failed to form the society or execute conveyance.
- Flat buyers formed the society (with 16 of 28 owners); applied for deemed conveyance.
- Deputy Registrar rejected it on August 26, 2025, citing partial membership, pending appeal against society’s registration (status quo order in place), and promoters’ claims of 2021 meeting minutes/consents allowing further construction on open land.
The society challenged this rejection via writ petition.
High Court’s Landmark Ruling (Justice Amit Borkar, Feb 6, 2026)
The court allowed the petition, quashed the rejection, and directed the Deputy Registrar to grant deemed conveyance within six weeks for the exact 1479.10 sq m area as per sale agreements, Commencement/Occupation Certificates, and Architect’s Certificate.
Key Holdings (Simplified):
- Section 11 proceedings are summary (quick, not full trial). Authority must check prima facie: valid MOFA agreements, property description, flats sold, builder’s default — not resolve complex title disputes.
- Core documents (agreements + certificates) clearly established entitlement; builder’s failure undisputed.
- Pending registration appeal doesn’t invalidate society — registration valid until cancelled.
- 2021 meeting minutes/consents don’t override MOFA obligation; no clear waiver of conveyance right; authenticity disputed.
- New construction permissions (challenged separately) irrelevant to conveyance for completed building.
- Builder’s delay can’t block statutory right; deemed conveyance protects buyers from indefinite uncertainty.
The court rejected promoters’ stay plea, emphasizing MOFA’s protective intent.
Why This Matters for Other Societies
This judgment strengthens homebuyers’ position: Collateral disputes (membership challenges, informal consents, future plans) cannot derail Section 11 applications if basic documents align. Societies facing similar rejections can cite this ruling to argue for limited enquiry and prompt relief. It promotes faster resolution, clearer titles, and discourages builder tactics to retain control.
Societies in similar situations should gather MOFA agreements, municipal certificates, and apply under Section 11 — and approach High Court if wrongly rejected.
Also Read: Developers Mandated to Execute Conveyance Deed Within 3 Months of Occupancy Certificate
