Bombay High Court Rules Builder Must Provide Deemed Conveyance in Housing Society’s Name
Bombay High Court Rules Builder Must Provide Deemed Conveyance in Housing Society’s Name
Justice Amit Borkar says flat owners’ rights override private builder-landlord agreements
In a significant relief for housing societies across Maharashtra, the Bombay High Court has made it clear that deemed conveyance in the name of a housing society is mandatory once flats in a project are sold. The court stressed that the rights of flat purchasers take priority and cannot be curtailed through private agreements between builders and original landowners.
The ruling was delivered by a single bench of Justice Amit Borkar. The case arose after Parmanand Builders LLP and other developers challenged orders passed by the competent authority granting deemed conveyance to housing societies in Dahisar and Borivali. After completing hearings, the court had reserved its verdict on February 17 and pronounced the judgment on February 24, rejecting the developers’ petitions.
The petitioners had argued that as per the original agreements, only leasehold rights were intended to be granted to the housing societies and that there was no plan to transfer ownership of the land. They contended that the deemed conveyance orders were therefore incorrect. However, the court firmly rejected this argument.
The High Court clarified that the very objective of the law governing ownership flats is to ensure that once all flats in a project are sold, neither the developer nor the landowner can retain additional rights over the land or the building. The court observed that both the landowner and the developer function as promoters in a housing project and share equal responsibility in legally transferring title of the land and building to the housing society.
Importantly, the court underlined that statutory provisions have greater force than private agreements. It ruled that the rights of flat owners cannot be restricted or diluted based on clauses in private contracts between developers and landowners.
The judgment reinforces that deemed conveyance is not merely an administrative procedure but a crucial legal safeguard for flat buyers. In many cases, housing societies face prolonged delays as developers avoid executing conveyance deeds, citing technical or contractual reasons. With this ruling, the High Court has strengthened the legal position of societies seeking ownership rights.
The decision is expected to benefit numerous housing societies that have been struggling to secure clear title over their land and buildings despite full sale of flats, sending a strong message that developers must comply with statutory obligations without delay.
