The Maharashtra government may offer relief to homebuyers of about 1,00,000 housing societies where developers failed to transfer ownership of the land and buildings after the completion of the projects.
The state government is considering a policy decision to issue deemed conveyance in all such cases, an official said on condition of anonymity. The move will ensure that the title of the land is transferred to the housing society and there is no hindrance in redeveloping old buildings.
The issue was discussed by state government officials with deputy chief minister Devendra Fadnavis, who is also the housing minister, at a review meeting on May 8.
According to the Maharashtra government’s economic survey report of March 2023, only 27,000 of over 120,000 housing societies – or about 22 percent – have conveyance.
“This decision, if taken, will be a very big decision and will provide relief to lakhs of citizens residing in old buildings and are unable to go for redevelopment due to lack of conveyance. It is under consideration, and not finalised yet,” the state government official said.
According to the official, if a housing society does not have conveyance, it can apply for deemed conveyance. When a developer doesn’t transfer conveyance in the name of the housing society, the state government can issue deemed conveyance.
"However, now things will change wherein the state government will take charge and issue conveyance in bulk to all housing societies that have not been issued conveyance. The developer will be called for a hearing and if no reason is provided, the conveyance of the land will be transferred in the name of the housing society. The housing department is studying the issue, and a report will be prepared for the feasibility of such a policy decision," the official said.
What is conveyance?
Conveyance is the transfer of the title of land and buildings by a promoter or landowner in favour of a housing society by execution of the conveyance deed. According to Section 11 of the Maharashtra Ownership of Flats Act (MOFA), 1963, the promoter must convey the title of the land and buildings to the cooperative housing society after completion of construction and formation of the cooperative housing society.
What is deemed conveyance?
Deemed conveyance is a remedial measure obtained by a society against a builder or landowner who does not wish to convey the property. It is issued by the state government if the registered housing society applies for conveyance and the developer fails to give it the title of the land. This paves the way for the society to get the legal benefit of ownership of the land.
Also read: All you need to know about Deemed Conveyance of properties in Maharashtra
What are the other benefits and disadvantages of getting conveyance?
Once the conveyance is transferred in the name of the housing society, it becomes the landowner. All benefits related to land ownership, including future increase of the floor space index, can be availed by the housing society. However, any land liabilities created by the developer against the land also get transferred to the housing society.
Also read: MC Exclusive: Karnataka clarifies on RWA registrations, homebuyers demand deemed conveyance
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