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Additional Floors by Developer After Occupany Certificate

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6.10.2026  Judgment of the High Court of Bombay in Writ Petition No.17527 of 2024 of Rose Villa Cooperative Housing Society Limited  Vs.  The District Deputy Registrar Cooperative Societies, Mumbai City and others

Deemed Conveyance & Corporate Insolvency of Developer

By the  order dated 29 July 2024 passed by the District Deputy Registrar, Co-operative Societies, Mumbai City (3) and Competent Authority (Competent Authority) rejecting Application No.8 of 2024 filed seeking certificate of unilateral deemed conveyance in respect of the land and the building. Deemed Conveyance is denied to the Petitioner-society inter alia on the grounds that Respondent No.2-developer is undergoing Corporate Insolvency Resolution Process (CIRP) and that Respondent No.2 is entitled to carry out additional construction of 7th and 8th floors on the building.

In my view, the case represents a typical tendency on the part of the developers to put up additional construction by making use of additional development potential made available due to change of policy/regime. The developer has relied upon Notification dated 16 November 2016 by which Regulation No.34 of DCR, 1991 was modified in the light of enactment of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The Notification dated 16 November 2016, by itself, did not make available any particular TDR. On the other hand, the original plan indicates that TDR has already been loaded on the plot for construction of building upto 6th floor. What is taken advantage of by Respondent No.2 is the benefit of fungible FSI and other areas made available under DCPR, 2034 while seeking sanction for revised plans. Once Occupancy Certificate was secured in respect of the building which was fully constructed, it was impermissible for the developer to once again apply for revision in the plans for construction of additional floors in the building.

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