2025April 2025High CourtLatestLegalReal Estate

Unilateral Conveyance Deed – Section 20(4) of MRTP Act – MOFA and Rule 9 of MOFA Rules, 1964

The petitioners are the original developers and owners of the township project Blue Ridge  at Hinjewadi, Pune.

Respondent No.2 Society was registered on 12.9.2011.  The society consists of eight buildings of 811 flats, 12 shops and common amenities forming part of Blue Ridge.

By the order dated 26.11.2018, the application of the respondent no.2 and issued certificate of deemed conveyance.

Clauses 6.3.1 and 6.3.2 in the sale agreements allowed the promoter to delay conveyance for ten years after completion of Towers 1 to 8 or until the entire township project is completed, whichever happens earlier.

HELD that unless both the sides specifically agree to a different period, the promoter must execute the conveyance within four months from the date of registration of the society.  The said period is written into law to make sure that flat buyers are not left in uncertainty about who owns the land and the building where they live.  A promoter cannot escape this responsibility by simply pointing to private agreement clauses, especially if those clauses depend on uncertain future even like full ownership completion which flat buyers themselves have no control over.  Any clause in a sale agreement that tries to override this rule is void (invalid) because it goes against the law.

However, the impugned order conferring or dealing with the rights arising from the alleged increased FSI, the same cannot be sustained.  The proper remedy to the respondent no. society would be to approach the competent civil court by instituting appropriate proceedings for adjudication of its rights in relation to increased FSI and any related entitlements.

Judgment dated 15.4.2025 of the High Court of Bombay (AS) in Writ Petition NO.151 of 2019 with connected matters of Flagship Infrastructure Ltd and another  Vs.   The Competent Authority, District Deputy Registrar of Cooperative Societies (Rural), Pune and others

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