Deemed Conveyance Certificate & Full Development and utilisation of additional FSI
The Provident Investment Company, mortgagee in possession of 52,609.19 sq.meters of the land vide Indenture dated 10.6.1938, had executed 99-years lease deed in favour of M/s. National Stone Quarry (Respondent No.6) commencing from June, 1963.
On 4.5.1995, the respondent no.6 executed development agreement with respondent no.1 and supplement agreement on 11.1.2002.
Respondent No.1 had developed eight buildings of 740 flats and 29 commercial shops.
Three societies were registered in 2004, 2005 and 2011.
The petitioner is an Association of three individual housing societies was registered on 1.4.2022. Respondent no.1 is the promoter. Respondent Nos.3 and 5 are recorded owners of the land at Thane.
The promoter relied on the agreement that the conveyance will take place only after full development of the larger property to the satisfaction of the developer.
HELD that the right of flat purchasers for conveyance crystalizes once the society is formed. This right does not depend on any vague promises or future intentions of the promoter to construct additional buildings or complete an entire layout.
Additional FSI is a species of development right that attaches to the land. Once a building is completed and the flat purchasers take possession any unutilized FSI generally still belongs to the land and thereby whoever owns the land.
This underpins the Promoter’s eagerness to delay conveyance; by not transferring the land, the Promoter can attempt to utilize the left-over FSI for profit. However, the Courts needs to be vigilant to prevent unfair exploitation of this at the expense of flat owners. Therefore, the petitioners are entitled to the deemed conveyance certificate.
Judgment dated 9.5.2025 of the High Court of Bombay in Writ Petition No.165 of 2025 of Neelkanth Heights Cooperative Housing Societies Association Ltd and others Vs. Abhinav Real Estate Private Limited and others
