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Bombay HC Clarity on Deemed Conveyance – Rights of Housing Society over Developer Perpetual Rights

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judgment dated 17.3.2026 of the High Court of Bombay in Writ Petition No.1647 of 2025 of G.K.Developers and others  Vs.  The State of Maharashtra and others.

Unilateral Deemed Conveyance –

The petitioners had development agreement with the land owner and also Power of Attorney in 2005, for the land of 22 ares including an area of 240.87 sq.meters reserved for the road.

The petitioner had constructed two wings – 42 flats and eight shops.  The Apartment Condominium was established vide Deed of Declaration dated 18.8.2010. Thereafter, the individual apartment deeds were executed. On 13.4.2011 the sale deed was executed in favour of the Apartment Condominium. However, by the clauses 7 and 12 the rights of development potential, future use of FSI and redevelopment were reserved with the developer.

However, the apartment owners had withdrawn the said registration under MAOA, registered as cooperative housing society on 7.10.2022 and applied for conveyance.  This was objected by the petitioners.  However, the deemed conveyance was issued by the order dated 28.11.2024.

The question was whether the developer can reserve his residential rights forever by clauses 7 and 12 of the Sale Deed while giving ownership in favour of the Apartment Condominium.

Once the flats are sold and the stage for conveyance arrives, the promoter cannot continue to hold back portions of ownership rights for himself.  He cannot selectively convey certain rights and retain the rest.  He must transfer the entire right, title and interest in the property.

Therefore, the reservation of certain rights in favour of the developer is in breach of the statutory scheme.

Once flats are sold and conveyance stage arrives, the promoter cannot retain portions of ownership rights.

The statutory scheme of MOFA requires transfer of entire right, title and interest in the property.

Reservation of redevelopment / future use of FSI and development potential in favour of the developer is a breach of the statutory mandate and the scheme.

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