Promoters Cannot Obstruct or Object Deemed Conveyance of Housing Society -Bombay HC

Section 11 of MOFA – Deemed Conveyance & Title of the Company

The Development Agreement did not create any right or interest in the land in favour of respondent no.4 Developer.

The agreements with the allottees / flat purchasers did not provide for formation of a cooperative house society. They were not flat purchasers under Section 11 of MOFA.  But they were enrolled as special patron members of the petitioner company. The land vests only in the petitioner.

However, the respondent no.3 was not only registered as housing society but by the impugned order, it is given deemed conveyance for Buildings B and C with land of 289 sq.mters on which the said buildings stand.

HELD that the rights of the flat purchasers under Sections 10 and 11 of MOFA to form housing society and to seek conveyance of the land cannot be taken away by describing the purchasers as “Special Patron Members” when they have no voting rights, no power to manage property and no authority in the petitioner company.

Mere description of purchasers as Special Patron Members does not override the nature of the transaction as a flat purchase under MOFA.

Judgment dated 9.12.2025 of the High Court of Bombay in Civil Writ Petition No.8145 of 2014 of Lokmanya Pan Bazar Association Ltd   Vs.   The State of Maharashtra and others with connected writ petitions and matters