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Deemed Conveyance & ReDevelopment

Deemed Conveyance & ReDevelopment


One of the several advantages of having a deemed conveyance is that the Co-Operative Housing Society can take up the task of redevelopment of the property at their will, without requiring to obtain the consent of the original property owner or the land developers. But this is often largely over looked by the Co-Operative Housing Society or the individual residents, until the needs become absolute to obtain the deemed conveyance.


According to the law, the builder or the property developer is bound to convey the property within four months from the date of the formation of the Co-Operative Housing Society. But the realty at the grass root level seems starkly different. Even though mandated by the law the property developers or the land owners are often reluctant in conveying the property to the Co-Operative Housing Society. It is an official fact now that more than 80% of the Co-Operative Housing Society in Mumbai and other parts of Maharashtra don’t have conveyance in their name.


To handle this unlawful situation, the government of Maharashtra brought amendments in the law to govern Maharashtra Ownership Flats Act, 1963. This opened the door for the Co-Operative Housing Society to obtain deemed conveyance in situation where the property developer or the land owner was reluctant in conveying the property to the Co-Operative Housing Society.


In Mumbai the construction activities are regulated by two 2 Acts:

  • Maharashtra Regional Town Planning Act 1966
  • C. Regulations 1991


Deemed conveyance is a document that is executed to transfer the title of the land and the building in the name of the Co-Operative Housing Society. But then ironically of the 23,000 Co-Operative Housing Society that exist in Mumbai, only 87 of them were successfully able to obtain the deemed conveyance owing to several flaws in the new system.


The construction of the property is governed by the MOFA regulators. Once the conveyance is done, the Maharashtra Cooperative Society Acts takes over. The definition of flat is very wide in MOFA. In the past the land developers have been very notorious in selling the amenities and the common area, often even the parking area or the terrace. The court judgments in such case have gone in favor of the Co-Operative Housing Society. Garage is an attachment to the flat and cannot be sold separately.


Developers have consistently been refusing to issue the conveyance certificate to the Co-Operative Housing Society across the state. In Maharashtra, there are about 88,000 such proposals pending over last several decades.


The provision in law for Deemed conveyance has empowered the Co-Operative Housing Societies to make an application to the competent authority. The competent authority will scrutinize the application and will verify the authenticity of the documents, post which the land owners and the property developers are notified and given time to defend themselves. Based on the proceedings, a certificate for the grant of deemed conveyance is issued to the competent authority. The Co-Operative Housing Society then will have to approach Sub-registrar with the Conveyance deed and the orders of the Deemed conveyance. Post which the Co-Operative Housing Society will have to visit various Government Agencies to get the changes in the Land Revenue Records in the favor of Co-Operative Housing Society.