Flats Buyers cannot be put at a disadvantages over builders default Bombay HC

Bombay High Court on Monday said granting deemed conveyance to a housing society does not bar the civic body from taking action against the  unauthorised structure, but it would enable the society to pursue its rights to seek regularisation. Bandra's ALJ Residency Cooperative Housing Society (CHS) Ltd petitioned the high court in 2018 against the order of a deputy registrar of cooperative societies who had rejected its plea for a unilateral deemed conveyance certificate. After hearing lawyers Mayur Khandeparkar and Tushar Gujjar for the housing society, the high court said the flat purchasers were "caught in a vicious circle where though they were put in possession of their flats under validly registered MOFA agreements", since the builder did not comply with his obligations to ensure an OC, they could not apply for regularisations eithe. The high court, on analysing the provisions of the MOFA Act, agreed. The court, in its judgment, said, "The non-compliance of the statutory obligations by the promoter cannot place fetters on the statutory right of the flat purchasers to the conveyance of the promoter's right, title and interest in the property." The court, after setting aside the deputy registrar's Jan 2017 order, remitted the society's application for the limited purpose of issuing a certificate for execution of unilateral deemed conveyance of the Bandra plot along with the buildings standing on it. This is subject to a self-declaration being filed by the society that after getting the deemed conveyance, the petitioner-society may enter into the agreement for the purpose of redevelopment of the building.
 

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