The state government has recently issued an order, specifying details of how housing societies can go about applying the transfer process.
The state has decided to appoint competent authorities to help facilitate the process for the deemed conveyance (which means transfer of land title from landlord to society) .
Mumbai city has three deputy registrars for this – one for the city, one for the western suburbs and one for the eastern suburbs. and Navi Mumbai has a Joint Registrar of Cidco.
In 2008, the state had made amendments to the Maharashtra Ownership of Flats Act, 1970.
In September 2010, the state published the same Act with the same set of amendments. The recent order issued has cleared the issues prevalent previously . According to a senior official “The previous orders did not specify how to process applications received from societies on a single plot".
The official further states that “The new order specifies that the competent authority can initiate the process of deemed conveyance where one or more than one building on a single plot, is fully developed".
According to a rough estimate, around 65-75% of housing societies in Mumbai, Thane and Navi Mumbai are yet to get the deemed conveyance. Around 80,000 housing societies exist across the state of Maharashtra . The maximum numbers are in Mumbai, Thane, Navi Mumbai, Pune, Nashik and Nagpur
Cooperative housing societies that fall under the aegis of Maharashtra Housing Area Development Authority and City and Industrial Development Corporation can also approach special competent authorities appointed for them for the purpose of land transfer.
Set Of Documents
A. Sale agreement between the promoters and the buyers.
B. 7/12 extract (this document has detailed information about the land on which the society
stands) and format number 6 issued by Revenue authorities.
C. Property card (this gives a summary of successive owners of the land)
D. Certificate for non-agricultural use
E. Building commencement certificate, building completion certificate, occupation
certificate.
E. List of flat buyers, proof of stamp duty payment, registration documents, etc.
Steps
“Societies should take all efforts to get the order of Deemed Conveyance”, says CA. Ramesh S. Prabhu
Nearly 80% of the Co-operative Housing Societies have not received the Conveyance of land and building in their favour from the Builder. The amendments were carried out in the Maharashtra Ownership Flats Act, 1963, to appoint a Competent Authority to hear the grievances on Conveyance by the Societies or other legal bodies in 2005. The President of India gave the assent on February 25, 2008, and it became the Law of the Land.
In June 2008, the necessary notification was issued by the Government of Maharashtra designating the District Deputy Registrars of the Co-operative Societies as the Competent Authorities under the MOFA. Even after a lapse of 18 months and a number of cases being accepted by the Competent Authority, the same are not being heard, pending the approval of the necessary Rules by the Government. These are expected to be published shortly.
It is the duty of the Builder to form a Society or any other legal body once he sells more than 60% of the flats in the building. He is also statutorily bound to give Conveyance of land and building within four months from the formation of the legal body. Invariably, they fail to give Conveyance on one pretext or the other. The only remedy to flat purchasers is to approach the Consumer or Civil Court against the grievances and that takes years to get justice. About 80,000 Housing Societies are waiting for a quick and easy remedy and that has paved the way for Deemed Conveyance.
Only after executing the Conveyance, the legal ownership of the land and building will be with the Society; till such time, the Society will have only possession rights without any legal rights for redevelopment or for earning any commercial benefit.
There are five stages to complete the Conveyance of land and building in favour of the Society even under Deemed Conveyance.
Collect the relevant Documents such as Society Registration Certificate, Property Card or 7/12 Extracts, Building Approved Plan, Copies of Agreement for Sale of flat purchasers, Registration Receipts, Stamp Duty paid proof, Non Agricultural Order, ULC Order, Search Report, Layout Plan, City Survey Map, Architect Certificate about the utilization of FSI and the proportionate land entitlement Occupation Certificates, Draft Conveyance Deed etc.
Make an application before Competent Authority, make a written submission, attend the hearing, argue the case and obtain the Order.
Prepare a Conveyance Deed and submit the same before the Collector of Stamps for determining the payment of Stamp Duty along with the proof of payment of Stamp Duty by all individual flat purchasers including chain of Agreements and Registration Receipts. Pay the deficit Stamp Duty, if any; and obtain the certified copy of the Conveyance Deed.
Submit before the Sub-Registrar for registration of the same under Indian Registration Act, 1908 by paying necessary registration fees and all relevant annexure. Obtain the original Conveyance Deed and also certified copy of Index II from the Sub-Registrar.
Apply to the City Survey Office or Talati Office to incorporate the name of the Society in the Property Card or in 7/12 extract. The City Survey Officer or the Talati Officer shall carry out the necessary enquiry; carry out the survey and then make necessary changes in their record.
Societies should take all efforts to get the Order of Deemed Conveyance from the Competent Authority as it is equivalent to the Civil Court Order and the Society shall get the legal rights over the land and the building. Thereafter, the builder or land owner cannot demand any money from the Society for Conveyance nor will the builder be able to utilise the additional FSI or TDR and carry out additional construction on such land. The Competent Authority as per MOFA is bound to give judgment within six months from the date of filling applications.
The payment of Stamp Duty, Registration Fees etc. can be done after obtaining the Deemed Conveyance Order. The Association has also represented before the Government to register Deemed Conveyance Deed and recovery of pending Stamp Duties separately from individual members and not to make Societies responsible for the same.
Any other further Queries about Deemed Conveyance. Please write us at help@omika.in or You may also call on 9320091229, 9867068308, 9323591229, 9004232324, 022-64141964 Omika Associates.