No OC - Still you can get Deemed Conveyance - Bombay High Court Ruling

The recent ruling by the Bombay High Court has significant implications for flat buyers in Mumbai, particularly regarding their rights under the Maharashtra Ownership of Flats Act (MOFA). The court's decision reinforces that flat purchasers should not suffer due to a builder's failure to meet statutory obligations, such as obtaining an Occupation Certificate (OC).

Background of the Case

A cooperative housing society approached the Bombay High Court after its application for a unilateral deemed conveyance certificate was denied by the deputy registrar of cooperative societies. The case highlighted concerns over whether issues like irregularities in construction and the lack of an OC could affect the society's right to obtain deemed conveyance.

Understanding Deemed Conveyance

The court clarified that deemed conveyance does not legalize any unauthorized structures present on the property. Instead, it serves to transfer the rights, title, and obligations from the builder to the cooperative housing society. This transfer empowers the society to take necessary actions, such as seeking regularization of the property or pursuing redevelopment options.

Impact of Builder's Default

One of the central issues addressed was the builder's failure to secure an OC. The court ruled that this failure should not disadvantage flat buyers or limit their statutory rights. Denying deemed conveyance due to the builder's negligence would essentially reward the builder for their lack of compliance, which the court found unacceptable.

Statutory Rights Under MOFA

MOFA guarantees flat buyers the right to receive the conveyance of the builder's title in the property. The court reiterated that any non-compliance by the builder does not diminish this right. This ruling serves as a protective measure for flat purchasers, ensuring that they are not left in a vulnerable position due to the actions or inactions of the builder.

Practical Takeaways for Buyers

• Flat buyers should be aware of their rights under MOFA, particularly regarding deemed conveyance.
• The ruling underscores the importance of cooperative housing societies in advocating for their members' rights.
• Buyers should remain vigilant about the builder's compliance with statutory obligations, as these directly impact their ownership rights.
• In cases where builders fail to meet their responsibilities, flat buyers can seek legal recourse to protect their interests.