Bombay HC Quashes Deemed Conveyance To Malad Housing Society, Orders Fresh Review With Independent Architect

Mumbai, Dec 26: The Bombay High Court has set aside an order granting unilateral deemed conveyance to a housing society in a multi-building layout, holding that the competent authority failed to determine the correct conveyable area by appointing an independent architect, as required under the Government Resolution dated June 22, 2018.

Developer’s Petition Allowed Under MOFA

Justice Firdosh Pooniwalla, on December 23, allowed a petition filed by the developer Velentine Properties Private Limited challenging an October 16, 2025 order of the District Deputy Registrar (Co-operative Societies), Mumbai City (4), under the Maharashtra Ownership Flats Act (MOFA).

Dispute Over Sub-Plot in Malad East

The dispute concerns Sub-Plot ‘A’, part of a larger land parcel measuring over 27,000 sq m, which has been subdivided into multiple plots and houses three societies in Malad East. The respondent society—Velentine Apartments-I Co-op Housing Society Limited—consists of wings A, B, C and F of Building A-2 of one building constructed on the said sub-plot.

Registrar Granted 49.19% Land Conveyance

Following an application filed by the society, the competent authority, in October, granted deemed conveyance of 49.19% of the land to the society. The developer contended that this was contrary to the sanctioned layout, contractual terms, and the 2018 Government Resolution (GR) governing conveyance in multi-building developments.

Developer Alleges Violation of 2018 GR

Appearing for the developer, advocates Vivek Kantawala and Ajit Makhijani argued that in a multiple-building layout, a society is entitled to deemed conveyance only to the extent of the plinth and appurtenant area, and not on the basis of the area mentioned in agreements for sale or the sanctioned plan.

They submitted that the authority erroneously relied on the society’s architect’s certificate based on built-up area calculations, which the GR expressly prohibits.

Claim of Retained Land for Future Development

The developer also claimed it was contractually entitled to retain 146 sq m of land for future development, a right expressly reserved under the sale agreements executed with flat purchasers.

It was further argued that conveyance had to be proportionate, as the land formed part of a unified layout with common areas shared by multiple societies.

Society Opposes, Cites 20-Year Delay

Advocate Vishal Kanade, for the society, opposed the petition, arguing that the developer had delayed conveyance for over 20 years and failed to justify retention of any land. He contended that the draft conveyance shared in February 2025 was “untenable” and did not satisfy the statutory obligation under MOFA.

Court Rejects Developer’s Draft Conveyance Defence

While rejecting the developer’s contention that merely offering a draft conveyance absolved it of liability, the court observed: “It cannot lie in the mouth of the promoter to submit that the statutory obligation of executing conveyance ends the moment an offer is made, notwithstanding that such an offer is inherently untenable.”

Failure to Appoint Independent Architect Highlighted

However, the court found serious infirmity in the competent authority’s approach. Justice Pooniwalla held that the authority failed to follow Clause B(3) of the 2018 Government Resolution, which mandates the appointment of an architect from the official panel where multiple societies exist in one layout and measurements are disputed.

“The whole purpose of appointing an architect is that the area conveyed to each society is crystallised and future disputes are avoided,” the court said.

Matter Remanded for Fresh Consideration

Setting aside the October 16 order, the court remanded the society’s application for fresh consideration after the appointment of an independent architect.

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The court clarified that it was not rejecting the society’s right to deemed conveyance, but directing that the exact area be lawfully determined in accordance with MOFA, the agreements and the 2018 GR.

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