'Developer Cannot Delay Conveyance To Exploit Future FSI': Bombay HC; Upholds Deemed Transfer To Vile Parle Housing Society

Mumbai, July 20, 2026: The Bombay High Court has refused to interfere with a deemed conveyance granted in favour of a housing society in Vile Parle, holding that a developer cannot indefinitely delay transferring land to flat purchasers merely to exploit additional Floor Space Index (FSI) made available under a changed development regime.

HC Upholds Deemed Conveyance

Justice Sandeep Marne, on July 17, dismissed a petition filed by Ariisto Realtors Pvt Ltd challenging a 2025 order of the Competent Authority granting unilateral deemed conveyance of the land and building to Ariisto Cloud Cooperative Housing Society.

The society, representing flat owners in the Ariisto Cloud building, was registered in June 2016 after the developer completed a nine-storey building comprising 12 residential flats, a commercial unit and two shops. The society had sought deemed conveyance after the developer failed to transfer the land and building in its favour.

The developer had argued that the Competent Authority wrongly entertained a second application for deemed conveyance after rejecting the first one, amounting to an impermissible review of its earlier order. It also claimed a contractual right to utilise additional FSI available under the Development Control and Promotion Regulations (DCPR), 2034.

Developer's Plea Rejected

Rejecting the contention, the court held that the authority had not exercised any power of review because the earlier order had expressly granted the society liberty to file a fresh application after completion of construction. Since the building was complete, the society was entitled to invoke that liberty.

Emphasising the object of the Maharashtra Ownership Flats Act (MOFA), Justice Marne said, “A promoter cannot indefinitely delay conveyance of land on the pretext of exploiting the further additional FSI arising out of the new FSI regime.”

The judge further held that once a housing society is formed, the promoter has a statutory obligation to execute the conveyance within four months and cannot rely on private contractual clauses to postpone the transfer. The court observed that any additional FSI arising after the conveyance belongs to the housing society and not the developer.

Court Criticises Developer

Coming down heavily on the developer's conduct, the court said, “Petitioner has already exploited the development potential in the land… Its greed to make more profits is however not satisfied.”

“This Court would not be a party to such devious acts of the Petitioner of monetising something which belongs to society. If additional FSI flows out of DCPR 2034, the same would belong to Respondent No. 2-Society and not to the Petitioner,” the judge underscored.

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While dismissing the petition, the court added that it would not allow its extraordinary jurisdiction to be used to help a developer “endlessly” exploit development potential.

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