MahaRERA orders developer to execute registered conveyance deed with society

Favourable MahaRERA order for execution of Conveyance Deed

Sweety AdimulamUpdated: Friday, July 08, 2022, 11:34 PM IST
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Good news for home buyers: Developers to submit conveyance deed while registering society | Photo credit: IANS

Maharashtra Real Estate Regulatory Authority (MahaRERA) Senior Member Vijay Satbir Singh passed a landmark order in June, directing the builder of a Goregaon project to execute a registered conveyance deed with the society formed by the homebuyers under section 17(1) of RERA within two months of the passing of the order. Failing this, the builder would be liable to pay Rs 10 lakh in penalty for violation of Section 17 of RERA.

In this case, the complainant is a co-operative housing society, ‘Hetali Blessings’, a registered MahaRERA project in Goregaon west. The CHS’s main contention was that despite the occupancy certificate for this project having been obtained on August 27, 2018, the developer had failed to execute the conveyance deed with the said society. Moreover, even after the society was formed in February, 2020, the builder failed to hand over the books of account and rectify the defects in the building, as claimed by the flat owners in the building.

Therefore, the complainant society has approached the MahaRERA, seeking reliefs under section 17 of the RERA for execution of the conveyance deed. In addition, they appealed to the regulatory body to direct the builder to immediately hand over the accounts, records and balance money or funds lying unutilized from the advance maintenance collected from the allottees with interest at 18 per cent per annum, for compensation and to rectify the structural defects once for all and provide relief from the water leakage and seepage issues faced by the homebuyers.

The society pointed out to the MahaRERA that the registered agreement for sale entered by the builder with the individual allottee being the RERA model form of agreement, it also covers the point of the promoter/s executing a conveyance deed within three months from the date of issue of occupancy certificate.

As the MahaRERA failed to get any reply from the builder, it decided to proceed with the matter on its merits. The regulatory authority’s order cited that the builder violated section 17(1) of RERA by not executing the registered conveyance deed, despite the building getting full OC in 2018. Further, it instructed the builder to execute the conveyance deed within two months of this order, failing which it should be liable for penalty of Rs 10 lakh.

Section 17 of RERA mandates that the promoter(builder) is liable to execute the registered conveyance deed within a period of three months from the date of occupancy certificate. In this case, this timeline has been more than exceeded.

However, the compensatory claim of 18 per cent interest was not accepted by the MahaRERA as the society failed to provide any documentary evidence showing that the builder refused to rectify the structural defects. Therefore, it directed the society to provide details of structural defects within one month of the passing of this order and the builder has been given two months’ time thereafter, to fix the defects.

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