Deemed conveyance a way out for CHS members

In the issue dated October 22, Cityplus carried a report titled ‘Builders compel CHS flat buyers to pay twice’. The report mentioned how builders do not hand over conveyance deed papers to buyers so that at the time of getting the flat transferred in her/his name, they have to pay again.
Responding to the report, the Navi Mumbai Co-Operative Housing Society Federation (NMCHSF) has stated that deemed conveyance is the only solution to stop such exploitation.
K Somakumar, general secretary, NMCHSF informs, “As per the Maharashtra Ownership Flat Act (MOFA) 1963, the builder has to transfer conveyance deed to the respective housing society failing which the aggrieved purchaser on behalf of cooperative housing society can approach the court demanding a remedy and suitable action against the builder. However this is a longer procedure”.
“Recently, MOFA has been amended with an added provision of Deemed Conveyance on the failure of builder to affect the conveyance of the property in favour of the housing society within the specified period. As per the provisions of MOFA when 60 percent of the premises have been sold and also within six months from the date of occupancy of the premises the builder is obliged to take steps to get a co-operative housing society or registered organization consisting of the promoter/flat owners as members of the society and hand over the administration to the registered body. The builder is required to take effective steps to convey the Title of the property in favour of the duly registered housing society within four months,” he explains.
“On the failure of builder to comply with such requirements after giving notice, the society can approach a competent authority for effecting deemed conveyance after submission of the required documents and following due procedure. The authority will pass an order to the registrar of the assurance to affect the conveyance of the Title of the property in favour of the society, even without the co-operation of the builder,” says Somakumar.
This legislation is a boon to co-operative housing societies which are presently at the mercy of builders or go through the long drawn process of legislation. “All co-operative housing societies must jointly approach the District Deputy Registrar, the authorized competent authority and put pressure for the implementation of this provision. And once it is initiated it provides an effective relief for society members,” he adds.
—Jaspal Singh Naol

 

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