Unilateral Deemed Conveyance introduced

Unilateral Deemed Conveyance introduced
By Advocate Vinod Sampat
On 25th Febuary, 2008, President had approved ammendments in Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 2005 giving a huge relief to hundreds and thousands of flats purchasers in Maharashtra. Conveyance to the societies were a burning issues which have integrated many problems like property tax, housing finance documentations and major repairs orredevelopment.
The highlights of the amendments are as under:
Builder/s will have to execute the conveyance.
Power is given to the District Deputy Registrar to act as Competent Authority. (Sec. 5A)
Power is given to Competent Authority for registration of Co-operative Society under the provisions of Maharashtra Co-operative Societies Act, 1960. (Sec. 10(1) )
It is the duty of the promoter (builder) to file with the Competent Authority within the prescribed period a copy of the conveyance executed by him (Sec. 11(2))
If the promoter fails to execute the conveyance in favour of Co-operative Society, Company or Asscoiations or Apartment Owners as the case may be, then the flat purchasers can approach the Competent Authority with true copy of registered agreement of all the flat purchasers including Occupation Certificate, Registration Certificate of the society then in such circumstances the Co-operative Society, Company or Asscoiationsis is entitled to have unilateral deemed conveyance (Sec. 11(3))
The proceedings before the Competent Authority have to be completed within a period of 6 months. The Competent Authority must verify the authenticity of the document produced before him and after giving a reasonable opportunity to the promoter, if satisfied will issue a certificate to the Sub-Registrar or any other Registration Officer under the RegistrationAct, 1908, certifying that it is a fit case for enforcing unilateral execution of conveyance deed conveying the right, title and interest of the promoter in the land and the building in favour of the applicant, as deemed conveyance(Sec. 11(4))
The sub registrar after receipt of the certifcate issued by the Competent Authority alongwith the unilateral instrument of conveyance, can issue summons to the promoter to show cause why the unilateral instrument should not be registered as deemed conveyance. However, reasonable opportunity of being heard may be given to the promoter. If the Sub-Registrar is satisfied then he will register the unilateral conveyance as ‘deemed conveyance’. (Sec. 11(5))
The Competent Authority has been created who has powers to award criminal imprisonment to the builder/s for a period not less than 6 months and not more than 1 year and / or along with fine ranging from Rs 10,000/- to 50,000/-. (Sec. 13(3)(a) & 13(3)(b))
The builder/s if convicted will not be able to carry on construction activities for a period of five years. However, the disqualification shall not affect the permission for construction of flats already granted. (Sec. 13 (4), 13(5) & 13(6) )
The Competent Authority shall be deemed to be a public sevant as per the provisions of Indian Penal Code. (Sec. (13B)
Proceedings before Competent Authority shall be aimed to be judicial proceedings as per the provisions of Indian Penal Code. (Sec. 13C)
Competent Authority shall be deemed to be a Civil Court for certain purposes. (Sec. 13D)
No action can be taken against the Competent Authority for acts done in good faith by the Competent Authority. (Sec. 13E)
The above said notification can result in about 50,000 societies in Maharashtra getting conveyance of the property in favour of the Co-operative Societies. This will be a big relief to crores of person’s residng in Maharashtra. It will also help in bringing unsurplus builder/s to book. It will also result in Maharashtra Ownership Flats Act, getting more teeth.

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6 thoughts on “Unilateral Deemed Conveyance introduced

  1. can anybody tell me whether the act is implimented or still waiting for more procedures from the Government of Maharashtra?

  2. Dear Sir,
    Every one is blowing big trumps about Demmed Conveyance. We are a 30 year old society.
    I will like to know the exact procedure & documentation required to obtain the said Conveyance from the Builder. The Builder is ready to give the conveyance, provided the society submits the list of existing Flat Holders, the stamp duty & registration Charges fully paid on all the Transfer of Flats that took place, from the original seller (Builder) to the 1st Buyer & subsequent re-sale.
    Kindly advice the detailed procedure & documentation that needs to be furnished to the Builder to obtain such Conveyance.
    thanking you, Sagar Doshi

  3. when it is unilaterl conveyance the normal conveyance between the builder and society will not be valid. what will be the format of unilateral conveyance

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