DEEMED CONVEYANCE
PROCEDURE FOR CHS BECOMES EASY
The Maharashtra government has
relaxed the terms for the deemed conveyance (DC)-ownership right of plot
certificate from the builder, by bringing down the number of documents required
from 12 to 8 and stipulating that DC will be given even if the society does not
have an Occupation Certificate (OC) or the Building Completion Certificate (CC).
It is mandatory for land-owners
or developers to convey the title of the plot within four months of the
formation of the housing society. In many cases, the builders fail to convey
the title of properties to the housing societies, in the hope of availing more
floor space index (FSI) that may become available in future, or to avail the benefits
accrued to them in case the property is redeveloped.
If the builder fails to convey
the property, the Maharashtra Ownership Flats Act (MOFA) allows societies to
apply for DC. However, having OC was mandatory and was insisted upon by the
officials of the cooperative registrar’s office. OC is given only when the
building is complete in all respects and has complied with the mandatory norms
laid down by the government authorities to make it ready for occupation. Since
most of the builders abandon the projects before complying with the norms and
conditions, OCs are not given to the societies. Developers just hand over the
possession and exit the project, leaving the residents high and dry.
However now, the DC will be
issued even if housing societies have submitted such documentary evidence as
the formation of the society or the payment of property tax by the society.
As per the GR issued on 22 June
2018, by the state cooperation department, it has been made mandatory for the
registrar of cooperative societies to register documents of the applicants
within a day. Besides, as per the Maharashtra Right to Public Services Act, 2015, the DC should be issued within six months. If an
official fails to provide and approve it within the prescribed period, then he
or she will be penalized between Rs500 and Rs.5,000/-
The applicants should submit the
applications with a court fee of Rs2,000. In case the FSI has already been
consumed, a certificate of an architect that the total FSI has been consumed
would suffice. In addition, they have to give an indemnity bond stating that
they will take responsibility for the building and adhere to all required rules
and regulations. If there are more than one society on one plot, the details of
proportionate area and ground coverage should be furnished.
The documents required for
conveyance include society registration certificate, approved layout, 7/12
extract, sale deed of each flat owner or heir document, list of registered
members of the society, occupation certificate, non-agriculture certificate of
that particular plot and notice copy etc. In the absence of sale deeds of all
members, the sale deed of even one member would be sufficient, states the GR.
While submitting the conveyance
application and documents to the registrar, a copy of the same application also
needs to be submitted to the stamp duty and registration department for its speedy
approval. The applications will be accepted online as well as offline. The
officials of the concerned department such as urban, cooperative, forest and
revenue department will have to work in unison so that the applicants are not
required to shuttle from one department to another.
The system of issuing DC was
started three years ago. However, due to stringent conditions there was no
response from cooperative societies. Commenting on the issue, Ramesh Prabhu,
Chairman, Maharashtra Societies Welfare Association said “This was a positive
step. In many cases, the builders exited the project without getting the OC,
and the residents had to bear the brunt. This relaxation will ensure that
majority of the societies get deemed conveyance. By a fair estimate over 10,000
cooperative housing societies in Mumbai and neighboring areas, are yet to get
the DC. Now they should come forward to take advantage of these relaxed norms.” There are a sizable number of housing societies in Mumbai that are
struggling to get the DC. In absence of DC, redevelopment of some of the
societies has been delayed. Some of the developers used to sell the flats till
they held the ownership right of the layout and were misusing this right,
causing impediment in the way of redevelopment.