Bombay High Court Upholds Unilateral Conveyance in Kharghar Land Dispute
Rule 9 of the Maharashtra Real Estate (Regulation and Development) Act
Real EstateConveyanceMofaReraBombay High CourtKharghar Land DisputeReal Estate MaharashtraMay 30, 2024
The Parties Involved are Balaji Corporation, a partnership firm, Delta Central Cooperative Housing Society (Respondent No. 1), registered under the Maharashtra Cooperative Societies Act, 1960, CIDCO, a public sector undertaking, and the New Town Development Authority designated by the Government of Maharashtra (Respondent No. 2), and the Competent Authority under MOFA, responsible for issuing the contested order (Respondent No. 3).
The project features CIDCO leasing Plot No. 4 in Sector 23 of Village Kharghar, Navi Mumbai, measuring 8694.03 square meters (Land), to Balaji Corporation. Balaji Corporation began developing the 'Delta Central' project, which included Wings A, B, C, and D. Initial building plan approvals were obtained on April 27, 2017, with revisions and final approvals granted on December 24, 2018, and March 25, 2019.
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The Court's judgment emphasizes the legal responsibilities of promoters and the rights of flat purchasers under MOFA and RERA. It highlights the Competent Authority's role in ensuring promoters meet their conveyance obligations, safeguarding flat purchasers' interests. Importantly, it clarifies that deemed conveyance can only transfer the developer's legal rights, title, and interest in the property.
Frequently Asked Questions
What is the main issue in the Kharghar land dispute?
The main issue is the delay in conveyance of land by Balaji Corporation leading to conflict with the Society
What is unilateral deemed conveyance?
It is a provision under Section 11 of MOFA which allows the Competent Authority to grant conveyance of land in favor of the Society despite the developer's failure to execute the conveyance
What is the significance of Rule 9 of the Maharashtra Real Estate (Regulation and Development) (Registration of real estate projects Registration of real estate agents rates of interests and disclosures on website) (Amendment) Rules 2019?
It states that deemed conveyance can only be sought after the final occupancy certificate for the last building or wing is issued
What is the role of the Competent Authority in granting deemed conveyance?
The Competent Authority can only convey what the promoter agreed to in the original agreement and its duty is to enforce the promoter's obligations if the promoter fails to do so but not to extend beyond what was initially agreed upon
What is the impact of the Bombay High Court's judgment on the real estate industry?
The judgment emphasizes the legal responsibilities of promoters and the rights of flat purchasers under MOFA and RERA and clarifies the role of the Competent Authority in ensuring promoters meet their conveyance obligations safeguarding flat purchasers' interests
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