Bombay HC: Developer Cannot Delay Conveyance to Exploit Future FSI
UPSC / SSC current affairs note · Polity
Why in news
The Bombay High Court upheld a deemed conveyance in favour of a housing society in Vile Parle, ruling that a developer cannot indefinitely delay transferring land to flat purchasers to exploit additional Floor Space Index (FSI) under a new development regime. The decision reinforces the rights of housing societies under the Maharashtra Ownership Flats Act (MOFA).
Background
The case involves Ariisto Realtors Pvt Ltd, which built a nine-storey building in Vile Parle with 12 flats, a commercial unit, and two shops. The housing society was registered in June 2016. The developer failed to execute conveyance of land and building to the society, prompting the society to seek deemed conveyance. The Competent Authority granted it in 2025, which the developer challenged.
Key facts
Bombay HC dismissed a petition by Ariisto Realtors challenging a 2025 order granting deemed conveyance to Ariisto Cloud Cooperative Housing Society.
Justice Sandeep Marne held that a promoter cannot indefinitely delay conveyance to exploit additional FSI under a new FSI regime.
Under MOFA, a promoter must execute conveyance within four months of society formation; private contractual clauses cannot postpone this.
The court ruled that any additional FSI arising after conveyance belongs to the society, not the developer.
The developer had argued the Competent Authority wrongly entertained a second application for deemed conveyance, but the court noted the earlier order allowed a fresh application after construction completion.
The court criticized the developer's greed, stating it would not be a party to devious acts of monetizing what belongs to the society.
Prelims pointers
- Bombay High Court
- Maharashtra Ownership Flats Act (MOFA)
- Deemed conveyance
- Floor Space Index (FSI)
- Development Control and Promotion Regulations (DCPR), 2034
- Competent Authority under MOFA
- Vile Parle, Mumbai
Mains angles
- GS2 Polity: Role of judiciary in protecting consumer rights and enforcing statutory obligations under MOFA.
- GS3 Economy: Urban development and real estate regulation; impact of FSI policies on housing societies.
- GS2 Governance: Effectiveness of MOFA in preventing developer exploitation and ensuring timely conveyance.