PROVISIONS FOR DEEMED CONVEYANCE UNDER MOFA
Amendments 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 was a burning issues which have integrated
many problems like property tax, housing finance documentations and major
repairs or redevelopment.
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 Associations 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
Associations 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 Registration Act, 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 certificate issued by the Competent Authority along with 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 servant 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)
REGISTRATION OF DEEMED CONVEYANCE
On
receipt of the Deemed Conveyance Order, the Deemed Conveyance between the
Competent Authority & the Society is prepared. The Competent Authority
appears in the Deed on behalf of the defaulting Land Owners & Property
Developers.
The
Deemed Conveyance is submitted to the Office of Competent Authority for
Approval & their Signature with Authority Stamp & Seal.
The
Special General Body of the Society is called to approve the Deemed Conveyance
& to nominate 3 Members of the Society to sign the instruments.
The
Deemed Conveyance is executed by the signature of the Competent Authority &
the signatures of the 3 nominated Members of the Society.
On
execution of the Deemed Conveyance, it is forwarded to the District Stamp
Office for Adjudication. If all the Members of the Society have paid the Stamp
Duty on their respective Flat/ Shop Agreements & there is no balance FSI,
the Deemed Conveyance attracts only Rs. 100/- Stamp Duty. The Stamp Office
issues the Adjudication Certificate.
On
receipt of the Adjudication Certificate, the Society pays the required Stamp
Duty & gets the Deemed Conveyance Franked from local Bank.
After
Franking of the Deemed Conveyance, the same is submitted to the Registration
Office for Registration. The Registration Office issues a notice to the Land
Owners & Property Developers to verify whether they have received any Stay
Order from Proper Court against the Deemed Conveyance Order.
The
Proper Court for issuing the Stay Order against the Deemed Conveyance Order is
High Court. It is very difficult for the Land Owners & Property Developers
to obtain the Stay Order from High Court against the Deemed Conveyance Order.
If
there is no Stay Order received, the Registration Office Registers the Deemed
Conveyance. The Competent Authority is exempted from appearing for the
Registration & hence the 3 Members nominated by the Society only appear for
Registration.
After
Registration of the Deemed Conveyance, the Registration Office issues the
Scanned Document & Index II typically within 15 days.
The
complete Procedure of Registration of Deemed Conveyance is typically completed
within 3- 4 Months. On receipt of the Index II,
the Registration Process of the Deemed Conveyance is successfully completed
& the Society becomes the owner of the Land & Structure.
