In a significant ruling that strengthens the rights of housing societies, the Bombay High Court has held that the process of granting conveyance of land and buildings to cooperative housing societies cannot be delayed merely because a developer may seek future benefits arising from Transferable Development Rights (TDR) or additional development potential.
The judgment was delivered by Justice Sandeep Marne on June 18, 2026, in a case involving three cooperative housing societies located in Mumbai’s Vile Parle area. The dispute concerned a large residential development comprising 12 buildings, with 10 buildings constructed in the 1970s and two additional buildings completed in 1990.
The case originated from a challenge filed by a developer against a 2017 order of the Deputy Registrar granting unilateral deemed conveyance of more than five acres of land to the housing societies under the provisions of the Maharashtra Ownership Flats Act (MOFA). Deemed conveyance is a legal mechanism that allows housing societies to obtain ownership rights over land and buildings when developers fail to execute the conveyance deed within the prescribed time.
The developer argued that portions of the land were reserved for public amenities such as a municipal market, a primary school, and road widening projects. According to the builder, future development rights arising from these reserved portions should be considered before granting conveyance.
Rejecting this argument, the High Court observed that conveyance of land meant for housing societies should not be postponed until municipal authorities acquire the reserved land and compensate the developer through TDR or other mechanisms. Justice Marne stated that any potential future benefits available to the developer cannot become a reason to withhold conveyance from flat owners who have been waiting for decades to secure legal ownership rights.
At the same time, the court granted partial relief to the developer by modifying the Deputy Registrar’s earlier order. Instead of conveying the entire five-acre plot, the court directed conveyance of approximately four acres to the housing societies. The remaining land, which includes portions reserved for public purposes and areas affected by road widening and encroachments, was excluded from the conveyance.
The court clarified that the developer would continue to retain the right to claim compensation or Transferable Development Rights from the relevant authorities for such reserved portions. It also noted that TDR is a valuable and tradable asset that can be monetized independently and does not necessarily need to be used for construction on the same property.
The dispute has a long history stretching back more than four decades. A housing society representing residents of the original 10 buildings had first approached the civil court in 1985 seeking conveyance of the entire property. After years of litigation and appeals, the societies ultimately sought deemed conveyance through the Deputy Registrar, leading to the 2017 order that became the subject of the present case.
The judgment is expected to have wider implications for cooperative housing societies across Maharashtra. It reinforces the principle that developers cannot indefinitely delay conveyance obligations by citing future development prospects or unresolved TDR claims. The ruling provides greater certainty to flat owners and housing societies seeking legal ownership of the land and buildings they occupy, while also balancing the legitimate rights of developers to receive compensation for land reserved for public purposes.
Image- bombayhighcourt.gov.in/bhc
