In a significant ruling for housing societies across Maharashtra, the Bombay High Court has held that real estate developers cannot withhold or delay the conveyance of land and buildings to cooperative housing societies merely to preserve rights over future Floor Space Index (FSI) arising from changes in development regulations. The court reaffirmed that once a project is completed and a housing society is formed, developers are legally bound to transfer ownership to the society.
The judgment is expected to benefit thousands of housing societies in Mumbai and the Mumbai Metropolitan Region that have been waiting years for conveyance despite taking possession of their homes. In many cases, developers have delayed the process, hoping to capitalise on future redevelopment opportunities, fungible FSI, premium FSI or changes in planning norms that could unlock additional development potential.
The ruling significantly strengthens the legal position of homebuyers and cooperative housing societies seeking timely conveyance of their property.
What prompted the Bombay High Court’s order?
According to a Hindustan Times report, the case arose from a dispute involving Ariisto Cloud Co-operative Housing Society in Vile Parle (West). Ariisto Realtors Pvt Ltd challenged a 2025 order granting unilateral deemed conveyance of a 1,241.65 sq m plot to the housing society.
The developer argued that the Development Control and Promotion Regulations (DCPR) 2034, introduced in 2018, entitled it to exploit an additional 841.16 sq m of development potential and, therefore, the conveyance should not be executed.
Rejecting the plea, the court observed that accepting such an argument would allow developers to indefinitely postpone conveyance whenever development regulations are amended. The court remarked that such an approach would enable builders to continue benefiting from future FSI, defeating the very objective of MOFA. It further observed that the developer was attempting to monetise something that legally belonged to the housing society, the report said.
What impact is it likely to have on housing societies and homebuyers?
According to the Bombay High Court, any additional FSI arising from subsequent changes in development regulations belongs to the housing society after conveyance and not to the developer. The court held that private contractual clauses cannot override the statutory obligation imposed under MOFA, nor can they be used to indefinitely defer transfer of title, according to the report.
The ruling could have far-reaching implications for thousands of housing societies in Mumbai and the Mumbai Metropolitan Region that have been awaiting conveyance for years after taking possession. In several cases, developers have resisted transferring land while hoping to benefit from future redevelopment potential, fungible FSI, premium FSI or regulatory changes that increase the permissible built-up area.
For homebuyers and housing societies, the judgment strengthens their legal position in seeking conveyance. Once ownership of the land is transferred, societies gain greater control over future redevelopment decisions, can independently negotiate with developers and are better placed to safeguard members’ interests. The judgment also serves as a reminder that developers cannot indefinitely retain title to land solely in anticipation of future commercial gains arising from changes in planning regulations.
There are more than 30,000 housing societies in Mumbai and over a lakh in Maharashtra without a conveyance deed, according to a Hindustan Times report.
According to legal experts, this judgment is likely to strengthen the deemed conveyance process by providing greater clarity to the authorities responsible for granting conveyance to housing societies.
“Developers have often opposed deemed conveyance proceedings by citing unutilised or future FSI. Following this ruling, they will find it difficult to object to the transfer of conveyance solely on the ground of retaining rights over the balance or future FSI. The decision reinforces that the statutory right of flat purchasers to obtain conveyance cannot be defeated by a developer’s commercial interest in exploiting future development potential,” said Minesh Shah, a Mumbai-based lawyer.
What is conveyance?
Conveyance is the legal transfer of ownership of the land and common areas of a residential building from the developer to the cooperative housing society or association of apartment owners post construction. Once conveyance is executed, the society becomes the legal owner of the property and gains control over its management, maintenance and future redevelopment.
Under the Maharashtra Ownership Flats Act (MOFA), a developer is required to execute the conveyance within four months of the society’s formation. If the developer fails to do so, the society can seek deemed conveyance from the competent authority, allowing ownership to be transferred without the developer’s consent.
What is deemed conveyance?
Deemed conveyance is a legal mechanism under the Maharashtra Ownership Flats (MOFA) Act, 1963, that enables a cooperative housing society to obtain ownership of the land and building even if the developer fails or refuses to execute the conveyance deed. The competent authority can grant conveyance without the developer’s consent after verifying the society’s claim.
