In a major judgment that strengthens the rights of flat buyers across Maharashtra, the Bombay High Court has ruled that private agreements between promoters cannot override or dilute the statutory ownership rights of flat purchasers.
This ruling reinforces the protection granted under the Maharashtra Ownership Flats Act (MOFA) and sends a strong message to developers attempting to bypass legal obligations through internal arrangements.
⚖️ What Was the Case About?
The dispute revolved around a deemed conveyance order granted in August 2022 by the District Deputy Registrar (DDR). The order transferred ownership of land and building to a housing society at Raheja Metroplex, Malad West.
However, the promoters challenged this decision, arguing that their internal arrangement only provided for a lease of the land — not full ownership transfer.
The matter eventually reached the Bombay High Court, where the legality of the conveyance was examined.
📜 Court’s Clear Stand: Law Overrides Private Contracts
Justice Amit Borkar made it clear that:
Once flats are sold under registered MOFA agreements and consideration is paid, promoters cannot rely on private deals to deny ownership rights.
The court emphasized that statutory rights granted under MOFA cannot be diluted by internal agreements between promoters or landowners.
This means that buyers’ rights flow directly from the law — not from side agreements made behind closed doors.
đź’° Buyers Had Paid for the Land
One of the crucial observations made by the court was that:
- Around 12% of the flat price was collected specifically as “land cost.”
- The agreements signed by buyers clearly mentioned transfer of title.
- The payments were accepted by the promoters.
This clearly established that buyers were not merely tenants or leaseholders — they had paid for ownership.
🏢 What Is “Deemed Conveyance” and Why It Matters?
Under MOFA, if a promoter fails to execute a conveyance deed in favor of a housing society, the society can approach authorities for a deemed conveyance.
This legal mechanism ensures:
✔️ Buyers are not left without land title
✔️ Societies get legal ownership of land and building
✔️ Developers cannot indefinitely delay transfer
The High Court’s ruling strongly reinforces this protective mechanism.
🚫 Promoters’ Objections Dismissed
The High Court dismissed the petitions filed by the promoters and upheld the earlier conveyance order.
The judgment firmly states:
Private commercial arrangements cannot take away statutory ownership rights of flat buyers.
This is a powerful reminder that legal protections under MOFA prevail over internal contractual claims.
🌍 Why This Judgment Is Important for Maharashtra Homebuyers
This ruling has wider implications:
🔹 Strengthens housing societies’ position in redevelopment disputes
🔹 Protects buyers from technical lease-based arguments
🔹 Reinforces that statutory rights cannot be contractually weakened
🔹 Encourages transparency in builder-buyer agreements
For thousands of flat owners awaiting conveyance, this decision offers clarity, protection, and legal reassurance.
Source:
🏛️ Big Relief for Homebuyers: Bombay High Court Says Promoters’ Private Deals Cannot Dilute Ownership Rights