🏛️ OC Issued? Builder Can’t Delay Conveyance, Says Bombay High Court
In a major relief for housing societies across Maharashtra, the Bombay High Court has ruled that once an Occupation Certificate (OC) is issued and the society is registered, the builder cannot delay the conveyance of the property by citing pending or unutilised FSI (Floor Space Index).
This landmark judgment strengthens the rights of flat owners and reinforces the true intent of housing laws meant to protect homebuyers.
🏢 1️⃣ The Background: Society vs Builder
The dispute arose when a registered housing society in Navi Mumbai sought deemed conveyance after receiving its Occupation Certificate.
However, the builder objected, arguing that there was still unutilised FSI available for future development, and therefore the conveyance should be delayed.
👉 The core question:
Can a builder withhold conveyance just because future development is possible?
⚖️ 2️⃣ Deputy Registrar Initially Rejected the Plea
Earlier, the Deputy Registrar had rejected the society’s application, stating that the project was not fully completed due to the availability of additional FSI.
This left the society without legal ownership of the land — despite residents already living in the building.
🏗️ 3️⃣ High Court’s Clear Stand on Completion
The High Court clarified an important principle:
Unused FSI does not mean the building is incomplete.
If:
- The building has an Occupation Certificate, and
- Flat purchasers are already in possession,
then the promoter cannot delay conveyance indefinitely.
This interpretation protects societies from being trapped in long-term uncertainty.
📜 4️⃣ MOFA Rights Cannot Be Overridden
The court emphasized that under the Maharashtra Ownership Flats Act (MOFA):
✨ Statutory rights of flat purchasers override contractual clauses.
Builders cannot rely on private agreements that condition conveyance upon:
- Full utilisation of FSI
- Completion of future phases
- Larger layout development
Law > Contract.
🛑 5️⃣ Protection Against Indefinite Delay
The court observed that allowing promoters to postpone conveyance based on business planning would:
- Leave societies without clear title
- Create legal uncertainty
- Defeat the purpose of housing laws
⚠️ Homebuyers cannot be kept waiting endlessly because of a builder’s future plans.
🖋️ 6️⃣ Deemed Conveyance Directed
The High Court ultimately allowed the society’s petition and directed that unilateral deemed conveyance be granted.
This means the transfer of title can proceed even without the builder’s cooperation.
A strong reminder that the law empowers housing societies.
🔎 What This Means for Housing Societies
This judgment is a powerful precedent for societies across Maharashtra:
✅ If your building has an OC
✅ If your society is registered
✅ If the builder is delaying conveyance citing FSI
You may have strong legal grounds to seek deemed conveyance.
🏁 Final Takeaway
This ruling by the Bombay High Court reinforces one powerful message:
🏛️ Builders cannot use future development plans as an excuse to deny present ownership rights.
For thousands of housing societies waiting for land ownership transfer, this decision is not just legal relief it’s a step toward security, transparency, and accountability in real estate.
Source:
🏛️ OC Issued? Builder Can’t Delay Conveyance, Says Bombay High Court