Developer can’t transfer bldg conveyance to another firm, society is real owner: HC

Mumbai: Three decades after a building came up on a portion of a land in the city, the bid by its owner to convey the property to another firm for developing another part of the plot has come under the scanner of the Bombay high court. In an interim order, Justice Roshan Dalvi restrained the developers from constructing or redeveloping the plot except an area of 324 sq m, which has two outhouses. 

    The judge also directed the firm that it would not create any third party rights on the property except allowing the existing tenants of the two outhouses to reside there. "(The firms) seek to put up construction far in excess of the area of the two old structures (outhouses). They seek to utilize the FSI of the entire plot of land, which belongs to the society. They also seek to load TDR upon the new construction. This they cannot do. The society has rightly sought to restrain such construction," the judge said. 
    The dispute relates to a plot of land in Bandra spread over 1,310 sq m owned by Paresh Associates. In 1984, a building was constructed by demolishing an old structure. Another portion of the land, which had two outhouses with five tenants, did not opt for redevelopment. The new flat owners in the main building formed Ashadeep housing society and the agreement with the builder specified that the land beneath the two outhouses will be leased to the Paresh Associates, who will have to become a member of the society. 
    Since 2008 the society has sought conveyance of the property and has even filed a case to seek its rights. 
    The judge observed that the society was "deemed to have been conveyed the entire property within the statutory period under Section 11 of the MOFA (Maharashtra Ownership Flats Act). The fact that a part of the construction of the two outhouses remained would not make a difference to the entitlement of the society in law". The court said the society was the only owner of the land. "The benefits of ownership cannot, therefore, accrue to (Paresh Associates). It cannot, therefore, convey any part of the plot of land under any agreement or indenture," said the judge listing the original suit for hearing on June 11.