PROVISIONS FOR DEEMED CONVEYANCE UNDER MOFA

PROVISIONS
FOR DEEMED CONVEYANCE UNDER MOFA

Amendments in Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 2005 giving a huge relief to hundreds and thousands of flats purchasers in Maharashtra. Conveyance to the societies was a burning issues which have integrated many problems like property tax, housing finance documentations and major repairs or redevelopment.

The highlights of the amendments are as under:

• Builder/s will have to execute the conveyance.
  Power is given to the District Deputy Registrar
  to act as Competent Authority. (Sec. 5A)
• Power is given to Competent Authority for registration
  of Co-operative Society under the provisions of Maharashtra Co-operative
  Societies Act, 1960. (Sec. 10(1) )
• It is the duty of the promoter (builder) to file with
  the Competent Authority within the prescribed period a copy of the conveyance
  executed by him (Sec. 11(2))
• If the promoter fails to execute the conveyance in
  favour of Co-operative Society, Company or Associations or Apartment Owners as
  the case may be, then the flat purchasers can approach the Competent Authority
  with true copy of registered agreement of all the flat purchasers including
  Occupation Certificate, Registration Certificate of the society then in such
  circumstances the Co-operative Society, Company or Associations is entitled to
  have unilateral deemed conveyance (Sec. 11(3))
• The proceedings before the Competent Authority have to
  be completed within a period of 6 months. The Competent Authority must verify
  the authenticity of the document produced before him and after giving a
  reasonable opportunity to the promoter, if satisfied will issue a certificate
  to the Sub-Registrar or any other Registration Officer under the Registration
  Act, 1908, certifying that it is a fit case for enforcing unilateral execution
  of conveyance deed conveying the right, title and interest of the promoter in
  the land and the building in favour of the applicant, as deemed conveyance(Sec.
  11(4))
• The sub registrar after receipt of the certificate
  issued by the Competent Authority along with the unilateral instrument of
  conveyance can issue summons to the promoter to show cause why the unilateral
  instrument should not be registered as deemed conveyance. However, reasonable
  opportunity of being heard may be given to the promoter. If the Sub-Registrar
  is satisfied then he will register the unilateral conveyance as ‘deemed
  conveyance’. (Sec. 11(5))
• The Competent Authority has been created who has powers
  to award criminal imprisonment to the builder/s for a period not less than 6
  months and not more than 1 year and / or along with fine ranging from Rs
  10,000/- to 50,000/- (Sec. 13(3)(a) & 13(3)(b))
• The builder/s if convicted will not be able to carry on
  construction activities for a period of five years. However, the disqualification
  shall not affect the permission for construction of flats already granted.
  (Sec. 13 (4), 13(5) & 13(6) )
• The Competent Authority shall be deemed to be a public
  servant as per the provisions of Indian Penal Code. (Sec. (13B)
• Proceedings before Competent Authority shall be aimed
  to be judicial proceedings as per the provisions of Indian Penal Code. (Sec.
  13C)
• Competent Authority shall be deemed to be a Civil Court
  for certain purposes. (Sec. 13D)

No action can be taken against the Competent Authority for acts done in
good faith by the Competent Authority. (Sec. 13E)