Pune Flat Redevelopment: Title & Conveyance Guide

Imran Khan (Querist) 28 March 2020 This query is : Resolved
Dear Sirs,

I have a 2 BHK flat in Pune which has Completion Certificate in the year 1988, but no apartment deed has been done by the developer. currently the builder has expired so we are not in a position to contact him or the original land owner.

Kindly guide us with the process for forming an apartment without the help of builder or land owner and get the property conveyance done in name of apartment.

there are total 12 flats and one garage.

Thanks in advance.

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Dr J C Vashista (Expert) 29 March 2020
Get a RWA registered afresh.

Dr J C Vashista (Expert) 29 March 2020
It is advisable to consult a local prudent lawyer for better appreciation of facts, professional guidance and necessary proceeding.

Imran Khan (Querist) 29 March 2020
Dear Sir, thanks for your reply. i am assuming RWA means resident welfare association but the primary point is that wether RWA can get the land conveyed in its name.

Rajendra K Goyal (Expert) 29 March 2020
Whether apartment deed / conveyance deed has not been done in case of any of the flat?

If done, how when and who did apartment deed.

Whether legal heirs of the building contacted, what is their reply?

Presently in whose name the land and building is outstanding in the revenue documents?

Are you original allottee or has bought the building after original allotment to someone else?

Rajendra K Goyal (Expert) 29 March 2020
Discuss with local lawyer, send legal notice to original land owner (if land still in his name), to LH of builder, to society for getting the apartment deed as per law.

P. Venu (Expert) 29 March 2020
The facts posted are incomplete to offer any meaningful suggestion.

Imran Khan (Querist) 29 March 2020
Property Owner : Mrs. abc (This name is still reflecting in the property Card.)
Source of property owner: as per successor rights from her father Mr. Xyz.
In year 1986 gave rights to ..... builder. ..... builder then handed over power of attorney to Mr. Prakash Mutha who constructed the building with due permission from PMC. Commencement Certificate and Completion Certificate available of the year 1988.

Total 12 Flats and one Garage has been handed over to all owners through Agreement to sale. But post that no apartment / Soc was formed.

Post that Mr. Prakash Mutha has expired.

Most of the first owners have sold their flats to subsequent buyers. I have bought my flat from the first owner. Now the building is 30 years old and we intend to redevelop the property.

The son of developer Mr. Prakash Mutha is ready to support us.

Kindly advice what should be the sequence.

Currently we have the following documents with us:
• Photo Copy of Approved Copy of plan from PMC
• Photo copy of Completion Certificate
• Photo Copy of Commencement Certificate
• Property Card
• Index 2 and agreement of most of the latest purchased flats.
• Photo copy of Power of Attorney from First Developer to Last Developer

SHIRISH PAWAR, 7738990900 (Expert) 29 March 2020
Dear querist,

As per me these are sufficient documents for conveyance of property. For redevelopment it is beneficial for flat owners to have conveyance of property. Appoint local advocate and consult with him.

Regards,

Rajendra K Goyal (Expert) 29 March 2020
It seems that the property title is still in the name of Mrs. abc.
The title has not with any of the developer, or society.
Mrs. abc is not traceable.
Society should file suit for transfer of title to it which has not been transferred till date.
Property owner, developers should be party to the case.
In absence of Mrs. abc, ex-party decree is the way left.

Hemant Agarwal (Expert) 29 March 2020
1. IRRESPECTIVE on the non-availability of the Landlord and further immaterial of the Developer ready to cooperate with the Flat owners, ALL of them mutually can register an CHS or a RWA, consequent to which the Conveyance of land can be endorsed in favor of CHS /RWA and subsequently the CHS /RWA can Redevelop the property by themselves or thru a Developer.

2. The above is not complicated, but only time consuming.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

Imran Khan (Querist) 29 March 2020
Thanks a lot to all the experts for their valuable inputs. Indeed this has given us a ray of hope. As I have understood first step will be to form a RWA with reference to current flat owners and get it registered. Post that we can get the land conveyance done in name of RWA through deemed approach. For deemed conveyance we have to follow the MAOA norms right ?

Rajendra K Goyal (Expert) 29 March 2020
It is better approach to get the property transferred in the name of the society on the basis of Court Orders.

T. Kalaiselvan, Advocate (Expert) 29 March 2020

The Maharashtra government has relaxed the terms for the deemed conveyance (DC)-ownership right of plot certificate from the builder, by bringing down the number of documents required from 12 to 8 and stipulating that DC will be given even if the society does not have an Completion Certificate (CC) or the Building Completion Certificate (CC).

It is mandatory for land-owners or developers to convey the title of the plot within four months of the formation of the housing society. In many cases, the builders fail to convey the title of properties to the housing societies, in the hope of availing more floor space index (FSI) that may become available in future, or to avail the benefits accrued to them in case the property is redeveloped.

T. Kalaiselvan, Advocate (Expert) 29 March 2020
You have mentioned that the completion certificate has already been obtained.
If the builder fails to convey the property, the Maharashtra Ownership Flats Act (MOFA) allows societies to apply for DC. However, having CC was mandatory and was insisted upon by the officials of the cooperative registrar’s office. CC is given only when the building is complete in all respects and has complied with the mandatory norms laid down by the government authorities to make it ready for occupation. Since most of the builders abandon the projects before complying with the norms and conditions, CCs are not given to the societies. Developers just hand over the possession and exit the project, leaving the residents high and dry.

T. Kalaiselvan, Advocate (Expert) 29 March 2020
However now, the DC will be issued even if housing societies have submitted such documentary evidence as the formation of the society or the payment of property tax by the society.

T. Kalaiselvan, Advocate (Expert) 29 March 2020
As per the GR issued on 22 June 2018, by the state cooperation department, it has been made mandatory for the registrar of cooperative societies to register documents of the applicants within a day. Besides, as per the Maharashtra Right to Public Services Act, 2015, the DC should be issued within six months. If an official fails to provide and approve it within the prescribed period, then he or she will be penalised between Rs500 and Rs5,000.

T. Kalaiselvan, Advocate (Expert) 29 March 2020
The documents required for conveyance include society registration certificate, approved layout, 7/12 extract, sale deed of each flat owner or heir document, list of registered members of the society, occupation certificate, non-agriculture certificate of that particular plot and notice copy etc. In the absence of sale deeds of all members, the sale deed of even one member would be sufficient, states the GR.

T. Kalaiselvan, Advocate (Expert) 29 March 2020
While submitting the conveyance application and documents to the registrar, a copy of the same application also needs to be submitted to the stamp duty and registration department for its speedy approval. The applications will be accepted online as well as offline. The officials of the concerned department such as urban, cooperative, forest and revenue department will have to work in unison so that the applicants are not required to shuttle from one department to another.

T. Kalaiselvan, Advocate (Expert) 29 March 2020
There are a sizable number of housing societies in Mumbai that are struggling to get the DC. In absence of DC, redevelopment of some of the societies has been delayed. Some of the developers used to sell the flats till they held the ownership right of the layout and were misusing this right, causing impediment in the way of redevelopment.

Raj Kumar Makkad (Expert) 29 March 2020
The following steps shall be suffice once the society is formed and registered and deemed conveyance is made through the cooperative court:

Call a Special General Body Meeting (SGM) ...
Get quotations from Architects/Project Management Consultants (PMC) ...
Submit proposal for Building Redevelopment Project. ...
Receive Project Report. ...
Invite Tenders from developers. ...
Choose a developer.

Raj Kumar Makkad (Expert) 29 March 2020
Redevelopment of housing societies is usually burdened with bitterness and complaints of high-handedness and corruption against the Managing Committee. Hence, with a view to ensure transparency in societies seeking to undertake redevelopment projects, the state co-operative department has, for the first time, issued guidelines for societies to follow under section 79 (A) of the Maharashtra Co-operatives act, 1960.

Raj Kumar Makkad (Expert) 29 March 2020
The guidelines are issued by a committee comprising the co-operatives commissioner and Cidco chairman pursuant to a deep study of complaints by members of Housing Societies undertaking the redevelopment of their property. According to an important feature in the guidelines, a redevelopment scheme has to be approved by the general body only if three-fourths of the society members are present at the meeting.

Raj Kumar Makkad (Expert) 29 March 2020
The special general body has to approve the bid of the successful bidder in a meeting attended by the registrar. The entire proceedings have to be video-recorded. Once the agreement is accepted in terms of area and corpus fund, it cannot be revised. The successful bidder has to give a bank guarantee equivalent to 20% of the total project cost to show his financial strength, and proof that he will not throw away the project midway.

Raj Kumar Makkad (Expert) 29 March 2020
The Developer has to complete the redevelopment project in two years, or a maximum of three years. The development agreement must be signed on carpet-area basis. Most importantly, if, for some reason, the successful Developer is unable to complete the project, he cannot sell his agreement to another Developer.

Raj Kumar Makkad (Expert) 29 March 2020
It has been often noticed that during the process of redevelopment, the terms of Development Agreements as agreed upon, are later twisted and grossly violated by the Developers and the ground rules of MRTP and DCR by unlawful planning are flouted by constructing additional/unauthorized areas that are beyond the entitlement (i.e. beyond the plot FSI and the TDR/FSI loaded) for their hidden financial gains. The buyers of such unlawful flats/properties land themselves in deals that lead to litigation at a later date.

Raj Kumar Makkad (Expert) 29 March 2020
At times, upon the completion of the Project, there are major inconsistencies and discriminatory features noticed in the approved plans v/s actual layouts, measurements and other aspects in respect of the constructions of residential area and the commercial area which may not be in conformity with the Development Agreement originally executed between the Society and the Developer.

Raj Kumar Makkad (Expert) 29 March 2020
Under Right to Information Act, the Housing Society can procure all the Plans and the related documentary evidences from MCGM duly attested by two Senior Engineers of the Building Proposals Dept. to study the anomalies which exist in execution of the entire redevelopment project even after the occupancy certificate is issued.

Raj Kumar Makkad (Expert) 29 March 2020
It has also been observed that the deviation of vital Rules and Guidelines of MRTP/MCGM/DCR are conveniently overlooked by few corrupt and dishonest but “Sympathetic Officials” of MCGM and the final plans with numerous anomalies so submitted by the said Developer are approved by them without verifying the justifiability or its conformity with the Development Agreement executed with the Society.

Raj Kumar Makkad (Expert) 29 March 2020
Further, it is learnt that in many Societies, the Managing Committees, who execute the documents with the Developers, do not possess any legal holding as they have never filed/nor aware of filing the Indemnity Bond in Form M-20 on a Stamp required under Section 73(1AB) and Rule 58A of the Maharashtra Cooperative Societies Act 1960.

The members who fail to execute such Bonds within the specific period are deemed to have vacated his office as a member of the committee and no legal effects can be given to the documents executed by them with the Developers.

Raj Kumar Makkad (Expert) 29 March 2020
It has been often noticed that during the process of redevelopment, the terms of Development Agreements as agreed upon, are later twisted and grossly violated by the Developers and the ground rules of MRTP and DCR by unlawful planning are flouted by constructing additional/unauthorized areas that are beyond the entitlement (i.e. beyond the plot FSI and the TDR/FSI loaded) for their hidden financial gains. The buyers of such unlawful flats/properties land themselves in deals that lead to litigation at a later date.

At times, upon the completion of the Project, there are major inconsistencies and discriminatory features noticed in the approved plans v/s actual layouts, measurements and other aspects in respect of the constructions of residential area and the commercial area which may not be in conformity with the Development Agreement originally executed between the Society and the Developer.

It has also been observed that the deviation of vital Rules and Guidelines of MRTP/MCGM/DCR are conveniently overlooked by few corrupt and dishonest but “Sympathetic Officials” of MCGM and the final plans with numerous anomalies so submitted by the said Developer are approved by them without verifying the justifiability or its conformity with the Development Agreement executed with the Society.

Raj Kumar Makkad (Expert) 29 March 2020
The members will feel lot more confident after the IOD is been obtained from the MCGM towards the entire development of TWO FSI. The members will now shift into their alternate accommodation as a pre-requisite before demolition of the building which is a must before obtaining the CC from MCGM. The Rent attracts TDS if it is above certain limits , for which TDS certificates are issued by the developer.

Rajendra K Goyal (Expert) 30 March 2020
The Society does not have title of property; however it has Completion Certificate, The land owner is not traceable, hence title suit has to be filed. It should try to avail the DC as suggested in such case.

Rajendra K Goyal (Expert) 30 March 2020
It seems the new Rules regarding Maharashtra Ownership Flats Act (MOFA) allows societies to apply for DC, the society is having CC and it is true that the project is left by the landowners and the developers leaving the residents high and dry. If the DC is not obtained by the provisions, filling of the case in the court is the way left.

Rajendra K Goyal (Expert) 30 March 2020
It is true that there is sizable no. of societies struggling to get DC and hence redevelopment is holdup.

The steps suggested by the learned expert regarding redevelopment are related after receipt of title or DC otherwise. Priority should be to get any of these.

Rajendra K Goyal (Expert) 30 March 2020
The question of redevelopment comes only after receipt of DC if title is not available First work before the society is to obtain proper title.

It is true there are complaints of corruption however, transparency in the matter is always need of the day / essential.

Rajendra K Goyal (Expert) 30 March 2020
Requirements, guidelines from CIDCO for redevelopment are good initiative for minimizing the complaints and non-satisfaction of the members.

Guidelines regarding, video recording, terms of area and corpus, bidding requirement, Bank Guarantee etc are good initiatives for transparency in redevelopment.

Rajendra K Goyal (Expert) 30 March 2020
Instructions and rules regarding Carpet area, redevelopment time, and restriction in case of non-completion of work would shelter the beneficiaries against mischiefs from developers.

Rajendra K Goyal (Expert) 30 March 2020
It should be the duty of the society to take care and abide by the terms of redevelopment by the developer and others. There should be no violation regarding ground rules of MRTP and DCR by unlawful planning.

Rajendra K Goyal (Expert) 30 March 2020
Agree that the provisions of RTI are excellent tool in the hands of beneficiaries and the society. They should always be prepared to use RTI provisions to gather maximum information regarding redevelopment / progress etc.

Rajendra K Goyal (Expert) 30 March 2020
Expert Raj Kumar Makkad has suggested, guided in a good way and has provided useful information for society for redevelopment, society must try to get benefit.

Imran Khan (Querist) 30 March 2020
True well said by all you experts. We will go ahead with CHS and then DC. this will be our first priority. Thanks a lot for all your inputs.

Rajendra K Goyal (Expert) 30 March 2020
You are welcome, may revert in case of any information.

Redevelopment.

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