Developer Cannot Delay Conveyance Based on Speculative Future Development Potential: Bombay High Court Orders Deemed Conveyance of Land to Housing Societies Under MOFA

1. Case Snapshot

Case Name: Kiran Builders Pvt. Ltd. vs Kalpita Enclave Co-Op. Housing Society Ltd. And Ors

Citation: Writ Petition No. 9694 of 2017

High Court: High Court of Judicature at Bombay, Civil Appellate Jurisdiction

Bench: Hon'ble Mr. Justice Sandeep V. Marne

Date of Judgment: 18th June, 2026

Area of Law: Property Law, Cooperative Housing Law, Maharashtra Ownership Flats Act (MOFA), Conveyance of Land, Development Rights

2. Judgment in Brief

The Bombay High Court partly allowed a writ petition challenging the order of the Competent Authority under Section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA) granting unilateral deemed conveyance of the entire land admeasuring 21,736 sq.mtrs in favour of three housing societies. The Court held that the Competent Authority had jurisdiction to grant deemed conveyance despite a prior civil court decree, as the decree was passed in different circumstances and the societies had joint interests. However, the Court found error in conveying the entire land, as portions were surrendered for DP road, reserved for municipal market and primary school, taken over for road widening, or encroached by slum dwellers. The Court directed the Competent Authority to issue fresh certificate of unilateral deemed conveyance for land admeasuring 16,584.55 sq.mtrs only. The Court rejected the developer's argument that conveyance should be delayed till completion of construction of additional buildings, holding that a developer cannot claim to exploit building potential for eternity without conveying land to societies.

3. Relevant Facts

The Property and Development

• The petitioner-developer claimed rights over land admeasuring 21,736 sq.mtrs at Village-Vile Parle, Mumbai (subject land).

• The developer constructed 10 buildings (A to H, J and K) on the subject land and later constructed two more buildings (L and M).

• The developer planned construction of two additional buildings (N and P) based on additional FSI expected from land surrendered for DP road.

Formation of Societies

• Flat purchasers of buildings A to H, J and K formed Respondent No.1 Society (Kalpita Enclave CHSL).

• Occupiers of flats in Building No. L formed Respondent No.2 Society.

• Occupiers of flats in Building No. M formed Respondent No.3 Society.

Previous Litigation

• Respondent No.1 Society filed S.C. Suit No. 3226 of 1985 before the City Civil Court, Bombay, claiming conveyance of the entire land.

• By judgment and decree dated 7th November 1997, the City Civil Court directed conveyance of only land appurtenant to buildings A to H, J and K in favour

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