SHREE HARI

WELCOME TO the SEMINAR ON

Deemed Conveyance in Co-operative
Societies and Recent Amendments in
Co-operative Societies Act
 SEMINAR ORGANISED BY
WESTERN INDIA REGIONAL COUNCIL OF THE
INSTITUTE OF CHARTERED ACCOUNTANTS OF
INDIA AND CONDUCTED BY
CA MR. MUKUL A. VARMA
“One who wins without
Problem is just ‘Victory’.
But one who wins with a
lot of troubles makes
‘History’.”
EXPECTATION AND VALUABLE INPUTS FROM
RESPECTED AUDIENCE

INTERACTIVITY

EXPERIENCE
PARTICIPATION
SHARING
 AGENDA FOR THE DAY

PART-1 CONVEYANCE AND PART-2 PATH LEADING TO DEEMED

RELATED ACTS CONVEYANCE
 Brief Introduction of Conveyance.  Prerequisites.
 Advantages of Conveyance  Formation of Co-Op. Society.
 Life before and After Conveyance  Imp. Provision related to Formation.
 Acts covered  Documents required for Formation.
 Some light on MOFA’1963  Reasons for Non-Conveyance.
 Important Sections of MOFA  Notable Amendments
 Provisions of Bye-laws.
 AGENDA FOR THE DAY

PART-3 ENTRY INTO CONVEYANCE PART-3 ENTRY INTO CONVEYANCE

 Documents Required.  Stage 2: Adjudication and Registration.
 Parties to Conveyance Deed.  Contents in Conveyance Deed.
 Stages of Deemed Conveyance.  Stamp Duty Provisions.
 Online Process Review.  Amnesty Scheme-2019.
 Stage 1: Submission of Application.  Stage 3: Transfer of Property Card.

PART-4 CASE STUDIES

TRANSFER OF PROPERTY
 TRANSFER OF PROPERTY TO SOCIETY

TRANSFER PROPERTY SOCIETY

 CONVEYANCE

PROPERTY SOCIETY

Land Registered Society

Building The Company
Federation
Individual Flat Owner
 CONVEYANCE

BUILDER COURT CASES DEEMED CONVEYANCE

CIVIL COURT CONSUMER COURT CRIMINAL COURT

COMPETENT AUTHORITY
(DISTRICT DEPUTY REGISTRAR)
 ADVANTAGES
Right/Title/Interest to Property.
Property-Free and Marketable.
FSI/TDR Benefits
Property Appreciation
Redevelopment/Repairs
Property Rent
Reconstruction Permission
Disadvantage: If due to any Calamity, building is destroyed, you may lose
right to land if you don’t have conveyance.
 Life Before Deemed
Conveyance

Many Years in Courts

Lots of Legal Complications.

Change in M.C. Members

 Life After Deemed
Conveyance

6 Months Peace of
to 1 Year Mind
 MOFA
ACT’1963

RERA MCS
ACT’2016 ACT’1960

BYE REG.
LAWS ACT’1908

TRF. OF BOMBAY
PROP. ACT STAMP
1882 ACT’1958
MOFA-MAHARASHTRA OWNERSHIP FLATS ACT-1963

Protect/Regulate Interest of Flat Buyers

Malpractices of Builder

 Construction Delays
 No Timely Approvals
 Defective Title
 Delay in Possession
 Delay in Conveyance
 DEFINITION OF PROMOTER

MOFA RERA MCS Act

Builder or Developer Land Owner, Builder , Same as in RERA

who Constructs and Developer , Contractor
Sells Flats etc.
 Section 4 RERA 2016
Written Agreement and its Registration.
Section 11 (4)
Section 10
Formation of Society/Company/
Formation of Society. Association/Federation
Section 11 & Rule 9 Section 17 & Rule 9

Conveyance. Conveyance
Section 13
Punishment - 3 Years Imprisonment or Fine or both.

Section 13a

Trial of offence under the Act-Metropolitan

Magistrate or Judicial Magistrate of the first class.
TRANSFER OF PROPERTY
Registered Society

4 Months
Completion from
Registration
 FORMATION OF SOCIETY

Builder Co-operation Builder Non-Co-operation

 MOFA 1960 RERA 2016 MCS ACT 1960

Within 4 months from Within 3 months from the date No Formation, unless it consists
registration of at least 60% of of the issue of OC or payment of of at least Five Persons or 51%
the Flat Purchasers Agreements. full consideration by 51% of the of total Flat Purchases as per
total no. of allotees. Proposed or Sanctioned Lay-out.
 DOCUMENTS REQUIRED FOR FORMATION OF SOCIETY WITH
AND WITHOUT CO-OPERATION FROM BUILDER

From Society From Builder

Complete Agreement Containing:  O.C.

 I.O.D.  Development Agreement

 C.C.  Approved Building Plan

 Architect Certificate
 P.R. Card
 Electric/Water/P. Tax Bill
 Title Clearance Certificate
 List of Unsold Flats
 Index II
 When a Purchaser is buying a flat; he is not only purchasing the flat
but also acquiring an undivided right title and interest in the Property

After the Registration of a Housing Society any balance unutilised

residual Floor Space Index (FSI) shall be available to the society and
not to the Builder- Judgement by MSCDRC

As per MOFA Provisions, after Registration of the Society, the Builder

cannot claim residual FSI or further FSI in the plot or layout

Any provision in the Builders Agreement for sale contrary to the

statutory provision will not be binding on any Flat Purchaser or the
Society.
 Association
of society if
more than 5
CO-OP.
HOUSING
Societies
SAME PLOT
SOCIETIES
ASSOCIATION OF LAND
of 2 Societies
Co-operative
Housing
Association :
at least 2
societies
Non-Cooperation From Builder Difficult & Complicated Procedure

❖ Retention of Control ❖ Approach Court of Law

❖ FSI Benefit ❖ Internal Disputes-Members &
❖ Advertisement/Hoarding Society
Rental Income
MUMBAI

SHANGHAI
 District Deputy
Registrar notified as
Competent Authority

MOFA
(Amendment)
MOFA Amendment-
Rules, 2010 notified
25th February’2008
 Bye-Law No. 5: Object Clause Bye-Law No. 154
To obtain Conveyance from Owner/Promoter  Committee in consultation with General
of the Right/Title/Interest in Land and Building Body, to take necessary steps for
Conveyance of Land and Building.
Bye-Law No. 88: Agenda of First AGM-
Agenda No. 6  Committee to Examine in consultation
Authorising the Committee to secure with the advocate of the Society, the deed
Conveyance of the right, title and interest in of Conveyance/deemed Conveyance and
the Property, in the name of the Society from Place the Same before the General Body.
the Promoter/Builder.
 On Approval, Committee to execute it as
per Law.
TRANSFER OF PROPERTY
 Available with the society Available with the members
 Registration Certificate.  Registered Stamp duty
 List of members Agreement.

 One sample sale agreement.  Index ii

 From Land Owner From Local Authority
 Partnership Deed. (i.e. B.M.C.)
 Certificate from ROF.  BMC Approved Plan.
 Death Certificate of the owners  I.O.D.
of Land.  Commencement Certificate.
 Land Agreement with the earlier  Occupation Certificate.
owner of the land, in case the
 Building Completion Certificate.
Property Card is in a different
name.  Property Tax paid receipt.
 From Developer Talati/Tahsildar Office
 Development Agreement.  7/12 extract.

 Death Certificate of the Developer  Village Form No 6.

of Land.  K.J.P.

From City Survey Office Advocate

 Property Card.  Title Clearance Certificate about
 City Survey Map. the Property.
 Search Report.
 From Architect From Collector Office
 Survey Report.  N.A. Order.
 U.L.C. Order.
 O.C. NOT REQUIRED FOR DEEMED CONVEYANCE-GR DATED 17.09.2018

11 As per GR Dated 14.06.2016, Applicant Society has to submit 8 Documents along with Deemed Conveyance
Application.

2 In Point No. 7, Society has to submit Completion Certificate issued by the Town Planning Authority.

3 But now as per GR, Building Completion Certificate is to be excluded. Government Resolution is Reproduced below.

Out of the following documents listed in GR dated 14.06.2016 the document listed in point No. 7 to submit
Building Completion Certificate issued by the Town Planning Authority is to be excluded and to incorporate the
below content.
4
4 In order to get the Deemed Conveyance procedure in easy manner instead of taking Occupancy Certificate from
the cooperative society the society should give a self declaration in writing that they the society has taken the
possession of their building/s and will take all the responsibility related to their building. After Deemed
Conveyance work is been completed society should apply for Occupancy Certificate at Mumbai Municipal
Corporation or related City Local Bodies.
 DOCUMENTS TO BE SUBMITTED WITH ONLINE/OFFLINE APPLICATION

ONLINE OFFLINE
i. Form No. VII i. Form No. VII
ii. A Copy of Registration Certificate ii. A Copy of Form No. VII Showing Receipt of
iii. Details of Society and Resolution for Deemed Deemed Conveyance Number.
Conveyance passed in AGM/SGM iii. A copy of Sale Agreement and Index-II proof of
iv. Extracts of the Property Card. any one Member as to Ownership of Flat.

v. List of all lawful Flat Holders. iv. A copy of Final Sanction Plan.

vi. Legal Notice of Conveyance Served on Promoter.

vii. Building Commencement Certificate as well as
Occupation Certificate.
viii.Self Certificate, if Occupation Certificate not
available.
ix. Self Affidavit of the Applicant.
 SOCIETY

PARTIES TO
CONVEYANCE
DEED

BUILDER/ LAND
DEVELOPER OWNER
 STAGE2:
Conveyance Deed
Preparation,
Adjudication and
STAGE1: Registration STAGE3:
Submission of Transfer of
Application and Property Card in
obtaining Deemed the name of the
Conveyance Order. Society.

DEEMED
CONVEYANCE
 SOCIETY VALIDATION : REGISTRAR

DEEMED CONVEYANCE APPLICATION: SOCIETY

ONLINE APPLICATION SCRUTINY: COMPETENT AUTHORITY

HEARING AND SCHEDULING: DDR

PUBLISH ORDER: COMPETENT AUTHORITY

 • Validated Society can apply for Deemed Conveyance.
PHASE 1: APPLICATION • All Case Documents and details should be uploaded online.

•Competent Authority/ DDR review the application.

•Request information by generating form 8 online.
PHASE 2: SCRUTINY •Society modifies or provides the requested information.
•Application is accepted after scrutiny.

• Case number is generated online.

PHASE 3: • DDR schedules the hearing and generate form 10 automatically.
• Hearing Notes (Roznama) is uploaded online by DDR.
HEARING AND SCHEDULING •Stakeholder can track Application online.

PHASE 4:
• DDR publish the Final Order on closer of the case
PUBLISH ORDER
 STEP 1: DOCUMENTS TO BE PREPARED AND SUBMITTED TO DDR

Authority Letter In Favour of Consultant

and Resolution of AGM

Affidavit on Rs.100/- Stamp Paper Schedule of Property

duly Notarised.

Application in Form
List of Members
No. VII
All Parties CTS No. & Land Area In
Covered Village/Division Sq. Mtr.
. FORM NO. 7
 STAGE 1: SUBMISSION OF APPLICATION AND
OBTAINING DEEMED CONVEYANCE ORDER

STEP 2: Make Written STEP 3: Attend STEP 4: Argue STEP 5: Obtain the
Submission the Hearings the Case Deemed
Conveyance Order
 Drafting
 Approval from CA.
 Submission for adjudication.
 Obtain demand notice.
 Payment of Stamp Duty.
 Obtain the Conveyance deed duly stamped.
 Signing the Conveyance deed.
 Exemption letter from DDR.
 Issue of notice by Sub Registrar.
 Registration of Conveyance Deed.
 Description of vendor/land owner/purchaser.
 Description of property.
 Description of original owners and chain of transactions.
 Consideration amount.
 Name of the Confirming Party..
 Other usual terms and conditions.
 Adjudication of Conveyance Deed.
 Adjudication fees of Rs. 100/-.
 STAMP DUTY

ON LAND ON BUILDING

STAMP DUTY ON STAMP DUTY ON STAMP DUTY ON

AGREEMENTS AGREEMENTS ON OR AGREEMENTS
EXECUTED BEFORE AFTER 4.7.1980 BUT EXECUTED ON OR
4.7.1980 BEFORE 10.12.1985 AFTER 10.12.1985.
 STAMP DUTY ON LAND

❑ Shall be Rs. 100/- only unless increase in FSI has been consumed by the Society after its formation.

STAMP DUTY ON BUILDING

Stamp Duty on agreements executed before 04.07.1980

❑ Stamp Duty to be paid at present rate and on the agreement value.

 STAMP DUTY ON BUILDING

Stamp Duty on Agreements on or after 4.7.1980 but before 10.12.1985 flat owners who
lodged their agreements in the Amnesty Scheme of 2005-2006 got a reply from the Stamp
Office as under :

“Your Sale Agreement is executed before 10.12.1985. At the time of execution of your
Sale Deed, the Agreement for Sale was not treated as part Conveyance and
provision for collection of Stamp Duty was not applicable at that time. As such the
agreement is considered properly stamped under article 5(h). However it must be
noted that whenever you proceed to procure the conveyance you would be liable to
pay full stamp duty on the current market value of your property as applicable under
the rules”
 STAMP DUTY ON BUILDING

Stamp Duty on Agreements executed on or after 10.12.1985.

Stamp Duty to be paid at rate prevailing in the year of purchase and
on the market value of the year of purchase of flat with penalty of 2%
per month subject to maximum of 400%.
 AMNESTY SCHEME-2019

GENERAL PROVISIONS AMNESTY SCHEME

 Lease/Sale/Mortgage appropriate  Penalty-10% of the actual Penalty.
Stamp Duty Payable.  MHADA: can avail Amnesty Scheme,
 Inadequately Stamped Document, even if no Stamp Duty has been paid
pay differential amount of duty on such documents.
and penalty @2%.

 Maximum Penalty 400%.

 AMNESTY SCHEME-2019
APPLICABILITY

 Sale or Transfer of Tenancy Rights.

 Any instrument to allot/transfer/sale units-eligible/pending for deemed Conveyance.
 Transactions of CIDCO, MHADA OR SRA.
 Action for recovery of deficient duty has been initiated.
 Cases being Subject matter of the Appeal-decision on the same is pending.
 In case of pending appeal, should withdraw appeal unconditionally.
 Penalty and Stamp Duty not paid in Application of Previous Amnesty Scheme-Filing Fresh
Application.
 Cannot avail to claim refund of Penalty already paid.
 Agreement executed on or before 31st December’2018.
 AMNESTY SCHEME-2019
The Scheme is For

 Made on Stamp Paper of Nominal Amount

 Property Owners in Housing Societies.
or on plain paper.
 Constructed by MHADA-CIDCO-SRA
 Registering Authority not under obligation
to ensure payment of Adequate Stamp Duty.

 Housing/Premises Societies  Conveyance not done for the land.

 Residents of old Housing Societies  Wish to opt for Redevelopment.

 AMNESTY SCHEME-2019
RECEIVE DOCUMENTS

SUBMIT DOCUMENTS

RECEIVE DEMAND NOTICE

PAY APPROPRIATE STAMP DUTY

DOCUMENT CERTIFICATION

RECEIPT OF CERTIFIED DOCUMENT

❑ Application to the city survey office.
❑ Enquiry/survey.
❑ Endorsement.
 P.R. CARD CLASSIFICATION

01 C
N.A. Plot

C1
02 Agricultural Plot

03 B1
Collectors Plot
TRANSFER OF PROPERTY
CASE STUDIES
 LAYOUT PLOT
 Exclusive Right/Title and Interest;
 Proportionate undivided share, title and interest in common areas and the facilities provide or to be
provided;
 Calculated based on the total FSI Permissible;
 If balance FSI or any benefits of TDR available, same shall be available to Promoter without any
hindrance;
 The Apex Body or Federation can also be formed to Manage Common Areas/Facilities;
 If the Apex Body or the Federation is formed, if desired by legal entities Conveyance can be
executed in favour of Apex Body or Federation;

The Promoter Cannot withheld Conveying Land and Building for want of further
Development.
Total Plot Area : 1903.90 Sq. Mt.

Total Built-up Area of all the

buildings on the Plot : 3284.43 Sq. Mt.

Built-up Area of Applicant Society : 497.01 Sq. Mt.

Total Plot Area

Area to be Conveyed: Total Built-up Area Built-up Area of Society

1903.90 Sq. Mt.

3284.43 Sq. Mt. 497.01 Sq. Mt.

Area to be Conveyed: 288.10 Sq. Mt.

 01

WRIT PETITION NO.2834 OF 2018

MAYFAIR HOUSING PRIVATE LIMITED…………………..PETITIONERS

V/S

MAYFAIR KUMKUM CHS LTD. AND OTHERS…………………..RESPONDENTS

2. Case in Consumer Court Pending. Can Society get Conveyance?

3. Whether Conveyance Possible if there is balance FSI?

Whether Conveyance possible in case of dispute raised for open

4.
space between the 2 buildings and FSI thereon ?
 If Conveyance has been given by the Developer and Property Card
5. not transferred? Later found that area and CTS No. in Conveyance is
wrong and builder has refused to rectify.

Conveyance given by builder 40 years back. Later found that area in

6.
possession is more than area given in Conveyance.

Land Owner gave lease to Developer. Developers name on PR Card

7. as lessee. Society obtained Conveyance from Land Owner. How do
you remove name of lessee from PR Card?
 Land Owner has died? Legal heirs ready to give Conveyance, but
8. their names not incorporated on property card? What is the
Remedy?

Conveyance granted by the Court 30 years back? But name of the

9. land owner not entered in the order? How do you execute
Conveyance Deed?

Partly Developed Lay-out plot, after Society Formation, Land Owner

10. sold full plot to the Third Party. Can Society claim Conveyance for its
Proportionate Share?
 Dispute between Land Owner and the Builder for money
11. not paid to the land owner by the Builder. Whether
conveyance is possible ?

12. One plot – 2 societies – can they have separate Conveyance?

Land owner granted lease to the Developer? Can the Society

13.
get Conveyance?

Whether chain of Agreements of a particular flat are

14.
required in the case of Conveyance?

If the Agreement of one flat owner is not available , what is

15.
the option as regards Stamp Duty payment?
 Automatic Membership of Society on the death of a Member on filing Application for
Membership by Nominee.
 As Supreme Court Ruling in 1984, Nominee is a mere trustee.

As per New Section 154B-13:

 Transfer only on the basis of Testamentary Documents/Succession Certificate/legal

heirship/family arrangement document etc.
 Can admit Nominee as a Provisional Member.
“WHEN IT RAINS MOST BIRDS SEEK SHELTER. THE EAGLE IS THE ONLY
BIRD THAT WILL FLY ABOVE THE CLOUDS TO AVOID THE RAIN.”

“PROBLEM IS COMMON TO ALL BUT THE ATTITUDE TO SOLVE

THE PROBLEM MAKES ALL THE DIFFERENCE…”

CA MUKUL A. VARMA