In a landmark judgment that strengthens the rights of homebuyers and cooperative housing societies, the Bombay High Court has ruled that developers cannot delay or refuse the conveyance of land and buildings merely to retain rights over future Floor Space Index (FSI) that may arise due to changes in development regulations.
The court reaffirmed that once a residential project is completed and a cooperative housing society is formed, the developer is legally obligated to transfer ownership of the land and building to the society.
The ruling is expected to benefit thousands of housing societies across Mumbai and the Mumbai Metropolitan Region that have been awaiting conveyance for years. In many instances, developers have withheld the transfer of ownership in anticipation of monetising future redevelopment opportunities through additional, fungible or premium FSI.
The case stemmed from a dispute involving Ariisto Cloud Co-operative Housing Society in Vile Parle (West). According to a Hindustan Times report, Ariisto Realtors Pvt Ltd challenged a 2025 order granting unilateral deemed conveyance of a 1,241.65 sq m plot to the housing society. The developer argued that the Development Control and Promotion Regulations (DCPR) 2034, introduced in 2018, entitled it to utilise an additional 841.16 sq m of development potential, and therefore, the conveyance should not proceed.
The High Court rejected the argument, observing that allowing such claims would enable developers to indefinitely postpone conveyance whenever planning regulations change. The court further noted that developers cannot continue to benefit from future FSI at the cost of flat purchasers, as doing so would defeat the purpose of the Maharashtra Ownership Flats Act (MOFA).
Legal experts believe the judgment will provide greater clarity in deemed conveyance proceedings.
“Developers have often opposed deemed conveyance proceedings by citing unutilised or future FSI. Following this ruling, they will find it difficult to object to the transfer of conveyance solely on the ground of retaining rights over the balance or future FSI. The decision reinforces that the statutory right of flat purchasers to obtain conveyance cannot be defeated by a developer’s commercial interest in exploiting future development potential,” said Minesh Shah, a Mumbai-based lawyer.
Under MOFA, developers are required to execute the conveyance deed within four months of the formation of a cooperative housing society. If they fail to do so, societies can seek deemed conveyance, a legal mechanism that enables ownership to be transferred through the competent authority without the developer’s consent.
According to the report, more than 30,000 housing societies in Mumbai and over one lakh across Maharashtra are still awaiting conveyance deeds, making the ruling significant for thousands of homebuyers seeking legal ownership and greater control over future redevelopment decisions.
Source: Hindustan Times
