'Flat Buyers deserves Fair Treatment', says Bombay High Court

Flat buyers can't be treated unfairly when builders default on obligations, according to the Bombay High Court. Builders can't disadvantage buyers if they fail to meet their responsibilities in property transactions, according to the ruling. Flat buyers are not placed at a disadvantage in such circumstances because of the decision.

An important decision was made by the Bombay High Court regarding housing societies with unauthorized buildings. It ruled that a housing association can't be denied 'unilateral deemed conveyance' just because its structure isn't in compliance with the law.

The builder of the building did not obtain the necessary occupancy certificate for the property. The certificate proves the building's security and compliance with all legal requirements.

The court emphasized that a builder's failure to comply with legal requirements should not preclude prospective buyers from acquiring the property rights they're entitled to.

The ALJ Residency Co-operative Housing Society Ltd., located in Pali Naka, Bandra West, challenged an order from the District Deputy Registrar (DDR) rejecting its request for a "deemed conveyance" in 2017. A supposed conveyance is a legal process that allows a housing society to take ownership of a building when the builder or landowner has failed to transfer the title.

The high court was asked to consider whether the building's illegality would affect the society's right to deemed conveyance under the Maharashtra Ownership of Flats Act (MOFA). It was said that the illegality would not affect such a right.