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In an enthusiastic move, the State Government has launched a special drive to issue Deemed Conveyance Deeds to eligible Co-operative Housing Societies. All the Departments concerned and Stake Holders are now ready to clear the long awaited issue. District Collectors across the State will launch an intensive campaign from December 15 onwards.

The meaning of Conveyance of a property is transferring the Interest, Right, Title and Ownership of the property from the seller to the purchaser. In case of a Co-operative Housing Society formed by the Flat Purchasers / Owners under the Provisions of Maharashtra Co-operative Societies Act 1960, the Conveyance implies transferring the Interest, Right, Title and Ownership of the Land and Building from the Land Owner / Property Developer to the Co-operative Housing Society.

After the Land and Building is conveyed in favour of Co-operative Housing Society and the Title of the property is fully and finally recorded in the Property Card and other Revenue Records then only the property becomes completely free and marketable.

As per the provisions under Section 11 of Maharashtra Ownership Flat Act 1963, the Conveyance of land is the Right of the Co-operative Housing Society and the Duty of the Property Developer / Promoter to be executed within 4 months from the date of Registration of the Co-operative Society.

It was observed by the State that majority of Co-operative Housing Societies did not have the Conveyance of the building and land in their favour. When a provision for Deemed Conveyance was first introduced in 2008, it was considered to be a landmark decision to protect the interest of flat buyers. But four years later, barely 1,200 out of the 88,000 housing societies have applied for it. Worst, the land has been conveyed to housing societies in only 700 cases.

Nearly two years after the State Government has now approved the scheme as there have been only a handful of cases where the land has been conveyed from the builders / original land-owners to a Housing Societies. There are over 50,000 Housing Societies who do not have ownership of land on which their buildings stand.

The Revenue Department has issued a notification informing that the change in land records would be carried out without holding an additional hearing once the Competent Authority has given its decision in favour of Deemed Conveyance.

To ensure the transparent process, a Committee comprising the Collector, District Deputy Registrar, Assistant Registrar, Land Record Officer, Municipal Commissioner or his Deputy is set up. The Housing Department will oversee the entire process for Deemed Conveyance. The Committee so appointed shall meet once a month and take a review of all the cases that comes up for hearing. This drive is slated up to June 2013.

As per the previous system, all the concerned parties had to go through multiple hearings with three Departments i.e. Land Records, Registrar of Stamps and the Co-operation Department. The Department of Housing is keen to bring down the number to one or two general hearings where all the issues related to issuing Deemed Conveyance are planned to be sorted out.

The State will be holding the drive until June 30, 2013 during which hearings of most Housing Societies is expected to be completed. The fact remains that there are 88,000 Housing Societies in the State of which about 20,000 Housing Societies have received their Conveyance Deeds.

The first step for this Committee is to prepare a district-wise detailed database of Housing Societies, Plots and Bungalows. The status of every Society seeking Conveyance Deed will be checked with all Departments concerned, which would give an idea about the number of Societies, how soon Deemed Conveyance can be issued and also the procedure.

All the queries of other Departments will be answered and a final decision will be taken during one hearing before the Registrar from the Co-operation Department. Orders have already been issued to conduct a detailed survey of the Societies in the Mumbai as a preparation for the drive to know the exact number of Societies waiting for their Conveyance Deed.

The necessity to implement this drive is that the builders have an eye on extra Floor Space Index (FSI), Transfer of Development Rights (TDR) and redevelopment of old buildings and hence delay the procedure of issuing Conveyance Deed. If a Co-operative Housing Society gets additional FSI or TDR, it can be utilized as per the Society’s requirements; but if a Housing Society is not formed, the benefits directly go to the builder concerned.

It is a good move on part of the State Government since it will speed up the lengthy process and many Societies waiting for their Conveyance Deeds will get the desired results. However, it is for the Societies to come forward to take the benefit of the Scheme and participate in the drive and secure Deemed Conveyance Deeds.