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com/2011-03-08/mumbai/28668371_1_conveyancehousing-society-tenanted-property

Ghatkopar society is first to get deemed conveyance

Nauzer K Bharucha, TNN Mar 8, 2011, 02.50am IST

MUMBAI: A Ghatkopar housing society last week became the first in Maharashtra to receive deemed conveyance under new rules enforced by the state government last September. A conveyance deed is a document that conveys a property's title of ownership from the original owner to the ultimate purchaser. The three-storeyed Laxminarayan cooperative housing society, with 35 tenements, received an order from the district deputy registrar (eastern suburbs) in its favour on February 24.
"We got the conveyance deed registered at the sub-registrar's office on March 1," society secretary Praful Mehta said. "Our information shows that it the first housing society in the state to get the conveyance," additional registrar, cooperative societies, Bhanudas Badhan said. Many housing societies keen on redevelopment are stuck as the land is not in their names. "Our society has to decide whether to repair the building or redevelop it," Mehta said, adding that the flat-owners are from middle and lower income groups. On September 27 last year, the government made it mandatory for builders to convey the land to housing societies within four months of the society's formation. The competent authority must decide on the society's application within six months. Over 90% of the 18,000 societies in Mumbai are registered under the names of developers/landlords. Badhan said the figure was around 60,000 in the state. If the land is not conveyed to the society, benefits from future development on that land go to the builder. It is a major reason why most builders are reluctant to hand over conveyance to societies. Last year, a senior housing department official said only 5-10% housing societies in the state had got conveyance. The Ghatkopar society was constructed in 1960. Initially a tenanted property, it was converted into ownership in 1988 after tenants paid the landlord 150 months' rent in advance (Rs 6 lakh). The society was registered in 1991. "Since then we have been trying to get conveyance, but nobody helped us," Mehta said. In 2008, the society paid stamp duty and a penalty of Rs 6 lakh in anticipation of the new deemed conveyance rules. It had to wait for two years before the government introduced the rules last year. In January 2011, the society applied for deemed conveyance under the new act and it was the first application received by the deputy district registrar's (2) office at Konkan Bhavan in Navi Mumbai. "The office told us to produce additional documents like the 7/12 extract, society resolution authorizing officebearers to apply for conveyance, property card, layout plan, city survey plan, Brihanmumbai Municipal Corporation ( BMC) layout permission plan and architect survey report," Mehta said. Maharashtra Societies' Welfare Association chairman Ramesh Prabhu said Laxminarayan was a landmark case under new provisions of the deemed conveyance act. "The decision to grant conveyance was taken within three hearings," he said. Prabhu added that not many societies are applying for conveyance. Only 80 in Mumbai have applied to get properties transferred five months after the state government approved the new rules. A fresh circular issued by the state housing department on February 25, 2011, said a society must submit documents related to the land and building. These include a registered copy of the sale agreement with the builder,7/12 extracts, property card, building completion certificate, commencement certificate, occupation certificate, list of flat purchasers, proof of payment of stamp duty and proof of registration of the agreement.

However, experts warned that it was impossible for societies to submit all documents sought by the competent authority. They said it could result in a new breed of consultants who may thrive on speed money. The government has increased the number of competent authorities who hear conveyance applications all over the state from 16 to 37.