CONVEYANCE DEEMED CONVEYANCE CA RAMESH S PRABHU Chairman

CONVEYANCE & DEEMED CONVEYANCE CA. RAMESH S. PRABHU (Chairman) M S W A

M O F A, 1963 • CONSTRUCTION BOOM IN THE 60’S • FLAT PURCHASERS WERE UNPROTECTED • BUILDERS TOOK FULL ADVANTAGE • MANY IRREGULARITIES SURFACED • GOVT. IMPLEMENT AN ACT IN 1963 • KNOWN AS M O F A, 1963

UNDER M O F A, 1963 • • • Flat Owners get Statutory Rights Can demand Building relevant papers Get the Agreement Registered Agreement in Specific Format Maintain property till society formed

MOTHER OF FLAT ACT MAHARASHTRA OWNERSHIP FLAT ACT, 1963 Applicable All Over Maharashtra All connected Central & State Laws applicable Related to Owning / acquiring Rights Concerned with Flats Freehold Rights Leasehold Rights

4) MOFA : INDEPENDENT UNITS Residential Flat Office Shop Developed Plot Garage Bungalow Industrial Gala Any Constructed Any Permanent or to be Constructed Structure Provided or agreed to be provided by the Promoter To the Purchaser for a Consideration

PARTIES ON WHOM OBLIGATIONS ARE MADE APPLICABLE Promoter Land Owner Flat Buyer/s Builder / Developer Single Group 1. Individual, 2. Firm. 3. Company, 4. Assn of Persons, 5. Govt. , 6. Semi Govt. 8. Local Authority 9. Trust 10. Society – u/SRA, 1860 11. Co-operative Society u/ MCS A of 1960 12. LLP or any other person or group of persons.

OBLIGATION OF THE BUILDER Contractual Obligations Statutory Obligations 1. 1. Enter into Agreement 2. 2. Registration of Agreement 3. 3. Receive the Flat 4. Consideration 5. 4. Hand over the Possession 6. 7. of flat as agreed Register Agemt on Receipt of 20% Complete the Building in all respec Provide O. C. , B. CC. Provide Common Facilities Water Connection Electric connection Disclose the information 8. Provide all Documents 9. Registration of Society / Legal Bod 10. Providing Conveyance

CONVEYANCE • Meaning of Conveyance : It’s the Document confirming the transfer of title • Objects : – To become the legal owner – To make entries in Govt. Records – To have free and marketable title P

ADVANTAGE OF CONVEYANCE • Transfer of Ownership Rights over the land it is constructed on • All Commercial benefits come to Society • Appreciation of Property ……. as also • Loan can be raised by mortgage • Balance F S I can be retained • Permission for redevelopment possible

HAVE YOU READ SOMETHING LIKE THIS ? May be a very few cases !

What in case if this happens? Don’t wait for a Situation Like this to Happen …… V

DOCUMENTS REQUIRED FOR CONVEYANCE • • Society Reg. Cert : With Society Stamp Duty & Reg Paid Proof : Each individual Agreement for Sale : Promoter to Purchaser Commencement Cert : Municipal Authority C C / O. C : Concerned Authority to Builder Approved Building Plan : Municipal Authority 7/12 Extract : Tahsildar /Concerned Auth

DOCUMENTS REQUIRED FOR CONVEYANCE • • • Form No 6 Mutation Entry : Revenue Office Search Report / Title Clearance : Advocate Index II : Sub Registrar of Assurances Property Card : Thasildar N A Order : Collector of Districts Development Agreement : Land Owner to Builder • Conveyance Deed or Sale deed : Builder to Society

Mah. Ownership Flat Act, 1963 • U/s 11. Promoter /Builder to complete conveyance of land & building to society • Promoter/builder to rectify, execute and deliver all relevant documents of title • Execute conveyance within 4 months from the registration of society • U/s 13. Non-conveyance is an offence • Punishment : 3 yrs Jail or fine or both

U/S 11. TO CONVEY LAND BUILDING TO THE LEGAL ENTITY WITHIN PRESCRIBED TIME & DELIVER RELEVANT DOCUMENTS. Legal Remedies Existing till 2005 Civil Court U/Specific Relief Act, 1963 Consumer Court U/ Consumer Protection Act, 1986 Quasi Judicial Authority as per MOFA-Amendment-2008 Criminal Court U/S-13 of MOFA 1963 Dy. Dist. Regr, C. A notified as Competent Authority Amendment to Rules were made to implement the functioning of Competent Authority and MOF (Amendment) Rules, 2010 notified

REMEDIES WITH COMPETENT AUTHORITY FOR VIOLATION OF STATUTORY OBLIGATIONS BY THE PROMOTER FOR THE COMMON BENEFIT OF FLAT BUYERS U/s. 5. Disclosure of Information of Money Collected for a Particular Purpose U/s. 10. U/s 11. Formation of To Convey Legal entity to Land Manage and Building Common to the Legal Services, Entity Area & Facilities within 4 after months & Deliver Disposing Documents. 60% units U/s 13(4) & 13(5) To Inform Local Authority to Debar The Promoter from Construction Activity for next 5 years on conviction by court on MOFA violation.

U/S. 5 DISCLOSURE OF INFORMATION BY THE PROMOTER COLLECTED MONEY FROM THE FLAT BUYERS FOR FOLLOWING PURPOSE OTHER THAN SALE CONSIDERATION/ COST OF FLAT TO BE DISCLOSED AND ACCOUNT STATEMENT TO BE PROVIDED. . Payable to Authorities for service 1. Development Charges 2. Water Meter Deposit 3. Electic Deposit 4. Premium to Authorities etc For Tax Payments For Maintenance For Common Legal Entity 1. BMC-Prop. Tax 2. N. A Tax 3. Stamp Duty 4. Regn Fees 5. MVAT Deposit 6. Serv. Tax Deposit 1. Water Chgs 2. Elect. Chgs 3. Comm. Repairs 4. Service chgs 5. Insurance 6. Common Services 1. Share Money 2. Convy Chgs 3. Corpus Fund 4. Adv. Maint. 5. Legal Fees 6. Others

U/S. 10. FORMATION OF LEGAL ENTITY. (MOFA-MOTHER OF FLATS ACT) TO MANAGE COMMON SERVICES, AREA & FACILITIES AFTER DISPOSING 60% UNITS BY PROMOTERS Society or Federation Mah. Co-op. Soc. Act, 1960 At Dy. Regr. Association u/SRA, 1860 Company Condominium Companies Act, 1956 at ROC Mah. Aprt. Own. Act, 1970 At Sub-Regr. Trust u/BPT, 1950 Firms u/IPA, 1932 PSU & GU u/Act of Pimt Other Legal Entity Others LLP etc.

U/S 11. TO CONVEY LAND BUILDING TO THE LEGAL ENTITY WITHIN PRESCRIBED TIME & DELIVER RELEVANT DOCUMENTS. Legal Remedies Existing till 2005 Civil Court U/Specific Relief Act, 1963 Consumer Court U/ Consumer Protection Act, 1986 Quasi Judicial Authority as per MOFA-Amendment-2005 Criminal Court U/S-13 of MOFA 1963 Dy. Dist. Regr, C. A notified as Competent Authority Amendment to Rules were required to implement the functioning of Competent Authority and MOF (Amendment) Rules, 2009 notified

11) AMENDMENT IN MOFA IN 2008 - PURPOSE 1. To provide a Competent (Quasi Judicial) Authority in addition to existing Legal Remedies. 2. To order & Implement the remedial steps by Competent Authority in the common interest of flat buyers. U/s 5 A of MOFA not below the rank of (D D R) Dist. Dy. Registrar of Co-op. Soc. as per Notification Dated. 25 -06 -08, have been notified to be Competent Authority for their respective Jurisdiction

CONVEYANCE OF LAYOUT PLOT. All the Societies To Single Society With Apply together For To The Fed 1. 100% Bldg & Or Apex 1. 100% Bldg & Body With 2. Notional Net The Plot 2. Notional Net Consent Plot as per 3. Percentage of FSI USED All Undivided Legal 3. Fedn to Manage Rights area as per Entities FSI USED common Area & get title

SCRUTINY OF APPLICATION & NOTICES TO PARTIES (a) Give the Acknowledgement to Applications and Register in Register (b) Application to be incomplete, send the notice for compliance as per form No. VIII (c) CA to issue notice for hearing within 15 days of registering the application (d) Notice to be served registered post, Acknowledgement due. (e) CA to issue public notice inviting claims, objections in local news papers having wide circulation, if the notice is not served on the builders/ opponents

APPEARANCE & NON APPEARANCE (a) On Apt. Date –Opp. To appear In person or Auth File Reply. Adjournment not to exceed 15 days the first instance. (b) Only Appl Appears, CA to satisfy that notice is s on Opponents and Appl to justify prayers on nex and Decide the case ex-parte. If Opponent show sufficient cause for non-appearance, hear his sa the matter. (c ) On hearing date, if applicant is absent, the CA m hear the opponent and decide the matter as per (d) On hearing date, the Opponent is absent, the C decide the matter after hearing the applicant.

PRODUCTION & INSP. OF DOCUMENTS (a) Parties to file relevant documents in support of their If CA is satisfied , that reqd. documents is with other CA may direct the concerned party to produce the sa The Appl. to file written say before demanding such documents. (b) The party ordered, fails to produce, CA may draw ad inference against such party and original Appl hea will continue. (c) CA is satisfied documents cannot be brought, CA ma to take inspection of such documents at site within 7 (d) If CA is satisfied, on the basis of new documents, the opponent has to give a written statement, the same be allowed.

PROCEDURE FOR HEARING (a) On receipt of reply from Opponent/s, the Applicant to prove his contents and deal with opponents reply. Opponent may file written say on next date. No cross examination allowed. (b) On receipt of replies, CA may hear oral Arguments of the parties and close the proceedings. (c) Within 6 months after making such enquiries , verifying the authenticity of documents and giving sufficient hearing as per law of natural justice to the parties,

JUDGEMENT, ORDER & CERTIFICATE SPEAKING ORDER AND CERTIFICATE THAT THE APPLICANT CASE IS A FIT CASE ON GETTING UNILATERAL CONVEYANCE to be issued by the Competent Authority

REGISTRATION OF DEEMED CONVEYANCE • Prepare Deemed Conveyance deed • Send it for adjudication – Stamp Duty • Lodge for Registration with Sub Registrar • Sub Registrar to issue Show Cause Notice to Builder & Landlord • Decides the fate of registering the Conveyance deed

STAMP DUTY WAS PAYABLE AFTER 1958 WHERE YOU COULD PAY…. . AT THE TIME OF AGREEMENT As per the Article 5(h)- on Rs. 5/Stamp / Stamp Paper If not then at the TIME OF Possession or Under the Article 25 (d) of B S Act, 1958 at the time of CONVEYANCE

STAMP DUTY PAYABLE UNDER BOMBAY STAMP ACT, 1958 AT THE TIME OF AGREEMENT AT THE TIME OF CONVEYANCE AT THE TIME OF POSSESSION

24. Calculation Of Stamp Duty Optional upto 10. 12. 85 Compulsory after 10. 12. 85 As per Mkt. Value As per Ready Reckoner As per Mkt. Value (to Agreement value be decided) Before 04 -08 -1980 After 04 -08 -1980

No. 5 / Stamp Duty 06 / Ltr. No. 58/06/1224 Inspector General at Registration & Stamp Maharashtra State, Pune Office, Pune. To, Date : 10/08/2006 The Superintendent of Stamps, Mumbai. Sub : Levy of Stamp Duty on the Deeds of Agreements made prior to 10/12/1985 Reference : Your Letter No. BOM/5064/06 dtd. 03/08/2006 Referring to the points raised in the above letter we explain as follows : On the Sale Agreements executed before 10/12/1985, Stamp Duty applicable was as per the article 5(h) of Bombay Stamp Duty Act, 1958 and not as per Article 25 of the Act. This is as per the judgment given by Honorable Mumbai High Court in the case of Padma Nair V/S Dy. Collector, Stamps & Adjudication and others. If the State Agreements executed before 10/12/1985 are submitted under Article 31, the Collector of Stamps cannot give any remark on such Agreements under Article 32 C (A) & (B). Instead of issuing any order, under Article 33 or Amnesty Scheme you can issue a letter in following format to concerned persons who have submitted such Documents. “Your Sale Agreement Deed is executed before 10/12/1985. At the time of execution of your Sale Deed, the Agreement for sale was not treated as a Part Conveyance and provision for collection of stamp duty was not applicable at that time. As such the Agreement is considered properly stamped under the article 5 (h). However it must be noted that when ever you proceed to procure the Conveyance you would be liable to pay the full Stamp Duty on the Current Market Value of your Property as applicable under the rules. Inspector General of Registration and Controller of Stamps Maharashtra State, Pune

A Few ACTS & RULES APPLICABLE • REGISTRATION ACT, 1908 – For registration of Conveyance deed • BOMBAY STAMP ACT, 1958 – for Stamp Duty Verification and calculation • M. C. S. ACT, 1960 under which society is registered • INCOME TAX ACT, 1961 – To Verify Tax Liabilities of the Vendor • MAH. OWNERSHIP FLATS ACT, 1963 under which Flats are purchased

ACTS & RULES APPLICABLE • • ULC- For verifying any violations under the Act Criminal Procedure Code / Civil Procedure Code and Consumer Protection Act– For proceeding against the builder • BMC – Development Control Rules, 1991 For Legality of the Building construction • LAND REVENUE CODE – Where Land Records Order kept . BYE-LAWS: Applicable to all the societies

28) DEPARTMENTS INVOLVED for CONVEYANCE • • City Survey Office – for Property Card BMC – For Approved Plan Collector of Stamps – For Stamp Duty Sub Registrar – For Registration of Copv Assessment Dept– For Change in the Prop. Tax Bill Collector office : For N. A. Order Revenue Dept : ULC order Many more dept on case to case basis

Shri. Ashok Chawan Hon’ble C M of Maharashtra was felicitated for signing the bill Shri. Sanjay Nirupam, M. P, Shri. Ashok Chawan Hon’ble Chief Minister of Maharashtra & C A. Ramesh Prabhu, Chairman (MSWA) C. A. Ramesh Prabhu Welcomes Shri. Ashok Chawan Hon’ble Chief Minister of Maharashtra

Shri. Ashok Chawan Hon’ble Chief Minister of Maharashtra Releases the book on DEEMED CONVEYANCE Shri. Sanjay Nirupam, Shri. Ashok Chawan Hon’ble Chief Minister of Maharashtra, C A Ramesh Prabhu, Chairman (M. S. W. A)

MAHARASHTRA SOCIETIES WELFARE ASSOCIATION A/1, R. No. 207, Laram Center, Above Federal Bank, Opp. Railway Station, Andheri (West), Mumbai 400058 Presented By : CA. Ramesh S Prabhu Chairman (M S WA) Shri. Prabhakar Churi Hon. Consultant (MSWA) Tel Nos : 26248565 / 26248589