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CA . RAMESH S. PRABHU (Chairman) M S W A

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

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CA . RAMESH S. PRABHU (Chairman) M S W A

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

  2. 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

  3. 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

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

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

  6. PARTIES ON WHOM OBLIGATIONS ARE MADE APPLICABLE Promoter Flat Buyer/s Land Owner 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.

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

  8. P 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

  9. 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

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

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

  12. 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

  13. 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

  14. 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

  15. U/S11. TO CONVEY LAND AND BUILDING TO THE LEGAL ENTITY WITHIN PRESCRIBED TIME & DELIVER RELEVANT DOCUMENTS. Legal Remedies Existing till 2005 Quasi Judicial Authority as per MOFA-Amendment-2008 Civil Court U/Specific Relief Act, 1963 Consumer Court U/ Consumer Protection Act, 1986 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

  16. 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. Formation of Legal entity to Manage Common Services, Area & Facilities after Disposing 60% units U/s11. To Convey Land and Building to the Legal Entity within 4 months & Deliver Documents. 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.

  17. 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 For Tax Payments For Maintenance For Common Legal Entity 1.Development Charges 2.Water Meter Deposit 3.Electic Deposit 4. Premium to Authorities etc 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

  18. 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 Company Condominium Other Legal Entity Mah.Co-op. Soc.Act, 1960 At Dy. Regr. Companies Act, 1956 at ROC Mah. Aprt. Own. Act, 1970 At Sub-Regr. Association u/SRA, 1860 Trust u/BPT,1950 Firms u/IPA, 1932 PSU & GU u/Act of Pimt Others LLP etc.

  19. U/S11. TO CONVEY LAND AND BUILDING TO THE LEGAL ENTITY WITHIN PRESCRIBED TIME & DELIVER RELEVANT DOCUMENTS. Legal Remedies Existing till 2005 Quasi Judicial Authority as per MOFA-Amendment-2005 Civil Court U/Specific Relief Act, 1963 Consumer Court U/ Consumer Protection Act, 1986 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

  20. 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 5A 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

  21. CONVEYANCE OF LAYOUT PLOT. All the Societies To Apply together For 1.100% Bldg & 2.Notional Net Plot as per FSI USED 3. Fedn to Manage common Area & get title Single Society With 1.100% Bldg & 2.Notional Net Plot 3. Percentage of Undivided Rights area as per FSI USED To The Fed Or Apex Body With The Consent All Legal Entities

  22. SCRUTINY OF APPLICATION & NOTICES TO PARTIES • Give the Acknowledgement to Applications • and Register in Register • Application to be incomplete, send the • notice for compliance as per form No. VIII • CA to issue notice for hearing within 15 • days of registering the application • Notice to be served registered post, • Acknowledgement due. • 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

  23. APPEARANCE & NON APPEARANCE • On Apt. Date –Opp. To appear In person or Auth.Rep. • File Reply. Adjournment not to exceed 15 days in • the first instance. • Only Appl Appears, CA to satisfy that notice is served • on Opponents and Appl to justify prayers on next Date • and Decide the case ex-parte. If Opponent shows • sufficient cause for non-appearance, hear his say in • the matter. • (c ) On hearing date, if applicant is absent, the CA may • hear the opponent and decide the matter as per merit. • (d) On hearing date, the Opponent is absent, the CA may • decide the matter after hearing the applicant.

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

  25. PROCEDURE FOR HEARING • 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, pass such order as he deems fit.

  26. 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

  27. 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

  28. STAMP DUTY WAS PAYABLE AFTER 1958WHERE 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

  29. STAMP DUTY PAYABLEUNDER BOMBAY STAMP ACT, 1958 AT THE TIME OF AGREEMENT AT THE TIME OF CONVEYANCE AT THE TIME OF POSSESSION

  30. 24. Calculation Of Stamp Duty Optional upto 10.12.85 Compulsory after 10.12.85 After 04-08-1980 As per Mkt.Value As per Ready Reckoner Before 04-08-1980 As per Agreement value As per Mkt.Value (to be decided)

  31. 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

  32. 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

  33. 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

  34. 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

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

  36. Shri. Ashok ChawanHon’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 RameshPrabhu, Chairman (M.S.W.A)

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

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