Letter to CM regarding Deemed Conveyance drive

 Satark Nagrik Foundation ®

         (Formerly Alert Citizens Forum)

102, Ekvira Apartment, Uthalsar, Thane West, Maharashtra 400601 #8879528575

December 31, 2020.

The Hon.Chief Minister,

Govt of Maharashtra,

Mantralaya,

Mumbai.

Sub: The drive for Deemed Conveyance by the State Government from January 1 and related issues including a new policy for Deemed Conveyance.

Dear Sir,

At the outset, Satark Nagrik Foundation ® wishes you and the State Government of Maharashtra a very Happy, Prosperous and Covid free New Year 2021.

We appreciate the balanced, benign yet decisive leadership provided by you during the troubled times in the year gone by.

Sir, vide this letter we want to compliment your Government for the new years gift to the people of Maharashtra - the launching of the Deemed Conveyance awareness drive amongst Cooperative Housing Societies from January 1st to 15th.

This must be the first time that a State Government has taken initiative to launch such a drive on an important subject in the country.

As a well wisher of the people of Maharashtra, our Satark Nagrik Foundation would like to make you aware of certain important errors in this drive so that you can make corrections if you want to in the campaign.

We also want to inform you the pitfalls which were responsible for the failure of efforts of earlier governments to give Deemed Conveyance.

Our submission is as follows:

1) Deemed conveyance refers to the title of the property being transferred from the builder to the housing society.

2) Previous Congress-NCP-led state government had come forth with a deemed conveyance law and publicised it in 2011.

3) This led to thousands of housing societies across Maharashtra flocking to government offices to get the deemed conveyance. 

4) Flaws in the then rules - like the requirement of Occupation Certificate (OC) and Building Completion Certificate (BCC) plus the multiple documents required for Deemed Conveyance had led to just 5% societies in the State getting Deemed Conveyance.

Actually, OC and Building Completion Certificate (BCC) had nothing to do with Conveyance. 

It was a requirement of local corporations for giving permission for residents to occupy a building - that it was fit for use - while Conveyance essentially was the transfer of title and rights of the land from the Land owner and Builder to the Society.

5) The issue of Deemed Conveyance covered four different departments - Cooperation, Revenue, Urban, Housing and the Municipal Corporations and the Housing Societies lost interest mid way due to the red tapism and corruption - one has to pay at every step and stage - and gave up.

6) These lacunaes were corrected and the issue was simplified by the BJP-Shivsena Government in 2016 and 2028 vide two circulars and the requirement of Occupation Certificate & BCC were removed as pre-requisites for Deemed Conveyance.

7) Hence it is surprising that the new drive by the State Government is referring to the old GR dated February 25, 2011 and is totally silent about the subsequent GRs dated June 14, 2016 and June 22, 2018.

8) In fact, vide this June 22, 2018 GR the then Government had laid down the new procedure to be followed by Cooperative Housing Societies and the Competent Authority on the issue of Deemed Conveyance.

Now, suddenly a drive which is purportedly going to be run as per the old GR dated February 25 2011, is bound to create confusion not only for the Housing Societies seeking Deemed Conveyance but also increase hurdles and corruption by the officials of the government departments.

9) What is the status of the 2 GRs of 2016 and 2018 needs to be clarified. So also whether OC and BCC are now going to be required or not required has to be re-specified because this was required as per the old 2011 GR.

10) Sir we seek your personal and immediate intervention in the matter in the interest of the people of Maharashtra.

You are - as you always profess and rightly so, the 'Kutumb Pramukh'.

The buck will stop at your door.

11) Petty politics is being played by your alliance partners to hog credit for the drive but it is sowing seeds of failure.

12) It’s been 2 years since policy reforms made transfer of land ownership from developers to housing societies easier. The impact, however, is negligible.

13) The government introduced Deemed Conveyance (DC) in 2008 and published the rules in 2010. 

Under this provision, a society without conveyance could apply to the Deputy District Registrar (DDR) of Co-operative Societies, who after verifying the documents submitted and hearing both the society and the developer will, if justified, pass an order conveying the land in favour of the CHS. 

14) In 2017, the government relaxed the rule on the need to submit an Occupancy Certificate. However this relaxation has had little impact on the number of applications, which continues to be low.

This is because all other conditions remain the same, and this includes approaching four different departments to complete the process. Hence it still takes one to two years for a CHS to secure deemed conveyance. 

15) Failing to understand the complexities involved, CHS office-bearers often stop the process midway

Primarily, societies are unaware of the importance of conveyance. Second, they do not have the required documents. Nor do they understand the process to be followed. 

16) There is a correct perception that it is a lengthy and expensive process, which it is should not be.

While the process followed by DDRs may look to be  simple and inexpensive it is the pre- and post- paperwork that takes up time and effort.

17) After a favourable order from the DDR, the conveyance deed is executed. 

The society then has to approach the Collector of Stamps and pay the stamp duty, then meet the sub-registrar and get the conveyance deed registered.

Thereafter one has to apply to the city survey office to get the property card transferred in the society’s name. 

Even at this stage, issues can crop up. If there are differences in the area mentioned in the approved plan and in the document lodged for registration, the CHS will have to execute a deed of rectification. And if the builder challenges the DC order in courts, it will prolong the case further.

Suggestions:

• Since, by law, the developer is required to convey the land to the CHS within four months of the housing society being formed, Deemed Conveyance should be granted automatically after verifying the society’s registration details, instead of making the society run around for it.

 • A New policy for Deemed Conveyance should be framed and the simplification process started in 2016 and 2018 should be taken to its logical conclusion.

• This can happen by the State Government taking a policy decision to grant Deemed Conveyance to all Societies and legal buildings over 15 years.

•The state should also not hold the conveyance of any building if a few residents have not paid stamp duty. 

The title should be conveyed and those flat owners should be penalised and made to pay the Stamp Duty at current market price.

Sir, there are thousands of Co-operative Housing Societies in Maharashtra.

Lakhs of people staying in them are suffering because of red tapism and corruption.

History is beckoning you to take steps which will make Maharashtra remember you for ever.

Please don't disappoint your people. 

Regards,

For Satark Nagrik Foundation ®,

Dayanand Nene.  Amit Sawant.  Sudesh Khatawkar

Satark Nagrik Team:

Rajan Chandok, Jitendra Satpute, Pramod Date, Prasad Bedekar, CS Sandhya Malhotra, Ulhas Patil, Ganesh Iyer.