Deposit Rs 1 crore for conveyance: RERA

In a first, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered a developer to deposit Rs 1 crore with a housing society when it gets conveyance. Housing experts believe that this will set a precedent that other developers will have to follow.

While disposing of a case of Shrikant Pradhan versus Marvel Realtors and Developers Ltd, in connection with a project in Pune, the authority held two consent terms, of which one read, "The respondent (Marvel Realtors) ensures that at the time of conveyance of the project to the society, he will deposit Rs 1 crore in the society account."

Conveyance implies transfer of ownership of the land on which the building stands from the owner to the society. It is the responsibility of the developer to get the conveyance, but they fail to ensure this in many cases. The state government also recently relaxed the deemed conveyance norms, allowing buildings without occupation certificate to get deemed conveyance by taking full responsibility.

"Many developers would not deposit the money – which they take from home buyers for conveyance and society formation – with the society. This order sets a precedent and all developers will have to follow it," said Ramesh Prabhu, chairman of Maharashtra Societies Welfare Association.

According to him, this order will also enable societies, who pay for the conveyance, to collect reimbursement from developers.

About Conveyance

Transfer of ownership of land on which a building stands, from owner to housing society
Order will enable societies, who pay for the conveyance, to collect reimbursement from developers