Bombay High Court Allows Developer's Challenge to Deemed Conveyance in TDR Case — Principle of Land Division Proportionate to Built-Up Area Applicable When TDR Distributed Across Layout. The Court set aside the Competent Authority's order granting conveyance of 929.84 sq.mtrs and remanded for fresh consideration under Section 11(3) of MOFA, holding that GR dated 22 June 2018 does not mandate conveyance of only plinth and appurtenant area.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The Petitioner, Neelkanth Mansions & Infrastructure Private Limited, is a developer of a large integrated project named 'Neelkanth Greens' at Majiwada, Thane, comprising multiple residential buildings, row houses, and common amenities on land admeasuring 56,654 sq.mtrs. The project was sanctioned under a common layout approval by Thane Municipal Corporation on 28 September 2023. Respondent No.2 is a Co-operative Housing Society of purchasers of 12 row houses, which obtained an occupancy certificate on 17 July 2007. On 10 September 2025, the Society filed an application under Section 11(3) of the Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA) before the District Deputy Registrar, Co-operative Societies, Thane (Competent Authority) seeking deemed conveyance of land admeasuring 929.84 sq.mtrs, comprising 788.63 sq.mtrs of exclusive plot area and 141.21 sq.mtrs of proportionate recreational ground. The Petitioner opposed the application, contending that since TDR admeasuring 24,950.45 sq.mtrs was utilised for construction of buildings in the layout, conveyance should be limited to plinth and appurtenant area as per GR dated 22 June 2018. The Competent Authority allowed the Society's application and issued a certificate of unilateral deemed conveyance of the said land. The Petitioner challenged this order by way of a writ petition. The High Court considered the issue of whether it is mandatory to convey only plinth and appurtenant area when TDR is utilised, or whether the principle of land division proportionate to built-up area can be applied when TDR is distributed across all buildings in the layout. The Court held that the GR dated 22 June 2018 does not mandate conveyance of only plinth and appurtenant area; rather, it provides for proportionate land division based on built-up area. The Competent Authority failed to consider the applicability of the GR and the fact that TDR was utilised across the entire layout. The Court set aside the impugned order and remanded the matter to the Competent Authority for fresh consideration, directing it to determine the proportionate land to be conveyed to the Society based on the built-up area of the row houses vis-à-vis the total built-up area in the layout, after giving an opportunity of hearing to both parties.

Headnote

A) Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 - Section 11(3) - Deemed Conveyance - TDR Utilisation - When TDR is utilised in construction of buildings in a layout, it is not mandatory to convey only plinth and appurtenant area; the principle of land division proportionate to built-up area can be followed if TDR is distributed across all buildings in the layout. The Competent Authority's order granting conveyance of 929.84 sq.mtrs was set aside and remanded for fresh consideration. (Paras 1, 2, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20)

B) Government Resolution dated 22 June 2018 - Conveyance - TDR - The GR does not mandate that only plinth and appurtenant area be conveyed when TDR is used; it provides for proportionate land division based on built-up area. The Competent Authority failed to consider the applicability of the GR and the fact that TDR was utilised across the entire layout. (Paras 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20)

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Issue of Consideration

Whether it is mandatory to convey only the plinth and appurtenant area to the organization of flat purchasers when TDR is utilised in construction of buildings in the layout or whether the principle of land division proportionate to built-up area utilised in construction of buildings in the layout can also be followed in a given case where use of TDR is not restricted to a particular building and TDR is distributed across all buildings in the layout.

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Final Decision

The impugned order dated 30 January 2026 passed by the Competent Authority is set aside. The matter is remanded to the Competent Authority for fresh consideration in accordance with law, after giving an opportunity of hearing to both parties. The Competent Authority shall determine the proportionate land to be conveyed to Respondent No.2-Society based on the built-up area of the row houses vis-à-vis the total built-up area in the layout, taking into account the GR dated 22 June 2018 and the fact that TDR was utilised across the entire layout.

Law Points

  • Conveyance under MOFA when TDR utilised
  • Plinth and appurtenant area vs proportionate land
  • Principle of land division proportionate to built-up area
  • GR dated 22 June 2018 interpretation
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Case Details

2026 LawText (BOM) (06) 100

WRIT PETITION NO. 3530 OF 2026

2026-06-25

SANDEEP V. MARNE, J.

Mr. Sharad Bansal with Mr. Mdehavin Bhatt, Mr. Ranjyot Singh Panesar and Ms. Manashvi Shah i/b. MV Law Partners, for the Petitioner; Ms. Mamta S. Srivastava, AGP for State; Mr. Mosin Naik, for Respondent No.2.

Neelkanth Mansions & Infrastructure Private Limited

The District Deputy Registrar, Co-operative Societies, Thane & Ors.

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Nature of Litigation

Writ petition challenging order of Competent Authority granting unilateral deemed conveyance of land under Section 11(3) of MOFA.

Remedy Sought

Petitioner-Developer sought setting aside of the Competent Authority's order dated 30 January 2026 issuing certificate of unilateral deemed conveyance of 929.84 sq.mtrs in favour of Respondent No.2-Society.

Filing Reason

Petitioner contended that since TDR was utilised in construction, conveyance should be limited to plinth and appurtenant area as per GR dated 22 June 2018, and not the entire land area.

Previous Decisions

Competent Authority allowed Application No. 603 of 2025 filed by Respondent No.2-Society and issued certificate of unilateral deemed conveyance of land admeasuring 929.84 sq.mtrs on 30 January 2026.

Issues

Whether it is mandatory to convey only plinth and appurtenant area when TDR is utilised in construction of buildings in a layout? Whether the principle of land division proportionate to built-up area can be applied when TDR is distributed across all buildings in the layout?

Submissions/Arguments

Petitioner submitted that TDR admeasuring 24,950.45 sq.mtrs was utilised for construction of buildings in the layout, and as per GR dated 22 June 2018, conveyance can be granted only of plinth and appurtenant area. Respondent No.2-Society supported the Competent Authority's order granting conveyance of the entire land area.

Ratio Decidendi

When TDR is utilised in construction of buildings in a layout and is distributed across all buildings, the principle of land division proportionate to built-up area can be followed for conveyance under Section 11(3) of MOFA, and it is not mandatory to convey only plinth and appurtenant area. The GR dated 22 June 2018 does not mandate conveyance of only plinth and appurtenant area but provides for proportionate land division based on built-up area.

Judgment Excerpts

The issue that arises for consideration in the present petition is whether it is mandatory to convey only the plinth and appurtenant area to the organization of flat purchasers when TDR is utilised in construction of buildings in the layout or whether the principle of land division proportionate to built-up area utilised in construction of buildings in the layout can also be followed in a given case where use of TDR is not restricted to a particular building and TDR is distributed across all buildings in the layout. The Competent Authority has grossly erred in directing conveyance of land admeasuring 929.84 sq.mtrs.

Procedural History

Respondent No.2-Society filed Application No. 603 of 2025 under Section 11(3) of MOFA before the Competent Authority on 10 September 2025 seeking deemed conveyance. Petitioner filed Affidavit-in-Reply opposing the application. Competent Authority allowed the application by order dated 30 January 2026. Petitioner filed the present writ petition challenging that order.

Acts & Sections

  • Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963: Section 11(3)
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