Bombay HC: Developers Can't Delay Conveyance to Exploit Future FSI

On July 17, 2026, Justice Sandeep Marne of the Bombay High Court dismissed a petition by Ariisto Realtors Pvt Ltd challenging a 2025 order that granted unilateral deemed conveyance of land and building to Ariisto Cloud Cooperative Housing Society in Vile Parle. The developer had argued it retained a contractual right to use additional Floor Space Index (FSI) made available under the newer DCPR 2034 rules, and that conveyance should wait until it exploited this potential.

What deemed conveyance means

Under the Maharashtra Ownership Flats Act (MOFA), a promoter must transfer land and building to a housing society within four months of its formation. When a developer fails to do so, the society can apply to a Competent Authority for "deemed conveyance" — a legal transfer ordered without the developer's consent. In this case, the society (registered in 2016, covering 12 flats, a commercial unit and two shops) had already been granted deemed conveyance once construction was complete; the developer's challenge to that order has now failed.

What this means for housing societies

• A developer cannot use unbuilt or future FSI as a reason to withhold or delay conveyance — courts view this as a delaying tactic, not a valid contractual right.
• Any additional FSI that becomes available after conveyance is completed belongs to the society, not the original developer, even if the sale agreement is silent or ambiguous on the point.
• Societies facing conveyance delays have a strong precedent to cite when applying for deemed conveyance or defending one in court.

The ruling reinforces the four-month statutory conveyance deadline under MOFA and signals that Bombay High Court will not entertain developer attempts to "endlessly" hold back transfer for future profit. Managing committees still awaiting conveyance should ensure their deemed conveyance application is filed with the Competent Authority and keep documentation of construction completion, as this was central to the society's success in this case.