• Sale of flat in a property developed under 33/7 in Mumbai

Dear Sirs,

our was a chawl system in Mumbai, which was recently developed by a private developer under MHADA rule 33/7. Tripartite agreement between developer, proposed society and tenant(me) clearly says the flat on ownership basis will be provided to tenants. we got the possession of the flat in July 2014 along with letter of possession or allotment ( I am not sure what it is called).. its a letter on letter head of developer addressed to me stating allotment of flat no ... on ... floor...etc. by way of permanent alternate accommodation. Our society is yet not registered.

My Question is thet  1) Can I sell the flat in current situation and time( I have heard that such flats can'nt be sold for 10/5 years.   its under 33/7  so is it SRA or what ??)

who is going to give NOC?? society or Developer?? ( since society is not registered)
what are the number of documents required from Society or developer to complete the sale. at this point.

any other point from your side please??

Thanks

Kiran
Asked 2 years ago in Property Law from Mumbai, Maharashtra
1) the Govt framed the Development Control Regulations for Mumbai. Under these Regulations, the Rule no. 33(7) was formed for redevelopment of cessed buildings in the Island City of Mumbai and the provisions of the policy of 1984 were incorporated in it.
the Govt. in the year 1999 amended the Development Control Regulation 33(7). The brief highlights of the amended Development Control Regulation 33(7) are as follows:

In case of redevelopment of 'A' category cessed buildings (constructed before 1940) undertaken by the landlord or Cooperative Housing societies of landlord or occupiers, the total FSI shall be 2.5 of the gross plot area, or the FSI required for rehabilitation of existing occupiers plus 50% incentive FSI, whichever is higher. Under the new policy the developer is assured of at least 50% FSI for free sale. Also the policy enables rehabilitation of all occupants on the same plot, reducing social dislocation.
Self contained flats of minimum 225 sq.ft. and maximum 753 sq.ft. carpet area are given to the old residential tenants/occupants. Shopkeepers are given an area equivalent to their old area.


2) the letter of possession must be mentioning period during which said flat cannot be sold . in addition triparte agreement executed between developer proposed society and you must be containing provisions for sale of property . 

3) you can make inquires with the developer regarding sale of flat allottted to you . it is better you wait for society to be formed and share certificate issued to you by society 

4) you would need NOC of society for sale of flat . also have to give inspection of agreement entered into by you with builder and society , copy of plans sanctioned by BMC etc
Ajay Sethi
Advocate, Mumbai
23145 Answers
1215 Consultations
5.0 on 5.0
Hello,
 The Govt.of Maharashtra formed a Committee under the Chairmanship of Shri Sukhtankar to overview the implementation of the MHADA scheme. On the submission of the Report of the Sukhtankar Committee, the Govt. in the year 1999 amended the Development Control Regulation 33(7). The brief highlights of the amended Development Control Regulation 33(7) are as follows:

In case of redevelopment of 'A' category cessed buildings (constructed before 1940) undertaken by the landlord or Cooperative Housing societies of landlord or occupiers, the total FSI shall be 2.5 of the gross plot area, or the FSI required for rehabilitation of existing occupiers plus 50% incentive FSI, whichever is higher. Under the new policy the developer is assured of at least 50% FSI for free sale. Also the policy enables rehabilitation of all occupants on the same plot, reducing social dislocation.
Self contained flats of minimum 225 sq.ft. and maximum 753 sq.ft. carpet area are given to the old residential tenants/occupants. Shopkeepers are given an area equivalent to their old area.
In case of 'B' category cessed buildings permissible FSI shall be the FSI required for rehabilitation of existing occupiers plus 50% incentive FSI. 

a)Specific to your query the letter you have received is an allotment letter issued by the builder.
b) There will be a clause in the letter stating the duration in which you can not sell the property to a third party.It could be 3 years, 5 years or 10 years as the case may be.The property can not be alienated during this period.
c)In the normal circumstances you will need NOC from the society to sell.Now though society is not formed the Builder has no authority to issue NOC as he is only a facilitator and is bound to comply by the clause restricting the sale in the time clause mentioned.
d) It is advisable to wait till the formation of the society to sell.
e)To sell you will need the copy of the tripartite Agreement,7/12 extracts,occupation certificate,allotment letter,NOC from competent authority(since society is not formed and under circumstances,a special governmental sanction in lieu)
S J Mathew
Advocate, Mumbai
1950 Answers
65 Consultations
5.0 on 5.0
1. What has been mentioned in the tripartrite Agreement which you have entered into with the Landowner and the Developer as regard your right of the allotted premises. Has selling right been given in the said agreement? You should have insisted for incorporating the said clause in the said agreement,

2. Get teh Society registered and make a bye law which will permit you to sale your flat,

3. While sellng the flay you need to submit building plan, NOC from Society, copy of the agreement, allotment letter and also No Due certificate from your society.
Krishna Kishore Ganguly
Advocate, Kolkata
12055 Answers
228 Consultations
5.0 on 5.0
Hi,
 as per the act The 5 years restriction is there to sell or transfer. However the practice followed in Mumbai is  sign a sale agreement with the purchaser, issue a power of attorney to register and transfer and if society is not there intimate the builder/developer and get aNOC . 
Legally this is not an option if the seller's legal heirs claim. However since the restriction imposed by the MHADA is an objection to register and transfer the flats immediately after the allotment. so people involved find their own practical ways to sell and buy .
However the restrictions to rent it out was relaxed by the Govt.
Thresiamma G. Mathew
Advocate, Mumbai
1316 Answers
85 Consultations
5.0 on 5.0
1. The letter that you have received authorizing you to enter and possess the flat is an allotment letter.

2. Is there a clause in the allotment letter which places an embargo on your right to sell the flat for a particular period of  time? The clause, if any, will be binding on you.If the letter of allotment is silent on the right to resell then some clause touching on the right to sell the flat must have been incorporated in the tripartite agreement to which you were a party.

3. The NOC will be issued by the society. Since the society is not formed you should wait till the formation of the society.

4. At the time of selling your flat you will require the tripartite agreement you executed with builder and society, allotment letter, occupation certificate, building sanction plans and NOC of the society.
Ashish Davessar
Advocate, Jaipur
18061 Answers
446 Consultations
5.0 on 5.0
1) make inquires with builder whether you can sell the flat . obtain builder/MHADA  NOC 

2) any buyer will want flat to be transferred in his name if he is paying you full  consideration  for the flat 

3) if no restrictions are contained in allotment letter / tripartite agreement you can sell the flat. 
4) i presume occupation certificate has been issued by BMC 

5)  . enter into sale deed with purchaser have it duly stamped and registered .
Ajay Sethi
Advocate, Mumbai
23145 Answers
1215 Consultations
5.0 on 5.0
1. If the agreement and allotment letter do not contain an embargo on the sale of flat then you are at liberty sell the flat.

2. Builder cannot stop you from selling flat until and unless the restriction has been incorporated in the agreement itself or the allotment letter.

3. You may execute a sale deed in favour of the prospective purchaser and sell the flat after registration and payment of stamp duty.
Ashish Davessar
Advocate, Jaipur
18061 Answers
446 Consultations
5.0 on 5.0
1. Obtain NOC from the Builder and the Society for your selling the said flat,

2. Make the builder and the society  the confirming parties in the sale deed to be executed and registered by you and your buyer by paying proper stamp duty.
Krishna Kishore Ganguly
Advocate, Kolkata
12055 Answers
228 Consultations
5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Property Lawyers

T Kalaiselvan
Advocate, Vellore
13944 Answers
127 Consultations
5.0 on 5.0
Ajay Sethi
Advocate, Mumbai
23145 Answers
1215 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18061 Answers
446 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12055 Answers
228 Consultations
5.0 on 5.0
Devajyoti Barman
Advocate, Kolkata
5174 Answers
54 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
868 Answers
43 Consultations
5.0 on 5.0
Atulay Nehra
Advocate, Noida
433 Answers
15 Consultations
4.7 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2731 Answers
41 Consultations
4.9 on 5.0
Ajay N S
Advocate, Ernakulam
1909 Answers
19 Consultations
5.0 on 5.0
Thresiamma G. Mathew
Advocate, Mumbai
1316 Answers
85 Consultations
5.0 on 5.0