Litigation Update | Bombay Hc | Prospective Fsi Cannot Delay Deemed Conveyance

Recently, the Bombay High Court in the case of Ariisto Realtors Private Limited v. District Deputy Registrar, Co-operative Societies, reaffirmed the position that deemed conveyance cannot be withheld indefinitely by the builder, to exploit additional FSI made available by a change in the FSI Regime.

FACTS:

• The Petitioner, Aristo Realtor Private Limited (“Developer”) was granted the right to construct a building, "Ariisto Cloud”, under a Development Agreement dated 3 March 2010. Another building had been constructed on the same plot by a different developer, Kum Kum Apartments Co-Operative Housing Society Limited (“Kum Kum CHSL”).
   
• Pursuant to disputes between the Developer, landowners and Kum Kum CHSL, a Tripartite Deed of Irrevocable Perpetual Lease dated 9 September 2011, was entered into by which all FSI over and above 2674.13 square meters, was to be utilised solely by the Developer. Though the future additional FSI and TDR was to exclusively belong to the landowners, the