Many builders have not conveyed the title of properties to the housing societies in the hope of availing more floor space index (FSI) that may become available, or the benefits accrued to them in case the property is redeveloped. The Maharashtra government came out with a special law from 27 September 2010. MOFA Maharashtra Ownership Flat Act regulates the construction of property, once the conveyance is done the Maharashtra Cooperative Society Act takes over, under MOFA the definition of flat is very wide. There have been cases where the builder has sold terraces and car parking. Judgements in the past have gone in favour of the society.
Many housing societies which have grown old, the cost of reconstruction has gone beyond the reach of many societies, hence, the need for developers. But when one goes for redevelopment, they need to read the fine print very carefully. If the cooperative societies do not have the title to the land, how can they submit plans for fresh development to the municipal corporation