Property tax payments are a source of income for development and civic bodies in India, and it is a mandatory levy imposed on owners of immovable assets. It is important to note that property tax is to be paid by owners who are in possession of the property. This means that builders who have not transferred possession of the flat or apartment to the owner are liable to continue paying property taxes until the time of possession. 
 
This week, I will address one such case, where the flat-owner has complained to the Maharashtra Real Estate Regulatory Authority (MahaRERA) about delayed possession and has now started getting property tax bills for the time when he did not have possession of the flat. We will also take a look at two cases where cooperative housing societies (CHSs) are facing difficulties in opting for the redevelopment process. 
 
Payment of Property Tax in a Case of Delayed Possession
 
Question: I had booked a flat in 2013 while it was under construction and an agreement was made in 2014 stating that possession would be given in 2017. The builder illegally raised the number of floors which caused a delay in receiving the occupation certificate that he finally got in 2019. Meanwhile, we had registered a complaint in MahaRERA for claiming interest during the delay period. As a result, the builder refused to give us possession. MahaRERA court has ruled in our favour and granted us an order that asks the builder to pay the interest amount. Now, Thane Municipal Corporation (TMC) has started charging property tax. So, I wanted to understand who would be responsible for paying the property tax from 2019 until we received possession. The property tax bill is in the builder's name, since he has not yet allowed society formation.
 
Answer: As MahaRERA has asked the builder to pay the interest amount on your investment for delayed possession of the flat, you should appeal with MahaRERA's appellate court. Inform them of the present situation, where the builder refuses to grant possession and has not paid the interest amount. Plead with the authorities to pass an order in your favour that the builder is liable to pay further interest until possession is granted. 
 
In this appeal, you may also plead with the authorities to ask the builder to pay the TMC property tax on your flat until the time possession is granted. It should also be made clear that the property tax bill should come in your name as you have paid the total amount towards the purchase of the flat. 
 
Regardless of whether a CHS of your building has been formed or not, the builder has to transfer the property tax bill in the flat-owner's name if the flat-owner enters into a sale deed with the builder. If 51% of flat-owners who have entered their sale deed with the builder can come to a mutual agreement, they can form a CHS under the non-cooperation of the builder.
 
Please visit Thane District Co-op Housing Federation (their office is on first floor of an old building, opposite Thane District Central Cooperative Bank), where you will be given the necessary papers and guidance to register your building as a CHS.  
 
Consensus for Redevelopment in a Building Not Registered as a Society or Apartment
 
Question: Is it possible for the builder to carry on the redevelopment of a building even if one or two members out of six do not agree to the terms? The building is not registered as a society or apartment.
 
Answer: If the building is not registered as a housing society and each flat-owner in that building has his name in the property card of that building of six flats, then builder cannot undertake redevelopment unless all six flat-owners give their consent.
 
Also, if the structural audit by a local municipality recognised structural engineer, discovers that the building is strong enough in terms of structural stability, then redevelopment cannot be undertaken, even if all six flat-owners give their mutual consent. 
 
NOTE
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Undertaking Redevelopment When a Member Has Outstanding Stamp Duty Dues
 
Question: Our Society is preparing for redevelopment. There is one flat whose owner has passed away without making a Will or nomination. Her children are fighting amongst themselves and have yet to pay stamp duty. They are trying to delay the redevelopment process by not paying these dues. What is the best way out of this situation? Can the Society pay the dues on their behalf to proceed with redevelopment and later recover the same from them?
 
Answer: You have not mentioned whether the conveyance of your Society's building and its land has been completed and registered at the sub-registrar of assurances office. Conveyance or deemed conveyance is a prerequisite for redevelopment. 
 
Secondly, you also need to verify whether your Society has transferred its land's property card in the Society's name (at the city survey office) and whether the building's outline is shown in the property map (available at the same city survey office). 
 
Thirdly, using the deemed conveyance order, you need to verify whether your Society has transferred the land's 7/12 extract and mutation entry in form-6, in the Society's name, in land records maintained by the Talathi Office.
 
Without these three records, your Society cannot go for redevelopment of its building. Prima facie, it appears that your Society has not gone for conveyance deed, as one flat has not paid the stamp duty on its sale deed. For deemed conveyance, you cannot get a registered conveyance deed, unless all flat-owners pay stamp duty on their flat's sale deeds.
 
Disclaimer: The guidance provided in these columns and on our Legal Helpline is on the sole basis of the facts provided by the reader/questioner and does not amount to formal legal advice in any form whatsoever. 
 
(Shirish Shanbhag has an MSc in Organic Chemistry, Diploma in Higher Education, and a Diploma in French and has completed his LL.B. in first class in 2021. Before his retirement, he was a junior college teacher at Patkar College from July 1980 to May 2012, teaching theoretical and practical chemistry. Post-retirement in 2012, he started providing guidance and counselling to people on several issues, specifically focusing on cooperative housing society-related matters. He has over 30 years of hands-on experience in all matters about housing societies and can provide out-of-box solutions for any practical issue.)