In a Writ Petition filed before the Bombay High Court (‘Bombay HC’) by Mr. Aspi Chinoy the Collector’s directions to the Sub-Registrar to confirm the receipt of the Collector’s NOC in accordance with Government Resolutions dated May 12, 1983 and July 9, 1999 (‘Resolutions’) before registering an agreement for transfer of flat in a building constructed on State Government / Collector’s (‘Collector’) land was challenged and was allowed by the Bombay HC by its Order dated September 29, 2009. On a challenge of the Bombay HC’s Order by the State Government, the SC by its Order dated September 30, 2022 (‘Order’)^[1] upheld the decision of the Bombay HC and confirmed the position that permission of the Collector is not required for transfer of a flat forming part of a building constructed on the land leased by the Collector to a developer.

The SC held that the Resolutions are applicable only to co-operative societies to whom the Collector has allotted lands at concessional rates and not in cases, like the present, where the land was allotted to a builder without any concession and the flat purchasers subsequently formed a co-operative society. It is, therefore, important to ascertain whether the land allotted is on a concessional basis under the original lease by the Collector and to determine whether the transfer permission and payment of premium would be required for transfer of the premises in buildings standing on Collector lands prior to the registration of any sale deed.

[1] The State of Maharashtra and Others v. Mr. Aspi Chinoy and Others Civil Appeal No.5809 of 2011 and Civil Appeal Nos.7054-7059 of 2022 (Arising out of SLP (C) Nos.26906-26911 of 2011)