#development rights

The Bombay High Court has ruled that once a developer has exhausted the permissible development rights under MOFA, they cannot delay transferring land to the housing society by alleging potential future Floor Space Index. This clarifies that deemed conveyance is triggered by completed development, not speculative future gains, protecting cooperative societies from prolonged legal obstruction by builders.

NCLAT rules that development rights granted to a corporate debtor under a development agreement remain part of its asset pool during CIRP, notwithstanding alleged termination. Any transfer of such rights during the moratorium is void ab initio, reinforcing the sanctity of asset inclusion in insolvency resolution and protecting creditor interests.

CESTAT rules that transfer of development rights, where it constitutes transfer of immovable property interest, falls outside the definition of 'service' under Section 65B(44) of the Finance Act, 1994. The ruling shields landowners and developers from service tax liability on joint development agreements, clarifying a critical tax exemption for real estate transactions.

Bombay High Court holds that Competent Authority under MOFA cannot adjudicate FSI or development rights disputes; petitioner must pursue civil suit. Key precedent reaffirmed.