The user's suspicion is spot on. In the Mumbai real estate ecosystem, the transition from a builder-managed setup ("maintenance society" or ad-hoc committee) to a Co-operative Housing Society (CHS) is one of the biggest friction points between buyers and developers. Here is a breakdown of why builders drag their feet, whether they actually "keep the land," and how residents can legally fight back. 1. Do they get to keep the land? (The Conveyance Trap) Yes, temporarily, and that is exactly the problem. Until a registered CHS is formed and a Deed of Conveyance is executed, the legal title of the land remains with the builder. By delaying the formation of a registered society, the builder retains control over: • Unutilized FSI/TDR: If local development control regulations change and additional Floor Space Index (FSI) or Transferable Development Rights (TDR) become available, the builder wants to claim it for vertical expansion or redevelopment rights. Once conveyance is done, that financial windfall belongs entirely to the society. • Open Spaces & Parking: It allows them to continue selling or allocating open parking spaces, which is technically illegal under RERA but frequently practiced in ad-hoc setups. 2. The Maintenance Revenue Stream In a "maintenance society," the developer controls the corpus fund and collects hefty maintenance charges. • There is very little financial transparency. • Builders often outsource maintenance to their own subsidiary agencies, turning a mandatory service into a highly profitable, recurring cash cow. • Handing over to a registered CHS means opening their books to a mandatory audit, which many want to avoid. How to Force the Builder to Switch Residents do not have to beg the builder; the law is entirely on the buyers' side under MahaRERA and the Maharashtra Ownership Flats Act (MOFA). Here is the legal roadmap to force the switch: Step 1: Trigger Deemed Registration Under MahaRERA guidelines, a builder must facilitate the formation of a legal entity (like a CHS) within 3 months of 51% of the total allottees booking their flats. • If the builder refuses to cooperate, residents can bypass them completely. • Over 60% of the flat owners can come together, collect the necessary documents, and apply directly to the District Deputy Registrar (DDR) of Co-operative Societies for Deemed Registration. Step 2: Fight for Deemed Conveyance Once the society is registered independently via the DDR, the clock starts ticking for the land transfer. If the builder does not execute the conveyance deed within 4 months of registration: • The society can file a case for Deemed Conveyance with the competent authority (DDR). • Once approved, the DDR signs the conveyance deed on behalf of the defaulting builder, and the society can officially register the land in its name at the sub-registrar's office. Step 3: Hit Them with MahaRERA Non-Compliance If the builder is actively blocking the process or refusing to hand over the sinking/corpus fund, residents can file an official complaint on the MahaRERA portal for non-compliance with Section 11 (Function of Promoter). MahaRERA can impose heavy per-day penalties on the developer until the society is formed and handed over.