As per the information provided, it appears that the third flat in question is not only unregistered, but it is also illegal as it was built without the proper permissions and approvals from the Brihanmumbai Municipal Corporation (BMC). It is not legal to issue a share certificate to an owner of an illegal flat, as it would be in violation of the laws and regulations regarding construction and property ownership.
Furthermore, it is not advisable for the society to issue a share certificate to this flat owner as it could lead to legal issues for the society and its members. The BMC has issued a notice under Section 488 for a survey of the site, and has confirmed that the three flats in question were built illegally. The flat owner has been advised to get the flat legalised from the BMC, and the society has been asked to produce the BMC approved plans and other documents.
It is advisable for the society to cooperate with the BMC and follow their instructions to resolve the issue of illegal flats. The society should also look into their own records and documents to ensure that they are in compliance with all laws and regulations regarding construction and property ownership.
Prima facie they are an illegal flat owner
Prima facie these flats are illegal because the builder did not take permission from the concerned authority. The flat’s owner has no right to demand share certificate because they have no valid sale deed or conveyance deed. In devoid of a valid sale deed they cannot become a member of the housing society. In the current scenario, they should approach the Brihanmumbai Municipal Corporation to legalise their flats.
The BMC has the power to grant permission if other guidelines have been followed by the builder in the construction of those flats except the valid permission. They have to pay the fine and other penal charge lived upon by the BMC. The builder will not come forward and pay those fees because he played a fraud. So, flat owners will bear all the expenses.
No share certificate to the illegal flat owner
After making all the payments and fines to the BMC the flat owners should proceed to get a valid sale deed of the flat. They will get a sale deed from the builder after paying the proper stamp duty.
Thereafter, the housing society can issue a share certificate to those flat owners. They first become the owner of the flat following the due process of law. They have no valid sale deed and no valid document which proves that they have ownership of the flat.
Until completion of above said procedure and possessing all the necessary legal documents you should not issue a share certificate. A share certificate is a legal document which proves that the holder is the rightful owner of the co-operative housing society’s shares. The BMC has already declared that flats are illegally built, then you cannot issue share certificate.