In a significant order for co-operative housing societies, the Maharashtra State Co-operative Appellate Court, Mumbai has dismissed an appeal filed by Mahatma Phule Bhavan Co-op. Housing Society Ltd., Vashi, allowing renovation work for a nursing home to continue on the first floor of the society building.
The dispute revolves around the first-floor auditorium and hall complex (admeasuring approx. 10,000 sq.ft.) held by Mahatma Phule Co-operative Credit Society Ltd. (a member of the housing society). The Credit Society had given the premises on leave and licence to M/s. Alta Hotels Pvt. Ltd. and Derma Health And Cosmetology Hospital Research Centre Pvt. Ltd. for running a 14-bed nursing home with pharmacy.
The housing society approached the Co-operative Court, Thane (Dispute No. CCT/215/2024) alleging breach of the original 1981 CIDCO lease agreement (which permitted commercial use only on the ground floor), violation of society bye-laws (No. 43 & 75(e) regarding subletting and change of user), and potential nuisance to residents due to increased traffic, parking pressure, and health risks.
The society sought an interim injunction to stop all structural changes and commercial activity. The Trial Court, vide order dated 15th October 2025, rejected the interim relief application (Exh.5) but clarified that all construction would remain subject to the final outcome of the dispute.
Aggrieved by the order, the housing society filed Appeal No. 81 of 2025 before the State Co-operative Appellate Court. President Sau. S.S. Sapatnekar delivered the judgment on 2nd May 2026, upholding the Trial Court’s order and dismissing the appeal.
Key Observations of the Appellate Court:
- The Unified Development Control and Promotion Regulations (UDCPR) for Maharashtra (updated January 2025) and Government guidelines dated 08/06/2023 explicitly permit nursing homes with up to 20 beds in residential zones, subject to conditions such as separate access/staircase.
- Navi Mumbai Municipal Corporation (NMMC) had granted valid permission and NOC dated 29/04/2024 for internal changes.
- The 1981 CIDCO lease conditions are overridden by the current UDCPR regulations.
- The Credit Society had intimated the housing society about the leave & licence and was paying non-occupancy charges, satisfying bye-law requirements.
- The housing society failed to challenge the NMMC NOC through the proper channel under the MRTP Act.
- No prima-facie case or balance of convenience was found in favour of the housing society. Granting injunction would cause irreparable loss to the opponents.
The Court noted that the nursing home has a separate entrance and staircase from the main road, minimising disturbance to residents. The main dispute, however, is still pending final adjudication before the Co-operative Court, Thane.
This order highlights the evolving regulatory framework in Maharashtra, where small healthcare facilities are being encouraged even in residential zones, often creating tension with housing societies relying on older lease deeds and bye-laws.
Homebuyers and societies in Navi Mumbai and across Maharashtra may need to review their bye-laws and lease conditions in light of current UDCPR provisions, especially when dealing with change of user proposals backed by municipal permissions.
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