In a strong order protecting flat purchasers’ statutory rights, the Bombay High Court has quashed the registration of a developer-backed co-operative housing society in a Baramati residential project, holding that co-operative officials illegally bypassed a pending buyer-led application and created a situation where the outcome was projected as “already irreversible”.
Justice Amit Borkar, deciding Writ Petition Nos. 11982 of 2025, 11988 of 2025 and WP (ST) 29872 of 2025, set aside multiple orders passed by the Assistant Registrar and District Deputy Registrar (DDR), Co-operative Societies, Pune district.
Project and Parties
The dispute arose from a residential project developed on Gat Nos. 134/1 and 134/2 at Village Jalochi, Taluka Baramati, District Pune, within the limits of the Baramati Municipal Council. The total land area of the project is approximately 26,000 square metres.
The petitioner, Sandeep Bhausaheb Shelar, is a flat purchaser in the project. He approached the High Court after co-operative authorities permitted a society backed by the developer R.V. Realty to be registered, despite a prior purchaser-initiated application being pending under the Maharashtra Ownership Flats Act, 1963 (MOFA).
Buyers Invoke MOFA After Developer’s Failure
Under Section 10 of MOFA, a promoter is required to form a co-operative housing society of flat purchasers within the prescribed time. When the developer failed to do so, a meeting of flat purchasers was held on 26 February 2025, in which Shelar was appointed Chief Promoter.
Acting under the first proviso to Section 10(1) of MOFA, Shelar filed Application No. 36 of 2025 before the District Deputy Registrar on 12 March 2025, seeking registration of a purchaser-led society. This application remained undecided for several months.
Parallel Move by Developer Group
While the buyers’ statutory application was pending, Rohit Jadhav, associated with R.V. Realty, submitted a separate proposal on 13 May 2025 before the Assistant Registrar.
Despite being informed of the earlier MOFA application:
- On 9 June 2025, the Assistant Registrar granted permission to the developer-backed group to open a bank account.
- On 17 June 2025, the purchaser-led application was rejected, citing the bank account permission granted to the rival group.
- On 18 June 2025, the developer-backed society was formally registered.
Allegations of Reduced Land and Fraud
Shelar contended that the developer-backed proposal covered only 7,903.86 square metres, sharply reducing the society’s land area from the original 26,000 square metres.
According to the petitioner:
- Such reduction would adversely affect common amenities, open spaces, future conveyance and development rights.
- Eighty-four flat purchasers filed affidavits alleging that their signatures were obtained fraudulently and that no valid general body meeting was conducted.
These objections, the petitioner argued, were ignored by the authorities.
Why the Court Intervened
The Bombay High Court held that the actions of the co-operative authorities were arbitrary and unfair.
Importantly, the Court explained that authorities had created what the law terms a “fait accompli” — a situation where officials take decisive and irreversible steps first, and then claim that nothing further can be done because the action has already been completed.
The Court noted that:
- By allowing the developer’s group to open a bank account and then registering the society,
- And by using those very steps to reject the buyers’ pending application,
the authorities had effectively defeated a statutory right without deciding it on merits.
Such conduct, the Court held, is impermissible in law.
Key Findings
Justice Borkar held that:
- When a prior statutory application under MOFA is pending, it must be decided before entertaining any competing proposal.
- Numerical majority of flat purchasers cannot validate an illegal process.
- Serious allegations of fraudulent signatures cannot be brushed aside on the ground of lack of investigative powers.
- Reduction of the society’s land area without inquiry has serious civil consequences for purchasers.
Orders Passed
The High Court:
- Quashed the orders dated 9 June 2025, 17 June 2025, 18 June 2025, and the appellate order dated 21 August 2025.
- Restored Application No. 36 of 2025 for fresh adjudication by the District Deputy Registrar.
- Directed a detailed inquiry into:
- Competing society proposals
- Authenticity of member signatures
- Correct land area to be included in the society
- Ordered that the society’s bank account remain frozen, with limited operational permissions if required.
In a significant observation, the Court also directed the State Government to place the record before the disciplinary authority to examine whether departmental action is warranted against the Assistant Registrar.
Why This Ruling Matters
The judgment sends a clear message that:
- Flat purchasers’ rights under MOFA are substantive and enforceable.
- Co-operative authorities cannot sidestep statutory protections by procedural shortcuts.
- Developers cannot defeat buyer-led processes by creating irreversible situations on paper.
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