In a landmark order that could affect thousands of mixed-use housing projects across Maharashtra, the Bombay High Court has ruled that a developer cannot register two separate cooperative housing societies — one for commercial units and another for residential units — unless both are functionally and physically independent.

The Court has also struck down reliance on a 2004 Maharashtra government circular, holding that it has no statutory authority and cannot override the Maharashtra Cooperative Societies Act (MCS Act) or the Maharashtra Ownership Flats Act (MOFA).

Case Summary:

Case: Sadguru Universal CHS Ltd. vs. State of Maharashtra & Ors.
Court: Bombay High Court (Civil Appellate Jurisdiction)
Coram: Justice Amit Borkar
Date of Judgment: November 11, 2025
Filed by: Sadguru Universal CHS Ltd., New Panvel (West), Navi Mumbai
Respondents: State of Maharashtra, Registrar of Cooperative Societies, and Sadguru Infra Projects (the builder)

The Dispute:

A single building in New Panvel was constructed with 24 commercial units on the ground floor and 88 residential flats above.
The builder, Sadguru Infra Projects, registered two separate societies — one for commercial and another for residential owners.

The residential society (petitioner) objected, arguing:

• Only one building plan and one Occupancy Certificate were issued by CIDCO.
• Both residential and commercial owners use common passages, terraces, lifts, firefighting systems, and parking areas.
• Two societies would create conflict and violate MOFA, which mandates one collective society.

Key Findings by the High Court:

1⃣ Two Societies Not Allowed Without Real Separation

“The mere fact that some units are commercial and some are residential does not give the promoter a right to form two societies.”

• Separate societies are permissible only if there is clear physical and functional separation — e.g., separate entrances, lifts, utilities, firefighting systems, and maintenance mechanisms.

2⃣ Parameters for Allowing Two Societies

The Court listed mandatory parameters to assess independence:

• Structural Design & Layout
• Separate Entrances and Exits
• Independent Utilities (water, electricity, firefighting)
• Maintenance & Financial Responsibility

Additional parameters include:

• Parking and circulation
• Use pattern (timings and activity interference)
• Legal documents (OC, plan approval)
• Impact on members’ convenience and rights

3⃣ Govt Circular of 2004 Has No Legal Standing

The Court held that the Government Circular dated 30 July 2004, which allowed separate societies for wings or sections, has no statutory force.

“A circular issued by an administrative department does not become law only because it has been issued by a Government officer.”

It was not issued under the MCS Act and not authenticated under Article 166 of the Constitution, so it cannot override the law or curtail citizens’ rights.

4⃣ Matter Remanded for Fresh Inquiry

Both the Registrar and Revisional Authority failed to conduct any ground verification.
The Court set aside both orders and directed a fresh factual inquiry within four months to decide if two societies can truly function independently.

Impact on Developers and Societies:

• Builders can no longer arbitrarily split one building into separate societies to retain control or reduce obligations.
• Residential and commercial unit owners in mixed-use projects will now gain stronger rights under MOFA.
• The judgment redefines the scope of Section 154B-2(4) of the MCS Act — emphasizing functional, not formal, independence.

Expert Quote (Suggested Style):

“This judgment reinforces that MOFA’s purpose is to protect flat buyers — not builders’ convenience. If a structure functions as one building, the law expects one cooperative body,” said a Mumbai-based housing law expert.

Conclusion:

This ruling could reshape how housing societies are formed in Maharashtra — especially across CIDCO, MMRDA, and municipal layouts where commercial and residential units coexist.
It’s a strong message to developers and authorities: registration can’t be a paper exercise — it must reflect ground realities.

The post Bombay High Court Shocker: Builder Can’t Form Two Societies in One Building appeared first on Square Feat India.

The scheme includes 38 units designated for the economically weaker section and 175 units for the general category, located in the developed nodes of Kalamboli, Kharghar, and Ghansoli. Additionally, 689 units will be available from CIDCO’s ‘Swapnapurti’ and ‘Vastuvihar-Celebration’ projects at Kharghar.

CIDCO’s housing schemes aim to cater to various income groups, providing residents with the chance to own property in Navi Mumbai, known for its advanced infrastructure. The new complexes will benefit from connectivity via rail, road, and metro, and will be situated near key projects such as the Navi Mumbai International Airport. This scheme is expected to enhance the lifestyle options for residents in the region.

Also Read: CIDCO grants extension till Jan 6, for lottery

The post CIDCO to Launch Housing Scheme for 902 Flats on Krishna Janmashtami appeared first on Square Feat India.