Justice Amit Borkar, in a hard-hitting judgment delivered on April 18, 2026, dismantled the high-handed tactics of the Malad Cooperative Housing Society and sent a clear warning to all cooperative societies across the state.

“A cooperative housing society is not a forum for adjudicating title disputes, succession claims, partition matters or proprietary entitlements between legal heirs,” the court thundered. “It is not vested with powers akin to a civil court. The society’s function is strictly confined to management of its affairs, regulation of membership, maintenance of internal records, and recognition of persons only for administration and collection of dues.”

The message is brutally direct: Collect the maintenance cheques. Update the share certificates. Stay in your administrative lane. Stop acting like judges, blocking heirs, demanding endless NOCs, or playing god with people’s homes.

The case arose when the Malad society refused membership to Radheshyam Dhanuka in Flat No. 4/31, citing “multiple legal heirs” and vague title issues — even though he had lived there for decades, paid dues (which the society happily accepted), and the family’s earlier title suit against him had been unconditionally withdrawn.

The High Court shredded this approach. It ruled that societies need only form a prima facie opinion on who appears to be the legal heir — not conduct trials on ownership. Recognition as a member does not decide or extinguish actual title. Real ownership fights belong exclusively in civil courts.

This verdict is a massive setback for the countless societies that routinely behave like feudal kingdoms — delaying transfers for years, harassing successors, rejecting applications on flimsy “dispute” grounds, and treating flat owners like commoners begging for favours.

Justice Borkar made it crystal clear: Mere existence of multiple heirs is not an excuse to sit on applications indefinitely. Societies cannot convert themselves into tribunals of title. Their job is practical administration — nothing more.

For flat owners and legal heirs who have suffered years of society tyranny, this judgment is a powerful shield. Managing committees that continue to overstep now risk being dragged to court and having their decisions overturned with strong observations.

The Bombay High Court has spoken loud and clear: Housing societies, know your place. Handle dues and records. Do not decide the fate of flat owners. You simply don’t have that right. In literal terms, the Court said to society That’s way above your pay grade.

Also Read: Bombay High Court Limits Registrar’s Role – Complex Housing Society Disputes Must Go to Proper Forums

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The Dispute: A Thane Housing Society vs. a Realty Firm

The case revolves around Shivraj Nagar Cooperative Housing Society Ltd., a residential complex in Thane with 15 bungalows, and Mextech Realty Pvt. Ltd. (formerly Nandivardhan Constructions Pvt. Ltd.), a Mumbai-based real estate company. Back in 2008, Mextech purchased five bungalows from individual owners through registered sale deeds. The company then sought membership in the society, claiming “deemed membership” after the society failed to respond within the stipulated time under the Maharashtra Cooperative Societies (MCS) Act, 1960.

The society fiercely opposed this, arguing that owning five units—equating to more than one-fifth of the society’s total share capital—violated Section 28 of the MCS Act. This section caps any member’s shareholding at one-fifth (unless it’s the government or another society). The society even challenged the sale deeds themselves, calling them “opposed to public policy” under the Indian Contract Act. What followed was a protracted legal battle: disputes filed in 2008, appeals, revisions, and prior writ petitions that dragged on for years.

In February 2024, the High Court intervened, setting aside earlier orders and allowing Mextech to file fresh membership applications. The company did so promptly, but the society rejected them again in May 2024. Appeals to cooperative authorities favored Mextech, leading to the society’s writ petitions (Nos. 10949 to 10952 of 2025) before the Bombay High Court.

Key Arguments: Old Laws vs. Modern Amendments

The society’s counsel, A.R. Gole, contended that Section 28’s cap made the 2008 purchases invalid from the start. He argued the transactions breached public policy and that since the dispute began before 2019 amendments to the MCS Act, the old rules should apply via a saving clause (Section 154B-31). Additionally, he pointed to conditions in the Act’s model bye-laws requiring companies to amend their charters for employee housing and residential-only use.

On the flip side, Mextech’s advocate, Pradeep Thorat, emphasized that Section 28 only restricts share allotment by the society—not property purchases. He highlighted the 2019 introduction of Chapter XIII-B in the MCS Act, a dedicated framework for housing societies that explicitly excludes Section 28 (under Section 154B-2). Since the fresh applications were filed post-2024, the amended law governs, removing the share cap. Mextech also pledged to comply with all regulatory conditions, like those in the society’s rejection order (clauses O, P, and Q).

The Court’s Ruling: A Clear Win for Flexibility

Justice Borkar dismissed all four petitions, upholding the lower authorities’ decisions to grant membership to Mextech. The court clarified that Section 28 doesn’t bar property sales; it only kicks in during share issuance. More crucially, Chapter XIII-B’s exclusion of Section 28 means housing societies—focused on residential management rather than capital control—no longer face this limit.

The judge rejected the society’s reliance on the saving clause, noting that the 2024 court order reset the proceedings as “fresh” under the current law. The sale deeds were deemed valid, not violating public policy, and the court mandated membership upon Mextech’s compliance with conditions. This pragmatic approach ensures regulation without outright exclusion, making the ruling a balanced step forward.

Implications: A Game-Changer for Real Estate and Homeowners

This verdict is electrifying for developers eyeing bulk investments in cooperative housing, potentially accelerating redevelopment and urban projects in cities like Mumbai and Thane. For common homeowners, it means societies can’t arbitrarily block corporate members if they meet usage rules—fostering inclusivity but raising concerns about influence from big players.

Experts say it aligns with Maharashtra’s push for modern cooperative governance, but societies may need to update bye-laws to safeguard resident interests. As real estate booms post-pandemic, this could spark more such cases, urging stakeholders to navigate the amended MCS Act carefully.

The full judgment, pronounced just before Christmas 2025, underscores the judiciary’s role in adapting old laws to new realities. For anyone in property dealings, it’s a reminder: flexibility wins, but compliance is key.

Also Read: Bombay High Court Caps Construction at ‘The Imperial’ Tardeo, After Residents Object

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The ruling came in Writ Petition No. 13544 of 2025 (Baltazar Fernandes & Ors. vs Deputy Registrar of Societies, H-West Ward & Ors.), heard by Justice Amit Borkar.

Case Background

The petition was filed by Baltazar Fernandes & Ors. challenging the authority of the District Deputy Registrar, H-West Ward, who had issued a “No Objection” for the society’s redevelopment. The petitioners argued that neither the Maharashtra Cooperative Societies Act, 1960 nor its Rules empower the Registrar to issue such NOCs. The Bombay High Court examined the legal provisions and government resolutions to determine whether the Registrar has any role in approving redevelopment decisions.

General Body — Not Registrar — Has Final Say

The Court examined the Maharashtra Cooperative Societies Act, 1960, and the Rules, 1961, and observed that there is no provision anywhere in the law that empowers the Registrar to grant “No Objection” for redevelopment.

• The decision to redevelop a building is entirely within the powers of the General Body of the society, taken in accordance with the society’s bye-laws and the Government Resolution (GR) dated July 4, 2019.
• Once a valid resolution is passed by the General Body, it binds all members.
• If any member has objections to the process, their remedy lies in approaching the Cooperative Court under Section 91 of the Maharashtra Cooperative Societies Act, not in seeking intervention from the Registrar.

Registrar’s Role is Supervisory, Not Decisive

The Court clarified that the Registrar’s role is limited to overseeing the process to ensure transparency, not to approve, modify, or veto redevelopment decisions.

As per the 2019 GR:

• The Registrar must appoint an Authorised Officer to attend the Special General Meeting (SGM) where the developer is selected.
• The Authorised Officer is only required to observe proceedings, check quorum, and ensure proper documentation.
• Societies must submit notices, agenda, and minutes to the Registrar within 15 days, purely for record-keeping.

Importantly, the absence of any Registrar-issued NOC cannot invalidate the redevelopment process once the General Body has followed the law.

Court’s Directions to the State

The Court has directed the Commissioner of Cooperation and the Principal Secretary, Cooperation Department, to issue a state-wide circular to all Registrars:

• Stop issuing or insisting on “No Objection” letters for redevelopment proposals.
• Stick to the supervisory role as outlined in the GR — appointment of officers, ensuring meetings are recorded, and maintaining transparency.
• The circular must be uploaded on the Department’s website, and compliance has to be filed in court.

What This Means for Housing Societies

For thousands of housing societies stuck in red tape, this ruling offers a clear legal pathway to proceed with redevelopment without bureaucratic delays caused by Registrars demanding unnecessary NOCs.

• Societies no longer need to wait for Registrar’s “permission” once their General Body has approved redevelopment in line with legal procedures.
• This is expected to fast-track stalled redevelopment projects, especially in Mumbai’s older suburbs where many buildings are in urgent need of reconstruction.
• It also provides legal clarity, protecting societies from arbitrary demands by officials.

Key Takeaways

• Registrar has no power to issue “No Objection” for redevelopment.
• General Body is supreme decision-making authority.
• Registrar’s role is supervisory, not adjudicatory.
• Government to issue statewide circular instructing Registrars accordingly.
• A big relief for housing societies facing bureaucratic hurdles.

Also Read: Court Refuses to Stall Khernagar Redevelopment

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Addressed to former MP Gopal Shetty, the official letter dated 5 September 2025, outlines the formation of this expert committee. The aim is to swiftly assess root causes and propose actionable measures to resolve undue hardships faced by society residents.

The Team and Mandate

Four senior experts have been appointed to the committee:

• Adv. Amit Mehta
• Adv. Vivekanand Gupta
• Adv. Jayprakash Mishra
• Adv. Siddharth Sharma

They are instructed to conduct thorough inquiries and submit pragmatic recommendations for alleviating injustices stemming from OC-related delays.

Why the Move Now?

Delays in issuing OCs aren’t just bureaucratic glitches — they have far-reaching implications. Here’s a snapshot of the larger OC predicament:

• In Navi Mumbai, the municipal corporation identified 2,111 buildings occupied without OCs, despite holding commencement certificates. Authorities have warned that legal action will follow if these buildings don’t regularize their OC status promptly.
• In another case, the Bombay High Court severely reprimanded residents of a Tardeo high-rise lacking OCs for the upper floors, describing them as “a selfish lot” for compromising safety and regulatory norms. These residents have been directed to vacate within two weeks.

These instances underscore widespread procedural inertia and the pressing need for civic clarity.

BJP’s Role in Addressing the OC Crisis

The BJP’s initiative signals a proactive political stride — aiming to bridge administrative gaps and offer tangible relief to affected residents:

• Investigative Lens: The Study Cell will ascertain specific causes behind OC delays—be it fire safety clearance, infrastructure encroachments, or procedural lapses.
• Advisory Output: Based on findings, the panel will recommend clear protocols and solutions to fast-track OC issuance.
• Political Oversight: The BJP will likely use committee recommendations to influence streamlined governance and ensure residents aren’t deprived of their homes due to technical delays.

What’s Next?

With the committee now in place, residents of Mumbai’s affected housing societies may finally see a path toward resolution. Whether this effort catalyses policy change, bureaucratic reform, or legal clarity remains to be seen — but for now, it stands as the BJP’s tangible commitment to resolving a longstanding public grievance.

Also Read: MahaRERA Cancels Registration of ‘Rajlaxmi Developer’ Project Over Fake Commencement Certificate

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The session drew participation from a large number of residents living in the Gokuldham mill workers’ housing, many of whom have grown frustrated with delays and uncertainty in builder-led redevelopment models. Residents were educated about how self-redevelopment can give them greater control over the project, from planning and budgeting to execution and quality assurance.

“Self-redevelopment offers residents the power to decide the future of their homes. It ensures transparency, safeguards their rights, and helps them get maximum benefits without depending on builders,” said Chandrashekhar Prabhu, addressing the crowd.

He further explained that various government schemes and financial institutions now support self-redevelopment, offering funding and technical guidance. With the right planning and cooperative effort, societies can bypass the traditional builder-driven route and redevelop their buildings efficiently and profitably.

The colony currently has around 122 buildings, and a majority of the residents have started discussions around initiating the self-redevelopment process.

Experts believe this growing interest marks a transformative step for housing societies across Mumbai, especially in older colonies where redevelopment has been delayed or derailed due to lack of trust in private developers.

This session was one of several initiatives aimed at promoting awareness about self-redevelopment as a viable, empowered solution for urban renewal in the city’s aging residential pockets.

Also Read: Housing Society tired of no work by builder, opts for self redevelopment

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Addressing the gathering, Sanjeev Jaiswal (IAS), Vice President & CEO of MHADA, stressed the critical need for robust public-private partnerships to redevelop dilapidated buildings across Mumbai. He highlighted recent regulatory changes aimed at expediting stalled projects, including amendments to Section 91A, which allows MHADA to take over such developments.

“Land scarcity remains a fundamental challenge for Mumbai. The amendment under Section 91A is both timely and necessary. Section 79A now offers fair compensation to landowners, resolving long-standing bottlenecks in cess building redevelopment. Redevelopment must be transparent, viable, and delivered on time. FSI clarity and honest communication are essential to protect tenant rights and ensure project success,” Jaiswal said.

The one-day event facilitated live consultations between developers and societies, offering support in legal, financial, and technical planning for redevelopment. Stakeholders across the spectrum—urban planners, legal experts, architects, and housing society members—engaged in sessions to demystify the redevelopment process.

Boman Irani, President of CREDAI National and CMD of Rustomjee Group, urged societies to prioritise a developer’s credibility over financial allure. “The highest offer is not always the best. Evaluate the developer’s track record and financial capacity. Once you’ve chosen your committee and consultants, trust their process,” he advised, while warning against over-cautious delays.

Domnic Romell, President of CREDAI-MCHI and Director at Romell Group, addressed concerns about financial security, stating, “In today’s RERA-compliant environment, demands for excessive bank guarantees are outdated. Project funds are tightly regulated through escrow accounts. Residents must be aware of their entitlements, like the 35% fungible FSI, and make practical decisions.”

Dhaval Ajmera, Secretary of CREDAI-MCHI and Director at Ajmera Realty & Infra, noted that EODR 2.0 was designed to empower societies. “With over 3,000 societies and 40+ developers participating, our goal is to streamline processes and rebuild trust. Societies now have the resources and guidance to convert aging buildings into secure, modern homes,” he said.

CREDAI-MCHI’s EODR 2.0 concluded with a shared commitment from developers and housing societies to move forward with transparent, efficient, and resident-focused redevelopment practices in Mumbai.

Also Read: CREDAI Pledges to Construct 4000 Green Projects by 2030

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The notification, released by the Revenue Department on March 4, 2025, outlines the revised premium rates for conversion, which will be applicable until December 31, 2025.

Understanding Freehold and Leasehold Land

In a leasehold system, the government owns the land and leases it to private persons, cooperative housing societies, or industries for a specified period. Ownership of leasehold land is subject to restrictions on transfer and redevelopment.

On the other hand, freehold land ownership provides full rights to the individual, cooperative society, or industry, allowing them to sell, mortgage, or redevelop the land without requiring government permission.

The latest notification allows leasehold and Class II landowners to convert their land to freehold by paying a percentage of the Ready Reckoner rate as a premium to the government.

Revised Premium Rates for Freehold Conversion

As per the government’s new policy, the premium rates for converting leasehold and Occupancy Class II lands to freehold status are as follows:

• Individual or Private Landholders & Companies (Residential Class II Land) – 15% of the ASR
• Cooperative Housing Societies (CHS) on Occupancy Class II Land – 10% of the ASR
• Self-Redevelopment Projects by Housing Societies on Occupancy Class II Land – 5% of the ASR (a reduced rate to encourage self-redevelopment)
• Leasehold Residential Land – 25% of the ASR

These revised rates are expected to ease ownership complexities for individuals and societies, making it easier for them to develop or sell their properties without restrictions.

Impact on Housing Societies and Property Owners

The decision to convert leasehold and Class II lands into freehold is expected to benefit:

• Individual landowners who have been seeking full ownership of their properties.
• Cooperative Housing Societies (CHS) that currently face restrictions in redeveloping their land.
• Industries and companies that own leasehold properties and want to unlock their full potential.
• Self-redevelopment projects, which will now benefit from a significantly lower premium of just 5%.

With leasehold restrictions removed, property transactions are expected to increase, bringing in higher revenues for the government and unlocking greater market value for property owners.

Conclusion

The Maharashtra government’s decision to allow the conversion of leasehold and Class II lands to freehold is a major reform that will simplify property ownership and boost real estate development. With a deadline set for December 31, 2025, eligible landowners are encouraged to take advantage of this policy and secure full ownership rights for their properties.

Also Read: JLL Facilitates Landmark Student Housing Deal in Mumbai

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A key feature of the event was the release of the Ease of Doing Redevelopment Report, a collaborative research initiative between CREDAI-MCHI and Hurun India. The report, presented by Domnic Romell, President of CREDAI-MCHI, and Anas Rahman Junaid, Founder of Hurun India, highlights leading companies in Mumbai’s redevelopment sector and offers crucial insights into the current landscape.

The exhibition commenced with a ceremonial lamp-lighting attended by notable dignitaries, including Gautam Chatterjee, former Chairperson of MahaRERA, and Valsa Nair, Additional Chief Secretary of the Housing Department.

Nair emphasized the importance of simplifying redevelopment processes, stating, “Ease of doing redevelopment is crucial for Mumbai. We aim to streamline procedures to benefit citizens. The proposed redevelopment portal could enhance transparency and speed.”

Sanjeev Jaiswal, CEO of MHADA, highlighted the “cluster approach” to redevelopment, noting recent approvals for cluster layouts under regulations 33(5) and 33(9) that could improve living conditions. He pointed to successful projects in Motilal Nagar and Gandhi Nagar as examples of effective community collaboration.

Romell described the EODR initiative as a significant advancement for the redevelopment landscape. With nearly 929 housing societies and 214 project management consultants present, the platform is designed to facilitate smoother redevelopment processes. He noted that the government’s decision to provide fungible areas free of charge has significantly eased the journey for housing societies.

Dhaval Ajmera, Secretary of CREDAI-MCHI, reiterated the exhibition’s role in simplifying redevelopment, providing housing societies direct access to developers and consultants.

The event also included a panel discussion on the “Ease of Redevelopment,” featuring insights from industry leaders such as Manoj Dubbal and Sudhanshu Agarwal.

Overall, the EODR exhibition serves as a comprehensive platform for housing societies to explore viable and sustainable redevelopment options, marking an important step in revitalizing Mumbai’s aging housing stock.

Also Read: CII IGBC and CREDAI Sign MoU to Promote Green Building Practices in India

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By Varun Singh

First it was domestic workers, drivers now the wrath of housing societies is being faced by tenants of rented properties

A few days ago, a Mumbai based housing society barred its tenant from entering the building. The housing society had a demand that the tenants provide a COVID test report to enter the building.

The tenants including women, had to wait outside the gate for close to four hours. There were several doors knocked including that of police and finally after a report from doctor the tenants were allowed.

There are many such cases which are coming to the fore. Earlier many housing societies had barred the entry of domestic workers .

Also Read: Maids ask, will employers show their COVID reports?

Finally the state government had to intervene and reprimand societies for such restrictions.

Square Feat India got a legal opinion on whether housing societies can stop tenants from entering the building? Especially when they have a legally signed leave and license agreement with the landlord in place.

Adv Rakesh Singh says ‘No’, housing societies cannot stop tenants from entering the building.

Singh explains, “There is nothing in law or by laws governing society under MCS Act 1960 or rules made thereunder wherein tenants can be stopped by office bearers of society to enter society.”

What about societies using the reason of the ongoing epidemic for not allowing tenants.

Singh on this elaborates, “Even after the epidemic diseases act read with disaster management act has come in to force, the society does not get any such authority to stop the tenants from entering society and consequently their premises.”

He points out, that there is no such circular or government resolution by state of Maharashtra giving such authority to societies.

Societies have already faced the ire of the government for not allowing domestic workers earlier.

Singh said, “In fact it was because of such high handedness on the part of office bearers of society concerning domestic workers and drivers entry in to society premises that state of Maharashtra addressed to all Registrar of Cooperative Housing societies on June 26, 2020 wherein Registrars were directed to inform coop societies to allow maids/domestic help and drivers to enter society and to ensure that no coop society act against these directives.”

Also Read: Housing society cannot stop maids, drivers: State Govt

In the end Singh says, “Any act of society not permitting tenants from entering the society and consequently their premises is grossly illegal and punishable under the law of the land.”

This summarily answers the question that a housing society cannot prohibit a tenant from entering the building where he or she has legally rented an apartment.

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By Varun Singh

If one resides in a metro city like Mumbai, then the person knows the importance of a maid.

However, in the wake of Coronavirus, many housing societies have shut their gates for the maids.

Many housing societies have even asked their maids to get COVID 19 test done and show the reports that they are negative.

Only then are they shall allow maids to work at their societies.

This has upset the maids, not that they feel asking report is wrong, but the way they are being treated is what they feel is wrong.

They have a question to the housing societies, and to their employers in regards to the COVID 19 test reports.

“We are ready to show our test reports, are you going to show test reports of every individual at the home where we will work?” They say what if the employers or any of the members at the home they work are infected?

Babli Rawat, General Secretary of Domestic Workers Federation has called the move by most of the housing societies as discriminatory.

“Many societies want maids to come to work, bring their test reports and stay back at their place. What about the member of those homes, are they going to test everyday and show report when they return from office or outside?” asked Rawat.

According to Rawat, the poor are being troubled for something they are not even remotely responsible for.

“This disease came from the rich people who travelled to foreign countries, and then it got transmitted in slums and other areas. The maids are not even allowed to work in societies they are being returned from gate these days this is bad,” she said.

Most maids in metro cities don’t work at one house, to run their home they work at multiple households throughout the day. Thus Rawat says staying at one home is neither possible nor economically feasible.

Many housing societies have asked their domestic workers to not report to work till June 30. Maharashtra has imposed a lockdown in the state till then.

Also Read: Societies now demand COVID test reports of maids

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