Bombay High Court Restores Disqualified Society Committee, Cautions Against Arbitrary Registrar Interference
Court Upholds Society Autonomy In Redevelopment, Quashes Section 79A Disqualification
Mumbai, June 9, 2025 — The Bombay High Court has set aside the disqualification of the managing committee of a Mumbai-based housing society, led by Harish Arora, ruling that the Deputy Registrar of Co-operative Societies exceeded his jurisdiction under Section 79A of the Maharashtra Co-operative Societies Act, 1960 (MCS Act). The case revolved around alleged procedural violations during the redevelopment of an Andheri housing complex.
The society’s committee had been disqualified in March 2025 following complaints of irregularities in tendering and member consultation during the redevelopment process. However, the petitioners argued that all actions had been duly approved by the general body, and the inquiry that led to their removal was both politically motivated and procedurally flawed.
Court’s Key Findings
Justice held that while Section 79A empowers the government to issue binding directions, the Registrar’s intervention must be grounded in solid evidence, not factional complaints or administrative overreach. The Court reaffirmed that the society’s general body enjoys primary authority under Section 73, and its autonomy cannot be curtailed without substantive proof of misconduct.
The judgment criticized the inquiry report for failing to demonstrate “substantial non-compliance” with the 2019 Government Resolution on redevelopment safeguards, noting that minor procedural lapses—like delayed notice circulation—did not justify such severe action.
Citing Karmachari Co-operative Housing Society vs. State of Maharashtra (2024), the Court emphasized that redevelopment delays caused by bureaucratic interference exacerbate risks in aging buildings and defeat the legislative intent of timely urban renewal.
Court’s Orders
- The disqualification order of March 20, 2025, was quashed.
- The petitioners were reinstated to the managing committee.
- The society was directed to convene a special general body meeting within 45 days to ratify redevelopment tenders.
- The Registrar was restrained from further interference pending project completion.
- ₹15,000 in costs were awarded to the petitioners.
Significance
This ruling is a crucial precedent in redevelopment governance, reaffirming that Registrar powers under Section 79A must be exercised with restraint and based on clear evidence. It safeguards societies from faction-driven complaints that can derail redevelopment projects, especially in Mumbai’s aging housing stock.
The decision underlines a balanced framework — protecting minority rights while enabling majority-backed redevelopment — ensuring progress without procedural paralysis.
