Bombay High Court Upholds Society’s Right To Redevelop, Curbs Registrar’s Overreach
Court Clears Om Shanti CHS Redevelopment, Fines Dissenting Members ₹20,000 For Frivolous Objections
Mumbai, September 18, 2025 — In a strong affirmation of housing society autonomy, the Bombay High Court has upheld the right of Om Shanti Co-operative Housing Society Ltd., Borivali, to proceed with its long-delayed redevelopment project, setting aside the Deputy Registrar’s order that had stalled progress under Section 79A of the Maharashtra Co-operative Societies Act, 1960 (MCS Act).
The dispute arose when a minority faction within the 40-year-old society objected to a redevelopment resolution passed in February 2025 by 75% of members, claiming inadequate consultation and alleged violations of the 2019 Government Resolution (GR) on redevelopment procedures. Acting on their complaint, the Deputy Registrar of Co-operative Societies froze the project in June 2025, directing the society to restart the process — a move the court has now declared “legally unsustainable and contrary to cooperative principles.”
Court’s Key Findings
The bench ruled that Section 73 of the MCS Act clearly vests decision-making power in the society’s general body, provided statutory procedures and majority thresholds are met. The court found that Om Shanti CHS had fully complied with the 2019 GR by:
- Circulating redevelopment notices in advance,
- Holding multiple consultation meetings, and
- Documenting the tender process transparently.
The 75% approval comfortably exceeded the minimum requirement.
Citing Harish Arora vs. Deputy Registrar (2025), the court reiterated that Registrar powers under Section 79A are supervisory, not punitive — they cannot override a lawful general body decision absent fraud, illegality, or proven procedural lapses. The minority group’s objections were found to be motivated and repetitive, lacking evidence of any violation.
The bench also underscored the urgency of redevelopment in Mumbai’s aging cooperative sector, warning that unnecessary litigation and administrative interference endanger residents’ safety and delay urban renewal efforts.
Court’s Directions
- The Deputy Registrar’s June 10, 2025 order was quashed.
- The society was allowed to proceed with redevelopment as per the February 2025 general body resolution.
- A special general body meeting must be held within 30 days to address residual concerns of dissenting members transparently.
- The Registrar is barred from further interference unless new evidence of non-compliance surfaces.
- ₹20,000 costs imposed on dissenting members for filing frivolous litigation.
Why It Matters
This judgment reinforces that housing societies — not bureaucrats — are the ultimate decision-makers in redevelopment, provided they follow due process and uphold transparency. It balances majority will with minority protection, ensuring governance integrity without enabling obstruction.
The verdict will serve as a guiding precedent for hundreds of cooperative societies in Mumbai, Thane, and Navi Mumbai, where internal divisions and Registrar interventions often delay much-needed redevelopment of aging, unsafe buildings.
