Bombay HC Restores Apex Society, Calls Deregistration a Mala Fide Tactic to Block Deemed Conveyance in Thane Cluster
Court Says Developers Cannot Use MCS Act to Sabotage MOFA Rights in Multi-Building Redevelopment Layouts
The Bombay High Court on May 9, 2025 quashed deregistration proceedings initiated against Rameshwar Co-Op Housing Society Ltd., an apex body representing seven 40-year-old buildings comprising 450 flats on a 12,000 sq. m. Thane layout. The Court held that the developer’s attempt to dissolve the apex society—filed two years after its 2022 registration—was a mala fide effort to derail the society’s ongoing deemed conveyance proceedings under MOFA Section 11.
The apex society had applied for conveyance in June 2024, citing ₹4.2 crore corpus arrears, long-standing promoter defaults, and only partial OCs issued since 2015. A C-1 structural audit flagged seismic risks, prompting residents to shift toward a 3.0 FSI self-redevelopment tender supported by RERA disclosures and 85% member affidavits.
In response, the developer filed a Section 21A deregistration plea in October 2024, alleging insufficient consent for apex formation and fragmented redevelopment scopes. The High Court rejected this narrative, noting that the deregistration attempt came immediately after conveyance notices—mirroring tactics condemned in Jaydeep Developers vs. Lok Everest CHS (2025) and Flagship Infrastructure Ltd. (2025), where post-conveyance maneuvers were struck down as attempts to block statutory title vesting.
The Court held that Section 73A apex societies are essential for cluster redevelopment, and any deregistration must undergo strict scrutiny, including bona fide evaluation, hearings, and documentary verification—none of which occurred. The Court added that the two-year delay in raising objections, without cause, violated the Limitation Act (Article 137).
The judgment emphasized that RERA Section 17 requires title clarity before redevelopment, and deregistration cannot be used to fragment cluster layouts or obstruct 450 residents from initiating self-led rehabilitation. Public interest, the Court said, favors conveyance finality, enabling societies to unlock tenders and escrow arrangements.
The Court restored the apex body, ordered the Competent Authority to issue conveyance without further delay, mandated the developer to deposit ₹4.2 crore in escrow within 60 days, and imposed ₹1 lakh costs on the developer for mala fides. It also barred similar deregistrations statewide unless cleared by the High Court.
The ruling protects apex formations from retaliatory dissolution and accelerates redevelopment across Thane’s 700+ aging clusters, fortifying MOFA-RERA alignment for equitable cluster rehabilitation.
