Bombay HC Quashes Developer’s Deregistration Ploy, Orders Fresh Deemed Conveyance for Thane Layout
Court Slams Mala Fide Tactics Blocking Apex Body, Upholds Rights of 1,200 Families
In a landmark ruling reinforcing the primacy of MOFA’s Section 11 over procedural loopholes under the Maharashtra Co-operative Societies Act, the Bombay High Court has quashed the mala fide deregistration of an apex co-operative body formed by twelve housing societies in Thane. The order, delivered on May 9, 2025, in Rameshwar Co-operative Housing Society Ltd. & Ors. vs. Divisional Joint Registrar, Co-operative Societies & Ors. (W.P. No. 4704 of 2025), directs the competent authority to reconsider the societies’ deemed conveyance applications within 90 days.
The petitioners—comprising twelve societies across a 4.2-acre layout—had formed a registered federation in 2022 to pursue collective redevelopment after the original developer failed to execute conveyance deeds since 2008. In 2024, when they sought individual deemed conveyance under the Maharashtra Ownership Flats Act (MOFA), the authority dismissed their plea, citing a decade-old developer agreement that deferred conveyance until all buildings were completed.
Soon after the conveyance notice, the developer moved for deregistration of the apex body under Section 21A of the MCS Act, alleging inactivity. The Divisional Joint Registrar granted this on March 3, 2025, despite evidence of tampered records—struck-off entries and overwriting—which the societies flagged as signs of manipulation.
The court found the deregistration “patently mala fide”, observing that the federation had remained functional through 2023 tenders and redevelopment planning. Citing Flagship Infrastructure Ltd. vs. Competent Authority (2025 SCC OnLine Bom 1240) and Lok Everest CHS Ltd. vs. State of Maharashtra (2025 SCC OnLine Bom 711), the bench reiterated that MOFA’s statutory duty to transfer ownership overrides private contractual clauses that defer conveyance indefinitely.
Justice [Name withheld for summary] held that Section 21A cannot be invoked as a retaliatory tool to derail residents’ title claims, especially after a decade of developer defaults. The judgment distinguishes private multi-society layouts from unified SRA projects, clarifying that proportionate conveyance for completed buildings can proceed without halting future redevelopment.
In its detailed directions, the court:
- Set aside the March 3, 2025 deregistration, reinstating the apex federation.
- Ordered quarterly audits to ensure transparency in federation affairs.
- Remanded the October 2024 conveyance rejection to the competent authority, granting interim conveyance for completed portions spanning 1.8 acres.
- Restrained the developer from interfering in society-led tenders and imposed a ₹2 lakh cost for abuse of process.
- Directed statutory mediation under Section 91 of the MCS Act for pending layout disputes within 120 days.
The verdict marks a major victory for over 1,200 families awaiting legal title and safety upgrades amid rising incidents of cessed building collapses in Thane. It sets a precedent against deregistration as a delaying tactic, reinforcing judicial intolerance toward developer overreach in cooperative frameworks.
By reaffirming residents’ rights to self-determination and title security, this decision paves the way for over 800 similar layouts in the Mumbai Metropolitan Region to pursue phased conveyance and self-redevelopment without fear of procedural sabotage.
