Bombay HC Restores Apex Society, Calls Deregistration a Mala Fide Attempt to Block Deemed Conveyance
Court Says Developers Cannot Use MCS Act Deregistration to Frustrate MOFA Title Rights in Multi-Building Layouts
The Bombay High Court on May 9, 2025 quashed the deregistration of Rameshwar Co-Operative Housing Society Ltd. and its apex federation, holding that the action was a mala fide attempt to derail the society’s deemed conveyance proceedings under MOFA Section 11.
The apex body, formed in 2022 for a 15,000 sq. m. Thane layout comprising four buildings, had initiated conveyance proceedings in September 2024 following 14 years of promoter default, including failure to execute conveyance deeds despite occupation certificates for two buildings and alleged withholding of a ₹4-crore maintenance corpus.
In November 2024—two years after registration and immediately after the society issued conveyance notices—the developer sought deregistration under MCS Act Section 21A, claiming procedural lapses. The Divisional Joint Registrar accepted the request in January 2025, citing minor record discrepancies, without giving the societies a hearing or examining promoter intent.
The Court held that the timing and circumstances revealed a retaliatory strategy, noting that promoters cannot misuse deregistration to block unified title vesting crucial for 3.2 FSI self-redevelopment involving 350 residents. Citing Flagship Infrastructure Ltd. (2025) and Lok Everest CHS Ltd. (2025), the Bench reiterated that MOFA rights cannot be suspended by private arrangements, federation disputes, or incomplete project claims.
The ruling underscores that deregistration requires strict scrutiny, transparency, and mandatory pre-decision hearings—none of which occurred. The Court also highlighted that RERA Section 17 demands title clarity prior to redevelopment and that administrative interference cannot be allowed to fragment multi-building layouts in Thane’s 1,500+ stalled clusters.
The High Court reinstated the apex society, ordered expedited processing of deemed conveyance for 9,000 sq. m. (60% of the layout), and directed a ₹2.5-crore escrow deposit by the developer for maintenance. It also imposed ₹1 lakh costs on the Registrar for arbitrary action and mandated MahaRERA oversight to ensure 70% unified consents before FSI unlocks.
The judgment strengthens apex structures and protects societies from deregistration-based sabotage, accelerating redevelopment for Thane’s cooperative clusters.
