Bombay High Court Quashes Registrar’s NOC Refusal, Boosts Self-Redevelopment Autonomy
Judgment Empowers Housing Societies Post-Deemed Conveyance, Limits Bureaucratic Control
In a landmark decision reinforcing the autonomy of housing societies, the Bombay High Court has ruled that Deputy Registrars cannot withhold or condition No Objection Certificates (NOCs) for self-redevelopment projects once deemed conveyance has been obtained. The verdict, delivered on October 15, 2025, in Shree Sai Co-operative Housing Society Ltd. vs. Deputy Registrar of Co-operative Societies & Ors. (Writ Petition No. 8923 of 2025), sets a crucial precedent for thousands of Mumbai’s aging buildings awaiting renewal.
The Case: When Safety Meets Red Tape
Shree Sai Co-operative Housing Society, a 60-year-old Bandra West building, secured deemed conveyance in 2022 under Section 11 of MOFA after an 18-year delay by the original promoter. A 2024 structural audit classified the building as C-1 (collapse imminent), prompting the society to seek self-redevelopment with 72% member consent, ₹18 crore bank financing, and a RERA-registered plan for 2.5 FSI utilization.
However, in September 2025, the Deputy Registrar refused to issue an NOC, insisting on prior vetting of the society’s consultant and financial projections under a 2019 Maharashtra Government Circular. The society challenged this decision, arguing that such preconditions violated its autonomous title rights post-deemed conveyance and caused dangerous delays affecting over 1,000 Bandra societies in similar situations.
Court’s Findings
The Bombay High Court sided with the society, holding that once deemed conveyance is granted, full ownership rights vest with the society, empowering it to proceed with redevelopment through majority consent. The Bench cited Madhugiri Co-operative Housing Society Ltd. vs. Heritage Lifestyles & Developers (2025), affirming that the 2019 Circular’s NOC provision is directory, not mandatory, and cannot be used to impose bureaucratic hurdles.
The Court stressed that the Registrar’s role is supervisory, not executive — limited to ensuring procedural compliance such as proper meeting notices and quorums under the MCS Act Section 78, not to approve consultants or finances. Any deeper interference, the court observed, “risks corruption, inefficiency, and undue delay in urgently needed redevelopment.”
Referencing Datta Ramanand Housing Society vs. Disha Constructions (2023), the Court emphasized that self-redevelopment minimizes misuse risks, being resident-led rather than developer-driven. It concluded that public interest in preventing collapses outweighs administrative overreach, particularly across Mumbai’s 12,000+ cessed buildings facing structural danger.
Directions
- NOC refusal quashed; unconditional NOC to be issued within 15 days.
- Society to submit bi-annual progress reports and financial audits for oversight.
- ₹1.5 lakh costs imposed on the Deputy Registrar for procedural delay.
- State authorities barred from interfering in tenders or plan approvals.
- Minority concerns to be addressed through mediation within 30 days under the MCS Act.
Why It Matters
This ruling dismantles a major bureaucratic bottleneck that has long slowed Mumbai’s self-redevelopment movement, freeing societies from unnecessary NOC requirements once deemed conveyance and RERA compliance are achieved. It reinforces resident control, procedural transparency, and cooperative democracy — ensuring safety and speed in the renewal of Mumbai’s fragile housing stock.
The judgment is expected to accelerate more than 2,500 stalled projects statewide, reshaping how cooperative societies pursue financially independent, resident-led redevelopment.
