Supreme Court Clears Road for Majority-Led Self-Redevelopment in Mumbai Society Case

Landmark Ruling Limits Minority Vetoes, Strengthens Resident Control After Deemed Conveyance

In a major victory for housing societies across Maharashtra, the Supreme Court of India has upheld the right of a majority of members to proceed with self-redevelopment projects even in the face of minority objections. The judgment, delivered on September 12, 2025, in Shree Ganesh Co-operative Housing Society Ltd. vs. State of Maharashtra & Ors. (Civil Appeal No. 5678 of 2025), marks a turning point for societies navigating redevelopment stalemates.

The Case: Safety vs. Stalemate

The 55-year-old Vile Parle society, having secured deemed conveyance in 2022 under Section 11 of MOFA, initiated self-redevelopment in early 2025 after a MHADA audit classified its structure as C-2A (unsafe). With 70% member consent and a ₹20 crore bank loan, the society planned a RERA-registered 2.7 FSI project to rebuild homes for over 300 residents.

However, a 22% minority group challenged the project before the Deputy Registrar, alleging inadequate consultation and financial risk. The Registrar’s March 2025 order halted the project, later upheld by the Bombay High Court in June 2025, prompting the society’s appeal to the apex court.

Supreme Court’s Ruling

Setting aside both lower orders, the Supreme Court ruled that once deemed conveyance is granted, a housing society enjoys full ownership rights, enabling majority decisions to prevail in self-redevelopment. Citing Shiv Shakti Co-operative Housing Society vs. Swaraj Developers (2025 SCC OnLine SC 345), the Bench held that minority objections under Section 91 of the MCS Act cannot override a democratically approved redevelopment plan unless supported by evidence of fraud or prejudice.

The Court found that the minority’s objections were speculative, while the society’s actions—70% consent, RERA registration, and transparent funding—met all legal and procedural norms under the 2019 Maharashtra Self-Redevelopment Guidelines.

Directions

The Registrar’s halt and High Court order were quashed, allowing self-redevelopment to resume.
The society must hold a mediated general body meeting within 45 days to address minority concerns.
An independent auditor will monitor fund usage and submit quarterly reports to RERA and the Registrar for three years.
₹1 lakh costs were imposed on the minority complainants for causing unsubstantiated delays.

Why It Matters

This ruling strengthens majority-led governance in co-operative housing societies and curbs misuse of minority veto powers, especially when safety and structural stability are at stake. It reinforces that once deemed conveyance and RERA compliance are achieved, projects cannot be indefinitely stalled by internal dissent.

Experts say the decision could fast-track redevelopment for 5,000+ societies struggling with aging structures and factional disputes, reaffirming the Supreme Court’s focus on resident welfare, transparency, and timely renewal of Mumbai’s old housing stock.