Housing societies can’t be de-registered only for illegal construction: HC

DUE TO DISPUTE, A CO-OPERATIVE HOUSING SOCIETY OF THE FLAT PURCHASERS WAS NOT FORMED

MUMBAI: The Bombay high court (HC) has held that a co-operative housing society cannot be de-registered only on the ground that its building is unauthorised.

The HC also struck down the August 2019 order passed by the minister of co-operation, ordering the de-registration of a co-operative housing society from Airoli in Navi Mumbai on the ground that its building was unauthorised.

The single judge bench of justice GS Kulkarni said the authorities could not point out any provision in the MCS (Maharashtra Co-operative Society) Act which would confer jurisdiction on the registrar or the higher authorities to de-register a co-operative society because of some illegality or irregularity in construction of the building of the society.

“If the reasons set out in the impugned order are accepted, it would not only run contrary to the provisions of Section 8 to 10 (of the MCS Act) providing for the registration of the co-operative societies, but also create a chaotic situation,” said the bench and struck down August 13, 2019 order passed by the minister of co-operation to de-register Airoli Neha Apartment Co-op. Housing Society.

The building was constructed on land allotted by CIDCO to one Babibai Joshi, who had granted development rights to one Yogesh Enterprises, who in turn appointed a contractor to build the building. Though the building was constructed and flats were sold, because of the disputes between Yogesh Enterprises and the contractor, a co-operative housing society of the flat purchasers was not formed. Yogesh Enterprises carried the matter forward first in appeal and then in revision before the minister, who ordered de-registration of the housing society, primarily in view of the fact that its building was constructed without obtaining planning permissions.

“There is no manner of doubt that the impugned order passed by the Hon’ble Minister is based on reasons which are extraneous to the provisions of MCS Act,” said the court and struck down the minister’s order, upholding de-registration of the co-operative housing society.