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Cooperative Housing Society – Required number of members for registration

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The plan for 134 shops and 40 flats ( total 174 units in the building ) was sanctioned.  However, the Respondent No.4 Developer appears to have constructed 198 units in violation of the sanctioned plan.  Moreover, 83 out of total 198 units of the building were sold.

These 83 shop purchasers form Harmony Plaza Premises Cooperative Society vide registration certificate dated 26.7.2017.

Respondent No.4 had challenged the registration of the said society and sought de-registration under Section 21A of the Maharashtra Cooperative Societies Act, 1960, on the ground that higher percentage of purchaser is required for registration.

By the order dated 8.11.2023, the Divisional Joint Registrar directed de-registration mainly on the ground that 60% of the flat / shop purchasers were not part of registration proposal.   This was confirmed in the appeal by the Hon’ble Minister vide order dated 21.8.2024.

By the Circular of 23.3.2016 issued under Section 6 of the MCS Act, the Registrar has prescribed the higher percentage of 51% of unit purchasers of the total number of flats constructed or sold in a building must apply for registration.

In this case, instead of 89 unit purchasers, only 83 unit purchasers filed registration application.  Therefore, the society could not have been registered at the relevant time in the absence of fulfilment of 51% requirement of 174 constructed flats joining together for formation of society.

Judgment dated 4.3.2025 of the High Court of Bombay in Writ Petition No.13147 of 2024 (AS) of Prakash Raghunath Saave (Promoter of deregistered Harmony Plaza Premises Cooperative Society)  Vs.   The State of Maharashtra and others

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