2025High CourtLatestLegalMarch 2025Real Estate

Section 21A of MCS Act – Purchasers – No locus standi to challenge registration

On 10.3.2010, Development Agreement for the land at Baner for construction and development was executed.

In February 2015, the PMC issued the completion certificates for the residential building on the said land.

On 1.4.2016, the petitioner society of the purchasers of the residential flats was registered.

In 2019, the Developer handed over possession of the common areas and office records to the petitioner society.

On 2.9.2020, the original land owners executed conveyance deeds of six flats in favour of respondent nos.5 to 7 without seeking consent and disclosing the same to the petitioner society.

In 2021, the petitioner informed the respondent nos.5 to 7 that membership will be given only on surrender of common terrace, open space and society’s parking areas allegedly encroached by them without due authority.

On 17.4.2022, on the application of the the respondent nos.4 to 7 filed application, the society was de-registered and the registration was cancelled.

On 14.7.2023, the appeal of the society was rejected.

HELD that the conditions for cancellation of the registration of the society were not fulfilled.  The action of de-registration is not maintainable in the absence of material substantiating fraud and misrepresentation.  

Secondly the application by the purchasers and not as promoters is not maintainable since their right is confined to conveyance under MOFA and not to question registration of the society.

Judgment dated 19.3.2025 of the High Court of Bombay High Court in Writ Petition No.14644 of 2023 of Aurum Avenue Cooperative Housing Society and another    Vs.   The State of Maharashtra and others with connected matter

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