Sections 6, 9, 154B-2(4) and 154B-1(8).of MC Societies Act and Section 10 of MOFA.
Judgment dated 11.11.2025 of the High Court of Bombay in Writ Petition No.18153 of 2024 of Sadguru Universal CHS Ltd Vs. The State of Maharashtra and others
Sections 6, 9, 154B-2(4) and 154B-1(8).of MC Societies Act and Section 10 of MOFA.
Whether a promoter governed by MOFA can register two separate societies for a single building consisting of shops on lower floors and flats on upper floors.
Respondent No.5 promoter had constructed 24 commercial units on the ground floor and 88 flats from 3rd to 13th floors as per the one building plan. The Cidco had issued the occupancy certificate on 24.6.2020.
Thus, there is only one building, one plan and one occupancy certificate.
However, the promoter had submitted two independent proposals of two societies without informing flat purchasers. Moreover, out of 24 commercial units, the promoter had retained ownership of nine units.
By the order dated 8.12.2021, the respondent no.3 granted registration of the petitioner housing society only.
HELD that the Societies Act allows formation of more than one society only when clear and genuine separation exists within the building. This means that unless the building is designed and constructed in such a way that different parts can operate completely on their own, the promoter must register only one cooperative society for the entire building.
Mere fact that some units are commercial and some are flats do not give a right to the promoter to form two societies. Many buildings in urban areas have mixed use. Shops or offices may be on the lower floors and flats on the higher floors. This by itself does not show that two societies are necessary or justified. What matters is whether the two portions can function independently.
For deciding whether two societies can exist, the authority must examine the parameters –
Structural design and layout
Access and entry points
Utilities and amenities
Maintenance and financial responsibility
Parking and circulation area
Use pattern and occupancy
Legal and ownership documents
Impact on members’ rights and convenience
The Government Circular dated 30.7.2004 cannot be treated as law and is an administrative instruction. It cannot be relied on to defeat rights under the MCS Act or MOFA.
A single building cannot be split in two societies for commercial shops and flats unless there is a clear, physical, function and financial independence between the portions.
