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Bombay HC: Co-op Society Can Register Before All Wings Built
19 Jan
Summary
- Society registration can proceed for a completed wing, not awaiting full project.
- Bombay High Court quashed orders cancelling a society's registration.
- MOFA Act mandates promoter to form society upon minimum purchasers' possession.
The Bombay High Court delivered a pivotal ruling stating that co-operative housing society registration is not contingent upon the completion of an entire project. The court overturned orders that had canceled the registration of a society in Mulund West, deeming such deferrals unlawful.
This legal precedent clarifies that promoters must form a society as soon as the minimum required purchasers occupy their units, as mandated by Section 10 of the Maharashtra Ownership Flats (MOFA) Act. The court rejected the argument that registration could be postponed due to pending construction of other project wings.
Justice Amit Borkar's bench affirmed that counting prospective units or future purchasers to meet membership thresholds is invalid, as it contradicts the MOFA Act's protective intent. The ruling prevents developers from indefinitely delaying society formation by planning multi-phase constructions.
