Bombay HC simplifies norms for registration of a housing society

HC order says that just 10 flat owner’s signatures are enough on registration application.

Mumbai: Nullifying the circular issued by the Maharashtra State in 1992, the Bombay HC in a recent benchmark ruling has considerably eased the procedure for registration of a co-operative housing society. The order states that an application signed by only 10 flat purchasers is adequate for a co-operative housing society to be registered. Henceforth, the earlier rule which demanded the signatures of at least 60% of the flat owners on an application for registration of a housing society now stands void.
The HC bench comprising of Justice DK Deshmukh & Justice ND Deshpande delivered the verdict while deciding upon a petition filed by city resident Anil Jadhwani. The petitioner had challenged an order by the divisional joint registrar that invalidated the registration of the co-operative housing society to which he belongs on the grounds that the registration application did not meet the requirement of signatures of 60% of the members. His counsel Anil Sakhare argued that in compliance with the provisions of the Maharashtra Flat Owners Act, the builder is obliged to move an application for registration of the society within four months from the sale of the tenth apartment.
The State & the builder on the other hand adhered to the Government circular issued on July 24, 1992 mandating at least 60% of the flat owners to sign on the application for registration. The respondents reasoned that the circular was a policy directive of the Government.
However, the HC quelled this Government directive observing that the State could not have released the circular as there was no provision which empowered the state to do so. “When the State issued the circular dated July 24, 1992, there was no provision in the Co-operative Societies Act to which that circular could be referred to,” the Court maintained.
A deputy registrar had accorded registration to the society on the basis of signatures from 43 members, but the divisional joint registrar reversed the decision & ordered for a de-registration of the society. Jadhwani had appealed to the High Court after the State ratified the divisional joint registrar’s decision.
The HC bench justified, “In our opinion, as the position stands today, an application signed by 10 flat purchasers can also be considered for registration of the society by the registrar.” Furthermore, the Court has now directed the deputy registrar to re-consider Jadhwani’s application for the registration on the basis of this ruling.
The HC ruling also comes as a relief to residents, who want to take charge of maintenance of their respective buildings & don’t want construction firms to ask for high maintenance charges. Such aspiring residents may exploit the Maharashtra Flat Owners Act, which states that the builder is bound to initiate an application for registration of the housing society within four months from the date of sale of the tenth flat.