Completion
🔹 Early Registration Is Legally Valid
The Bombay High Court has clearly ruled that a Co-operative Housing Society (CHS) can be registered even if the entire project is not completed. If one wing or a part of the building is complete and residents have taken possession, society registration cannot be delayed just because other wings are still under construction. This ruling brings major relief to flat owners in phased construction projects.
🏢 Case Background: Mulund West Dispute
The case involved the 360 Degree Business Park Premises Co-operative Society in Mulund West, formed for the Brite Building. Although the society was initially registered after buyers applied, the registration was later cancelled by authorities because two wings of the project were yet to be constructed, creating legal uncertainty for residents already living in completed units.
⚖️ HC Restores Society Registration
The Bombay High Court quashed the cancellation orders and restored the society’s registration. The court made it clear that legal rights of existing residents cannot be suspended due to future construction plans. The decision reinforces that administrative authorities cannot override statutory protections available to homebuyers.
📜 MOFA Act Protection for Flat Buyers
Referring to Section 10 of the Maharashtra Ownership Flats Act (MOFA), the court stated that promoters are legally bound to form a society as soon as the minimum number of purchasers take possession. The law does not permit delaying society formation until the entire project is completed.
🚫 Developer’s Argument Rejected
The developer argued that society registration must wait until the remaining wings were constructed and claimed rights under sale agreements. However, the court rejected these claims, stating that future construction cannot override statutory obligations under housing laws.
📊 51% Membership Rule Clarified
The High Court clarified that the 51% membership requirement for society registration must be calculated only on existing, occupied or occupiable flats — not on future or proposed units. This prevents developers from using unbuilt wings as a reason to delay legal formation of societies.
🛡️ Big Relief for Homebuyers
This judgment is a major protection for flat purchasers, ensuring timely society formation, legal recognition, and residents’ control over their building management. It strengthens transparency, accountability, and residents’ rights in redevelopment and phased construction projects.
🏛️ Bombay High Court: CHS Registration Need Not Wait for Full Project Completion