A significant ruling from the Bombay High Court has clarified an important issue related to housing societies and illegal property sales. The court refused society membership to buyers who were sold refuge areas as residential flats, stating that such spaces cannot legally be treated as housing units.
The judgment came after multiple housing societies challenged an earlier order that had directed them to grant membership to the buyers.
⚖️ What Is the Case About?
The dispute involved four housing societies in Bhandup West, Mumbai. Buyers claimed they had purchased five flats from a developer in 2019 through registered agreements and therefore applied for membership in the society.
However, the societies rejected their request after discovering that the so-called flats were actually refuge areas mentioned in the building’s approved plan.
Refuge areas are mandatory safety zones in high-rise buildings, meant for evacuation during emergencies such as fires.
🏢 Societies Challenge Registrar’s Order
When the buyers approached the Divisional Joint Registrar of Co-operative Societies, the authority initially directed the societies to grant membership.
But the housing societies challenged this order in the Bombay High Court, arguing that allowing membership would violate building rules and legal provisions.
⚖️ Bombay High Court’s Key Observation
The High Court made a crucial observation during the hearing.
It stated that the alleged flats “do not exist in law” because they are actually refuge areas that are reserved for safety purposes.
The court emphasized that such spaces cannot be treated as residential units or even unfinished flats.
📜 Violation of Maharashtra Co-operative Societies Act
The court further clarified that granting membership in such cases would violate the Maharashtra Co-operative Societies Act, 1960.
According to the law:
🔹 Society membership must correspond to legally approved flats
🔹 The number of members cannot exceed the number of legitimate residential units
Allowing membership for refuge areas would therefore be against the legal structure of housing societies.
🏗️ Developer Had No Right to Sell the Space
Another important factor highlighted by the court was that the societies had already obtained deemed conveyance.
This means the ownership rights of the building had already been transferred from the developer to the housing society.
Because of this:
⚠️ The developer no longer had the authority to sell any additional spaces in the building, including refuge areas.
⚖️ Final Verdict of the Court
After reviewing the facts, the Bombay High Court set aside the registrar’s earlier order.
The court ruled that the housing societies were correct in refusing membership to buyers of the alleged flats.
The judgment reinforces that illegal real estate transactions cannot be legitimized through society membership.
Source:
🚨 Housing Society Membership Denied: Bombay HC Says Refuge Areas Cannot Be Sold as Flats