Logical order is a must while registering housing societies: HC

The court said that before registering a housing society, the registrar must verify several key criteria–such as whether the minimum number of members is met, whether the members belong to different families, and whether more than half of the flat purchasers support forming the society

MUMBAI: The Bombay High Court on Monday cancelled the registration of a cooperative housing society, holding that the registrar had issued the registration certificate without examining whether the applicants met the basic legal requirements.

The court said that before registering a housing society, the registrar must verify several key criteria–such as whether the minimum number of members is met, whether the members belong to different families, and whether more than half of the flat purchasers support forming the society. (Shutterstock)

Justice Amit Borkar was hearing petitions filed by Shree Jagruti Cooperative Housing Society, which had challenged a January 22, 2025 registration granted to a rival group using a similar name “Shree Jagruti CHS, Proposed.” The project developer, Triumph Urban Developers, had also filed a separate petition challenging the order.

The court said that before registering a housing society, the registrar must verify several key criteria–such as whether the minimum number of members is met, whether the members belong to different families, and whether more than half of the flat purchasers support forming the society.

These details must be verified using documents including sale agreements, building plans, completion or commencement certificates, and resolutions passed by the promoters of the society.

However, the court found that no such verifications had been conducted on record. The registrar had issued only a certificate, with no explanation of what documents were examined or how he concluded that the proposed society qualified for registration. “This omission goes to the root of the matter,” the court observed.

In the Jagruti CHS case, the court found no evidence that this two-step process had been followed. The court held that the initial registration was defective and that the higher court reviewing it had made a mistake in approving the decision. Both the registration and the order allowing it were struck down.

The high court has now sent the matter back to the registrar who had issued the certificate, directing him to conduct a fresh review of the proposal.