Bombay HC Upholds Democratic Builder Selection Process in Goregaon Society Redevelopment Dispute

The Bombay High Court has ruled in favor of a housing society redevelopment project in Goregaon West, dismissing a challenge from a former committee member who contested the appointment of the developer. The court determined that a former chairman of Ramanuj Cooperative Housing Society Limited could not obstruct a redevelopment initiative that had received overwhelming support from the society's members.

Advisory Nature of Government Guidelines

The division bench clarified that the July 4, 2019 government resolution concerning the tendering process for housing society redevelopment projects was directory rather than mandatory in nature. The court observed that while the guidelines aimed to promote transparency and fairness in the selection process, not every procedural deviation would constitute a legal violation unless it contravened statutory norms or undermined the objectives of the directives.

Background of the Dispute

The petitioner, who had served as chairman of the Goregaon West cooperative housing society before being removed from office in October 2023, challenged the society's decision to appoint Cunni Realty and Developer Private Limited as the redevelopment builder. He contended that the selection process violated the 2019 government resolution as the builder had been appointed without inviting formal tenders, and that the Letter of Intent issued to the developer should be cancelled. The petitioner sought a fresh selection process under the supervision of the Deputy Registrar of Cooperative Societies.

Society's Democratic Decision-Making

The housing society, which was formed in 1972, defended its appointment process by highlighting that a special general body meeting had been convened in March 2023 where 77 out of 83 members had attended. The society's legal representatives stated that 76 members had voted in favor of appointing Cunni Realty as the developer, and that an authorized officer from the registrar's office had been present during the meeting. Based on his report, the Deputy Registrar had issued a No Objection Certificate for the redevelopment project.

The society's counsel argued that while other developers had expressed interest, none had submitted formal proposals, and that one dissenting member should not be permitted to delay or derail a project that had been approved by the overwhelming majority.

Cluster Redevelopment Initiative

The appointed developer, Cunni Realty, was undertaking the redevelopment not only for Ramanuj Cooperative Housing Society Limited but also for three other neighboring societies as part of a cluster redevelopment initiative in the area. The builder had received a common Letter of Intent for all societies involved, reflecting the integrated approach to urban redevelopment in Mumbai's western suburbs.

Legal Interpretation and Precedent

In arriving at its decision, the court referred to a 2016 Bombay High Court ruling that had examined the earlier 2009 redevelopment policy, which was subsequently revised in 2019. That precedent had clarified that guidelines issued under Section 79(A) of the Maharashtra Cooperative Societies Act were intended to guide cooperative societies rather than impose mandatory requirements.

Court's Final Determination

The court concluded that the decision to appoint the builder had been taken lawfully and democratically, with no evidence of legal violations or attempts to bypass due process. The bench found that the petition lacked merit and that judicial interference in the society's decision was unwarranted. The court emphasized that the society had followed appropriate procedures and that the overwhelming majority support for the project demonstrated the democratic nature of the decision-making process.

This ruling reinforces the principle that housing society members' collective decisions carry significant weight in redevelopment matters, provided they adhere to basic legal requirements and maintain transparency in the process.

Key Details at a Glance

Disclaimer: This news article is based on information available as of October 14, 2025. The content is for informational purposes only and should not be construed as legal advice. Readers are advised to consult with qualified legal professionals or appropriate authorities for specific guidance related to housing society redevelopment, cooperative society laws, or property matters. While efforts have been made to ensure accuracy, the information presented may be subject to updates or changes. The views expressed in court rulings are those of the judicial authorities and do not necessarily reflect the opinions of this publication.