The Bombay High Court has dismissed a petition challenging the appointment of a developer for a Goregaon (W) housing society redevelopment project, ruling that the guidelines issued in the July 2019 government resolution (GR) are directory in nature and not mandatory.
The petition, filed by Devendra Jain, a member of the Ramanuj CHSL at Mahesh Nagar, contended that the society had bypassed the tender process required under the 2019 GR while issuing a letter of intent (LoI) to Cunni Realty and Developer Pvt Ltd. Jain sought to quash the redevelopment process and requested a fresh procedure under the supervision of the deputy registrar of cooperative societies.
The petitioner argued that the society ignored procedures stipulated under Section 79 (A) of the Maharashtra Cooperative Societies Act and the GR guidelines, which he claimed were designed to ensure transparency and fairness in redevelopment projects. According to Jain, several developers had expressed interest in the project, and bypassing a tender process was both improper and unlawful.
During the hearing, senior counsel Mukesh Vashi, along with advocate Ameet Mehta, represented the society. They highlighted that the society, established in 1972, had undertaken substantial expenses on repairs and maintenance over the years. The March 2023 special general body meeting, attended by 77 of 83 members, saw 76 members consent to the appointment of Cunni Realty as the developer, with only Jain dissenting. Vashi emphasized that the meeting was conducted with full compliance of the GR guidelines, including the presence of an authorized officer, whose report led to the deputy registrar granting a no-objection certificate.
The society’s defense also pointed out that although other developers had expressed interest in the project, none submitted formal offers. The court noted that a single dissenting member cannot obstruct a redevelopment process approved by the majority, particularly when conducted under the supervision of an authorized officer. Cunni Realty’s counsel, Abhishek Sawant, stated that the LoI for Ramanuj society was part of a cluster redevelopment initiative involving three other housing societies.
Justices Suman Shyam and Manjusha Deshpande referred to prior rulings, including a 2016 Bombay High Court decision regarding the 2009 policy, which was amended in 2019. The court reaffirmed that guidelines issued under Section 79 (A) are directory, not obligatory, and deviations from these guidelines do not automatically constitute a legal violation unless they contravene statutory requirements or the directives' core objectives. The judges clarified that the GR’s purpose is to provide broad procedural guidance for redevelopment in the absence of a concrete policy, ensuring fairness without imposing rigid legal obligations.
The bench concluded that the decision to appoint Cunni Realty had been made lawfully by the majority of society members during a properly convened meeting. The court emphasized that as long as the meeting followed statutory requirements and involved the oversight of the authorized officer, the majority’s decision is legally valid and binding.
For the residents of Ramanuj CHSL and other societies undergoing redevelopment, the judgment provides clarity on the legal standing of the 2019 GR. It affirms that deviations from its recommendations, when not violating statutory provisions or the intent of the directives, cannot be challenged as unlawful. The decision is likely to influence how housing societies across Mumbai approach redevelopment, particularly regarding majority approvals, tender processes, and the role of authorized officers in supervising meetings and decisions.
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