MUMBAI: The Bombay High Court has dismissed a petition from a member of a Goregaon (W) housing society who contested the appointment of a builder for redevelopment without a tender process, as per a government resolution from July 2019.
“This court has previously determined that the July 4, 2019 GR is not mandatory but rather directory in nature. The guidelines aim to ensure a fair and transparent redevelopment process. Thus, any deviation or procedural lapse does not automatically constitute an actionable wrong unless it violates the intent of the directives or a statutory requirement,” stated Justices Suman Shyam and Manjusha Deshpande on Monday.
Petitioner Devendra Jain argued that after being removed as chairman of Ramanuj CHSL in Goregaon’s Mahesh Nagar in October 2023, the society, without adhering to the protocol outlined in Section 79 (A) of the Maharashtra Cooperative Societies Act and the 2019 GR guidelines, issued a letter of intent to Cunni Realty and Developer Pvt Ltd. Jain requested that the High Court annul the entire redevelopment process and the letter of intent, and to initiate a fresh process under the deputy registrar’s supervision.
Jain’s advocate, Manoj Upadhyay, contended that the society bypassed the mandatory tender process outlined in the GR, despite interest from several developers.
Conversely, senior advocate Mukesh Vashi, along with advocate Ameet Mehta, noted that the society, established in 1972, had incurred significant repair expenses. During a special general body meeting in March 2023, 77 out of 83 members were present, and 76 consented to appoint Cunni as the developer, while Jain opposed this. An authorized officer was present at the meeting to ensure compliance with the GR, leading to the deputy registrar granting a no-objection certificate. Vashi emphasized that while other developers expressed interest, none made formal offers, asserting that a sole dissenting member should not obstruct a majority-approved redevelopment process. Cunni’s advocate, Abhishek Sawant, confirmed that the letter of intent for the Ramanuj society was the result of a cluster redevelopment initiative alongside three other housing societies.
The judges cited a prior High Court decision from July 2016 regarding a similar policy from 2009, which was amended in 2019. They reiterated that the guidelines under Section 79 (A) are directory, not obligatory. The High Court had affirmed that the purpose of the GR is to provide broad guidelines aimed at streamlining procedures in the absence of definitive policy regarding redevelopment complaints. This reasoning has been upheld in subsequent rulings, including on June 9. Dismissing the petition, the judges stated that the decision to appoint Cunni was made by the majority in accordance with legal standards and under the oversight of the authorized officer. “A majority decision taken at a properly convened meeting will hold,” they concluded.
