MUMBAI: In an important step towards curbing the corruption behind the redevelopment of housing societies, the Bombay High Court on Friday held that district deputy registrars (DDRs) of co-operative societies can no longer insist that societies must get their approval to proceed with the redevelopment.
The case stems from a jointly filed petition in mid-August by eight members of the Bandra Nisha Cooperative Housing Society after the redevelopment of the society property was stalled due to a lack of permissions from the DDR. Responding to the petition, the court ordered that all DDRs in the state must only supervise the process of a society’s redevelopment, and not insist that societies get their approval.
Justice Amit Borkar noted that the Maharashtra Co-operative Societies Act and its rules don’t specify that societies must get a No-Objection Certificate (NOCs) from the DDR regarding the redevelopment of their properties. Despite this, the Mumbai Grahak Panchayat (MGP), a non-profit cooperative for consumer rights, highlighted that DDRs would often ask for ₹15,000 to ₹50,000 per flat for such NOCs. The topic became a public debate since many societies could not afford these sums and developers would be forced to pay up instead, said MGP in a press release on Saturday.
As per the MGP, the DDRs had even begun interfering with a society’s redevelopment by picking a developer of their choice who would facilitate the large financial transactions before the society’s general body met up to finalise the redevelopment plans.
Responding to the petition the court clarified the role of the DDR in the redevelopment of housing societies. The Registrar has no authority, either under statute or under the Government Resolution, to insist upon a “No Objection” before or after the society’s decision (to redevelop its property),” justice Borkar said. The court added that the general body of the housing society was the “supreme authority” in matters concerning the management and affairs of the society, including its redevelopment.
“His (the DDR’s) role, as laid down in the Government Resolution, is limited to ensuring that the process is transparent and that all members get a fair opportunity to participate,” the court said. The DDR must nominate an authorised officer to oversee the selection of a developper, but the officer’s role is “purely supervisory”. “The authorised officer is meant to observe the proceedings, confirm that the quorum (minimum number of people) is met, and ensure that the minutes, voting, and resolutions are properly recorded,” the court added. The court has also ordered the Commissioner of Cooperation to issue a circular regarding the order and upload it on the cooperative department’s website.
MGP welcomed the verdict, saying the ruling will help curb the widespread and institutionalized corruption in DDR offices across the state. With this ruling, it said, these corrupt practices are “expected to be buried for good.”