The court affirmed that only flat owners can manage a co-operative housing society, and the Deputy Registrar acted within jurisdiction under Section 78A of the Maharashtra Co-operative Societies Act, 1960.

JUDGMENT :

1. Petitioners have filed these petitions challenging the orders dated 13^th January 2023 passed by the Deputy Registrar, Co-operative Societies removing them from the post of managing committee members and disqualifying them from being managing committee members for the next one term and appointing authorized officer to look after day-to-day affairs of the society under provisions of Section 78A of the Maharashtra Co-operative Societies Act, 1960 (MCS Act). Appeal preferred by Petitioners before Divisional Joint Registrar has been rejected by order dated 2^nd May 2023. Further Revision preferred by the Petitioners before the Hon’ble Minister Co-operation is also rejected by order dated 1^st March 2024. Accordingly, orders passed by the Divisional Joint Registrar and the Hon’ble Minister are also subject matter of challenge in the present petitions.

2. An open plot of land admeasuring 462.36 sq. meters situated at Survey No.287A, CTS No.3A(Pt.) was allotted by Maharashtra Housing and Area Development Authority (MHADA) in favour of Mr. Harbux Mulchand Chuggani on 23^rd May 1962 and a formal Deed of Lease came to be executed in his favour on 6^th October 1993 for a period of 99 years. Said Mr. Chuggani accordingly constructed a building comprising of ground plus two upper floors and sold the flats therein to Saparna Hingorani, Mukesh Gandhi and Kishore Gandhi/Lalita Gandhi. It is Petitioners’ case that said Mr. Harbux Chuggani contacted one Mr. Deepak Shetty for redevelopment of the building so as to utilize balance FSI potential available on the leased plot. Said Mr. Depak Shetty became a Chief Promoter and formed and registered JVPD Sterling Co-operative Housing Society Limited by taking on board 10 outsiders as members of the society. The names of the said 11 persons shown to have been the original members of the society are as under:

1. Deepak R. Shetty

2. H. M. Chuggani

3. Swarup S. Khedekar

4. Ratnakar S. Shetty

5. Janki Shetty

6. Jyothi H. Shetty

7. Yogesh R. Shetty

8. Vinith N. Shetty

9. Anupama Y. Shetty

10. Ajay Kanuga

11. Nandu N. Shetty

3. The society was registered on 27^th April, 2004 a tripartite Deed of Assignment was executed between Mr. Harbux Chuggani, Society and MHADA by which the lease in respect of the plot was apparently transferred in the name of the society. On 28^th December 2006 a Development Agreement was executed and registered by the society with M/s Kamla Landmarc Builders (Kamla Landmarc) for redevelopment of the land and the building. The Development Agreement envisaged allotment of flat in the reconstructed building to the original three owners of flats Saparna Hingorani, Kishore/Lalita Gandhi and Mukesh/Harsha Gandhi whose names were included in the Annexure-A to the Development Agreement. A separate Annexure-C was attached to the agreement which included names of eleven members of the society and it was agreed that the Developer shall sell the flats constructed in the new building to the said persons whose names were included in Annexure-C at 20% less costs than the prevailing market rates. It appears that MHADA permitted addition of Prashant Hingorani, Kishore D. Gandhi and Jay Gandhi as members of the society by letter dated 23^rd July, 2007. According to Petitioners, MHADA granted permission for construction of building comprising of seven floors in which three flats were to be allotted to the original occupants Prashant Hingorani, Jay Gandhi and Kishore Gandhi and rest of the flats were to be distributed according to the Petitioners to eleven members of the society. The Chief Promoter Mr. Deepak Shetty passed away on 7^th April 2008. It appears that the original members are shown to have transferred their membership in the society in favour of Petitioners during the years 2007-08. Thus, except Ratnakar Shetty, Yogesh Shetty and Nandu Shetty, rest of the eight members transferred their membership in favour of incoming members during 2004 to 2010. Petitioners are some of such new-coming members and cla