The registration of a cooperative society must involve the project promoter and comply with statutory procedures to avoid legal ambiguities and ensure fair representation.

ORDER :

T. Madhavi Devi, J.

W.P.No.14493 of 2023 has been filed by the writ petitioner/promoter of the project seeking a Writ of Mandamus declaring the action of the District Cooperative Officer, Medchal Malkajgiri District, in registering the Mutually Aided Cooperative Society under the name of “Saket Bhu Sattva Phase-I Villa Owners Mutually Aided Cooperative Maintenance Society Ltd.” bearing Registration No.TS/MLKG/ MACCS/2023-30/FOW&M, without an application being filed by the petitioner (which is the builder and promoter of the project) and at the instance of residents of a phase of the real estate project named “Saket Bhu Sattva” to the exclusion of the residents of the other phases as being without jurisdiction, and as illegal, arbitrary and contrary to the provisions of the Telangana Mutually-Aided Cooperative Societies Act, 1995 (for short, “TMACS Act”) and the Real Estate (Regulation and Development) Act, 2016 (for short, “RERA Act”) and the Apartments (Promotion of Construction and Ownership) Act and Rules 1987 and consequently to set aside the registration and to pass such other order or orders.

2. W.P.No.14519 of 2023 has been filed by writ petitioners, who are the residents of Phases-I and IV of Saketh Bhu Sattva Project, seeking a Writ of Mandamus declaring the action of respondent No.3 in conducting the elections of respondent No.4 society by fixing the date of elections on 11.06.2023 without consent of the petitioners, who are the rightful owners of the said villas in Phases-I and IV and also without considering their representation dated 02.06.2023 as illegal, arbitrary and against the principles of natural justice and consequently to set aside the Election notice dated 26.05.2023 issued by respondent No.3 and to direct the respondents No.2 and 3 not to conduct any elections until completion of the construction of the entire town namely Saketh Bhu Sattva in the interest of justice and to pass such other order or orders.

3. The writ petitioner in W.P.No.14493 of 2023 is the respondent No.5 in W.P.No.14519 of 2023.

4. Brief facts leading to the filing of the present writ petitions are noted in the interim order granted by this Court in W.P.No.14493 of 2023 dated 12.06.2023. It is observed that the petitioner in W.P.No.14493 of 2023 has developed a project by the name “Saket Bhu Sattva” comprising three phases and later, the petitioner expanded the project including 4^th phase and entered into Agreement of Sale with several Villas/Plot owners. It was specifically mentioned in the agreement that the project will be in three (3) phases. It is also observed that some members of I Phase Villa/Plot owners have applied for registration of society under the provisions of the TMACS Act and that the society was registered without any information to the petitioner (promoter/builder).

5. It is the contention of the petitioner/promoter that he has an obligation to register the society after all the phases are completed and all the common amenities, including services like water supply, drainage, street lighting, parks, clubhouses, etc., are to be handed over to the Villa/Plot owners thereafter. According to the petitioner, handing over of common amenities before the completion of the project will lead to a lot of confusion and it will be difficult for the petitioner to complete the project. It is stated that after respondent No.3 has registered the society with only the members of Phase-I villa owners, the Phase-I Villa owners are trying to occupy the clubhouse and common amenities, which would affect the entire project comprising of four phases. The petitioner has referred to Section 11 (4)(e) of the RERA Act, to submit that it is the responsibility of the petitioner/developer to form the society and that it does not have any objection to transfer corpus funds as and when such a society is formed after completion of all the four (IV)