Mumbai News: Matunga Housing Society Members Challenge Redevelopment Appointment In Bombay High Court

Members of Matunga Kapol co-operative housing society have been at loggerheads over the appointment of Vallabh Developers for redeveloping their 84-year-old dilapidated buildings, with a section of them approaching the Bombay High Court.

Thirty-seven members of the society have filed a petition in the high court challenging the order of the divisional joint registrar (DJR) of the co-operative societies quashing the appointment of Vallabh Developers to redevelop their buildings.

The plea, filed in March, highlights how certain members of the managing committee, for alleged “extraneous reasons” in collusion with unsuccessful developers, got the redevelopment project stalled, thereby posing risk to their lives. The society comprises four wings with 62 residential and commercial units. However, there were 59 members as three members own two units each. Later, seven members died, and no legal heirs were admitted as members. Hence, in 2022, at the relevant time there were only 52 members, the plea stated.

The buildings were constructed prior to 1940 and outlived their life and required heavy repairs. Considering the heavy recurring cost involved in maintenance of the buildings, the members decided to undertake redevelopment. Accordingly, they initiated the process in April 2022, and appointed Deodhar Associates as project management consultants. The plea pointed out that at least 27 members, which is 51% of the total members, would have to agree for redevelopment. Tenders were invited and they received six bids, including that of Vallabh Developers.

A special general meeting (SGM) was held on August 14, 2022, in which the assistant registrar was invited to hold the election / selection of a developer, by following due process of law. At the SGM, 39 members were present physically and 11 attended through video conferencing. Of these 28 members and 10 members cast physical and virtual votes, respectively, in favour of Vallabh Developers.

The managing committee wrote to the developer on August 26, 2022, that it had not received minutes of the meeting of the SGM from their lawyer and hence could not submit it to the registrar of societies. It sought some clarification from the developer. Despite the developer replying on two occasions, there was no response from the managing committee.

Interestingly, without calling for a meeting of the members, the managing committee sent a letter to the assistant registrar that there are 53 members and sought disapproval and stay on appointment of Vallabh developers. The assistant registrar called for documents and video recording of the SGM from the managing committee. After going through all the details, the AR gave the NOC for Vallabh Developers on October 18, 2022.

The managing committee filed a review application before the DJR. Thirty-four members filed an intervention application in support of the developer. The DJR, pending hearing, directed the parties to maintain the status quo. Despite this, the managing committee wrote a letter to the developer stating that it is blacklisting him and initiating a fresh process for redevelopment.

On December 29, 2022, the DJR set aside Vallabh Developers’ appointment and directed the assistant registrar to initiate a fresh process. The developer approached the HC against this. The society called for fresh bids for redevelopment.

On the developer’s plea, the HC restrained the society from opening the tenders.

Following a complaint by some of the members, the assistant registrar removed three committee members from their office and disqualified them from being re-elected, re-co-opted or re-nominated on the committee for five years.

The members then approached the HC this March seeking quashing of the DJR’s order stating that the same is against “law, equity and documents and evidence of record”. Also, it pointed out that even though members have more than one flat / unit, they can only vote once, hence at the SGM, the society only had 52 members.

It highlights that delaying the redevelopment process would put the members of the society at “grave loss and irreparable harm”. “Some managing committee members, obviously [for] extraneous reasons and working hand in glove with the unsuccessful / rival developer, tried to stall the redevelopment process,” the plea alleged.

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