Bombay HC quashes CIDCO transfer charges on two old Navi Mumbai housing societies

A division bench of the Bombay High Court, comprising Justices Bharati Dangre and Manjusha Deshpande, has quashed transfer-charge demands raised by CIDCO (City and Industrial Development Corporation) on two old cooperative housing societies in Navi Mumbai. The ruling is dated September 29 and was reported on October 10, 2026. The petitioners were Man Mandir Cooperative Housing Society (Nerul), Surya Cooperative Housing Society (Vashi) and the Navi Mumbai Cooperative Housing Federation.

What the dispute was about

CIDCO had demanded transfer charges when flats or shares in these societies changed hands. In October 2016, for example, it asked Man Mandir society for Rs 24.58 lakh for the transfer of 27 flats. CIDCO relied on transfer-charge provisions added to the Navi Mumbai Land Disposal Regulations, 1975 by an amendment dated February 8, 1990.

The societies argued that their original lease deeds did not require members to take CIDCO's prior permission or pay transfer charges, and that a later amendment cannot add new financial obligations to an existing lease.

What the court held

The court held that an amendment cannot be applied retrospectively to impose fresh financial liabilities unless it expressly says it operates retrospectively. It quashed CIDCO's demands and the related notices against both societies. Reports note the reasoning may help other societies whose lease deeds were signed before February 8, 1990.

What this means for housing societies

• Societies on CIDCO land should check the date of their lease deed and whether it contains any transfer-charge or prior-permission clause.
• A transfer-charge demand based on a rule added after the lease was signed can be challenged, though each case depends on its own lease terms.
• Managing committees should keep copies of the original lease deed, CIDCO correspondence and past demand notices ready before responding to any new demand.

The full judgment text was not reviewed for this report; the details above are from press coverage. Societies facing a CIDCO demand should obtain the order and have it read against their own lease deed before relying on it. Whether CIDCO will appeal has not been reported.