Bombay HC: Builder Cannot Cite His Own Illegalities to De-register Society

The Bombay High Court has set aside the de-registration of the Hatkesh Udyog Nagar Industrial Premises Co-operative Housing Society in Mira Road, ruling on August 7, 2026 that a builder cannot seek to dissolve a society by citing illegalities arising from his own actions. Justice Sandeep Marne quashed a 2025 order of the Maharashtra Co-operation Minister that had upheld the society's de-registration by the Divisional Joint Registrar.

Background of the dispute

The society, comprising 72 industrial units near Ghodbunder Road, was registered in 2008. In 2015, Paresh Vora of Hatkesh Builders applied for its de-registration, citing discrepancies in the registration proposal -- including a mismatch in the number of units and overwriting in documents -- and alleging illegal construction. The Court found that the builder himself had constructed without required development permissions, relying only on a gram panchayat NOC, and had not converted the land to non-agricultural use as law requires.

What this means for housing societies

• A builder who constructs without proper permissions and later sells units cannot use that same illegality as grounds to de-register the society formed by the buyers.
• Societies facing de-registration proceedings initiated by their original developer should examine whether the alleged defects originate from the developer's own non-compliance.
• Minor discrepancies in original registration paperwork (unit counts, document corrections) will not automatically justify cancellation if the society has functioned for years and de-registration would cause administrative disruption to members.

The ruling reinforces that the 'clean hands' principle applies in cooperative registration disputes -- a party cannot benefit from wrongs it created. Managing committees dealing with builders who threaten or pursue de-registration on technical grounds should preserve records showing the origin of any alleged irregularities before responding to Registrar notices.