Shop owners versus housing society members: Are they on an equal footing?

The Bombay High Court (HC) recently ruled that shop purchasers are on par with regular housing society members and that societies cannot discriminate against them.

According to a Times of India report, shopkeepers argued before the HC that they were denied any role in the managing society. They were not allowed to be full members and were instead classified as “mere nominal members” under a consent term with the builder.

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After hearing senior advocate Vijay D Patil, who represented the society, the HC emphasized that the legislature’s intent is for every individual with ownership rights in a unit to participate in the society’s management.

The court further stated that it was “inconceivable that the society permitted the developer to construct 16 shops on the premises but would insist that the purchasers of these shops cannot take part in managing the society’s affairs.”

Here’s what legal experts say

Legal experts say that the Bombay HC’s ruling has now affirmed that all unit owners—whether of commercial offices, shops, or flats—hold equal membership rights in a housing society.

“This is a settled position of law for commercial offices, shops, and flats. The right to participate in society management cannot be determined by the type of ownership. Membership, attending meetings, or becoming a committee member in housing societies cannot be differentiated based on the kind of unit owned,” said Nilesh Gala, a practicing lawyer at the Bombay HC.

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How are housing societies formed in Maharashtra?

In Maharashtra, housing societies are formed when a real estate developer transfers the project to a managing committee put together by the society’s members. If the society is registered under the Maharashtra Co-Operative Societies Act, ownership is officially transferred in the society’s name.

Alternatively, housing societies can be structured through a land share model, where each flat owner holds a portion of the property. In this case, an association is formed to oversee the society’s day-to-day operations