Matunga Society Challenges Redevelopment in Court

Members of the Matunga Kapol Co-operative Housing Society have turned to the Bombay High Court, challenging a divisional joint registrar’s (DJR) decision that invalidated the appointment of Vallabh Developers for the redevelopment of their dilapidated 84-year-old buildings.

The petition, filed in March by thirty-seven society members, contests the DJR’s order which nullified Vallabh Developers’ appointment. The dispute revolves around allegations that certain members of the society’s managing committee, allegedly colluding with unsuccessful bidders, deliberately obstructed the redevelopment process, endangering the safety of residents.

The Matunga Kapol society comprises four wings with 62 units, including residential and commercial spaces. However, only 52 members were officially recognised as of 2022, following the death of seven members and the exclusion of their legal heirs. The buildings, constructed before 1940, are in urgent need of repair, prompting the society to pursue redevelopment. Initiating the process in April 2022, the society appointed Deodhar Associates as project management consultants and received six redevelopment bids, including one from Vallabh Developers. A Special General Meeting (SGM) held on August 14, 2022, saw 39 members attending physically and 11 virtually. Out of these, 28 members and 10 members, respectively, voted in favour of Vallabh Developers.

Despite this, complications arose when the managing committee failed to submit the SGM minutes to the registrar due to pending clarifications from the developer. Subsequently, without a general meeting, the committee requested the assistant registrar to halt Vallabh Developers’ appointment, claiming a discrepancy in member numbers and seeking a review of the process. The assistant registrar later granted a No Objection Certificate (NOC) to Vallabh Developers on October 18, 2022. However, the managing committee contested this decision through a review application, resulting in the DJR ordering a fresh redevelopment process in December 2022. Vallabh Developers contested this ruling in the High Court, which subsequently restrained the society from opening new tenders.

The assistant registrar removed and disqualified three committee members, adding another layer of complexity to the case. The petitioners argue that the DJR’s order contravenes legal principles and documented evidence, asserting that delays in redevelopment could cause severe harm to the society members. They accuse the managing committee of deliberately stalling the process for ulterior motives, exacerbating the urgency of their plea.