In a significant ruling clarifying the scope of membership rights in co-operative housing societies, the Bombay High Court (HC) has held that ownership of a basement or parking space, even if backed by a registered sale deed, does not entitle a person to membership of a cooperative housing society (CHS) under the Maharashtra Cooperative Societies Act (MCS Act), 1960.
Justice Amit Borkar, in a judgement delivered earlier this month, dismissed a writ petition filed by Amanul Ekramul Ansari and upheld a state government order denying him membership in Talbiyah Paradise Cooperative Housing Society (the Society) in Navi Mumbai. The HC ruled that a basement or parking space does not fall within the statutory definition of a 'flat' and, therefore, cannot form the basis for society membership.
Significantly, the HC placed reliance on the architect’s certificate forming part of the conveyance deed, which indicated that the basement and parking spaces are outside the floor space index (FSI) utilised for construction. Such areas, the HC noted, are not shown as self-contained units in the sanctioned plan.
“A parking space or basement area, unless shown in the sanctioned plan as a self-contained unit, does not satisfy the statutory definition,” justice Borkar observed while dismissing the petition.
The dispute arose after Mr Ansari purchased certain premises through a registered deed on 12 December 2019. The sale deed covered a basement and parking area in the residential project at Taloja. Relying on the document, Mr Ansari applied for membership of the Society in August 2020.
When the Society did not communicate any decision within the prescribed period, Mr Ansari approached the appellate authority under Section 22(2) of the MCS Act, claiming that he had become a 'deemed member' due to the society’s inaction.
In July 2021, the appellate authority directed the Society to grant him membership, taking note of the documents produced by Mr Ansari, the petitioner. The Society, however, challenged this order before the state government by filing a revision application.
Allowing the revision, the revisional authority set aside the appellate order and held that the premises purchased by Mr Ansari consisted only of a basement and parking area, which do not qualify as a 'flat' under the Act. It concluded that such areas cannot be treated as independent units capable of conferring membership rights.
Aggrieved by this decision, Mr Ansari moved the HC, contending that authorities deciding membership applications could not examine title or question the validity of a registered sale deed. He further argued that the failure of the Society to communicate its decision within the stipulated time automatically conferred on him the status of a deemed member.
The HC rejected both submissions. Justice Borkar observed that the legal position is settled and that the right to membership does not arise from mere occupation or physical possession of a portion of a building.
“The deeming provision operates within the boundaries of statutory eligibility and cannot enlarge the class of persons entitled to membership beyond what the Act permits,” the HC held.
The judge emphasised that membership in a cooperative housing society flows from lawful entitlement to a recognised flat as per the sanctioned building plan and statutory definition. It cannot be derived from private sale transactions concerning portions of common amenities.
The ruling reinforces the principle that basements and parking areas are generally treated as common amenities in housing projects and cannot be converted into independent saleable units to secure society membership. It also clarifies that the concept of deemed membership cannot override statutory requirements under the MCS Act.
By upholding the state government’s decision and setting aside the earlier appellate order, the HC has strengthened the position of housing societies in regulating membership strictly in accordance with statutory definitions and curtailed attempts to claim membership based solely on ownership of ancillary or common areas.
