🏠 Navigating Property Disputes in Mumbai: A Practical Guide for Clients

Mumbai’s vibrant real estate scene is one of the busiest and most complex in India. With skyrocketing property values, high population density, and an intricate legal landscape, property disputes in Mumbai are unfortunately common. As a practising property lawyer, I’ve helped numerous clients navigate these challenges with clarity and confidence.

In this guide, I’ll break down the most common property conflicts in the city, explain why they arise, and share practical legal solutions to help you safeguard your rights.

🏢 Resolving Disputes Against a Managing Committee Not Acting in the Society’s Best Interest

In Mumbai's cooperative housing societies, the managing committee holds significant responsibility for day-to-day operations, financial management, and ensuring community welfare. But what happens when that committee fails to act in the society’s best interest?

Whether it's financial mismanagement, abuse of power, or failure to follow bylaws, members have strong legal remedies under the Maharashtra Cooperative Societies Act, 1960 (MCS Act) to challenge the committee and restore transparency and accountability.

🚩 Grounds for Disputes Against the Managing Committee

You can legally challenge a managing committee if it engages in any of the following:

Financial Mismanagement
Embezzlement or lack of transparency in expenses
No audit reports or irregular fund usage
Violation of Society Bylaws
Unauthorized constructions or illegal flat allotments
Failure to Maintain Records
Not sharing minutes of meetings or audit findings
Harassment or Misuse of Power
Discriminatory practices or personal targeting of members
Conflict of Interest
Committee members supporting developers or acting for personal gain

Step-by-Step Process to Resolve Disputes

Here’s a legal and procedural roadmap for members to challenge non-compliant committees:

1️⃣ Internal Resolution

Draft a written complaint citing specific bylaw violations
Submit it to the committee with a 15-day deadline for corrective action
Attach solid evidence: audit reports, screenshots, meeting records, photos

2️⃣ Escalate to the Registrar of Cooperative Societies

If the committee fails to act, file a complaint under Section 78A of the MCS Act, which empowers the Registrar to remove errant committee members.

Key allegations may include:

Fund misuse (e.g., audit reports showing discrepancies)
Failure to conduct regular meetings or elections
Conflict of interest (e.g., partnerships with developers)

3️⃣ Consumer or Cooperative Court Complaints

If the issue involves poor service quality:

Approach a Consumer Forum under the Consumer Protection Act, 2019
File a complaint for "deficiency in service"
Seek interim relief like restoration of amenities or fair billing

4️⃣ Legal Action via Civil or Criminal Courts

For serious violations like fraud or criminal intent:

File a police complaint under:
IPC Section 406 (Criminal breach of trust)
IPC Section 420 (Cheating)
File a civil injunction to stop unauthorized actions (e.g., illegal structural changes)

⚖️ Case Study: Bombay High Court’s JVPD Sterling CHS Ltd. Ruling

In a landmark case, the Bombay High Court upheld the removal of committee members who:

Didn’t own flats in the society
Had business ties with developers (conflict of interest)

The Registrar acted under Section 78A of the MCS Act, and the court validated that decision, reinforcing:

Only flat owners can be on managing committees
Conflict of interest is valid grounds for immediate removal

🛡️ Preventive Measures for Society Members

Stay proactive to avoid future disputes:
Insist on annual audits and request third-party reviews
Demand transparency in meeting minutes and resolutions
Monitor elections to ensure committee members:
Have no dues
Are legally eligible
Are flat owners

✅ Conclusion: Use Your Legal Rights to Safeguard the Society

Cooperative societies thrive on trust and collective responsibility. If your managing committee is not acting in the society’s best interest, don’t hesitate to take action. Leverage the MCS Act, court precedents, and legal forums to challenge misgovernance.

🔍 Timely complaints, proper documentation, and legal support can protect your society from long-term damage.

📞 Need Expert Legal Advice?

I'm Advocate Usha Tiwari, specializing in cooperative housing society law in Mumbai. If you're dealing with mismanagement or need help with action under Sections 78A or 91 of the MCS Act, reach out for a confidential consultation.

📱 Call: +91-99205 66836

📧 Or email me directly to discuss your case.