In a significant decision for cooperative housing society redevelopment projects, the Maharashtra State Co-operative Appellate Court has ruled that a dispute over ownership of an individual flat cannot be used to halt the redevelopment of an entire housing society. The ruling allows the redevelopment of Mulund Sahakar Vishwa Co-operative Housing Society in Mulund West to move forward, with the court observing that the interests of hundreds of residents cannot be held hostage to litigation involving a single apartment.
The order, issued on June 22, 2026, by Member-2 A.S. Wanve, dismissed an appeal filed by the legal heirs of late Rekha Gangadhar Pagare and upheld an earlier decision that had refused interim relief against the redevelopment project.
The appellants claimed that Rekha Pagare had paid the full purchase consideration of Rs 1.20 lakh, received an allotment letter, and was handed possession of Flat No. E-26 in 1994. They further alleged that the society later demanded an additional Rs 3.67 lakh and argued that redevelopment could create third-party rights affecting their ownership claim.
The case also involves a competing ownership claim by Pushpa B. Garud. The appellants alleged that a consent award and allotment letter were issued in Garud’s favour through fraudulent means. These allegations remain part of the main dispute pending before the Co-operative Court.
While refusing to stay the redevelopment, the appellate court noted that the dispute relates solely to Flat No. E-26 and not to the redevelopment project as a whole. The court held that the appellants failed to establish a prima facie case for an injunction and observed that ownership claims can continue independently without affecting redevelopment.
The court stated, “Other society members should not suffer because of litigation relating to a single flat.” It further observed that “Granting the injunction would effectively halt the entire redevelopment project” and reiterated that “Redevelopment serves the collective interests of all members.”
As a result, redevelopment will proceed, while the ownership dispute over Flat No. E-26 will continue separately before the Co-operative Court.
Source: Mid-day
