Bombay High Court Denies Membership to Homebuyer Deceived into Purchasing Illegal Flats
Builder fraud: Bombay HC denies society membership to homebuyer who was sold refuge area as residential flats
The Economic Times
Image: The Economic Times
The Bombay High Court ruled against Mr. Sewadsha, a homebuyer from Ghatkopar East, who unknowingly bought refuge areas as residential flats in a Bhandup housing project. The court upheld that the housing society could deny him membership due to the illegal nature of the units, which were never recognized as legitimate apartments.
- 01Mr. Sewadsha purchased five apartments that were actually refuge areas, not legal residential units.
- 02The Bombay High Court ruled that the housing society was justified in denying Sewadsha membership.
- 03The court found that admitting Sewadsha would violate the Maharashtra Co-operative Societies Act.
- 04The builder's fraudulent sale of refuge areas as flats was central to the court's decision.
- 05A separate civil case regarding the cancellation of the sale agreement is still pending.
Advertisement
In-Article Ad
In a significant ruling, the Bombay High Court denied Mr. Sewadsha's application for membership in a housing society in Bhandup, Mumbai, after he was misled into purchasing five apartments that were actually designated refuge areas. The court found that the builder had exploited an error in the building plan attached to the Occupancy Certificate, falsely depicting these spaces as residential units. As a result, municipal authorities did not levy property taxes on these units, leading to a dispute with the housing society, which cited the illegality of the apartments as grounds for denying membership. The court emphasized that admitting Sewadsha would violate Section 154B-5 of the Maharashtra Co-operative Societies Act, which restricts membership to the number of available flats. The ruling underscored that refuge areas cannot be classified as flats for membership purposes, reinforcing the need for transparency and accountability in real estate transactions.
Advertisement
In-Article Ad
This ruling highlights the risks homebuyers face in real estate transactions, especially regarding the legitimacy of properties. It underscores the importance of verifying property documents to avoid similar fraudulent situations.
Advertisement
In-Article Ad
Reader Poll
How can homebuyers protect themselves from real estate fraud?
Connecting to poll...
Read the original article
Visit the source for the complete story.