Bombay High Court Limits NOC Authority in Housing Redevelopment

The Bombay High Court has recently ruled against the authority of the District Deputy Registrar to issue a No Objection Certificate (NOC) for housing society redevelopment projects, a decision welcomed by the Mumbai Grahak Panchayat (MGP). In its judgment, delivered on October 17, 2023, the court, led by Justice Amit Borkar, emphasized that the Registrar has no legal power, either under current statutes or Government Resolutions, to mandate an NOC in such matters. This ruling has significant implications for the governance of cooperative housing societies in Maharashtra.

Justice Borkar made clear that the Registrar’s responsibilities are confined to ensuring transparency within the redevelopment process and guaranteeing that all society members have a fair chance to participate. The court’s order aims to dismantle a system that, according to critics, has been ripe with corruption and misuse of authority.

Commissioner for Cooperation Issues Statewide Circular

Following the court’s directive, Commissioner for Cooperation Deepak Tavare issued a circular on Tuesday instructing all Registrars and Deputy Registrars in the state not to accept or act on any applications related to NOCs for cooperative housing society redevelopments. The circular, which must be implemented by November 6, categorically states, “No proposals or applications regarding No Objection Certificates for the redevelopment of cooperative housing societies should be invited, accepted, or acted upon.”

Furthermore, the circular warned of disciplinary action against any official who fails to comply with these orders, reinforcing the court’s stance against the erroneous issuance of NOCs.

MGP Highlights Corruption in Redevelopment Sector

The MGP has hailed the ruling as a substantial victory against corruption in the redevelopment sector. In a press release titled “The Edifice of Redevelopment Corruption Has Collapsed,” Advocate Shirish Deshpande, Chairman of MGP, emphasized the longstanding issue of alleged corruption linked to NOCs. The organization claimed that the offices of Deputy Registrars had been demanding NOCs as a prerequisite for selecting developers in redevelopment projects, based on a misguided interpretation of a Government Resolution issued on July 4, 2019.

According to the MGP, developers were reportedly coerced into paying bribes ranging from Rs 15,000 to Rs 50,000 per flat, suggesting a pervasive culture of corruption. The organization previously alerted the Maharashtra Government to these practices, advocating for a reduction in the powers of Deputy Registrars, but their concerns had gone unaddressed until now.

The MGP now urges the Maharashtra Government to investigate the alleged corruption that has reportedly cost the state crores of rupees over the years. The organization is calling for accountability from the implicated Registrars and Deputy Registrars, emphasizing the need for transparency and integrity in the redevelopment processes that affect numerous residents.

As the situation develops, many in Mumbai will be watching closely to see how these changes impact housing society governance and whether the Maharashtra Government will take further action against corruption in the sector.