The court made the observation while quashing an order passed by a deputy registrar initiating an inquiry under the Maharashtra Co-operative Societies (MCS) Act, 1960 into the financial conditions of a housing society in Kurla. MUMBAI: Complaints raised by a couple of disgruntled society members cannot be a reason to initiate an inquiry into the financial affairs of a housing society, the Bombay High Court observed last week.
The court said there were, as laid down in the statute, three modes for the registrar to initiate an inquiry into the society’s finances which were either a suo motu inquiry, an application made by one-fifth of the members of the society, or on the basis of a special report under section 81 of the MCS Act, and “it is only in this manner, the registrar shall conduct an inquiry”, the court said.
The court was hearing a petition filed by Vaishali Manjrekar and seven others who had contested the deputy registrar’s order of last year.
In this case, the registrar’s order stated that on August 14, 2025, a complaint was made by two society members alleging that former members of the society had caused financial loss to the society and that an inquiry must be conducted. The court noted that the registrar has stated that he had initiated the inquiry as a ‘suo motu exercise’ but relied on the complaint by the two members.
