Jahanvi Agarwal
A cooperative court has stayed a resolution enacted by a residential society that put limits on flat owners’ ability to rent out their apartments to students, which is an important decision that may assist many students looking for housing for their studies in Pune. Though the ruling was just made accessible this week, the court ruled society’s behavior to be “illegal” and issued the injunction on July 6.
In response to a dispute between Swapnil Arthamwar and the Vanraj Cooperative Housing Society, the court delivered its decision. In order to stop the housing society from carrying out a decision adopted during the July 2022 annual general meeting (AGM) that forbade him from renting out his home to students, Arthamwar had filed a provisional injunction against the housing society.
The Maharashtra Co-operative Societies (MCS) Act of 1960, the MCS Rules of 1961, and the society’s bye-laws do not provide the housing society with the authority to choose tenants for its buildings, according to Judge AS Wanve of the Co-operative Court’s ruling. The court emphasized that residential societies lack the right to prohibit members of particular groups or people from becoming tenants.
Judge Wanve pronounced that:
“The resolution No. 8 passed in the Annual General Meeting dated 17/07/2020 is prima facie illegal, and the opponent society is not permitted to pass any resolution which is not in consonance with its bye-laws and the existing laws. The opponent society is not permitted to impose reasonable restrictions upon the minority member on the strength of the majority.”
The court referred to former prime minister Pandit Jawaharlal Nehru, who famously dubbed Pune the “Oxford of the East” during his visit to the city and temporarily suspended the society’s rule until an official ruling was given.
The court observed that:
“Pune is the city of knowledge, and many students from all over India come here for learning and education. Accommodation is required for such students, and if all co-operative housing societies prevent their members from renting flats to students, the purpose of the city of knowledge will not be served.”
The housing society claimed that some of its members, including the petitioner, were not actually living there but instead were renting out their apartments to strangers, notably groups of 4-5 students, in order to make money. The society asserted that allowing students to stay in their apartments was against the law and went against the society’s bylaws. The society further stated that despite requesting information from renters, including Aadhaar Card information, several members, including the petitioner, failed to do so, endangering the residential society’s security.
Students looking for housing in Pune would benefit from the court’s decision to postpone the resolution, which also preserves their freedom to rent apartments in residential societies. It also serves as a warning to housing organizations to follow the law and refrain from placing unjustifiable constraints on residents.