Court Sets Aside Exclusionary Registration of Pristine Estates Villa Owners Maintenance Society
In a significant judgment addressing the inclusivity of housing societies, the Telangana High Court has affirmed the importance of forming a single, inclusive association for all categories of unit holders within residential projects. The court ruled against the registration of the Pristine Estates Villa Owners Maintenance Mutually Aided Cooperative Society Limited, citing its exclusion of Economically Weaker Sections (EWS) and Lower Income Group (LIG) allottees.
The Division Bench comprising Chief Justice Aparesh Kumar Singh and Justice G.M. Mohiuddin delivered the ruling on April 2, 2026, in the case of "Pristine Estates Villa Owners Maintenance, Mutually Aided Co-operative Society Limited v. B. Srinivas Rao and Others." The court upheld the earlier judgment by a single judge that had set aside the society's registration, directing the drafting of inclusive bye-laws.
The dispute centered around the governance of the "Pristine Estates" gated community, which was developed with provisions for EWS and LIG units under G.O.Ms.No.528, dated 31.07.2008. Despite the statutory mandate for inclusivity, the appellant society's registration was restricted to villa owners, excluding the EWS and LIG allottees, thereby violating the principles of equality and dignified living under Articles 14 and 21 of the Indian Constitution.
The court highlighted the failure to issue notices to all stakeholders, particularly the EWS and LIG allottees, during the society's registration process as a fundamental flaw. It emphasized that the association should represent all unit holders to ensure compliance with social housing policies and legal frameworks.
The bench also noted the discrepancies in the verification report that led to the society's registration, citing it as unsustainable in law. The judgment underscores the necessity for a unified association that includes all categories of residents to avoid fragmentation and administrative disharmony.
In its directive, the court ordered the District Co-operative Officer, Ranga Reddy District, to facilitate the formation of a single, inclusive society. The new association must incorporate all villa owners and EWS/LIG allottees, ensuring representation and adherence to social housing objectives.
The court's decision not only affirms the principles of inclusivity in housing societies but also serves as a precedent for similar disputes, reinforcing the statutory and policy requirements for social integration in residential projects.
Bottom Line:
Formation of a single, inclusive, and democratically representative association in group housing projects is legally mandated. All categories of unit holders, including villa owners, EWS, and LIG allottees, must be included in the association to ensure compliance with statutory and policy frameworks.
Statutory provision(s): Telangana Mutually Aided Co-operative Societies Act, 1995 (TMACS Act) Section 4, Real Estate (Regulation and Development) Act, 2016 Section 11(4)(e), Constitution of India Articles 14, 21, G.O.Ms.No.528 dated 31.07.2008
