Case Note & Summary
The dispute arose from the acquisition of a portion of the plaintiff co-operative housing society's land by the Municipal Corporation of Greater Mumbai (MCGM) in 1986 for road construction. Compensation in the form of Transferable Development Rights (TDR) was later claimed by the society. A Development Rights Certificate (DRC) was issued on 7 August 2023, granting FSI credit of 14,568.20 sq.mtrs. Between August and September 2023, the society entered into unregistered agreements for sale of TDR with various developers (defendant nos. 5-18). The society later discovered alleged irregularities, including forgery of the secretary's signatures on some agreements, unauthorized payments of Rs.15 crores to a consultant (defendant no. 4), and a broader fraud orchestrated by certain members. An internal audit highlighted irregularities, and statutory authorities under the Maharashtra Co-operative Societies Act, 1960 initiated inspections and audits. The society filed a commercial suit seeking declarations regarding the TDR agreements and recovery of money from defendant nos. 1-4, and an interim application for temporary injunction. The interim application sought to restrain defendants 5-18 from acting on the TDR agreements, to restrain MCGM from recognizing those agreements, and to direct defendants 1-4 to deposit Rs.16.51 crores. The matter was argued before Justice Sandeep V. Marne, and judgment was reserved. The text does not include the court's analysis or decision.
Issue of Consideration
Whether interim injunction should be granted to restrain transfer and utilization of TDR on grounds of alleged fraud and forgery
