Supreme Court Ruling on Cooperative Societies

The Supreme Court ruled that the cooperative housing societies should allow membership to only those persons who really need accommodation. The Supreme Court also ruled that cooperative housing societies could expel a member who is the owner of more than one property. The Supreme Court bench which included Justice MK Sharma and Justice AR Dave, set aside the judgment given by the Delhi High Court.

Delhi High Court had given judgment in favour of a doctor named Permananda Sharma by allowing him the membership of a cooperative housing society despite the fact that he already had residential accommodation elsewhere. The Cooperative housing society had appealed against the high court judgment in the Supreme Court.

The Supreme Court ruled that cooperative societies are for the poor and weak. Cooperative society is a voluntary association not any profit making institution.
Supreme Court gave this ruling based on rule 25(1) (c) of Delhi Cooperative Societies Rules, 1973.