You immediately file writ petition in high court for a stay if there is any illegality in your matter

Yes, based on the information you’ve provided, you may have grounds to file criminal charges, particularly if there is evidence of collusion, misrepresentation, and breach of fiduciary duties by the society office bearers and/or the developer. However, it is essential to understand the difference between civil and criminal liability, and how the facts of your case may overlap both.

1. Possible Criminal Offences:

1. Criminal Breach of Trust (Section 405/406 IPC):

   • If society office bearers, acting in a fiduciary capacity, have misused their position to transfer or waive off your share of benefits to others knowingly, it can constitute criminal breach of trust.

2. Cheating (Section 415/420 IPC):

   • If the developer and society induced you into a process or agreement by concealing facts or knowingly making false representations.

3. Criminal Conspiracy (Section 120B IPC):

   • If there’s evidence of a deliberate plan among office bearers and the developer to discriminate and benefit other members at your cost.

4. Forgery or Falsification of Documents (Section 463/468 IPC):

   • If the redevelopment agreement or related documents contain falsified representations or signatures, or omit your entitlements unlawfully.

2. Relevant Legal Grounds to Strengthen a Criminal Complaint:

• No Regulatory Basis for Discrimination:

  • If there is no law, bylaw, or MHADA/Municipal guideline that allows differential treatment to commercial units, and yet you are being treated as such, it strengthens the case for mala fide intent.

• Majority’s Abuse of Power:

  • Societies are not above the law and must function within the scope of the Maharashtra Cooperative Societies Act, 1960. A majority cannot override your legal rights or entitlements. Abuse of majority rights can be challenged both civilly and criminally.

• No Bank Guarantees or Proper Procedure:

  • This can amount to dereliction of duty or negligence, and possibly criminal misconduct if there’s clear financial loss or illegality.

What You Should Do:

1. Consult a Criminal Lawyer:

   • You’ll need a lawyer who understands both cooperative housing law and criminal procedure to draft and file a criminal complaint/FIR at the local police station or with the Economic Offences Wing (EOW) if there's a financial fraud element.

2. Prepare Documentary Evidence:

   • Collect:

     • Redevelopment Agreement copies

     • Arbitration awards and court orders

     • Society minutes of meetings

     • Correspondence/emails with developer and society

     • Any statements or circulars reflecting the discrimination

3. Parallel Civil and Criminal Proceedings:

   • Since the division bench advised that equity is a civil matter, continue with a civil suit for declaration and injunction, but also initiate criminal action on the fraud/collusion angle. These can run in parallel.

4. File Complaint to Registrar of Societies:

   • Make a formal complaint to the Deputy Registrar under the Maharashtra Cooperative Societies Act seeking inquiry under Section 83 (misconduct and misappropriation).

The commercial owner's entitlements for extra space on redevelopment will depend on the specific terms of the redevelopment agreement and the society's bylaws. 

Redevelopment agreements outline the rights and obligations of each party, including the allocation of additional space, compensation, and other benefits. 

The housing society's bylaws define the rules and regulations for the society, including how redevelopment is handled and what rights members have. 

The commercial property owners may  be entitled to a different share of the new construction, compensation for lost business during the redevelopment, or other benefits specific to their commercial use. 

However the Developer shall not make any changes in the building plan except with the written permission of the Managing Committee of the housing society.

If you feel that you are aggrieved by the discrimination meted out to you, there is possibility for you to object and agitate the same and demand your entitlement to the extra space on redevelopment as per the rules and regulations designed to facilitate the process of redevelopment under DCR (Development Control Regulations).

If your rights are deprived then you can approach civil court with suit for declaration of your entitlement for additional Floor Space Index (FSI) as per the DCR and temporary injunction to restrain the developer from proceeding further with the development project till the disposal of the main suit and also relief of injunction agaisnt the housing society  to restrain from pursuing or putting pressure on the developer for the same reason till disposal of the main suit.

If the civil court  dismisses your suit then you can immediately file an appeal agaisnt the aggrieved judgment .

Don’t file any criminal case 

it is basically a civil dispute 

Yes, you can consider filing a criminal complaint if there's clear evidence of collusion and intent to defraud.

From what you’ve described, the developer and society members have knowingly acted in a way that caused you loss and unfairly benefitted themselves. If you can show that this was done deliberately, with full knowledge and bad faith, then charges under sections like 406 (criminal breach of trust), 420 (cheating), and 120B (criminal conspiracy) of the IPC may be applicable.

But keep in mind, criminal law is about intent and fraud not just unfairness. So the documentation you already have (like the redevelopment agreement, arbitration win, and proof of unequal treatment) will help support a complaint.

You can start by filing a detailed complaint with the local police and, if they don’t act, approach the Magistrate under Section 156(3) CrPC.

Since you’ve already been to the co-op court and arbitration, it may also help to file a civil suit for declaration and injunction alongside, if not already done. Civil and criminal cases can go on in parallel.

Yes, you can file criminal charges if you have evidence of collusion, fraud, and dishonest misrepresentation under Sections 406 (criminal breach of trust), 409, 420 (cheating), and 120B (criminal conspiracy) of the IPC.

The fact that the agreement discriminates without legal basis and all parties are aware supports a case of premeditated fraud.

However, since civil courts have ruled the matter as "inequity," it’s best to:

• File a criminal complaint with police or magistrate based on intent to defraud.

• Simultaneously continue civil remedies for injunction and damages.

• Gather documents showing unequal treatment, society minutes, and communications.

Dear Sir/Madam, 

It is suggested that you can take all possible steps to safeguard your interests and file complaint as well as cases to concerned forums/courts. 

You are facing clear discrimination as the sole commercial property owner in your residential building’s redevelopment, receiving only 20% extra area while all other members get 40%, without any legal or regulatory justification. The society has ignored standard procedure, failed to obtain necessary bank guarantees, and appears to have sacrificed your equity for the personal gain of the majority. Despite raising your concerns and pursuing your rights in cooperative court and arbitration, you continue to face inequitable treatment, which has now been termed a matter for a civil suit by the division bench.

Addressing your specific query: Can you file criminal charges?

You can consider pursuing criminal remedies, but Indian courts treat civil and criminal liability differently:

Premeditated Fraud and Collusion

If you have clear documentary evidence that the society, its office bearers, and/or the developer have colluded to specifically disadvantage you for their own benefit—especially by deliberately omitting legal safeguards like bank guarantees and signing off your rights—this can cross the line from a mere civil dispute to criminal misconduct. You may consider filing a criminal complaint for:

Cheating (Section 420 IPC)

Criminal breach of trust (Section 406, 409 IPC)

Conspiracy (Section 120B IPC)

Forgery or falsification, if documents were intentionally misrepresented

These charges apply if you can show clear intention to deceive and wrongful gain to others at your expense, and not just a contractual breach.

“Distinct Class” Defense and Discrimination

While societies sometimes treat commercial and residential members differently, there must be a clear legal or regulatory basis (such as express provisions in the redevelopment policy, municipal rules, or by-laws). Arbitrarily providing lesser benefits with the intent to enrich other members could amount to criminal conspiracy or misconduct, especially if the intent to cause wrongful loss or gain is clear on paper.

Strategic Steps

Collect all documentary evidence: redevelopment agreement, minutes of meetings, correspondence, and the explicit acknowledgement of your distinct treatment.

File a complaint with the local police against the society office bearers and developer, clearly setting out the fraudulent actions and unlawful gains.

Pursue proceedings with the Economic Offences Wing or Anti-Corruption Bureau if the sums involved are significant and public safeguards (like bank guarantees) have been subverted.

Simultaneously, continue with your civil remedies in court to protect your proprietary rights and challenge the validity of the agreement.

Reality Check

Indian courts are often reluctant to convert contractual and society matters solely into criminal cases unless the intent to defraud or commit criminal breach is strongly established by the evidence. As you have already litigated before the cooperative and civil courts, you will need to show fresh actionable evidence of criminal conspiracy, mens rea (criminal intent), or fabrication to succeed in criminal proceedings.

If you want, I can help you evaluate your documentary evidence, draft specific criminal complaints, or guide you through both the criminal and civil strategies for maximum protection of your rights.

Dear Client,

• can we file criminal charges in the matter as its collusion and premeditated fraud where the agreement itself is on paper and all parties are aware of the discrimination but are calling it "distinct" treatment?

Yes, it is recommendable to initiate a criminal proceeding notwithstanding the civil suit, the factual circumstance gives a clear impression of offences such as Criminal conspiracy, cheating and criminal breach of trust.

The "distinct treatment" defense in the capacity of a commercial member would not sustain unequal treatment unless enjoined by the redevelopment agreement or statutes. You can file a criminal complaint with the Economic Offences Wing (EOW) or local police station, and in case no FIR is filed, approach the Magistrate under Section 156(3) CrPC requesting for direction to investigate.

I hope this answer helps. In case of future queries, please feel free to contact us. Thank you.