The Madhya Pradesh High Court held the Registration of Residents Welfare Association is mandatory after the project comes into existence.

With this observation the court dismissed a petition filed by the Tilak Grih Nirman Sahkari Sanstha Maryadit, Bhopal raising objection over formation of respondent society- Indravihar Colony Rahwasi Samiti, Airport Road, Lalghati, Bhopal by the colony residents.

The Indravihar Colony is developed by the Tilak Grih Nirman Sahkari Sanstha Maryadit, Bhopal.

The court held no case is made out warranting interference.

Since the respondent society has been registered as per provisions of Section 18 of Madhya Pradesh Prakoshtha Swamitva Adhiniyam 2000, therefore this Court is of considered opinion that both the societies that is the petitioner society and respondent society are two different legal entities meant to perform their duties in different spheres, the court observed.

The petitioner is a society registered under the Cooperative Societies Act for the purposes of development of residential accommodations with ancillary facilities, the court order said.

Once the project is complete the liability of the petitioner society would come to an end and it has to be taken over the society registered as per the provisions of Section 18 of Madhya Pradesh Prakoshtha Swamitva Adhiniyam 2000, the court order said.

The counsels of State government and the respondent society submitted that as per the provisions of Madhya Pradesh Prakoshtha Swamitva Adhiniyam 2000 after the colony is developed an association is required to be formed as per the provisions of Section 18 of the Act 2000.

The respondent society is constituted by the residents of the colony and it is a mandatory requirement, the counsels submitted.

Therefore, it is clear that after the project is completed, the residents/owners of the said project are required to form an association, the court order said.