Exclusion Of EWS/LIG Allottees From Housing Society Violates Articles 14, 21 Of The Constitution: Telangana High Court

The Telangana High Court has held that a housing society that excludes economically weaker sections (EWS) and lower-income group (LIG) allottees is unsustainable in law. It observed that excluding such allottees from access to common facilities is violative of the principle of equality under Article 14 and undermines their right to dignified living under Article 21.

Dismissing a writ appeal filed by the Pristine Estates Villa Owners Maintenance Mutually Aided Co-operative Society Limited, the court upheld a Single Judge's order setting aside its registration, holding that an association in a project conceived under a social housing framework must necessarily include all categories of allottees.

A Division Bench of Chief Justice Aparesh Kumar Singh and Justice G.M. Mohiuddin observed, “the exclusion of LIG/EWS allottees from access to common facilities and participation in the association is violative of the principle of equality under Article 14 of the Constitution of India and undermines their right to dignified living under Article 21"

The dispute arose from “Pristine Estates,” a gated residential project at Gopannapally developed pursuant to building permission dated June 8, 2011, which envisaged 105 villas along with 6 EWS and 6 LIG units under a 2008 government order. 

On October 21, 2022, a section of villa owners went ahead and registered the appellant society, pointing to the promoters' failure to set up an association. The body left out EWS and LIG allottees, fixed a Rs 5,00,000 membership fee, and came into existence without putting all stakeholders, including those allottees, on notice.

The promoters moved the High Court in June 2025, questioning the legality of that registration. On February 26, 2026, a Single Judge set it aside, flagging serious inconsistencies in the verification report, the absence of any process inviting objections from all stakeholders, and the society's exclusionary character.

"In the case of the project in question i.e., Pristine Estates, which has been conceived and sanctioned under a policy framework mandating social housing, such an association must, as a matter of legal requirement, be inclusive of all categories of allottees, including villa owners, EWS allottees, and LIG allottees. Any association that excludes a statutorily recognized class of allottees is not only contrary to the principles of equality and inclusivity but is also unsustainable in law ” the bench added.

In appeal, the society argued that it was compelled to form the association due to the promoters' inaction under the Real Estate (Regulation and Development) Act, 2016, and that discrepancies in the verification report were merely clerical.

The promoters, along with the excluded allottees argued against it. They pointed to a flawed verification process, breaches of the Telangana Mutually Aided Co-operative Societies Act, 1995, and said the bye-laws were framed to keep EWS and LIG allottees out, backed by a steep Rs 5,00,000 entry fee.

The High Court, agreeing with the Single Judge, found the very basis of the registration wanting. The verification report, it noted, carried incorrect project details and failed to capture the actual number of units and allottees. It also held that the Registrar failed to invite objections from all stakeholders, including EWS/LIG allottees, before granting registration.

The bench emphasised that an “association of allottees” under the RERA framework is envisaged as a collective body representing all allottees, and that the provisions of the RERA Act and the TMACS Act must be read harmoniously to ensure inclusivity.

It further held that a single residential project must have a single, unified, and representative association and that permitting an exclusionary body would defeat the very objective of social housing and create a stratified community structure.

In its final directions, the Court directed the District Co-operative Officer, Ranga Reddy District, to facilitate the formation of a single, inclusive association within 16 weeks, with membership open to all villa owners as well as EWS and LIG allottees.

The court also ordered that funds collected by the invalid society be kept in a suspense account and, after due audit, either returned to contributors after deducting legitimate expenses or transferred to the newly constituted association.

Until such time as a new association is formed, the promoters have been directed to continue maintenance and upkeep of the project's common areas and essential services

For Petitioner: Advocates M.S. Srinivasa Iyengar, Hirendernath.

For Respondent: Advocates K. Vivek Reddy, Kondaparthy Kiran Kumar, B. Mohana Reddy, Pranav Munigela, T.P.S. Harsha.