India, Nov. 14 -- The Bombay High Court has held that a promoter cannot carve a mixed-use building into two separate housing societies for residential and commercial units unless the structure is genuinely capable of functioning as two independent entities. The ruling, delivered by justice Amit Borkar on Tuesday, is likely to impact several mixed-use buildings across Maharashtra in which shops and offices sit below residential floors.

Justice Borkar noted that mixed-use construction is common in urban areas, but the mere presence of different types of units does not justify the formation of separate cooperative societies. "What matters is whether the two portions can function independently," the court said, adding that the Cooperative So...