Cooperative Societies – Some easy answers to your easy questions

What is the minimum number of promoters required to join the registration proposal to form a housing cooperative society?

  •   60% of the flat purchasers/ promoters are required to join the registration proposal if building is constructed by builder/developer.
  •   90% promoters are required to join the registration proposal for society of open plot type category.

Whether Co-operative Housing Society having less than 10 units can be registered ?

  • Cooperative Housing Society having less than 10 units can be registered subject to the following conditions:
  • The built up area of each unit should not be more than 700 sq.ft.
    There should not be balance F.S.I

If the builder does not register a Co-operative Housing Society? What is the remedy available

  • Chief Promoter of the proposed society shall submit a registration proposal of the co-operative housing society to the concerned Registrar under the category of non- co-operation of builder.

Registrar may consider such a proposal for Registration on merit.

What are the conditions for registration of Cooperative Housing Society in private building?

  • Registering authority can register CHS on merit if 90% of the tenants join the registration proposal.

Registering authority can register CHS on merit and with previous approval of State Government if 75% to 90% of the tenants join the registration proposal.
Proposal for registration will not be entertained if percentage of tenants is below 75%
The Tenant promoter joining the proposed CHS shall have to agree to contribute to the cost of flats of non joining tenants.
In case tenants have created sub tenancy in terms of Rent Act, sub tenants and not the tenants be allowed to join the proposed CHS.

Whether the Chief Promoters has got authority to withdraw the money deposited in the bank in the name of proposed CHS ?

  • The Chief Promoter has got no power to withdraw such money.Before registration of the Cooperative Housing Society , money can be withdrawn with the permission of the Registrar.

What is the remedy available if the Registrar does not take any decision on registration proposal within a period of 2 months ?

  •   Failure to dispose of the registration proposal of a housing society within a period of two months, the Registrar has to submit the said registration proposal to the next higher authority within a period of 15 days from the date of expiry of two months.
  •   On failure of such higher authority to dispose of the said registration proposal within two months from the date of receipt of the proposal to his office, the registration proposal shall be deemed to be registered under the provision of the Maharashtra Cooperative Societies Act 1960.

What is the remedy available if the registration proposal is rejected ?

  •   Such rejection order can be challenged by filing appeal under section 152 of the M.C.S. Act 1960 before the Divisional Joint Registrar C.S. Of the concerned Division.

What are the circumstances for de-registration of a Cooperative Housing Society ? And under which section ?

  • * If the society is registered.
  • On the misrepresentation made by the applicants, or
  • The work of the society is completed or exhausted, or,
    The purpose for which the society has been registered are not served.
  • Such societies can be de-registered under the provision of Section 21-A of the M.C.S. Act 1960.

Under what circumstances registration of the CHS can be canceled ?

  •   Registrar can cancel the registration of CHS under section 21 of the M.C.S. Act 1960. Under the following circumstances :

If a CHS transfer the whole of its assets and liabilities to another society or.
Amalgamates with another society, or
Divides itself into two or more societies or,
Liquidation proceedings are terminated under section 109.

What are the types of CHS ?

  •   Rules 10 of the Maharashtra Cooperative Societies Rules 1961 provides the following classification of the CHS
  • Tenants ownership Co-operative Housing Society.
  • Land is held on lease hold or free hold basis
  • Houses are owned or are to be owned by member.
  • Tenants Copartnership Cooperative Housing Society.
  • Both land and houses owned by society.
  • Houses are allotted to members.
  • Other Cooperative Housing Society.
  • Houses mortgages societies
  • Houses construction society.

What fee is to be paid to the Government for registration of a Cooperative Housing Society ?

  • Proposed society can made the payment towards government fee as applicable from time to time . The present registration fee isTenant Co-partnership /ownership CHS                      Rs.2500.00
    Other (General ) CHS                                       Rs.2500.00

When at least 20% of backward class members are required for registration of a Cooperative Housing society ?

  •   This condition is applicable for plot purchase type society under the following circumstances.
    When society intends to borrow fund for construction of building from State Government and/ or MHFC Limited.
  • If land grant authority insists for such conditions.

Whether promoters are required to submit their applications for membership to the Chief Promoter before registration of Cooperative Housing Society ?

  •   Yes, all the promoters should submit their application for membership to the Chief Promoter before registration so s to enable him to undertake about receipt of application for membership in the prescribed “Y” form to be submitted to the Registering Authority at the time of Registration.

What remedy is a available if Chief Promoter does not deposit the share money collected from promoters in the Bank ?

  •   Failure of Chief Promoter in depositing share money collected from promoters of proposed CHS amounts to an offense u/s 146 of M.C.S. Act 1960.
  •   Chief promoter can be prosecuted in the court of law with previous approval of Divisional Joint Registrar of concerned Division u/s 148.

What remedy is available if any person collects share money or any other sum by misrepresentation to the propsective members in the name of the society to be registered ?

  •   It will amount to an offense u/s 146 of MCS Act 1960.
  •   Such person can be prosecuted in the court of law with provision approval of DJR of concerned Division u/s 148.

GENERAL MEETINGS

When the first General Meeting can be convened ?

  •   The first General Meeting can be convened within a period of three months from the date of registration of CHS

Who can convene the first General Meeting ?

  • Chief Promoter of the CHS can convene the first General Meeting of the members.

What is the remedy if the first General Meeting is not called by Chief Promoter in time ?

  •   On failure to call the first General Meeting of the CHS in time the said meeting can be called by Registering Authority.

What business is to be transacted in the first General meeting ?

  •   Following business shall be transacted in the first General Meeting

Who is responsible to convene the AGM ?

  •   Rule 60 of the M.C.S. Rules 1961 provides that the secretary of the CHS is responsible to convene the AGM

Who is responsible to ensure the AGM is convened within the stipulated time ?

  •   Bye law No 139 (16) provides that the committee of the CHS should ensure the holding of AGM within the prescribed period.

What is the business to be transacted in AGM

  •   Following business is required to be transacted in AGM
  • To receive a report of the committee together with statement of accounts for the preceding cooperative year/years.
  • To consider audit report received from the Statutory Auditor for the previous Cooperative year/years.
  • To declare the result of election if held prior to AGM
  • To consider the appointment of Statutory Auditor.

If the business on the agenda is partly transacted then what are the provisions?

  •   If the business on the agenda of the general meeting of the CHS is partly transacted then the said meeting shall be postponed to any other suitable date, not later than 30 days from the date of the meeting as may be decided by the members present at the meeting.

Whether the AGM can be adjourned due to want of quorum ?

  • AGM can be adjourned for want of quorum
    To the time as may be specified in the notice on the same day or
    To a subsequent date, not earlier than seven days.
    Holding of adjourned meeting will not required quorum.

What business cannot be transacted in AGM without due notice ?

  • Following business cannot be transacted in AGM without due notice
  • Expulsion of members of the CHS
  • Amendment of bye laws
  • Bifurcation, amalgamation, division of the CHS
  • Transfer of Property of the CHS

What is the minimum period of notice of AGM

  • 14 clear days notice is required to be given for calling the AGM.

Whether AGM is treated as invalid if the notice is not served to any members of the CHS?

  •   Once AGM is called it cannot be treated as invalid unless and until such order are passed by the Cooperative Court.

What is the period for finalizing the accounts of the CHS

  •   The period for finalizing the accounts of the CHS is 45 days from the closure of the cooperative year – which is 31st March. The accounts should be ready for inspection in the Societry’s office on 15th May every year.

What remedy is available if the accounts are not finalized before 15th of May ?

  • On failure for finalising the accounts of the CHS on or before 15th May committee may appeal to the Registrar for time citing reasons for the delay. And once extension permission is granted, to include the same in the Annual report explaining to members the delay and the grace period obrtained.

What remedy is available if the committee fails to finalize the account before 15th May or extended period ?

  •   Registrar may exercise his powers vested under section 79 (2) of MCS Act 1960 to finalize the account through an authorised officer.

What remedy is available if the AGM is not called in 90 days + 90 days?

  • Committee of the CHS may apply to the Registrar for extension of time on or before 31st July with a copy of resolution and required court stamp fee. Registrar may grant extension if request is genuine upto 14th November i.e for a period of three months. Under any ciurcumstances the AGM has to be held in 180 days (6 months) from the close of the cooperative years

What action can be initiated on failure to call AGM before or extended period?

  • Registrar may disqualify the members of the committee who is responsible for calling such meeting to remain or to get elected to the committee upto a period of Two Terms of five years each.

What remedy is available for challenging the resolution passed in AGM.?

  • Resolutions passed in AGM may be challenged in the Cooperative Court under section 91 of MCS Act 1960. By filing disputes.

What remedy is available in case resolutions are not recorded modified altered deleted etc.?

  •   Only remedy available is to file a dispute under section 91 of the MCS Act 1960 before the Cooperative Court.

Resolution passed in AGM/SGM neither stayed nor set aside by Court, Whether it is obligatory on the members to follow it ?

  • Resolutions passed in AGM/SGM remains in force unless and until stayed or set aside by the Cooperative Court.

Whether resolutions passed for removal of members of the committee can be brought before the AGM/SGM ?

  • No such resolutions can be brought before the AGM/SGM. Elected members cannot be removed from the committee before the expiry of terms, unless they themselves choose to resign

When SGM can be called ?

  •   SGM can be called at any time by the Chairman or the majority of the committee.
  •   SGM shall be called within a period of one month
  • On written requisition of 1/5 of the members of the society
  • At the instance of the Registrar
  • At the instance of the committee of the federal society – which is the Federation

Who can call the requisitioned SGM ?

  • Secretary of the society can call the SGM under the intimation to the Registrar.

What is the remedy available if the SGM is not called ?

  • On failure to call SGM the Registrar may call such meeting at the expenses of the CHS
  • The Registrar can order to recover such expenses from the persons concerned.

What is the minimum notice period required to call SGM ?

  •   The minimum notice period for calling such SGM is five days.Or in extreme emergency circumstances 24 hours

Whether resolutions passed in AGM/SGM can be modified ?

  •   Unless 6 clear months have expired after passing of the previous resolution no such resolution can be brought before the AGM /SGM for its cancellation or modification.

Whether AGM / SGM not held in the premises of CHS can be treated invalid ?

  •   AGM/SGM once held irrespective of the place of the meeting cannot be treated as invalid unless and until such order are not passed by Cooperative Court.

Whether a non-member can participate in the business of General Meeting ?

  •   No, non member has no right to participate in the business of General Meeting. However Associate/ Joint members, in the absence of the Ist named member can attend such meetings

Whether associate member can participate in business of General Meeting.

  •   Yes, an associate member can attend and participate in business of General Meeting in absence of original member and with written consent given by original member.

What is the period of provisional committee ?

  •   The period of provisional committee is of one year from the date of which it has been first constituted. Then the elections should be held to form a regular committee

When the subsequent committee is constituted

  • Subsequent committee is constituted after election to the committee as per approved Election Rules.

Election committee is required to be constituted as per the provision of Section 73 of M.C.S. Act 1960.

Which is the Competent Authority to challenge the election ?

  •   Election of Committee or its member can be challenged by filing dispute under Section 91 of M.C.S. Act 1960. Before the Cooperative court.

What are the disqualifications to elect or to remain on the committee ?

  •   Bye laws No 118 provides one of the following disqualification to remain on Committee.

Offenses by members/Managing committee members

  •  Defaults the payment of dues to the society within three months form the date of service of notice in writing.
  • Held responsible under section 79 or 85 or 88 of the MCS Act 1960.
    Sublets flat without prior permission of the CHS.
  • Remains absent for three consecutive meeting of the committee.

Whether the member of the ex committee can contest the election ?

  •   Ex managing Committee member can contest the election, if they are otherwise qualified. For two subsequent terms only.

What is the remedy available if the nomination to the election rejected by the Returning officer ?

  •   An appeal under section 152 A of M.C.S. Act 1960 may be filed within a period of three days before the concerned Registrar from the date of rejection of nomination.

If the member has paid his dues before the time of scrutiny of nominations, whether he can qualify to contest election ?

  •   If the member pays his dues before the time of scrutiny of nominations , he becomes eligible to contest the election of committee.

If the member held responsible under section 79 or 88 or 85 is eligible to contest the election of committee.

  • Member held responsible under 79 or 88 or 85 is eligible to be re nominated , re coopted, re-elected as a member of committee , after expiry of five years from the date of which he has ceased to be a member of the committee.

What is the remedy available if the committee members default the payments of dues CHS.

  • A Committee member who defaults the payment of dues of CHS incur disqualification to remain on committee.
    Remedy is to approach registering authority for removal of such committee member u/s 78.

A member of the committee make the default in the payment of dues of CHS and pays the same after some period, whether he is eligible to continue on the committee ?

  • Default of payment of dues incur disqualification to remain on committee.
    On the date of default such member ceases to continue on the committee and his seat shall be deemed to be vacant.
    Subsequent payment of dues wipes out default but not disqualification.
    Such member is eligible for re election or co option on vacant seat on payment of dues.

Whether the member of the committee can be removed by passing resolution in it ?

  •   Committee has no authority to remove the members from its committee.

What are the provisions for bringing no confidence motion against office bearers of CHS?

  • No confidence motion against president , Vice President , Chairman, Vice Chairman Secretary or Treasurer can be moved.
    For calling such no confidence motion , request application in M-18 from be signed by at least 1/3 members of the committeee and shall be submitted to the Registrar.
    Such meeting shall be presided over by the Registrar not below the rank of Assistant Registrar
    On the date of passing the resolution by 2/3 members present and voting the office of the office bearers stands vacated.
    If no confidence motion is rejected then no such resolution shall be brought within a period of 6 months from the date of resolutions.

Whether there can be two managing Committee for two buildings in one CHS ?

  • There shall be one managing Committee for one CHS irrespective of no of building or wings.

Who can accept the resignation of Chairman of the CHS ?

  • The bye laws number 132 (a) provides that the Chairman of the CHS may tender his resignation to the Secretary of the CHS by addressing a letter. The Committee can accept his resignation.

Two whom the entire committee can give its resignation in such a case what is the remedy?

  • Resignation of the entire committee shall be placed before the General Body meeting
    Even after acceptance of resignation of the entire committee by the General Meeting the are required to hold charge of the CHS till alternate arrangement are made.

What actions can be initiated for not holding the election before expiry of its term ?

  • Registrar can appoint an administrator in such a case.

Whether the decision taken by the committee after expiry of its tenure and before constitution of new committee are treated as invalid ?

  •   Section 77 of M.C.S. Act 1960 provides that the decision taken by the Committee under such situation cannot be treated invalid.

Whether the decision taken by the ex-committee after constitution of new committee and before handing over the charge of records to the new committee are invalid ?

  •   After constitution of new committee decision taken by the ex-committee is invalid and it has no force of law.

What remedy is available , if the ex-committee refuse to hand over the charge to the newly constituted committee ?

  •   Officer of the newly constituted committee may apply to the Registrar in detail for initiating action under section 80 of the M.C.S Act 1960 for seizure of documents with the help of police.

What are the circumstances to appoint an administrator under
Section 78 ?

  •   Circumstances to appoint administrator under Section 78 are :

Committee or its member make default in performing duties or
The act of the committee or its member is prejudicial to the interests of the society
or
Committee or its members willfully disobeys directions issued by the State Government or by the Registrar
or.
Committee or its members are not discharging its or his functions properly
or
Committee or its member incur disqualification to remain on committee.

A What are the circumstances to appoint an administrator under
Section 77 ?

Circumstances to appoint administrator under Section 77 are :

  • If the committee is not constituted in first AGM
  • Terms of the committee has been expired
  • Sufficient members are not elected to form the quorum
  • Where two groups are claiming to be elected as the committee members and the election dispute is filed in Cooperative Court.

If meeting of the committee is not called by Chairman/Secretary what is the remedy available ?

  •   Bye laws No 133 provides that such meeting may be called by the Federation of the society, if Federation is informed accordingly.

Whether the Chairman is having casting Vote ?

  •   Bye laws no 135 provides that Chairman is having Casting Vote.

What is the tenure of Committee ?

  • Tenure of the Committee is as per bye laws of CHS.According to model bye laws tenure of the Committee is of 5 years.

When the CHS can coopt the member on the Committee ?

  •   Vacancies created on the Committee on account of death, resignation, disqualification and removal can be filled by coopting irrespective of the quorum.

What is the tenure of the Coopted Committee Members ?

  • The period of the office of the coopted committee members shall be Coterminous with tenure of the committee.

Whether decision taken by committee consisting of majority of coopted member is valid ?

  •   Yes. A coopted member has full rights and authority as an elected member.

How many funds are required to be raised by CHS. ?

  • Funds to be raised by CHS are
  • The repair and maintenance funds at the rate fixed by G.B subject to the minimum of 0.75 % per annum of construction cost of each flat.
  • Major repairs funds as and when required and decided by GB at the rate fixed on area basis.
  • The sinking funds at the rate fixed by G. B subject to the minimum of 0.25% per annum of construction cost of each flat.
  • Reserve funds as provided u/s 66 of the M.C.S Act 1960.

What is the difference in utilization of repairs and maintenance fund and major repairs fund?

  • Repairs and maintenance funds is utilized for meeting the expenditure on maintenance and normal repairs of the building of CHS by committee.
  • Major repairs fund is utilized with priod approval of G.B for major repairs such as plastering, Colour of buildings etc.

When Sinking Funds is to be utilized ?

  •   Sinking funds is to be utilized on recommendations of architect and with prior approval of G.B for meeting the expenditure on structural additions or alterations to the building /buildings of CHS.

What is the procedure for amendment of bye laws of CHS

  • Information of amendment shall be communicated to all members by giving 14 clear days notice of the proposed General Meeting.
  • Resolution is required to be passed by not less than 2/3 majority of the members present and voting in General Meeting.
  • The proposal for amendment of the bye laws shall be submitted for registration within two months in the prescribed forms from the date of meeting.
  • Amendments become effective after approval and registration by the Registering Authority.

Whether amendment can be imposed by the Registrar ?

  •   In the interest of members of the Society Registrar may impose amendment of by laws u/s 14 of M.C.S. Act 1960.

What are the circumstances of amalgamation or division of the CHS ?

  • CHS can be divided under the following circumstances
  • There shall be two or more different buildings.
  • Each building shall have separate water tanks and water connections.
  • There shall be a separate assessment by the local authority.

What is the procedure for divisions of the CHS?

  • Committee may apply to the Registrar
  • Committee shall convene SGM by giving 15 days clear notice to the members and creditors.
  • Resolutions for division shall passed by 2/3 of the members present and voting in such a meeting.Such resolution shall contains the details of scheme of division of the society.
  • After the meeting of the SGM notice in “G” form shall be given to all the members and creditors. Exhibit the notice on the notice board of the society as well as in the office of the Registrar and publish the same in at least one local newspaper inviting objections with in a period of one month
  • If objections are not received within a period of one months from the date of notice, it will be presumed that the member/creditor have not objection for such divisions.
    Thereafter the committee shall submit the report giving details and registration proposal for the registration of new society to the registrar.

Whether the Registrar is empowered to enforce division of the CHS ?

  •   In the interest of the members , Registrar may enforce division of the CHS

Who can become member of the CHS ?

  •   Member who fulfills the following conditions can become member of the CHS
  • A persons who is competent to contact under the Indian Contract Act 1872 or
  • A firm company or any other body corporate constituted under any law for the time being in force, or a society registered under the societies Registration Act 1860
    or
  • A society registered or deemed to be registered under MCS Act 1960
    or
  • A State Government or the Central Government
    or
  • A local Authority
    or
  • A public trust registered or to be registered.

What procedure is required to be followed by a person to become a member of a CHS.?

  •   Procedure for becoming member.

An application in the prescribed form giving complete details shall be submitted to CHS
Shall pay the value of five shares of Rs 50/- each along with payment of Rs 100/- towards entrance fee.
Undertaking as prescribed in the bye law are to be submitted.
A copy of stamped and registered purchased agreement.

What is a remedy available , if a society refuse a membership of the member?

  •   A person whose membership application is not accepted by CHS may apply to the Registrar u/s 23 (1A) in the prescribed H-1 form.

What remedy is available to a member whose application for membership is not decided by CHS within a period of three months ?

  •   On failure of CHS to dispose of the membership of a person within a period of three months m he may apply to the Registrar u/s 22 (2)

What remedy is available whose membership application is rejected by CHS?

  •   A person whose application for membership is rejected, may apply to the Registrar u/s 23 (2) of the M.C.S. Act 1960.

What % of membership of firm , company and body corporate are
allow in CHS ?

  •   Upto 60% of the total membership is allowed to firm , company and body corporate members.

What is the maximum number of tenements that can be allotted to body corporate in CHS?

  • Total no of tenements allotted to firm and companies shall not exceed 50% of the total no of tenements in a CHS.

What are the conditions to become associate member ?

  • To become associate member person shall submit

An application in prescribed form as provided in the model bye laws to the society
No objection certificate from the original member
Entrance fee Rs 100/-

What are the remedies available if the application for nominal membership is rejected , by CHS ?

  •   Person whose membership application for nominal membership is rejected he may apply to the Registrar u/s 23 (2) of the MCS Act 1960.?

What are the remedies available if the application for associate membership is rejected by CHS ?

  • Person whose membership application for associate membership is rejected, he may apply to the registrar u/s 23 (2) of the MCS Act 1960.

Flat is purchased by “A” and “B jointly who case exercise the right for membership.

  • Person whose name stands first in the share certificate shall exercise the right of the membership in the CHS.
    “A ” is the member of the CHS holding a flat subsequently ” B applies for associate membership claiming that he has contributed for purchasing the flat. Under this circumstance whether CHS can grant associate membership to “B”?
    CHS can reject the application for associate membership of “B” if there is no NOC from “A”

What are the right of associate member?

  •   Associate member may exercise the right of membership , if original member has authorised him in writing.

Whether a member of the CHS has right to see books and records of the CHS and obtain its copies ?

  •   Section 32 of the MCS Act 1960 provides the right to the member to see the books and account of the society and obtain copies of the documents on payment of copying charges as prescribed in the bye laws.

If a flat is purchased jointly by ‘A’ and ‘B” in the proportion of 60:40 respectively name of ‘A’ stands first and that of “B” stand second in Share Certificate “A nominates “C” . After the death of “A” whether the name of “B will stand first in the Share Certificate ?

  •   After death of A and on granting the application for membership of C and name of C will stand first in the Share Certificate not the name of B

“A” is the member of CHS who is NRI he gives power of attorney in favour of “B”. “B” applies to CHS for acquiring membership in place of “A” Whether CHS can grant membership to “B”

  •   On the basis of power of attorney membership cannot be granted to “B” in place of A

If a member has submitted two nominations on the different times nominating different persons, which nomination will be treated as valid ?

  • Bye law No 32 provides that the latest name of nominee will be treated as valid.

Deceased member has submitted nomination in favour of ‘A’ and a will in favour of ‘B’ whose membership application be decided by CHS ?

  • As per the provisions laid down u/s 30 of MCS Act 1960 CHS shall consider the application of ‘A’ for membership.

Whether the CHS can reject the membership application on the ground of non payment of stamp payment of stamp duty ?

  •   CHS can reject the membership application on the ground of non payment of stamp duty.

Whether CHS can reject the application for membership on the basis that the applicant is belonging to a particular group ?

  •   No CHS cannot reject the application for membership on the basis that applicant belongs to particular grouped, if he is otherwise qualified to become member.

Whether minor can become a member of the CHS ?

  • No, CHS cannot reject the application for membership on the basis that applicant belongs to particular grouped if he is otherwise qualified to become member.

Whether NOC of CHS is required to sell the Flat ?

  • Such NOC is not required as per model bye laws.
    Member shall inform his intention for sell of his flat as provided under Rule 24 of the MCS Rule 1961.

Whether the managing Committee is empowered to collect transfer premium more than Rs 25000/- if general body passed such resolution.?

  •   Bye law number 38 provides that the CHS may collect amount of premium at the rate to be fixed by the General Body meeting but within the limits as prescribed under the circular issued by the Department of Co-operation, Government of Maharashtra from time to time and therefore the general body’s resolution contradicting the Government circular shall not be acted upon.

Whether the managing committee can charge the transfer premium in case of mutual exchange of flat by members ?

  •   Bye law No 38 bars the CHS for collecting transfer premium for mutual exchange of flat amongst the member in the CHS.

Whether the managing committee of CHS has authority to collect the transfer premium for transfer of flat in family member ?

  •   Bye law No 38 bars the CHS for collecting transfer premium for transfer of flat to family members.

Whether member can transfer share or his interest within a period of one year ?

  •   Section 29 (2) provides that member cannot transfer any share held by him or his interest in the capital or property unless and until he has held such share or interest for a period of one year.

When non occupancy charges can be collected by CHS ?

  •   Non occupancy charges can be collected by CHS only when member has rented out his flat or given on leave and license basis.

How much non occupancy charges can be collected by CHS ?

  •   Non occupancy charges can be collected to the extent as decided by the General body meeting but not more than 10% of the service charges as has been stated in the circular dated 1st of August 2001 issued by State Government.

Whether service charges are to be charged according to the area and size of the flat ?

  •   Service charges are to be charged equally irrespective of the size of the flat as provided in bye law no 69 of the model bye laws.

Whether water charges are to be levied to the shop /office members ?

  •   Bye law no 69 provides that water charges can be charged on the basis of total number and size of inlets provided in each flat. Therefore , water charges shall be levied from those unit holders who have supplied water connections only.

There are two buildings in a society. One is provided with lift and other is without lift . Whether the lift charges are to be levied to the members of building having no lift.?

  •   The member of building , which does not have lift provision , need not be charged the lift charges.

Whether the managing committee of the CHS can charges compound interest ?

  •   Managing committee can charge simple interest as provided in bye law no 72 and not the compound interest. Charging Compound interest is a criminal offence punishable under the negotiable instruments act. And the interest should never be more than +2% over and above the maximum lending rate as declared by the RBI.

What is the remedy available to the managing committee of the CHS for recovery of dues of the CHS.?

  • Managing committee shall issue demand notices to the members concerned.
    On failure to pay the dues by members, , CHS may file proceedings u/s 101 of the M.C.S. Act 1960 for recovery of dues.

What remedy is available if member have not made the payment to CHS prior to registration of CHS ?

  • For recovery of dues of CHS prior to its registration, the remedy available is to file a suit in the Civil Court against the defaulters.

Whether the member can withheld the dues of CHS if his complaints are not attended to by the managing Committee ?

  • Member cannot hold back dues under any circumstances.
    Member can approach the Competent Authority as enumerated in the bye laws no 175 of Model Bye laws under the topic “redressal of complaint/”

What remedy is available for recovery, if member is not traceable ?

  •   If member is not traceable to issue notice for recovery of his dues, the CHS can publish a notice in the newspaper .

Whether society can disconnect the water supply of member for non payment of dues ?

  •   CHS cannot disconnect the water supply of members. They form a part of essential services – life support system. Under no circumstances the CHS or anybody, but the government can withdraw the life support systems – as provided under the constitution of india.

A and B are the member of CHS holding two different Flat. They do not belong to one family. Flat of A is locked. Both of them reside in the flat held by B. Whether CHS can charge non occupancy charge to B ?

  •   Non occupancy charges are applicable only when flat is rented out. If B is collecting rent from A, then CHS can collect non occupancy charges from B. It cannot be more than 10% of the normal Service Charges as being collected from other members.

What is the remedy available to the member to recover his excess payment from the CHS?

  • Member may file dispute u/s 91 of MCS Act 1960 in the Cooperative Court.
  • Registrar has no authority to decide the question of such excess payment u/s 101 of MCS Act 1960.

What remedy is available to recovery the dues after expulsion of a member ?

  •   Dues of members can be recovered from sale proceeds of flat of expelled member. However this is a very complicated subject. Please consult your lawyer first and then expel the member. Right to shelter is a fundamental right provided under the Indian constitution. Can the Cooperative Act over-rule the constitution of India, only the courts can decide.

Member sells his flat without paying the dues of CHS. Incoming member denies to pay the dues. What is the remedy ?

  • No Dues can be recovered from incoming members. While accepting the application form of the incoming member, the society should make sure that the outgoing member has cleared all his dues. However, if the sale has been done clandestinely, then the society can recover the dues from the incoming member – by refusing to transfer the flkat and refuse the new person’s right and title.

What remedy is available of CHS is not carrying out repairs of the flat ?

  •   Member may file dispute u/s 91 of the MCS Act 1960 before Cooperative Court.

Which is the proper authority to decide damage caused to the members flat while carrying out repairs by other member in his flat ? Whether member can withheld the dues of the CHS in such situation ?

  •   To decide the matter, member may file a dispute u/s 91 of MCS Act 1960 in Cooperative Court. Under this situation member cannot withheld the dues of CHS.

‘A’ is a member who reside in upper flat and carries out interior. This results in damaging the plaster of the ‘B who lives in the lower flat. Whether repairs to plastering of the ceiling of flat of B is to be carried out from the society’s funds ?

  •   Such type of repairs cannot be carried from funds of the CHS . The remedy available is to file dispute u/s 91 of MCS Act 1960 before Cooperative Court.

‘A’ is the member who lives in the flat which is above flat B has undertaken repairs. This has resulted in leakages in the flat of “B” which is below flat A . Whether such type of leakages can be repaired from societies funds ?

  • Bye laws No 160 provides that repairs of such tuype of leakages cannot be done from the funds of CHS. The two members jointly have to repair the same.
    Remedy available is to file dispute u/s 91 of the MCS Act 1960 before cooperative Court.

“A” is the member living in the upper flat, he does not carry out any alteration / modificiation and leakages started in the lower flat due to structural defects. Whether such leakages can be repaired from the funds of the CHS.?

  •   Such type of repairs have to be carried out from funds of the CHS.

A member “A” is having terrace flat. Plaster of ceiling of flat is damaged whether can be repaired by CHS from its funds ?

  •   Yes, the same has to be repaired by CHS from its funds.

Whether a member can claim compensation to repairs carried out by him which is supposed to carried out by CHS from its own fund. Which is the proper authority ?

  •   For compensations of the repairs carried out by member of behalf of the CHS , he may file dispute in the Cooperative Court u/s91 of MCS Act 1960 if CHS refuse to give him required credit.

Whether CHS is required to pay income tax ?

  •   Yes , CHS is required to pay income tax. It is now a corporate body and is taxable like all other entities.

Whether transfer premium and donation received by CHS are taxable ?

  •   Yes, transfer premium and donation received by CHS are taxable.

Whether amount received in sale of FSI is taxable ?

  •   Yes , Sale proceeds of FSI are taxable.

What are the taxable incomes of CHS?

  • As per the provisions of I. T Law Taxable income of CHS is:
  • Transfer premium.
  • Income gained from installation of dish antenna
  • Income gained from renting out premises of CHS
  • Interest earned from default in payment s by members.
  • Interest earned on deposits.
  • Income earned from sell of FSI
  • Parking Spaces
  • Misc Income Earned
  • Donations Received
  • and all other incomes which have not been collected as maintenance, electricity, water or property tax/municipal  charges

What are the rates of I.T. Leviable to CHS.

  •   Rates of I.T leviable to CHS
    For income upto Rs 10,000/- 10% of income.
    For income upto Rs 10,000/- to 20,000 , 20% of income.
    For income upto Rs 20,000/-& over 35% of income.

Whether CHS is liable to deduct I.T at source in respect of payments made by it to the contractor?

  •   Yes CHS is liable to deduct I.T. At source for its payments to contractor.

In what form CHS is required to file return ?

  •   CHS is required to file return in Form No 2.

Whether CHS is required to file IT return in case society incurs loss or has nil income?

  • Yes , CHS is required to file IT return even though it has incurred loss or its income is nil.

Whether excess collection from the members over actual expenditure is treated as income?

  •   Such excess collection from members over expenditure is not treated as income for the purpose of levying IT.

Whether stamp duty is leviable on leave and licence agreement ? If so what are the rates ?
* Yes, Stamp Duty is leviable on Leave and License agreement.
Rates of Stamp Duty for every 11 months are as under:

  • If annual Rent + deposit is
    below Rs. 2,50,000 then Rs. 750 Stamp Duty.
    between Rs. 2,50,001 to Rs. 5,00,000/- Rs. 1500/- Stamp Duty.
    Above Rs. 5,00,000/- Rs. 3000/- Stamp Duty.
    Registration fees is Rs 1000/-
  • Agreement for a period exceeding three years but not more than ten years with or without any renewal clause. Stamp duty is leviable on thrice the amount of average annual rent.
  • Agreement for a period exceeding ten years but not more than 20 years with or without any renewal clause.
    Stamp duty is leviable on 5 times the amount of average annual rent.

What are the rates of payment of stamp duty for sale of Flat in CHS ?
Sr NoMarket Value of FlatLeviable Stamp duty
1                 Does not exceeds                          Rupees 10000/-                    Nil
2                Exceeds Rs 100000/- but does not exceed Rs 250000/-           0.5 %
of the Value
3Exceeds Rs 250000/- but does not exceed Rs 500000/-Rs. 1250/- + 3% of the value above Rs 250000/-
4Exceeds Rs 500000/- then8750/- + 5% of value above 500000

Who is responsible transferor or transferee for payment of Stamp Duty ?

  • Section 30 of the Bombay Stamp Act 1958 provides that transfaree i.e. Purchasers in liable for the payment of stamp duty. But the general practice is that, it is shared 5-50 between the purchaser and the seller.

A is the member of CHS sells his flat to B and no stamp duty is paid B sells the said flat to C whether stamp duty for the agreement between A and B is recovered from C?

  • No, Stamp duty for the agreement between A and B cannot be recovered from C.
    C is responsible for the payment of Stamp duly between B and C

Whether stamp duty is leviable for transferring Share and Interest in the membership of CHS among the family members, where actual transactions has not taken place ?

  • The stamp duty is leviable as provided under clause (a)(b)(c) and (d) as the case may be of article 25 of schedule I of the Bombay stamp Act 1958 , on the market value of the property, which is the subject matter of the gift.

Whether Stamp duty is payable on mutual exchange of Flats by member of CHS ?

  • It is necessary to execute a deed of exchange for transfer of flats among members of CHS.
  • Stamp duty is leviable for such exchange under article 32 of Schedule I of the Bombay Stamp Act 1958.
    However no society transfer charges will be levied

A CHS has purchased plot for construction of premises for its members. Whether stamp duty is leviable on letters of allotment to its members ?

  •   Stamp duty is not leviable on such letters of allotment.

Whether stamp duty is leviable on transfer of right, title and interest of a deceased member of CHS in favour of nominee or legal heir ?

  • Stamp Duty is not required to be paid in such case.

What is the rate of payment of Stamp duty on the agreement for transfer of a Shop/Garage/Commercial Premises in CHS ?

  • The Stamp duty is payable at 5% of market value of commercial premises.

Whether the CHS can take donation.

  • CHS can not take donations, specially from transferor or transferee. If and when some member (please note the word MEMBER) wishes to donate something or cash to the society – all such amount received will be taxable.

What is the procedure for expulsion of member in a Cooperative housing society.?

  • CHS may follow the procedure u/s 35 of MCS Act 1960.
    If the expulsion is approved by the Registrar CHS may take possession of the flat.

What remedy is available is flat is occupied by expelled member ?

  •   CHS may file eviction suit in Cooperative Court.

Whether the member can sale the parking space already purchased by him to the other eligible person ?

  • NO. All parking spaces are the property of the Society. If the member has paid to the builder or anybody else, hardluck. he should not have.

Whether the provisions of Section 59 to 61 Indian Contract Act 1872 are applicable in case CHS submits an application to the Financial Institution stating for full and final payments and such application is accepted by the Financial Institution ? Whether interest and principal construed as different debts under the provision of section 59 to 61 ?

  • Provision of Section 59 to 61 of Indian Contract Act 1872 are applicable where a debtor owes several distinct debts to one person and voluntarily make payments.
    Hon. Supreme Court of India has laid down the ratio in Civil Appeal No 16902 of 1996 decided on Feb.10, 1999 that principal and interest are constructed as a single debt and therefore provisions of section 59 to 61 of the Indian Contract Act 1872 are not applicable in such case.

Society’s funds cannot be distributed amongst members
A builder is willing to offer a substantial sum of money for an open plot of land that exists in our society. The builder wished to put up a bungalow on the plot for his personal use and he also wants to become a member of the society. Do we have to take the registrar’s permission to sell the plot? Would it be legal for the society to divide the sale proceeds of the plot amongst members ?

  •   A society is the owner of its property. Therefore it can alienate its property in keeping with provisions of law and the bye laws. There is no restriction in law on a society to dispose off its property in any manner it deems fit. Such restrictive provisions, as for example, exist in trust law because the trustees do not have the untrammelled power to sell trust property. Although the trustees are legal owners of trust property, they have to act for the benefit of the beneficiaries. However you must consider whether it is at all necessary to sell the plot of land to the builder in view of the fact that he wants to become a member of the society. I would suggest that the society should continue to remain the owner of the plot and it should make the builder a member. He may then be permitted to develop the plot by putting up the bungalow and for this right he can pay the society an agreed sum of money.

This brings me to your question as to whether the money that the builder pays to the society for the sale of the open plot of land or otherwise can be distributed among members. The answer to your question is a categorical no. Distribution of the society’s money in the manner you contemplate is just not permitted by the Act. The purpose of the cooperative movement is collective well being, not individual profit.

If you study the provisions of Chapter VI of the Act and Chapter V of the Maharashtra Cooperative Societies Rules, 1961 it will become clear that a society has to set up a number of funds and has to make regular payments into them. Money from such funds is sued for different contingencies a society faces. The Act and the rules lay down clearly how the profit of a society has to be used. While dividend and bonus can be paid to members of agricultural credit or farming societies, no dividend or bonus can be paid to members of housing cooperative societies. The purpose of a housing cooperative society is to provide open plots or flats to its members. Thus the proceeds of the sale or otherwise of the open plot cannot be distributed among members. The money has to be credited to the account of the society. This does not mean that members of your society cannot derive any benefit from the income the society has made.

There are a number of societies that have substantial funds at their disposal due to some fortuitous circumstances. For example, some societies have secured permission to let out the ground floor to a bank or some other commercial institution, which pays handsome rent. This money in the hands of the society can translate into lower maintenance charges or better facilities. But a society cannot sell its property or deal with it in any other manner and then divide the proceeds amongst its members.

While A is the member of a co operative society and B is the associate member, the flat is occupied by B. Our society had earlier adopted a resolution to the effect that family members, including brothers and/or sisters, need not pay non occupancy charges. Recently, the society reversed this decision and its new resolution the society is now demanding non  occupancy charges from B. Is the society right in doing so? What is the basis on which a society can demand non occupancy charges ?

  • Your society is clearly wrong in demanding non occupancy from B. There seems to be a misconception regarding the status of an associate member. As far as the society is concerned, an associate member is no different from the first holder of a flat except that the first holder has the right to attend and vote at general body meetings. Even with regard to this right, the Maharashtra Cooperative Societies Act, 1960, provides that if the first holder is not available to attend general body meetings, the associate member (second holder) can attend and vote. thus, in effect an associate member of a society has the same status as the first holder. In a given case the associate member may not be a relative of the first holder and yet does not have to pay non occupation charges. It is therefore illegal for your society to demand non occupation charges from B. In a manner of speaking, he is as much as “owner” of the flat as the first holder. He occupies the flat as a matter of right and not as an outsider.

Coming to your second question, I may state as a broad principle, that a society does not have the right to demand non occupancy charges from each and every non member who is an occupant of any of its premises. For example, the family of the member, however broadly or narrowly the term “family” may be defined is not liable to pay non occupancy charges for occupying the premises. Similarly, a member cannot be asked to pay these charges merely because he has a paying guest living with him/her. Such charges become payable only when the member in question is not staying in the premises and has left it out to someone else.

In the year 1994, I purchased a shop in a building where there was no cooperative society. After some time, I received a bill for about Rs 40,000 of which Rs 35,000 were shown as transfer fees. The ad hoc committee running the affairs of the building did not have any satisfactory answer as to why I was not informed of the charges when I purchased the premises. I refused to pay the transfer fees and in retaliation, the ad hoc committee began sending bills in the name of the previous owner. In the year 2002, the committee stopped the water supply to my shop on the pretext that the civic body was providing it only on humanitarian grounds. A society has been registered in the year 1998 and it has been charging me interest on the transfer fees payable by me, which has now ballooned to three times the principal amount. The society is not accepting legitimate charges from me and is refusing to make me a member. I would be grateful if you could let me know if an ad hoc committee can demand transfer charges, whether it is legal to cut off water supply and whether the society can refuse to make me a member ?

  •   The committee and the society have acted in a high handed and illegal manner. From your question it appears that the building was developed by a builder/developer.If any assumption is correct, I need to point out that the building in question is the property of the developer. An ad hoc committee may be set up by purchasers of units to run the affairs of the building but such a committee has no legal standing. It can only be formed with the permission of the builder and is assumed in law to act on his behalf. The committee does not have the legal authority to make financial demands on owners of units in the building. The transfer between you and the original owner took place before the existence of the society and thus there is no question of paying transfer fees. The society was registered only in 1998, and as such it could exercise its rights under the Maharashtra Co operative Societies Act, 1960 and the rules and bye laws framed there under only from the date of its registration. It cannot demand of any sum of money from a unit holder for transactions that have been entered into before its date of registration.

To answer your queries, let me make it clear that the ad hoc committee was wrong in issuing the monthly bills in the name of the past owner of the shop merely because you did not meet its illegal demand for transfer fees. The society is also wrong in demanding that sum from you and for charging you interest on it. The stand of the society that it will not make you a member unless you pay the amount is equally illegal. You have a right to become a member of the society which has been formed for your building in which you have a shop. It is a criminal offence to cut off the water supply to your shop without sufficient cause. In your case, I have no hesitation in saying that the society does not have adequate cause. To my mind, the actions of the ad hoc committee and the society are nothing short of blackmailing tactics aimed a compelling a person to make payment of sums which are neither morally or legally due. You should approach the court of competent jurisdiction for relief.

Ours is a 12 storey building in which the occupants got together and formed a cooperative society. During the first general body meeting, the promoter of the society and his supporters got together and appointed their own nominees to the managing committee and they also adopted resolutions detrimental to a sizable number of members. Some of us complained to the deputy registrar but there has been no response from that officer. Most of the members are not paying their dues to the society. Are we bound by the decisions of the general body and can the society take action against us fro non payment of dues and for disobeying the resolutions passed? What is the way out if the society and the registrar office do not pay heed to our objections ?

  • Cooperative societies work on the principle of one man one vote – which in actuality is One Flat – one Vote. Therefore, it is often the case that a group in a society that has a majority succeeds in pushing through its own agenda at the general body meeting, whether in the matter of election of office bearers or passing other resolutions. Such meetings and the decisions taken therein do not become illegal merely because some members do not like the decisions taken. Anyone who assails the holding of a general body meeting or the decisions taken must produce legal proof to show that either the meeting was not properly called or that the decision are not enforceable as being contrary to the provisions of law or the bye laws or both. This legal proof must be presented either to the office of the registrar or the cooperative court, which are the two forums set up under the Maharashtra Cooperative Societies Act, 1960 to consider the grievances of members.

A person who feels that a society has wrongly taken a particular decision has three options open to him. Firstly, he can obey the decision till he gets a favourable order from either the registrar or the cooperative court. Secondly, he can disobey the decision and wait until the society takes action against him. Thirdly, he can disobey the decision and challenge its before the appropriate authority. If you disobey the decision of the society, you may have to face the consequences of your action, as there is an element of risk involved in doing so. A society has every right to initiate action against members who do not pay their dues or violate any decisions taken at the generally body meeting. However, such action cannot be arbitrary and must be in keeping with the provisions of the Act. If you and other members are genuinely convinced that those in control of the society are mismanaging it, you must approach the office of the registrar or the cooperative court.

We own a building in Bombay suburb, Maharashtra which was built in 1981. It consists of commercial units on ground floor and residential units in three upper floors with common toilet and sloping roof slab. All the tenants are paying the rent as per the standard rent but fully reimburse the municipal taxes. Due to some defects in external plaster, the structural members are spoiled. It is therefore necessary to undertake the structural repairs and replastering the external walls. It is also proposed to put MS railings on sloping terrace slab. The tenants are willing to share the expenses incurred of about Rs 1.65 lakh.Can the entire amount can be recovered from the tenants?

  • If not, what is the share that can be recovered from the tenants? Can the rent be increased to recover the expenses of repair? Can interest be charged during the period of such recovery? Will the rateable value for the purpose of municipal taxes be enhanced if rent amount is increased to recover the expenses or should instalments be taken from the tenants?

If the repair is carried out with the permission of the tenants, and such repairs are in the nature of major repair or substantial repair or heavy repair, or improvement or structural alteration, you are entitled to recover such expenses or increase the rent. The consent of the tenants must be in writing and 70% of the tenants ought to have given such consent. You can increased the rent @15% p.a. of the expenses incurred by you.
Such expenses incurred by you must be certified by the Architect from a panel of architects notified by the state Government or must be certified by the Municipal Authority. You are no entitled to charge any interest on it. If there is any addition to the building then the rateable value can be revised, otherwise it can not be increased.
My father (now retired from Central Bank of India) purchased a flat at Salt Lake, Calcutta in 1987 88. It is since being occupied and now the person who has occupied the flat is asking for astronomical figure for vacating the same. My father did one mistake i.e. during his working period he had let it out to the same occupant which one is not supposed to do if one takes a loan from the bank. But for the same reason we are having to pay a huge price as we cannot move to our own house and though my father has retired. We have to pay rentals at JSR where we are staying.
I’ve recently got a job at Calcutta and also approached few advocates but they say it’s going to take 10 yrs or so if case is filed. If there was a prohibition on letting out the flat, when the flat was purchased by availing a loan from the bank, your father could have contended that he has never let the premises but the same was given on license to that occupant.

  • Now your father having accepted such occupant as tenant by letting out the said premises, your remedy for recovery of the said flat back will be only under Rent Control Legislation. In Calcutta, if the premises are subject to West Bengal Tenancy Act, you will have to invoke the provisions of West Bengal Tenancy Act.

You have not mentioned the monthly rent of the said premises. Under the new Rent Act of the West Bengal, certain premises are exempted from the protection of such rent control legislation, if the rent of the premises exceed certain limit.
If your premises fall under such categories, then your premises will be exempted from the protection of the New Rent Act applicable to Calcutta. If not, then you can initiate the proceeding for your reasonable and bonafide requirement. If the facts narrated by you are properly pleaded and proved, you will get back the possession of your premises. You can also apply for expediting the hearing of your case because you are need of the premises for your personal requirement.

Warehouses and godowns not protected by Rent Act
One of our companies had let out godown premises to the Central Warehousing Corporation at Kolhapur. There is no written agreement but CWC has been a tenant for a number of years. We now want to either sell the premises or use them alternatively.

  • With the coming into effect of the new Rent Act in Maharashtra, is it possible for us to move the court to get CWC to move out. I am advised that the new Act does not apply to warehouses/godowns. A S Ruia

It is not correct that the new Rent Act does not apply to warehouse or godowns. Section 2 of the Maharashtra Rent Control Act 1999 deals with the application of the Act.
This section inter alia provides that the Act will apply to the premises let for the purposes of (i) residence (ii) education (iii) business (iv) trade or (v) storage in the area specified in the Schedule I and II. Kolhapur is in part I of Schedule I and the Act will apply to the premises let for storage.
Section 3 (1) (b) of the Act deals with the exemption and it provides that the Act will not apply to premises let or sub let to any corporation established by or under Central or state Acts.
Under Section 3 of the Warehousing Corporation Act,1962, the Central government by a notification in the official gazette established a corporation by the name of the Central Warehousing Corporation, which is a body corporate, having perpetual succession and common seal with a power to acquire, let, dispose off property and to contract and may by the said name, sue and be sued.
The Central Warehouse Corporation is thus established under the Central Act and therefore the premises let to such corporation is exempted from the protection of the Act.
Therefore, you can terminate the tenancy of such tenants as provided under Section 106 of the Transfer of Property Act, and after the expiry of the period of notice, such corporation will have to vacate the premises.
If such corporation fails to vacate the premises, you can file suit for recovery of possession of such premise so let, under General Law (Transfer of Property Act) before the court having jurisdiction to entertain and try the suit. This suit will not be under the Rent Control Act.
Has the revised standard rent already been finalised? I was under the impression that the matter is still with the Supreme Court which is yet to give its judgment.

If so. When is it due? I am a tenant in a building at Juhu scheme. I have two flats in different names of 550 sq ft carpet area each in the same building, one above the other. I have taken on rent a flat on 1st Floor on 15 October, 1980 and I had rented another flat on the 2nd Floor on 1 December, 1992. I have been regularly paying rents as per Standard Rent Act to the landlord for all these years in this building.

For the last six months, the landlord is not accepting the rent for both the flats. I have been sending the rent and other charges by money orders but he is refusing to accept them. He got the entire building repaired recently and is now asking all tenants to pay unreasonable cost (arbitrary cost) in cash only to him.
Some have already paid and others have not paid so far. But they are willing.

Open and Stilt Parking space cannot be sold
  • Developer fined for selling car parking spaceEmphasising that a flat buyer cannot be charged extra for a car parking space, a consumer forum has fined a developer that committed this “unfair trade practice”.
    The Central Mumbai District Consumer Disputes Redressal Forum last week directed Tata Housing Development Company to refund Rs 50,000 to Ghatkopar based Suresh Mehta and pay him compensation of around Rs 20,000.
  • “Car parking area is the common area of the society. Therefore, the opponent (the developer) had no right to charge any amount for the sale or use of the parking space,” observed the forum. It took into consideration a Supreme Court judgment which held that a developer can only sell a flat and has no right to sell a parking space.
    In his complaint, filed with the consumer forum last year, Mehta had said that he purchased on June 30, 2010, an apartment and car parking space at Betegaon, Palghar, for Rs 17.4 lakh. He maintained that Rs 50,000 was taken from him for car parking and another Rs 50,000 as clubhouse development charges.
    Mehta said he came across a judgment in August 2010 that held that a builder or developer cannot sell stilt or open parking as the space is part of society common area. The verdict also held that, once the occupation certificate is issued and the society formed, the developer ceases to have any title on the open space.
    Through a letter dated December 23, 2010, Mehta demanded a refund from the developer. He was told in response that the car parking was not sold; the developer said he was issued a right to use the space. Aggrieved, Mehta filed a complaint with the forum. The developer repeated its stand in the forum.
    The forum said the agreement showed that the total amount paid by Mehta included charges for the parking space. “The documents on record corroborate the contention of the complainant that the flat’s price was Rs 16.44 lakh and that he was required to pay Rs 50,000 for car parking space.” The forum held that this amounted to an unfair trade practice.
by Rebecca Samervel
Reproduced Courtesy : TOI

© 2013, AIDEC World. All rights reserved.

93 comments for “Cooperative Societies – Some easy answers to your easy questions

  1. jadhav k.a
    November 9, 2013 at 12:14 AM

    Ours is a tenant ownership co-op society of 15 members having owned open plots. My plot is isolated with three side roads & one side members plot.I want to sale plot to builder for coomercial cum residence where wants to form society. But Managing Committee is not permitting .Can U guide me pl.

    • November 12, 2013 at 4:38 PM

      Sorry, since you a part of the coop society, you cannot make ‘Change of User’ decision without the explicit permission of the managing committee, your AGM as well as the requisite permissions and statutory clearances from Municipal authorities

  2. Hetal
    November 20, 2013 at 4:55 AM

    I purchased a flat in a building in Jan 2013 in Mumbai and paid one year maintenance to the builder. The building society was formed 2 months later and they did not receive the accounts from the chief promoter and the matter is still under dispute. The society wants me to pay the maintenance to them separately and obtain the maintenance money I paid to the builder from him myself. Per the Model society by-laws, one of the businesses to be transacted in the first AGM is to receive a report of the committee together with statement of accounts from the promoter. Is the society right in asking me maintenance for the year that has been paid to the builder and ask me settle the accounts directly with the builder?

    • November 21, 2013 at 3:53 PM

      Your society is wrong. The tentative managing committee which took charge from the builder, is supposed to take all the accounts from the builder/developer. If they have not taken the amount paid by you into account, and if you have the proper receipts for the maintenance amount paid to the builder – then it is a lapse on the part of the committee. Under no circumstances you are expected to pay the amount twice. The Bye laws are very clear about the same – if the society suffers any loss due to negligence/oversighyt by the managing committee members, the members are jointly and even personally responsible for the loss suffered by the society, and should reimburse the society for such loss suffered

      • Hetal
        November 22, 2013 at 5:32 AM

        Thank you, really appreciate the prompt response! This is a very helpful forum.

  3. Rishabh
    November 27, 2013 at 10:00 AM

    Hi,

    I have a similar issue as above where the society is asking me to pay the maintenance I paid to the builder as the account is not settled between the society and the builder. I have the maintenance fee indicated in the registration documents however they are not accepting it. What action can I take under such circumstances? Do I need to provide any written notice to secure my case?

    • November 27, 2013 at 4:17 PM

      You are not expected to pay twice. Write to your Society enclosing photo copies of the receipts of payments already made. The society is expected to reply to you within 30 days. If it does not, write again. Wait another 30 days – and write again. After three written notices, if the society does not reply, you may approach the Registrar to redress your grievance. Under no circumstances can the society charge you for payments already made. If they have not taken charge from the builder properly, it is the provisional managining committee’s responsibilty

  4. subhash
    December 24, 2013 at 2:30 PM

    i have a plot in kolhapur under housing society .our society is kick out from last 20 years .i have a property card on my name for bank loan purpose for morgauge i need no objection certificate now who will give NOC under which rule

    • December 24, 2013 at 2:51 PM

      Since you already have the property card for your plot, and your society is disfunctional – it is imperative that you approach the deputy Registrar of Housing cooperative societies of your region, who has the authority to give you the required NOC. Otherwise, if your bank will accept it (most of the cooperative banks do accept) – an affidavit from you that the society is presently disfunctional hence a regular NOC is not possible and promise to give it to the bankers, as soon as a property managing committee is formed. By the way, no society can exist without a managing committee – you must be having a provisional managing committee – privisional committee is also authorised to issue such an NOC

  5. M.V.Sonavane
    January 17, 2014 at 2:55 AM

    This is commendable work of getting authentic information.Thanks.
    Ours is co operative society of plot holders in Nashik,.Kindly inform;
    1. what are the rules for subdivision of plots ?
    2.What legal action can be taken by society for recovery of dues ?
    Please oblige by replying the above queries duly quoting the references of the provision in rules
    Madhukar Sonavane Nashik.

    • January 17, 2014 at 8:31 AM

      Sub division as plots whether in a cooperative society or otherwise, as per their original size as registered with the collector/patwari. They can be combined and/or sub-divided with due legal process, but their rate of taxation will remain pro-rata and/or plot wise – whereas aplicable.
      As to your second question, recovery of dues, is sending three notices to the defaulter at 30 days each. And then 3 notices under section 101 – which is a very powerful tool in the hands of a decent managing committee. And with the help of the registrar, next 30 days the committee can repossess the plot. The repossesion is a 150 days process.. so one has to be patient. Interest will be applicable on the defaulter at the maximum rate, which is @21% PA, simple. Which will have to be cleared along with the origional dues.
      Once 101 has been served, no rebate on the principal amount and/or the interest can be given by anybody, including the AGM or SGM. If as a compromise it is done, it will have to be recovered from the Committee or the defaulter. However payment facility not exceeding 12 calendar months can be given to the defaulter. But payment has to be made to the society regularly. Default of even one payment will bring him back to square one and he will in most likelyhood loose the plot.
      The appeal to 101 is in the Cooperative court, High Court and then Supreme Court. Sessions court wil have no say
      I hope the above satisfies your question

  6. yogesh
    January 21, 2014 at 7:22 AM

    there is leakage from terrace which affects all flats. members having terrace flat are most effected.hey have sent few letters to society but society did not get the repair done. They have got the repairs done at their own and now demanding exorbitant money and stopped paying maintenance for many years. can society start proceding of 101 for reccovery

  7. Shradha khati
    January 26, 2014 at 10:50 AM

    i am a tenant in this society. earlier the maintainence charge was rs. 225 while the permanent residentials were paying rs. 175. now they have increased my maintainence to 400 while the permanet residers are paying 200 rupees .. i dont think its fair..

    • January 29, 2014 at 4:06 PM

      The sub-let premises has to pay 10% as non-occupancy charges – more than the owners of the premises who reside. The 10% is increase is of service charges only and not the entire bill. What your society seems to be doing is patently an illegal act of extortion. Under no circumstances can the charges be more than 10% of servi9ce charges

  8. SHAUKAT ALI
    February 4, 2014 at 9:38 AM

    MR. A FLAT OWNER(BMC EMPLOYEE), MR. B (BANK EMPLOYEE) STAYED IN THAT FLAT. MR,. B IS RELATIVE I.E. BROTHER OF MR. A

    HOWEVER, OUR SOCIETY CHARGED THE NON-OCCUPANCY CHARGES FROM B.

    CAN U SUGGEST ME WHAT TO DO ABOUT B. IF ANY RULES ABOUT B IS MEMBERS OF OUR SOCIETY.
    AFTER FOUR DAYS NEW COMMITTEE TO BE CONSTITUTED SO PLEASE PROVIDE ME ALL THE RULES OF THE SOCIETY.

    ALL THE BMC EMPLOYEE STAY IN THIS SOCIETY.
    BMC CHS
    GOVANDI

    • February 4, 2014 at 4:37 PM

      Non-Occupancy charges can be levied only in case of the flat being occupied by an outsider or being sub-let. Since B is the brother of A – no-non occupancy charges can be applicable – as long as B does not pay any rental to A. Please refer to the bye laws and see the definition of FAMILY. Being an employee of BMC or anything does not make any difference at all. The new committee will have to refund the charges illegally charged by the previous committee

  9. SHAUKAT
    February 6, 2014 at 7:51 AM

    thanks for the reply.

    FLAT PURCHASE, ONLY BMC EMPLOYEE ONLY,
    1. MR. X (BMC EMPLOYEE) IS THE OWNER OF THE FLAT, BUT MR. Y IS STAY IN THAT FLAT.
    2. MR. Y PURCHASED THE FLAT ON HIS BROTHER NAME AND MR. Y (RELATIVE OF THE X)
    3. MR. Y IS ELIGIBLE TO ELECT POST OF CHAIRMAN OR SECRETARY OF THE CHS.
    4. PLEASE SUGGEST AND WHAT RULES APPLICABLE FOR MEMBERSHIP OF MR. Y.
    5. HE IS ELIGIBLE FOR CASTING VOTE AT THE TIME OF CHS ELECTION.
    6. PLEASE SUGGEST AS PER LAW OF CHS

    • February 7, 2014 at 11:39 AM

      Since it is a BMC Society, only present and ex-employees of the BMC are entitled to prchase the flat originally or even in resale.
      X must be an employee of BMC and so must be Y. Both have to be present or ex employees of the mumbai Nagarpalika
      Theoretically no outsiders can stay in flat, relative or not…but nobodyt can enforce this clause. So most of the societies just charge a non-occupancy charge of 10% and let anybody stay, whether an employee or not.
      No question of brother or sister. the purchaser has to be a BMC karamchari or ex karamchari.
      The Purchaser, if admitted as member of the Society, is eligible to Vote and contest for the Managing Committee elections and hence the Chairmanship also.
      Every member (here a member is not a person, but a flat)..one flat one vote…. is entitled to cast one vote.
      The earlier rule that a new member has to wait for 12 months before casting his vote, has been withdrawn in 2011. Now the moment a flat is transfered to your name, you are eligible for contesting anyt elections and/or joining any sub-committee.
      However, non BMC employees can be tenents, or sub-tenents, but cannot be admnitted as members. hence ineligible to contest elections.

  10. Sandip Adsul
    February 20, 2014 at 2:02 PM

    I have to purchase open plot in Co-operative Housing Society from XYZ whose is member of society. The society has transferred plot in the name of XYZ by sales deed. Can society legally sold plot to XYZ?

    • February 20, 2014 at 3:15 PM

      YES… what has been sold in a cooperative society is shares and right of posession. Moreover with the imposition of the new cooperative ACT, an existing member can have more than one premises/plots in the same cooperative society. UCLA is not applicable anymore, hence one can own shares and posession of more than one property

  11. BHAKTI
    February 21, 2014 at 2:22 PM

    My father purchase a flat in 1987 that time we were not aware about our bedroom (130 sq. Ft.) is on
    societies garage place , that time society didn't informed us and accepted our agreement of 570 Sq. Ft. total carpet area on that time. since society is not taking municipal tax on that particular bedroom Sq. Ft. they took only on remaining area, now society members are planning for redevelopment and they told us to sacrifice our extra FSI whatever we are going to obtain from builder on that bedroom (130 Sq. Ft.) we are living in this flat from 26 year. Does society have legal right to restrict me??IS THERE ANY LEGAL RIGHT to help protect my purchased carpet area with extra FSI (whatever decided by builder and society ),please tell me your suggestion on this situation earlier

    • February 25, 2014 at 11:50 AM

      If the place has been sold and shown in the sale agreement as regular place – it is deemed a regular place – irrespective of whether the society has been charging you municipal taxes on it or not. You have paid for it and have every right to it – provided you have papers to prove it. The society coulkd have objected at the time of transfer of the flat. There seems something fishy in the whole deal – howcome the society did not object to the deal when the agreement was being made, registered. moreover the society would have issued an NOC or given you Form 20 at the time you purchased the premises. It seems certain people are trying to defraud you of your rightful entitlement. You can file an FIR or acriminal case against the seller and the managing committee for Breach of Trust and Cheating you. Pls Consult your legal advisor – the soiety is in the wrong

      • BHAKTI
        March 10, 2014 at 5:08 PM

        Thank you…for your suggestion and for the response.

  12. SSB
    February 25, 2014 at 9:55 AM

    Our Society Provisional committee trying to lease out open stilt parking space, Basement under society to the DEVELOPER on more than 50 years tenure to receive corpus fund by making registered MOU. Therefore no members will have any right to enter into such premises for said periods. We few members (less than 50%) are apposing to make this kind of MOU for raising of funds.
    Is this legal if Majority voting in General body infavor of committe gives them rights to enter in to such agreement?

    • February 25, 2014 at 11:56 AM

      Your Society seems to committing an illegal act. The Builder and/or the society has no right over open and/or stilt parking spaces. They are for the use of the member on first come first serve basis. Your Society is committing a crimne by doing any kind of monetary transaction nover a parking space. The whole Committee can be prosecuted under section 146 of the maharashtra Cooperative Societies Act, as well as section 420 of the IPC. The so-called seller and the so-called buyer both will be breaching the law. Your members should unite and write to the managing committee and if need be file an FIR. General Body also has no right to authorise such a transaction. Not even the Registrar or even BMC do it.

      • SSB
        February 26, 2014 at 4:15 AM

        Thank you for your valuable feedback

  13. DHIRENDRA SHAH
    March 2, 2014 at 9:53 AM

    sir,
    we are bonafide member of our society and having a one shop , in bhayandar area . we are using the space in between two building which is our by-side with the permission of society and as wel as prev. gram panchayat. and it was decided to pay rs 500.00 monthaly to society .. before 20 years ago.. ,, and we paid them some about one year… there after , mobile tower installed in building and no maintances was charged by society and no bills or and demand by them till to day…. now , new commitie is incharge and the are asking / demanding the old dues for our by-side premises which was never demanded in writting or by oraly.. till the day… and disconnect our water connection… and giving us thretning adn not allowing use of the side- by premises which is just connect with our shop… …

    what action we can take towards them ….. is this demand of last 20 years is valid by society and binding to us…. PL ADVISE URGENTLY.

    REGARDS, DHIRENDRA SHAH

    • March 2, 2014 at 4:00 PM

      The previous Managing Committee of your Society was in the wrong for having allowed you to use the open spaces for any activity. As per the Supreme Court Judgement, all open spaces, including the parking, terraces as well as gardens are the sole ownership of the society and cannot be let out for any commercial purposes or activity with the permission of the local authorities. Even the telephone tower requires permission. If your society has not done it, they are in the wrong. As for charging back rent arrears, if you are not occupying the space legally, where is the question of the back rentals…. it is an absolute grey area. The society certainly cannot demand 20 years arrears…but since you have used the space, legally or illegally…. you should try to settle the matter with the committee amicably. It seems both of you, the comittee as well as yourself are in the wrong

  14. bharat
    March 19, 2014 at 8:39 AM

    family member of a member of co op hsg soc ( whose name does not appear on share certificate ) can attend AGM / EX GM of soc? if yes what rights he has in meeting ? secondly can he be elected as executive com member ?

    • March 20, 2014 at 2:44 PM

      A person – family member or not – whose name does not appear on the share certificate cannot attend the AGM or any meetings of the society and has no voting rights. NO – since the person’s name does not appear on the share certificate and has no voting right – the person is not eligible for contesting the society’s elections in any capacity. Only a person, whose name appears in the share certificate as ist member, Joint member or Associate member have Rights to be exercised as cooperative society members. A Housing Cooperative Society does not deal with non-members. Even a tenent/subletee has to become a nominal member to deal with the socity

  15. MOHITE KAILAS
    March 23, 2014 at 6:54 AM

    We a CHS of 16 residential flats and 4 commercial block in front side of premises.
    We have a acute water shortage through out the year so we store daily water in a storage tank.
    One new commercial block owner has joined socity 2 years back and asking for water connection for his commercial block. CHS has pass the resolution in SGM and denied him water connection for commercial activity. He approch to the registrar and misguided him about the facts please provide remedy for it.

    • March 24, 2014 at 4:27 PM

      A commercial establishment is also a part of the society. Your society has committed an illegal act by denying him water connection. He is entitled to have a water connection – same as the residential premises. Yes you can have a Commercial rate for the water for him, as charged by the BMC. Your SGM has erred in passing such a resolution, which the registrar will surely reverse

  16. Ramchandra S. Jadhav
    March 23, 2014 at 3:54 PM

    In our society there are two types of flats, 2 flats of 1 BHK and 2 flats of 2 BHK on each floor. Due to internal arrangement and location of pipe line, 2 inlets in 1 BHk and 4 inlets in 2 BHK are provided for convenience purpose. In addition to this there is common water tap provided from the same water tank for Car washing.
    All occupants are not having cars. There is no inlet provided for car washing tap. Moreover there is nothing mentioned in Bye-laws about method of charging for water used for car washing, which is in addition to what they use from inlet. At present water charges are equally distributed with the approval of AGM. But some members say that as per Bye-laws No. 69 water charges are to be distributed on the basis of inlets provided in each flat. As nothing is mentioned in Bye-laws about charging for water used for car washing in addition to what they use from inlets provided in each flat, we have obtained the approval of AGM. Under the circumstances, kindly advice whether the decision taken by us in order.

    • March 24, 2014 at 4:35 PM

      Yes the bye-law 69 says that the charges should be as per the number of taps/equipment used in the premises. But for convenience sake, most of the societies divide the water charges pro-rata basis and some societies charge per square feet. The water used for car washing, gardening, lobby washes etc is divided equally among all the society members, irrerspective of the area. It is like those living on the ground floor also have to share equally in the lift expenses. It is a cooperative society, small things should be let go. Even those not having cars, if they pay for the water, it hardly amounts to anything. Will you segregate a flat occupied by 2 members and 4 members or 6 members – that kind nit-picking is possible

  17. Ramchandra S. Jadhav
    March 24, 2014 at 12:47 AM

    Are there any provisions under MCS Act, Maharasshta, about keeping pets ?.Now a days it has become a routine matter to keep pets without permission of Society. BMC also does not ask them to bring society's permission for granting licence. What to do about such nuisance, with due respect to provisions under Animal Act

    • March 24, 2014 at 4:37 PM

      Flat owners cannot keep pets in the flats

  18. Ramchandra S. Jadhav
    March 24, 2014 at 1:07 AM

    My query is about one time contribution for major repairs. Bye-laws provide for major repair fund, the contribution of which is to be calculated as area x construction cost x 0.75% or as may be decided by AGM. AS our society has not made provision for such fund, we are planning to get one time contribution from members for major repairs which includes entrance lobby, compound wall and terrace, office premises, lift premises, the area of which is common and has nothing to do anything with area of flats. Our Society consists of 12 shops of 200 sq.ft each, 24 flats of 450 sq.ft and 24 flats of 750 sq. ft. carpet. Kindly advise how to calculate one time contribution for major repairs considering common area. No doubt this is to be decided by AGM, buton what basis Managing committee to place the proposal to AGM. Your valuable advice is requested please.

    • March 24, 2014 at 4:37 PM

      It has to be calculated per square feet and the common areas equally divided on pro-rata basis

  19. Sanjay Kadam
    March 25, 2014 at 10:05 AM

    Hi, Actually i want to challenge the resolution passed in meeting the case is, my uncle fraudulently made the documents showing him as associate member by manipulating chairman & secretary.my father is an illiterate person and his advantage was taken by his brother, share certificate is in my fathers name and now society says that we have no proof that ur father is a member.

    • March 25, 2014 at 12:59 PM

      This is a criminal case. You may file an FIR with the police for 420, criminal breach of trust and other relevant sections – against the people who have done the transfer fraudulently. Even if they are members of the managing committee, they are covered under the indian penal code. Even the registrar will not be able to help you – unless you can prove the signatures were forged

  20. Manav Sheth
    March 26, 2014 at 7:06 AM

    Hii, i want to sell my bunghlow of co-operative society for building a hospital.Members of society are not giving me noc for the same. Can i haveany remedy for the same. please reply to my query as early as possible.

    • March 26, 2014 at 2:49 PM

      There is no special provision under Development Control rules to bend the cooperative laws for Hospitals or any other public utility buildings. You will have to follow the Cooperative laws, and once the Society agrees to the change of user, you will have to get a special NOC from the local municipal corporation. This hospital however will not be entitled to any concessional taxation or society charges – it will have to pay normal maintence, electric, water or service charges as any other cooperative member.It might also attract Commercial premises charges from the Society as well as the taxation authorities.

  21. Manav Sheth
    March 27, 2014 at 6:18 AM

    Hii, I have one bunglow in co-operative society.I want to sell it for commercial purpose.Do i need to get NOC from members of the society?If they don't give NOC can i take any legal action against them?

    • March 27, 2014 at 11:31 AM

      If it is a residential society – you have to first get an NOC from the managing Committee of the society, who can issue you the same only after the approval of the AGM. Thereafter you would have to get an NOC from the BMC and then get its user Changed from Residential to Commercial. If the AGHM/Managing Committee/ BMC refuses to the Change of user proposal, there is no remedial measure under law. You would be wasting your time, money and energy trying to take legal action. Yes, if there is a precedent, they have made some premises commercial, then a legal recourse could help.

  22. Swati
    April 3, 2014 at 12:04 PM

    hello,__please tell me if Mr. A is an owner who is yet not a member of the society wants to rent out his flat in CHS situated in Mumbai with the permission of the society? The said Mr. A will not become member for next one year as per sec.29 of the MCS Act but wants to rent out his flat right now and asking permission or NOC of society. Mr. A has registered Leave and Licence Agreement and NOC of earler owner.__Under these circumstances what society should do? Society may give NOC or not to Mr. A to rent out his flat?____
    regrds,__Mrs. swati__

    • April 3, 2014 at 4:02 PM

      I think you are refring to old bye laws. According to the new MCA.. the membership application has to submitted immediately on acquiring the shares. And the transfer of shares has to take place within 90 days of the application. If the managing committee fails to implement the transfer, the same can be done through the deputy registrar. Hence, the incoming member can apply to the managing committee for sub-letting the flat – subject to fulfilling all the conditions, including submission of proper forms and the paper work.
      Theoretically – YES, the new member cannot sub-let the premises till the time he has got the shares transfered in his name. Because the incoming sub-lettee will have to apply for a Nominal membership. If the original owner is not a member, how can the tenent apply for nominal membership.
      And If the shares have not been transfered, how can the new owner sign and register the document about something, which is officially to be still transfered. The Registration will be null and void.

      • Swati
        April 7, 2014 at 11:42 AM

        sir,

        thanks for replying my mail. My query is Mr. A is lawful owner as he has purchased the flat from the member of the society vide Sale Agreement duly registered. Title is clear. My case is earlier owner sold the said flat immediately within 1 year hence, Mr. A is not getting membership as per sec. 29 of MCS Act. But he wants to rent out immediately. In this situation can society give NOC to Mr. A to rent out the said flat.

        swati

        • April 7, 2014 at 3:06 PM

          I will go point by point, to make it easier for the reader to follow:
          Unlike earlier times, the it is not essential for the previous buyer to retain the flat for 12 months. In new Act, one can dispose off the flat to a new buyer after 90 days – within which time the managing committee is bound to transfer the flat to the new applicant.
          Now the situation arises that, why is the new owner Mr A not getting a membership of the society. On what grounds it is being delayed. The Committee will have to explain and give reasoning for the delay beyond 90 days for trhe transfer of the share certificate.
          Most important of all – the incoming member has NO RIGHT and can not sub-let a flat, till the time the shares have been transfered in his name. If stamp duty has been paid on the same for sub-letting and registeration done – both will become null and void, because it is not his property to sub-let (till the time the shares are transferred).
          NO – till the shares are transfered to the new applicant – he cannot rent it out and the Society also CANNOT issue an NOC to a NON-MEMBER

  23. Swati
    April 3, 2014 at 12:16 PM

    Hello,

    1) Please tell me if a member wants to remove his membership from housing society and wants separate membership for his Villa / Bunglow attched to the Building situated in Mumbai. The said Bunglow has seprate water, light connection. Access / Way to the bunglow is also separate. If yes, what documents require and what is the procedure for the same.

    2) Also tell me can two Buildings get byfurcated / separated and registered individually if they have separate way, water connection? how many members require for each soceity for rormation / regisrtration of CHS? and what is the prodeure and what documents are require? Pl.tell me. As we members are facing such problem since many years and all are ready to byfircate.
    pl.help me out
    regards,
    Swati

    • April 3, 2014 at 4:11 PM

      A part of the cooperative society cannot be dis-membered – so the premises belonging to the cooperative society, will continue to be the ownership of the cooperative.
      If two buildings are part of a cooperative society, each building can be be formed into an independent cooperative society… provided there are minimum 11 members in of each building.
      Complete Registration process as prescribed in the MCA (given seperately).
      Demerging is quite a cumbersome process. Better option would be have a main Society – and independent administrative committees reporting to the main Managing Committee. Both the buildings can be financially and dministratively indepent and common areas the cost can be shared.
      Both the buildings will bring out their own balance sheets which in turn can be a part of the main MC’s balance sheet.
      If your members are prepared to undergo all the hassels of the split – you will have to take legal help, split at the BMC level for the land and thereafter the society registeration

  24. mohamed
    April 15, 2014 at 10:15 AM

    m-mother passed away on jan.2010 and nominated d1-daughter and gd-1 grandaughter both as her nominees, what are the proceedures to change the share certificate from m to d1 & gd1, please comment

    • April 15, 2014 at 10:51 AM

      If the owner passed away in 2010 – and you have still not applied for transfer of share certificate – it is patently bad in law. You should have applied within 6 months of your grandmother’s demise. I hope your managing committee does not create any other legal problems or levy any penalties.
      As for the nomination form in the name of the daughter and grand-daughter, it is fair enough. They would have to submit an affidavit to the Society that as they are the only legal heirs of the dceased. In case there are more – then a no objection certificate from each heir, on 100 Ruppes stamp paper declaring that they have no objection to the said flat being transfered to those nominated.
      The society will have to follow the same bye-laws as followed while admitting a new member (see the article – Transfer through nomination). Application fees will be applicable. But share transfer fees and the transfer donation of Rs 25000/- will not be applicable in this case. And the statutory 90 days period for share transfer can be waved off – the managing committee can transfer the shares immediately on receipt of the application.
      As for changing the sharinre certificate from mother to grand-daughter, first the shares will have to be transfered in the name of both the nominees. Then after some time – the mother can withdraw her name leaving the grand daughter as the sole owner. In this case a little gift fees of 1% might be applicable – pls check with your legal advisor.

  25. mahesh
    April 15, 2014 at 11:46 AM

    Hello

    I have purchased the resale flat from Owner. That time society was not formed.So he and I informed to Builder for his intension of saleing the Flat to me, by giving the written application for getting the NOC. and Builder has given the NOC to me, by paying primium charges for NOC.

    After that I have done the MOM and other payments ( own contribution) to 1st Owner and applied for the Home loan. Meanwhile the society get formed in next month.

  26. Mahesh
    April 15, 2014 at 11:51 AM

    Also my complete process took place 2 months for Flat registration, which was after done after society formation., So I asked builder that I will take the NOC from Society, but there was no rules was made, even the builder has not transfered all the accounts and documents to society. I has taken almost 6 months, I both the parties can’t wait for next 4-5 months till the decision made by the working committee.

    I decided to go with Old NOC which was given by the builder before the Society formation, and completed my all formalities.

    Now after 1 year , Society is asking for the members who has made any purchase after society formation, they need to inform to society for such transcetions for resale of the flat during that 4-5 months.

    So what I have to do.? If they asked me to take new NOC by paying 25000/-, which is not possible now from my side, and even my bank is not asking me NOC now.So how I have to handle this problem, whether society will take any leagle action on me,..?So how I have to handle this problem?

    • April 15, 2014 at 1:46 PM

      Yours is a very simple case of second sale – before the formation of the society. Since the builder has issued you the NOC before the formation of the society, you need not pay the transfer premium of rs 25000/- and inform the society accordingly.
      As per regulations, when the Conveyance is delivered to your society, or the names of the original owners given to your society, your name should appear as the original buyer, it is none of society’s concern how many transactions have taken place before the society was registered, formed and takes charge.
      Any Society’s charges are applicable only when the Managing Committee actually takes charge and the Society Registeration number obtained. Prior to that, it is the builder who decides the amount to be charged from the proposed members.
      You can inform your managing Committee accordingly. And ofcourse even the lender bank will not get involved in this kind of extra charges being demanded by anybody.

  27. Purohit
    April 18, 2014 at 2:38 PM

    Ours is a plot society and registered as Society.Can we bill for sinking fund and reapir&maintfund?If yes what is the formula?

    • April 18, 2014 at 2:56 PM

      Whether a plot society or apartment type society – common fund collection is compulsory. Sinking, repair and maintenance funds are required – in plot typoe society for maintenance of connecting roads, water pipes and electric connections, security and other common amenities like garden etc. The collection here is mostly on Pro-rata basis – irrespective of the area of the plot. Everybody pays equally. Take the total expenditure and divide by total number of plots.

  28. krantish
    April 29, 2014 at 1:59 PM

    would you tell me the time limit for taking possassion on plot purchase from housing society?

  29. Aishwarya
    May 7, 2014 at 6:23 AM

    Hi, is the society allowed to sell the open parking lots to the members?

    And the society collects an additional Rs 50000 to Rs 75000 every year for seepage work which is always a failure moreover they keep informing the members that there is no funds available

    • May 7, 2014 at 3:52 PM

      The society, or builder or any one is not allowed to sell open parking spaces. Some builders have started selling – but that is patently illegal.
      No – The society cannot collect such heavy amounts on regular basis. If and when the money is needed, they can always call a SGM and call for repair funds – as and when required. The quality of repairs, ofcourse the contractor will have to guarantee that repairs are of acceptable quality some committee member should take charge or an outside expert be appointed

  30. Ganesh Mudhliyar
    May 13, 2014 at 11:42 AM

    Grievances over certain practices adopted by secretary, chairman and committee members:-
    1)Demanding heavy parking deposit for car and bike open parking facility, also asking us to pay parking charges monthly and those who have paid the the deposit not yet provided receipt for the same.
    2)Secretary called for urgent society meeting by just giving one day notice for dissolving the committee.
    3)Taking undue advantage of the position, if we raise any concerns politely or formally it never get resolved they just say that the resolution is passed, so you need to wait till another AGM.
    4)We never get any formal responses or acknowledgment of our letters and try to divert the topic.
    5)Without intimating and providing correct bifurcation to the society members they are levying fines and arrears under maintenance receipt in parking charges section.
    6)Also suddenly demanding for heavy building repairing fund without intimating the society members and levied under maintenance receipt to pay at one go in next 45-60 days around 15000/-which feels to me as a mental harassment.(We have already funded/paid 40-50,000 almost each flat owners one years back for the building repair fund)

    Kindly advise

    • May 14, 2014 at 2:41 PM

      A Massive Querry…. I will try to divide it into smaller ones… hope you do not mind.
      Grievances over certain practices adopted by secretary, chairman and committee members:-
      1)Demanding heavy parking deposit for car and bike open parking facility, also asking us to pay parking charges monthly and those who have paid the the deposit not yet provided receipt for the same.
      NO DEPOSISTS can be taken for open or stilted parking charges. By Deposits I do not mean the monthly charges – but the bulk – in cash or kind – whether they provide the receipt or not. If your Committee is doing it – you can raise it in the AGm, or report it to the Registrar, if that also does not work, report to the Consumer forum or even file an FIR in the police for extortion. The parking space is not the managing Committee’s ownership – no body not even the builder can sell, mortgage or take advances for it. It can be given for parking on monthly rental as provided in the maharashtra Cooperative Act

    • May 14, 2014 at 2:43 PM

      2)Secretary called for urgent society meeting by just giving one day notice for dissolving the committee.
      THAT is CORRECT -0 an emergency meeting can be calloed at 24 hours notice and the whole committee can quit enmasse. Just make sure you have a tentative committee to take care of the society when the committee steps down

      • Ganesh Mudhliyar
        May 15, 2014 at 1:23 PM

        Thanks for the advise..But i still need one quick advise, can Secretary call for a meeting for dissolving entire committee in one day notice period? And they have called for this meeting only because 25 members have raised concerns for not charging deposit for open parking which is formally signed and copy sent to Secretary. Instead of acting on the compliance of the issue they have called for urgent meeting to dissolve the committee by putting condition that elect new committee in this meeting or else there will be no change in the resolution which is passed for parking deposit. And they have re-elected by misguiding the 17 members who were present in the meeting out of total 49 flats. Poor only 11 members have signed to go with resolution is passed and ready to pay parking deposit. Kindly advise whether this practise can be adopted by secretary and committee members.

        • May 16, 2014 at 1:30 PM

          The whole process is completely illegal. First of all this is such an urgent matter – that an SOS meeting of 24 hours has to be called.
          In calling for the meeting, they have to set an agenda – which is all the members are resigning.
          Here comes the clincher – the outgoing committee has no powers to appoint anybody for the new committee.
          If the entire committee is going, the SGM will have to appoint an interim committee who will appoint a Returning Officer and the whole election process will have to be undergone again.
          Outgoing members cannot be part of the interim committee or even stand for re-election.
          First you have to solve the problem of the legitimacy of your managing committee – charging – Parking or otherwise comes later.
          And NO – no charges can be approved, increased or decreased by mere signatures – even if they are signed by 100% members. Any financial approvals have to be done by means of Physical presence – AGM and/or SGM. Mere circulars or resolutions will not meet the end of justice.
          I hope I am clear and not confusing. If still any problem, pls do write again.

    • May 14, 2014 at 2:48 PM

      3)Taking undue advantage of the position, if we raise any concerns politely or formally it never get resolved they just say that the resolution is passed, so you need to wait till another AGM.
      4)We never get any formal responses or acknowledgment of our letters and try to divert the topic.
      The society is duty bound to reply to any communication submitted to it with 30 days of the receipt of the letter by it in the office. If it fails to do so, it is committing an offence which can be reported to the Registrar or even a police NC can be filed against the individual ignoring official communications – or you can file the NC Collectively against the whole committee also.
      You can also file an application through the RTI route – in which case it would be the responsibility of the regitrar to get you the reply

    • May 15, 2014 at 11:15 AM

      6)Also suddenly demanding for heavy building repairing fund without intimating the society members and levied under maintenance receipt to pay at one go in next 45-60 days around 15000/-which feels to me as a mental harassment.(We have already funded/paid 40-50,000 almost each flat owners one years back for the building repair fund)

      • May 15, 2014 at 11:19 AM

        The Society cannot call for heavy repair funds out of the vlue. They have to get the structural audit report – Once every three years. This is mandatory and not at the whims and fancy of the managing Committee.
        The repairs and rectifications the structural engineer has recommended have to be carried out in a prescribed legal manner – in case need be by inviting tenders. The jobs cannot be given on anybody’s whims and fancies.
        No managing Commmittee member or any of their close relatives or associates can take such repair or maintenance jobs – even if the AGM has unknowingly approved.
        If there is doubt about payment capacity of certain members or all the members, the AGM can always reach a compromise and charge such members or even all the members on EMI basis.

  31. Sunil Gokhale
    May 18, 2014 at 11:06 AM

    What remedy if the shop owners on ground floor and underground don't want to become member of society. Also they are not paying any maintenance charges. They are occupying the building ground floor and underground floor. they must pay.

    • May 18, 2014 at 1:40 PM

      Shops are Flat too – they have to pay the society maintenance PLUS 10 percent extra of service charges as non-occupancy charges. If they refuse to pay, after sending them three notices, you can declare them defaulkters and recover the dues to the society through section 101

  32. nitin
    May 20, 2014 at 12:43 PM

    hello sir,
    A society having four building-
    can splitting of CHS have done?

    or new Chs can form for 1 bldg?

    What is the procedure for divisions of the CHS?

    • June 7, 2014 at 1:26 PM

      Yes it can be subdivided – if physically possible. Each building should have a minimum of eleven members to form a cooperative society. Rest of the rules regulations and laws will be applicable, as at the time of forming a new Society. please refer to the maharashtra Coop Societies Act – elsewhere in this Coop Societies Section

  33. Madhav
    May 27, 2014 at 6:06 AM

    1. If a co-operative housing society having two buildings, admeasuring different FSI, is subdivided in two societies, how the open plot is physically divided? equally or proportionately?
    The members had paid on the basis of per square foot to the extent of the total carpet area of the flat, including land cost + construction charges and the land was purchased by the Promoted Society.
    2. Authority delegated the powers to decide the area of the subdivided plots and the Act/Rule under which
    the decision is taken.

  34. Dinesh Jethra(self)
    May 30, 2014 at 12:25 AM

    Respected Sir,

    Ours is a society that’s been redeveloped. Flats are ready. Builder has not been able to get the OC from the BMC due to the premium charged by BMC on open space deficiency. He is using arm twisting tactics by asking us to pay a huge amount that runs into crores. Now he has threatened usthat he will stop paying rent. He hasnt even paid us the Corpus that was agreed upon in the DA. How good is it to go in for a legal option?

    • June 7, 2014 at 1:00 PM

      Your only recourse is sending him a notice to Stop Work. Withdraw all power of attorney’s and file a an crminal FIR against him for breach of trust, forgery and cheating and forcible posession of your property. However, please consult your legal advisor before taking the legal course. Otherwise you have cut your hands and handed over to the developer.

  35. Thomas Anthony
    May 31, 2014 at 9:54 AM

    Hi,

    Have the following queries:

    1) The secretary of my building is functioning along with the brokers for allotment of flats to tenants and gets a cut from it, is it allowed in the official capacity as a secretary? (PS. my building comprises of lot of investors )

    2) with a written authorization addressed to the Chairman/Secretary can i ask my my maintenance bill as well as property tax bill to be handed over to my tenant in my abscence?

    • June 7, 2014 at 1:16 PM

      Your Secretary cannot work along with the brokers for subletting the flats. Any office bearer of the society cannot use his seat to earn money. For example, if the profession of your Secretary was Estate Brokrage – he can not practice his profession in the Society he is an office bearer. You can write to the Secretary and the Chairman citing the Bye relevant bye-law. It is not only an offence under the maharashtra Cooperative Societies Act, but is an offence under IPC also – misusing the position.

      As to the answer to your second question – YES – the Society infact should be delivering the bills and all relevant correspondence and documents to your owned/registered flat, whether occupied by you or a tenenant. You may write a simple letter to the society to do the needful – and they have to comply – because that is your Registered Address in the Society records.

  36. Niranjan Rao
    June 17, 2014 at 10:10 AM

    Our Cooperative Housing Society is having 18 Shops and 16 Flats having all different Carpet areas. No Major repair is being done. There is increase of Defaulters and it is very difficult to run the Society. There is also wrong numberings given by the Comittee to new buyers of Flat and Shops.

    Whom should we contact. Building is almost 19 year old.

  37. Niranjan Rao
    June 17, 2014 at 10:13 AM

    Continued: Numbering of Share Certificate are given wrong and nobody is taking interest till now.

  38. Niranjan Rao
    June 18, 2014 at 1:07 AM

    Hello Sir,

    Our Society Committee Members haad given wrong numbers to Share Certificates after selling. Some numbers are also duplicate numbers. How to change these numbers.

  39. pisho
    June 18, 2014 at 1:09 PM

    Can a duly admitted Associate Member sue the managing committee under criminal / civil laws of India

  40. Sukumaran
    June 20, 2014 at 6:01 AM

    Sir,
    Our CHS has passed a resolution to penalise members Rs.1,000/- for non attending AGM meeting.
    14days clear notice is to be given to the members before the AGM. I was not given the notice. What is the mode of communication of getting the 14 days notice, as per the law and decisions of the Co-operative Court/other courts in India. Regards Sukumaran

    • June 20, 2014 at 11:03 AM

      There was a proposal that a member has to attend atleast 1 AGM in 5 years. But that proposal has been dropped.
      The Committee has no right to penalise a member for not attending the AGM. It would be violative of a member’s fundamental rights. A country, where even voting is not compulsory, mandatory – how can non-attendance of an AGM be a penal offence. The members can file an FIR in the nearest police station for the managing committee for acting out of its mandate and even forcefully making a member do something, which the member does not wish to.
      However, in all fairnesss – the members should attend AGMs regularly, to make the work of the Cooperative Committee easy

  41. VIRENDRA PRAJAPATI
    June 25, 2014 at 12:34 PM

    IF A MEMBER SALE HIS FLAT AND THE AGREEMENT OF SALE IS NOT YET SUBMITTED TO SOCIETY ALONG WITH TRANSFER DOCUMENT THAN THE SAME MEMBER CAN ATTEND ANY OF THE MEETING OF THE RESPECTIVE SOCIETY OR THE NEW COMING MEMBER HAS A RIGHT TO ATTEND THE MEETING

    • June 27, 2014 at 11:30 AM

      An incoming member after submitting his application for membership, is considered a Provisional Member – but he is not entitled to participate in any of the society’s activities, till the shares have been transfered to his name.
      And during this period, since the outgoing member has already submitted his resignation – also cannot attend to the society’s activities.
      Though the period can be a maximum of 90 days – it is a gray area, which the Society bye-laws need to sort. But as things are at present – till the transfer of shares is affected, unfortunately and illegally, there happens to be no member representing the flat.
      Even if the Managing Committee, as a special coinsideration, allow the outgoing and/or incoming member to attend the society’s meetings, he/she cannot record his/her attendance, cannot vote and cannot participate in any proceedings. Such a member will have to be treated just as a visitor, observor

  42. Amol
    July 12, 2014 at 7:50 AM

    What shall be the charges for Owned car parking and the owner which is not having car parking but parking his car into society premises.
    Is it mandatory to follow the MCS 97 constitutional amendment or we can follow our bye laws decided by AGM.

    • July 13, 2014 at 8:02 AM

      I could not understand the question properly. However the mandatory laws for parking and charges are:
      1. As decided by the AGM within the framework and laws of Maharashtra Cooperative Act and Rules for open and stilt parking spaces
      2. For covered Parking spaces (Garages) – maintenance as applicable to other flats
      3. If the builder has charged for any open parking spaces – it is bad luck for the owner, as the money has just gone down the drain. The AGM will have the right to allot a parking space and charge for it
      The presently in force laws are Maharashtra Cooperative Act 1960 and Rules 1961 (As ammended in February 2013). Any resultions to be passed by the AGM will have to be as per instructions in these. Any resolution which does not adhere to the ACT or RULES or the Constituion of india – is null and void.
      Every Managing Committee is free to decide on the monthly amount to be charged as parking charges – but in the absence of any clear cut instructions – it is still a grey area. But as a thumb rule, should not exceed the regular maintenance per sq ft being paid by members for other areas and for residential societies – should not be more than 500 to 700 PM

  43. bhupender singh
    July 18, 2014 at 5:39 PM

    Sir i am a tenant in a small society of 40 flats. there are 2 bhk and 3 bhk flats . me and wife are putting in 2bhk flat . we are regularly paying monthly maintenance . but due to water shortage , ever month society is charging additional Rs 1500/- for water. Now the problem is they are charging same monthly maintenance charges and additional water charges from every flat. when I objected to the same the committee members are not ready to listen , as many of them have are staying in 3bhk families with big families. 2nd when I said that I will not pay additional water charges , they are threatening to cut my water supply and power backup.

    please advise what I can do.

    • July 19, 2014 at 10:51 AM

      I am sorry to inform you – that youy will have to pay whatever the one bedroom or three bedroom pays. Cooperative society is based on a sense of mutuality. So this kind of expenses – security, maintenance, lifts, water etc are charged pro-rata basis – irrestive of the area occupied by the member or the number of people staying in the flat. Even if your premises is locked – and no one is using the water – you will have to pay these charges. So pls – grin and bear the vagaries of cooperative living

  44. kush vyas
    July 22, 2014 at 2:24 PM

    I am a legally member of my co operative society.I rented my property to someone, but hence my society ask me to pay double(twice) maintenance,because i rented my property to someone.
    society not given any extra facility to my rent holder nor pass any resolution in AGM, only done one resolution by committee members and chairman and forcefully ask to me and other society members to pay extra maintenance because of only reason to give our property in rent.

    is it legal? please tell me what can i do?
    please give me some citation of gujarat high court or supreme court if u have, so i can give him one notice with citation.

    • July 23, 2014 at 1:44 PM

      Your Society is crossing the legal limits and its powers by asking you to pay double the maintenance – just because you have sub-let a flat.
      Under no circumstances can society charge you more than 10% extra – that too on just the service charges like security etc. This is called non-occupancy charges. If the Society insists upon double the charges, you can approach the deputy registrar of cooperative societies, the Consumer Guidance Society or even the local Police and file an FIR against the Committee members for misusing their position and extortion
      But before you take any action – have you taken the permission of the society to seb-let your flat and have made your tenant a nominal member?
      Before you chalenge the managing Committee, your legal paper work should be fool proof.

      • kush vyas
        July 23, 2014 at 2:46 PM

        if my society ask me double or extra maintanance because of i sub let my property,Than i will apporch to sub rajistar of co-operative housing society and local police after taking permition for sub let my property in society and also inform to local police about my sub leting property details.
        then above procedure i will done.
        ok but is it any legal section or is it any judgement for this tipes of cases for my supporting?

        and buy the thank you so much for your support and help via your reply.

        Thanks

        • July 24, 2014 at 11:44 AM

          The Deputy Registrar of Cooperative Societies of your ward
          and refuse to pay the amount.
          Let them keep adding to your bill. agree to pay only 10% of THE SERVICE CHARGES – and not 10% of the bill.
          if they harass, police complaint is always a way out

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