Procedure for Formation and Registration of the Societies

Ø      Types of Societies

      There are different types of Co-operative housing societies such as :

         

(1)   Open plot Societies in which members desire to purchase or take on lease lands on which building or buildings are proposed to be constructed, known as Open Plot Societies.

      (2) Flat owners Societies consisting of purchasers of flats under agreement entered into with builders under Section 4 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, sale, management and Transfer) Act, 1963, know as Flat Owners Societies. 

(3)   Tenants Societies formed by tenants of the landlord who had constructed the building/buildings and had let out the flats therein, known as Tenants Societies. 

(4)   Housing board societies formed by allotees of flats in building constructed by the Housing and Area Development Board known as Housing Board societies.

The formation of a proposal for the registration of a Cooperative Housing Society is rather a complicated matter. The procedure to be followed for formulation of registration proposals differs slightly for the above mentioned four types of Societies.

Ø      Conditions for Registration

      No society can be registered under the provisions of Section 6(1) of the Maharashtra Co-operative Societies Act, 1960 unless it contains at least ten persons who are qualified to be members under Maharashtra Co-operative Society Act, 1960 and who reside in the area of operation of the society. The State Government has issued the following order in connection with the formation of a housing society.

      For the formation of a Co-operative housing society less than ten members are permitted with certain conditions. The Government of Maharashtra issued an Order No. C H S 1094/C R 277/14-C dated 10^th March 1995, published in M.G.G. Part 4-B, 1995 p. 92, with the provisions of Section 6(1), stating the condition to be fulfilled for the formation of a housing Society is the minimum requirement of 10 persons. However, this condition may be relaxed under the following circumstances:

 

(1)   The plinth area of the tenement is not more than 700 sq. feel and, wherein

(2)   There is no Floor Space Index (F.S.I.) left for further construction.

Ø      Election of Chief Promoter and Reservation of Name for the Proposed Society

      Before a registration of the proposal of a Co-operative housing society of any type, a meeting of the promoters 10 or more (prospective members i.e. buyers of flats, plots, tenants etc.) should be called by circulating a notice and the agenda of the meeting to them well in advance.

      

        The elected Chief Promoter has to make an application for reservation of a name for the proposed society in the prescribed form. This application should be sent to the Registrar for the approval of the name. After getting the approval from the Registrar, the name is reserved for the proposed society, for three months. Within this stipulated period, the Chief Promoter has to complete the registration formalities. If he does not complete the registration proposal he must make an application for extension of time for the same proposal, the reserved name will be cancelled automatically and he make a fresh application for the reservation of name.

After receiving the approval letter from the Registrar, the Chief promoter can open a savings account with District Central Co-operative Bank/authorized Urban Co-operative Bank and can collect share capital, entrance fees, cost of purchase of land/building and other incidental expenses and deposit them in the same bank. The Chief Promoter has to issue receipts in the name of the proposed society. No amount can be withdrawn from the account until the society is registered.