Section 6 of the Maharastra Co-operative Societies Act, 1961

To form a Co-operative Society, Section 6 of the Maharastra Co-operative Societies Act, 1961 lays down the conditions for registering a society which is among others, that a minimum of ten members would be required to own the various units in the building. These persons should be from different families.

Also, these persons should be competent to enter into a contract under the Indian Contracts Act 1872

Every developer has to form a Co-operative Housing Society at one point of time or another. With the limited amount of options available with regard to management of the affairs of the building i.e. (a) Condominium (b) Private Limited Company and (c) Co-operative Society, (excluding the unrealistic rental housing), it will not be an exaggeration to state that in atleast 90% cases particularly in Mumbai the Promoters and/or the Builders have formed a Co-operative Housing Society. The flat purchasers normally do not know the basic requirement for Registration of Co-operative Housing Society. It is here that apart from the statutory obligations cast upon the builder, the builder as a friend, philosopher and guide of promoters helps in forming a Co-operative Housing Society.

Earlier, unless the registration proposal was signed by 90% of the flat purchasers, the society could not be formed. Now, even if 60% of the total number of flat purchasers is willing to form a Society, then the Co-operative Society can be formed.

The Society has to be registered with the Registrar of Co-operative Societies. The application for registration has to be made in FORM-A. Under section 8 of the Act, 1960 states that for the purposes of registration, an application shall be made to the Registrar in the prescribed form and shall be accompanied by 4 copies of the proposed bye-laws of the society and such registration fee as may be prescribed in this behalf. The application should be signed by at least 10 persons (such persons being a member of a different families) and who are qualified under the said Act.