Ø Registration of Society With Less Than 10 Promoters

      The condition for the registration of a Co-operative Society is that there should be at least 10 persons (each of such persons being a member of a different family), who are qualified to be members under the Maharashtra Co-operative Societies Act, 1960 and who reside in the area of operation of the society.

   

       A provision in the Bye-laws states that the number of members in the society should not exceed the number of flats. A situation may arise when a building consists of less than 10 flats as even after taking into consideration the F.S.I. available, construction of a building having 10 or more flats on the land is not possible. In such cases, in view of the restriction on the admission of persons to membership of the society beyond the number of flats, the registration becomes difficult. The promoters, however, prefer only a Co-operative Housing Society for the management of the property to any other from of organization.

 

      The cases of the type mentioned above could be dealt with under Section 7 of the Maharashtra Co-operative Societies Act, 1960. This Section empowers the State Government to exempt any society or class of societies, by general or special order from any of the requirements of the Maharashtra Co-operative Societies Act, 1960 as to registration, subject to such conditions, if any, as it may impose. This Section enables the State Government to allow registration of a Co-operative housing society with less than 10 promoters.

      The Agriculture and Co-operative Department of Government of Maharashtra by its Circular No.CHS-1094-/CR 277/14-C dated 10-3-1995 has laid down criteria for exempting Co-operative Housing Societies from the operation of the condition of having minimum 10 persons for the purpose of registration on the condition that an Architect gives a certificate that the entries F.S.I. has been exhausted and no further construction  is possible and that the carpet area of no flat in the building exceed 700 sq.ft.

Ø      Formulation Of Registration Proposals Where Builder Dose Not Co-operate

      On failure of the builder to form the society, purchasers have to take the initiative for the formation of the society. Before submitting the registration proposal for want of Co-operation from the Builder, a letter should be written to the Builder indicating the intention. A copy of such letter should also be endorsed to the Deputy/Assistant Register, co-op. societies of the Ward concerned with a request to call upon the Builder concerned to furnish explanation as regards his failure to comply with the provision of Section of the Maharashtra Ownership Flat, 1963. if the Promoters (Builders) refuse to extend their co-operation in formulating registration proposals, the from of affidavit and the letter to be given to the Deputy/Assistant Registrar C.S. in lieu of an undertaking by builder are contained in the ‘Z’ From.

      The Chief Promoter has to submit a number of documents, statements, undertakings etc. along with the registration proposal.

      The proposal for registration of a Society as submitted should be complete in all respects and the Registration Authority should be satisfied that:

      (a) The proposed society has complied with the provisions of the Act and the Rules and any other Laws for        the time being in force.

 

        (b) The proposed society has complied with the policy directions issued by the state Government under Section 4.

       (c) The Bye-laws being proposed are not contrary to the Act or Rules.

Annual General Meeting Of Societies

 As You All Are Aware That It Is A Mandatory Requirement Of Holding AGM Prior To 15 August.

 For Your Notice The Circular Of Mumbai Corporation States The Necessity And Importance Of Submitting Structural Audit Report, 

 According To The Latest Housing Society Bylaw The Society Has To Impose A Fine On Non Attending Members For AGM.

  It Is Important For The Society If They Are Planning For Repair Or Redevelopment Then Need And Importance Of Appointment Of Project   Management Consultant.

 Kindly Refer Us To Your Friends/Relatives In Mumbai.

You Can Make The Difference, Join Us.

Application For Registration

      Application for the Registration of the society is to be made in the Forms ‘A’, ‘B’, & ‘C’ given. Instructions for filling in the blanks in Bye-laws are given.

Along with the application certain additional details should be submitted as under:

1. Statement of Account

   

    {1} In case of an open society (the society which purchases or takes on lease a piece of Land for constructing a building or buildings thereon) or a tenant ownership type cooperative housing society, the Chief Promoter is expected to collect contributions from the promoter is expected to collect contributions from the promoters towards share capital, entrance fees, cost of land and/or cost of construction. Every Promoter has to subscribe to a minimum of shares of Rs.50 (each) i.e. Rs.250/- and pay the entrance fees of Rs.100/-. He has also to contribute towards the cost of land and/or cost of construction in proportion to the size of his flat, and also towards estimated preliminary expenses. In the case of a flat-owners Co-operative housing society i.e. a society in which flats have been purchased from the Builder-Promoter, the collections are restricted to share money, entrance fee and preliminary expenses.

         The amount of share capital shown on the receipt side of the Statement of Account should agree with the total under column No.9 of Statement ‘A’ of the application for Registration.

2. Bank Balance Certificate

         A certificate from the Bank showing credit balance in the name of the proposed society should be enclosed with the registration proposal.

3. Requirements as to property

    (a)The Chief Promoter has to get the rights, title and interest in the property to be purchased, acquired, or transferred and gets them examined by a solicitor or an advocate of good standing. Further, a certificate of good, clear and marketable title has to be obtained from him and enclosed with the registration proposal.

 (b) Specimen copy of agreement (between the builder and purchasers).

 (c) In case the land acquired or proposed to be acquired for the proposed society is on lease basis, the lease period should not be less tan 30 years.

 (d) In case the land proposed to be purchased or allotted to the proposed society is from the Government, Municipal Corporation/Municipality or any other agency, allotment letter or assurance letter from the agency concerned should be enclosed with the Registration Proposal.

4. Scheme of Construction

   The Chief Promoter should enclose the scheme of the proposed Society with the Registration Proposal, showing the details, explaining how the working of the society will be economically sound. Such a scheme should necessarily cover the following points:

(a)    Details of the land on which the construction is proposed to be made

(b)   Value of land

(c)    Number of flats proposed to be constructed

(d)   Size of different flats

(e)    Amenities proposed to be provided

(f)  Ultimate cost of each type of flat based on cost per square foot (Carpet area) and the total cost of the project

(g)   The amount collected from members towards initial share capital

(h)   Additional amount proposed to be collected from the signatories to the application for registration towards the cost of construction

(i)   The source from which the balance of the amount would be raised

(j)   Area utilized for residential (including garages) and non-residential purposes

5. Architect’s Certificate in support of the Scheme

 A certificate of the Architect of the proposed society stating the area of the land, the area available for construction, the F.S.I. available (wherever applicable), number of flats to be constructed, areas of different flats (carpet area), cost of construction per sq. ft., total cost of the project, should be obtained and attached to the proposal for registration.

6. Undertaking by the Chief Promoter

     From ‘X’ – Open plot type Co-operative housing societies

   From ‘Y’ – Flat Owners type Co-operative housing societies

   From ‘Z’ – Builder oriented societies regarding compliance of the provisions of the Maharashtra

  Ownership Flat (Regulation of the Promotion of Construction Sale, Management and Transfer) Act,    

  1963. Declaration by the Chief promoter in respect of the payment of stamp duty and registration of      agreements.

7. Challan for Government Registration Fees

     Before submitting the registration proposal, the Chief Promoter has to pay the Government registration fee  by depositing in the Reserve Bank of India or Government Treasury under the head ‘0425 Co-operation’ and attach the challan to the registration proposal.

8. Affidavit from promoters regarding residence in the area of operations of the society.

9. A copy of the plans of construction

   The plan duly approved by the Municipal Corporation or any other competent local authority should be enclosed with the registration proposal.

Note: It is advisable to, which furnishes a check list for registration of different types of societies.

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.

Management of Co-operative Housing Societies Law, Practice and Procedure

PART 3

«     Salient Features of The New Model Bye-laws

(1)   Revised Bye-laws are common for all the three types of societies;

      {i} Flats Owner Type

     {ii}Open Plot type

       {iii} Tender Societies including MHADA and Slum Redevelopment Project Societies & Premises Co-operative Societies having commercial units and residential units.

(2)   Revisions of & addition of the following definitions clarify all common doubts:

{A} Revision of the following definitions:

(1)   ‘Flats’ Now includes – Coaching Classes, “Parna Ghar” & Beauty Parlour.

(2)   ‘Family’ – In the earlier Bye-laws, family was defined differently for (a) Admission of membership, (b) Recovery of Non-occupancy charges.

In the revised Bye-law No.3 (xxv), the definition of“Family” is widened and includes Daughter-in-law, Son-in-law & grandsons/granddaughters.

      {B} Addition of the following definitions:

(1)   Bye-law No.3 (xviii) – Major Repair Fund – clarifies and includes plastering, building of compound wall, pavement, total painting & reconstruction.

(2)   Bye-law No.3 (xx) – Open Space means an area forming an integral part of the site left open to the sky.

(3)   Bye-law No.3 (xxi) – Open terrace means terraces which are otherwise not in the exclusive possession of any of the members.

{4} Common Areas and Facilities means

(a)    The land on which the building is located;

(b)   The foundations, columns, girders, beams, supports, main walls, roofs, halls, corridors, lobbies, stairs, stairways, fire escapes and entrances and exist of the building;

(c)    The basements, cellars, yards, gardens, parking areas (unless not specifically sold), and storage spaces;

(d)   The premises for the lodging of janitors or persons employed for the management of the property;

(e)    Installations of central services, such as power, light, gas, hot and cold water, heating, refrigeration, air conditioning and generators.

(f)    The elevators, tanks, pumps, motors, fans, compressors, ducts and in general all apparatus and installations existing for common use;

(g)   Such community and commercial facilities as may have been provided for;

(h)   All other parts of the property necessary as may have common use.

Management of Co-operative Housing Societies Law, Practice and Procedure

PART 2

«     The “Why” of New Model Bye-laws

The Present model Bye-laws were originally approved by the Commissioner of Co-operation. In the said Bye-laws some improvements were required as per suggestions of the Federation and other social bodies. A committee was constituted to suggest changes and additions in the existing modal Bye-laws of the Co-operative Societies. The Model Bye-laws drafted by the committee were discussed with the Secretary (Co-operation), Government of Maharashtra After considering the suggestions of the Secretary, the final draft of Model Bye-laws submitted by the committee. The Secretary has already approved the changes in the Final Draft of the Modal Bye-laws.

To date, there is no law in force which directs a society or Co-operative Housing Society that new model Bye-laws must be adopted by it. Every society can frame its own Bye-laws and make any modification in the old Bye-laws according to its requirements provided that the Bye-laws framed are not contrary to the Maharashtra Co-operative Societies Act, 1960 and its Rules. However, the Registrar will insist on the new housing societies registering the new model Bye-laws at the time of registration of the Co-operative Housing Society.

Now the question is, “can the Registrar of Co-operative Societies compel a society to adopt the new model Bye-laws?” It has been indicated in section 14 of the Maharashtra Co-operative Societies Act that if the Registrar feels that the Bye-laws of a society need to be modified, he may suggest this to the society and may prescribe a time limit within which such modification should be made. As per the duly modified Bye-laws will automatically take effect and will be binding on the society.

Since the new model Bye-laws are an improvement over the present Bye-laws, it is advisable to adopt the same at the earliest. The Commissioner of co-operation has also directed all Co-operative Housing Societies to adopt the new set of Bye-laws. It may be stated that he has exercised his power u/s 14 of the Act. All the discussion in this book is based on the new set of Bye-laws.

Management of Co-operative Housing Societies Law, Practice and Procedure PART 1

Introduction

«     General

A ‘House’ is one of the basic necessities of every individual. Everyone, whether rich or poor, in rural or urban areas needs a house to protect his life and also to promote his well-being. Everybody cannot construct his own house, specially in cities, where space is at a premium. Construction for the purpose of letting it out is declining. The latest, perhaps the most convenient, the trend is the formation of Co-operative Housing Society in the vast metropolis and other crowded urban areas.

A Co-operative Housing Society is a legally established association that is owned and democratically controlled by its members for the primary purpose of improving their living conditions. A strong emphasis on self help and co-operative action are the basic characteristics of a Co-operative Housing Society. A Co-operative Housing Society is a body corporate with perpetual succession. It can acquire, hold and dispose of properties, enter into contracts and it can sue and it can be sued. It has inherent powers to from bye-laws for the purpose of its internal management. The administration of the Society is subject to the legal control, discipline and checks provided in the Co-operative Societies Act and the interest of the members is legally protected.

In order to purchase a new flat one generally approaches a builder. Before buying a flat one has to check the title of land, i.e. who is the real owner of the plot of land which is going to be developed, whether the plan has been approved by the appropriate authority (BMC/ Gram Panchayat), and whether the building is constructed as per plan and specification etc. the builders/developers are covered under the Maharashtra Ownership Flat [Regulation of the promotion of Construction, Sale, Management and Transfer] Act, 1963, according to which a standard from of agreement is prescribed. The flat buyer therefore should also see that all the materials in the flat are according to the specifications in the agreement.

As per section 10 of the Maharashtra Ownership Flat Act, 1963, the promoter builder is required to take steps for the formation of a Co-operative Housing Society no sooner 10 or more members/persons have purchased therein a flat. It is the primary duty of the builder under the Maharashtra Ownership Flat Act, 1963 to from a society. The builder has to register the society within a stipulated period of four months from the date on which 60% of the flats are sold. Where the builder/redeveloper dose not come forward to from a co-operative housing society.

There are various types of Societies, which have been defined and dealt with under the provisions of the Maharashtra Cooperative Societies Act, 1960, and Maharashtra Co-operative Society Rules, 1961. However, for the purpose of this book, the word “Society” refers to societies classified as Housing Societies.

In this book the relevant provisions of the Maharashtra Co-operative Societies Act, 1960, Maharashtra Co-operative societies Rules, 1961, as well as the {new} Modal Bye-laws of the co-operative Housing Society (Flat Owners Type/Open Plot Type) as approved by the Commissioner of Cooperation and Registrar, Co-op. Societies, Maharashtra State, Pune, under his Letter No.CCR/PUNE/MODEL BYE-LAWS 2001 dated 2^nd July 2001, have been discussed.

Development Agreement with Developer

The managing committee of the society on passing of resolution of appointment of developers at the Special General Meeting shall execute Development Agreement within one month of date of the said with selected developer on the basis of terms and conditions approved by the members at the Special General Meeting under the consultation and guidance of the Architect/Project Management consultant. Development Agreement shall contain other terms as under in additions to terms and conditions recommended by the Architect and Project Management consultant and approved Special General Meeting.

[A] Redevelopment of the building shall be completed within two years and not more than that and in particular circumstances it shall not exceed more that three   years.

[B] The Developer shall provide a Bank Guarantor of 20% of the total cost of the redevelopment project.

[C] The Developer shall make provision for temporary alternate accommodation in the same area for the members who will be vacating the premises or shall make provision for monthly rental plus deposit to be paid to all the members of the society if they agree or shall make provision for temporary alternate accommodation in the Transit Camp.

[D] Development agreement shall be registered under the Registration Act .1908.

[E] New members, on completion of Project shall be admitted in Special General Meeting as members of the Society.

[G] Right to Redevelopment societies building given to the builder are not transferable.

[H] Flat owners shall vacate the premises only after obtaining all legal documents and permission of the competent Authority for redevelopment of building.

[I] In case of one who is in possession of flat/premises and who is owner of the same, his right of ownership shall not be disturbed.

[J] If there arises any dispute in the redevelopment of the building agreement executed by the developer, Architect and Society, it shall be resolved under the provisions of sec. 91 of MCS Act, 1960 and such provision shall be made in the development agreement.

v     Allotment of flats shall be given in the new building in the same manner in which the original flats were located, and shall be allotted after the receipt of occupation certificate. If it is necessary to allot flats by lot system, it shall be allotted accordingly but only after completion of the building which is ready for occupation and members are ready and willing to occupy their premises. Allotment shall be done in presence of the authorized officer of Registrar. The developer shall make arrangement for video recording of the same.

v   The office bearer or any committee member of the society is prohibited from being appointed as developer or shall not be relative of the appointed developer.

v     Sanctioned plans shall be obtained for Municipal Corporation or Competent Authority who has right to sanction plans and these shall be put before the special General Meeting. If any member wants to have any certified document, he shall make an application and shall also pay the requisite amount for a copy of document to the secretary of the society. The Committee shall be responsible to providing required information to the members.

This order is available on the website of the Government of Maharashtra (in Marathi) - No. 20090103114749001.

This order in Marathi is issued in the name of the Governor of Maharashtra.

It is signed by

(Dr. Sudhir Kumar Goyal)

        (Chief Secretary

Co-operation &Marketing)

Copies to

(1)               The Commission for Co-operative & Registrar of Co-operative Societies

(2)               District joint Registrar Cooperative Society (AII)

(3)               District Deputy Registrar Co-operative Societies (AII)

  

  

No OC? Bldgs prior to 2001 will get amnesty

Ref:TOI Dt: 23/07/10

Mumbai: In a major relief for residents of thousands of buildings that have no occupation certificates (OC), the BMC is set to extend its amnesty scheme to these ‘illegal’ structures that were constructed prior to 2001. Last year, the BMC had announced relaxation of municipal taxes—primarily water and sewerage—to about 2,384 buildings (constructed prior to 1991) across the city. But not many benefited as the number of buildings has been increasing steadily. 
    Not having an OC means the builder has not fulfilled the necessary requirements for the project and the residents are living there illegally. 
    The latest steps are being taken in the wake of a study by the BMC’s development plan (DP) department. The study has noted that the number of buildings without an OC is growing, though buyers of residential properties have become much more aware about the problem. Therefore, officials said, it is vital to extend the scheme to buildings constructed before 2001. 
    Some other new steps that will be taken include insistence on an indemnity bond from occupants and societies stating that in case of any litigation from the developer or the architect of the project, it would be directly dealt with between the parties, keeping the BMC out of legal hassles. 
    These steps have been taken because, according to a recent study by the development plan (DP) department, “the response to the earlier scheme is very poor and there is an urgent need to extend the scheme’’, said an official. In a meeting last week, five wards between Goregaon and Dahisar said that despite the amnesty scheme, the number of buildings with pending OCs has only grown and the current figure stands at a staggering 282. “For no fault of theirs, these occupants are suffering and are having to pay exorbitant water and sewerage charges. Why should they continue to suffer?’’ asked a senior DP official. 
    The study has listed reasons as to why these buildings have no OC. In most cases, developers and architects have abandoned the project and when that happened, there’s no way occupants could obtain a mandatory NoC. The process of calculating charges for approval takes into account the present rates which is much higher than the rates prevailing at the time buildings were occupied. This makes it difficult for the occupants to pay up. To speed up the process of granting pending OCs, the study has suggested formulating a panel of 10 private architects who will scrutinise the proposals. 
Why certifiate is vital 
    Not obtaining an OC after completion of work makes a project illegal and the residents then have to run from pillar to post for these certificates once the builder gives them possession.

Selection of Developer

(a)   Appointment Of Officer – Representative of Registrar of co-operative societies

The Managing Committee of the society within 8 days shall make an application to the Registrar of co-op, society to appoint his representative to attend the Special General Meeting and in whose presence the Developer shall be selected considering his experience, quality, his financial and technical capability and competitive rates with terms and conditions offered by him. On receipt of such an application, the Registrar will appoint his representative for the meeting.

(b)   Special General Meeting for finalisation of Final Tender

After the appointment of representative of Registrar and with his prior permission after fixing date, place and time of meeting with him, the Secretary of the society shall convene a Special General Meeting, within one month of his appointment giving 14 days notice of time, place and date of meeting and along with the agenda to all the members. The notice shall be sent by hand delivery or by post with their acknowledgement which shall be kept in the office of the society. The society shall invite representatives of the developers to remain present at the meeting.

The Registrar’s office shall make arrangement for presence of his representative in such meeting. The society at its own cost shall provide for video recording of the meeting of the society. The Society shall ensure that no other persons other than the members shall be allowed to remain present and participate in the meeting. For this purpose, the society shall give Identification Card (I.D. Card) to every member for his identification. This is for the members to remain present at the meeting with Identify Card. Decisions regarding redevelopment, scheme and selection of Developer and other decisions shall be made in presence of the authorized representative of Registrar, Co-operative Societies. Such approved proposal shall be sent to the competent authority for approval.

(c)    Absence of required quorum at special General Meeting

Quorum for the Special General Meeting shall be ¾ of the total number of members. If there is 1:10 quorum present at the special general Meeting it shall be adjourned for eight days. If there is no required quorum present at the adjourned Special General Meeting, it shall be deemed that the members of the society are not interested in the redevelopment of building and the meeting shall stand dissolved with remarks that the redevelopment of building proposal shall not be allowed to be presented again in Special General Meeting till completion of a one year period from the date of the dissolved Special General Meeting.

(d)   Work of the Special General Meeting in respect of selection of Developers

The authorized officer of Registrars of Cooperative societies will remain present at above Special General Meeting convened for selection of developer as an observer. On necessary presence of representatives and the officer deputed by the Registrar, and if the proper quorum i.e. ¾ of the total number of members of the society is present, the Special General Meeting Shall transact the following business:

(I)          Comparative information in respect of tenders of redevelopment by selected developers for presentation of their proposals.

(II)       Tenders to be presented in chronological order.

(III)    To approve terms and conditions of one of the developers and finalise and select the said tenders.

(IV)    To take approval of the selected tender.

(V)       To acquaint members about further work of the redevelopment. Consent of ¾ members present at the meeting in writing is a must for appointment of a developer. It should be noted that if the selected developer or his representative is not present at this meeting, it shall be presumed that they have the consent to work. The meeting will undertake other aspects of the redevelopment.