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.