Maharashtra Co-operative Societies Act 1960 & Maharashtra Ownership of Flats
Act, 1963 forced to register and form A Co-operative Housing Society. Basic
initiation of the law is to ensure well operated and well maintain the premises /
Buildings of the society. Once society is registered it becomes legal entity. And
entitle to get ownership by the way of registered Conveyance Deed in its favours. It
also helps housing societies to secure their rights / title from any future legal
complications relating to Title / Ownership and natural calamities.
It is mandatory by Law that every Builder / Developer has to form a Housing Co-operative Society.
Limited options are available in this regard to managing the
affairs of the building options are,
(a) Condominium
(b) Private Limited Company and
(c) Co-operative Housing Society,
It is the statutory obligation of the builder, where the builder acts as a friend, philosopher, and guide of the promoters and helps them in forming a Co- operative Housing Society.
There are four types of Housing Co-operative Societies
(a) Open Plot type Societies [Tenant ownership]
(b) Flat Owners Societies [Tenant Co-partnership]
(c) Tenant Societies
(d) Housing Board Societies
The procedure for Co-operative Housing Society Registration begins with
electing a Chief Promoter in a meeting of the Promoters.
The builder under the Flat Owners type of co-operative society has the first right to act as the chief promoter.
The developer / flat purchasers should call for a meeting of the Promoters by issuing the notice under Agenda of the meeting given at least 14 days notice to the Promoters.
In this meeting, a Chief Promoter is elected who can exercise such powers and carry out such functions as are mentioned in the minutes of the Promoters of the proposed Co-operative Society.
After electing the Chief Promoter, the proposed name of the society has to be decided by the Promoters.
Normally, the name reservation proposal should be accompanied by the signature of at least 10 Promoters who have attended the meeting.
It is a common belief that the Society should consist of at least 10 members. If the number is less than 10 then special permission from Government has to be taken. In such cases, the garages/car parking may be allotted to other relatives of the promoter to reach a number of 10.
It would be of interest to note that the model bye-laws define flat as a Flat means a separate set and self-contained set of premises used or intended to be used or intended to be used for residence, or office or showroom, or shop, or go-down and includes a garage, or dispensary, or consulting room, or clinic, or flour mill, the premises forming part of a building and includes an apartment.
On allotment of name and permission to open a bank account by the Registrar, the Chief Promoter has to collect Share Capital, Entrance Fees from promoters and deposit the same in the branch of the bank permitted by the Registrar. It should be noted that the amount cannot be withdrawn from the Bank till the Society is Registered or its Registration is refused, except with prior written permission of the Registrar.
The Chief Promoter should submit Registration Proposal to the Registering Authority within a period of 3 months from the date of issue of Letter of Reservation in the name of the proposed Society.