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. Society become entitle to get ownership by the way of registered Conveyance Deed in its favor. 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 like,
(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.
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. Agenda of the meeting is to be given in the notice; notice should be served at least 14 days before meeting 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.
Documents required for Housing Co-operative Society Registration (Download Pdf)
- Application for registration of Housing Co-operative Society in Form A along with
Statement A. Enclosure to application for Registration as per Rule 4(1) of
Maharashtra Co-operative Societies Rules, 1961. - Information about proposed Housing Co-operative Society in Statement ‘B’ (vide
Govt. Circular dated 2-5-1980). - Information about promoter members of the proposed Housing Co-operative
Society in Statement ‘C’ (vide Govt. Circular dt. 2-5-1980). - A Statement of Accounts as per Form D.
- Model Bye-laws.
- Bank Balance Certificate.
- S.B.I. / Treasury Challan for payment of Registration Fee of Rs. 2500
- Title Clearance Certificate from an Advocate
- A true copy of the approved Building Plan.
- Letter of Authority Granting permission to commence construction
work/Completion Certificate (if applicable). - Affidavit on Rs. 100/- Stamp Paper from at least 10 promoter members to the
effect that they are residing in the area of operation of the Society (Proposed), made
before a Competent Authority. - An affidavit from the Chief Promoter on Stamp Paper of Rs. 100/- executed
before the Competent Authority in form ‘Y’. - Certified True Copy of an agreement made on Stamp paper and registered
between the builder, promoter and purchasers of flat.
Where the promoter members are firms/ companies, a letter of authority from such firms/companies authorizing the promoter to sign on behalf of firm / company. In the case of such proposed societies, names of 60% of the flat holders of the total number of flats constructed or proposed to be constructed as per the plan approved, must be included in Statement ‘A’ to be attached to the Registration Proposal. It is the duty of the Registrar to register the society and on registration of the society, it becomes a separate legal entity. Thereafter, the management of the affairs of the society is carried out by the managing committee which is elected by the general body meeting of the society. It may be of interest to note that in a co-operative society the principle is one member one vote. In a co-operative society, the right to be exercised in the general body meeting is a personal right. This is one of the reasons why even a person holding a power of attorney cannot attend the general body meeting of the society. The quantum of the capital being introduced by the member is not of much importance. Preference should be given to the formation of a private limited company if one member proposes to acquire the majority of flats in the building.