Cooperative Societies – Some easy answers to your easy questions

What is the minimum number of promoters required to join the registration proposal to form a housing cooperative society?

  •   60% of the flat purchasers/ promoters are required to join the registration proposal if building is constructed by builder/developer.
  •   90% promoters are required to join the registration proposal for society of open plot type category.

Whether Co-operative Housing Society having less than 10 units can be registered ?

  • Cooperative Housing Society having less than 10 units can be registered subject to the following conditions:
  • The built up area of each unit should not be more than 700 sq.ft.
    There should not be balance F.S.I

If the builder does not register a Co-operative Housing Society? What is the remedy available

  • Chief Promoter of the proposed society shall submit a registration proposal of the co-operative housing society to the concerned Registrar under the category of non- co-operation of builder.

Registrar may consider such a proposal for Registration on merit.

What are the conditions for registration of Cooperative Housing Society in private building?

  • Registering authority can register CHS on merit if 90% of the tenants join the registration proposal.

Registering authority can register CHS on merit and with previous approval of State Government if 75% to 90% of the tenants join the registration proposal.
Proposal for registration will not be entertained if percentage of tenants is below 75%
The Tenant promoter joining the proposed CHS shall have to agree to contribute to the cost of flats of non joining tenants.
In case tenants have created sub tenancy in terms of Rent Act, sub tenants and not the tenants be allowed to join the proposed CHS.

Whether the Chief Promoters has got authority to withdraw the money deposited in the bank in the name of proposed CHS ?

  • The Chief Promoter has got no power to withdraw such money.Before registration of the Cooperative Housing Society , money can be withdrawn with the permission of the Registrar.

What is the remedy available if the Registrar does not take any decision on registration proposal within a period of 2 months ?

  •   Failure to dispose of the registration proposal of a housing society within a period of two months, the Registrar has to submit the said registration proposal to the next higher authority within a period of 15 days from the date of expiry of two months.
  •   On failure of such higher authority to dispose of the said registration proposal within two months from the date of receipt of the proposal to his office, the registration proposal shall be deemed to be registered under the provision of the Maharashtra Cooperative Societies Act 1960.

What is the remedy available if the registration proposal is rejected ?

  •   Such rejection order can be challenged by filing appeal under section 152 of the M.C.S. Act 1960 before the Divisional Joint Registrar C.S. Of the concerned Division.

What are the circumstances for de-registration of a Cooperative Housing Society ? And under which section ?

  • * If the society is registered.
  • On the misrepresentation made by the applicants, or
  • The work of the society is completed or exhausted, or,
    The purpose for which the society has been registered are not served.
  • Such societies can be de-registered under the provision of Section 21-A of the M.C.S. Act 1960.

Under what circumstances registration of the CHS can be canceled ?

  •   Registrar can cancel the registration of CHS under section 21 of the M.C.S. Act 1960. Under the following circumstances :

If a CHS transfer the whole of its assets and liabilities to another society or.
Amalgamates with another society, or
Divides itself into two or more societies or,
Liquidation proceedings are terminated under section 109.

What are the types of CHS ?

  •   Rules 10 of the Maharashtra Cooperative Societies Rules 1961 provides the following classification of the CHS
  • Tenants ownership Co-operative Housing Society.
  • Land is held on lease hold or free hold basis
  • Houses are owned or are to be owned by member.
  • Tenants Copartnership Cooperative Housing Society.
  • Both land and houses owned by society.
  • Houses are allotted to members.
  • Other Cooperative Housing Society.
  • Houses mortgages societies
  • Houses construction society.

What fee is to be paid to the Government for registration of a Cooperative Housing Society ?

  • Proposed society can made the payment towards government fee as applicable from time to time . The present registration fee isTenant Co-partnership /ownership CHS                      Rs.2500.00
    Other (General ) CHS                                       Rs.2500.00

When at least 20% of backward class members are required for registration of a Cooperative Housing society ?

  •   This condition is applicable for plot purchase type society under the following circumstances.
    When society intends to borrow fund for construction of building from State Government and/ or MHFC Limited.
  • If land grant authority insists for such conditions.

Whether promoters are required to submit their applications for membership to the Chief Promoter before registration of Cooperative Housing Society ?

  •   Yes, all the promoters should submit their application for membership to the Chief Promoter before registration so s to enable him to undertake about receipt of application for membership in the prescribed “Y” form to be submitted to the Registering Authority at the time of Registration.

What remedy is a available if Chief Promoter does not deposit the share money collected from promoters in the Bank ?

  •   Failure of Chief Promoter in depositing share money collected from promoters of proposed CHS amounts to an offense u/s 146 of M.C.S. Act 1960.
  •   Chief promoter can be prosecuted in the court of law with previous approval of Divisional Joint Registrar of concerned Division u/s 148.

What remedy is available if any person collects share money or any other sum by misrepresentation to the propsective members in the name of the society to be registered ?

  •   It will amount to an offense u/s 146 of MCS Act 1960.
  •   Such person can be prosecuted in the court of law with provision approval of DJR of concerned Division u/s 148.


When the first General Meeting can be convened ?

  •   The first General Meeting can be convened within a period of three months from the date of registration of CHS

Who can convene the first General Meeting ?

  • Chief Promoter of the CHS can convene the first General Meeting of the members.

What is the remedy if the first General Meeting is not called by Chief Promoter in time ?

  •   On failure to call the first General Meeting of the CHS in time the said meeting can be called by Registering Authority.

What business is to be transacted in the first General meeting ?

  •   Following business shall be transacted in the first General Meeting

Who is responsible to convene the AGM ?

  •   Rule 60 of the M.C.S. Rules 1961 provides that the secretary of the CHS is responsible to convene the AGM

Who is responsible to ensure the AGM is convened within the stipulated time ?

  •   Bye law No 139 (16) provides that the committee of the CHS should ensure the holding of AGM within the prescribed period.

What is the business to be transacted in AGM

  •   Following business is required to be transacted in AGM
  • To receive a report of the committee together with statement of accounts for the preceding cooperative year/years.
  • To consider audit report received from the Statutory Auditor for the previous Cooperative year/years.
  • To declare the result of election if held prior to AGM
  • To consider the appointment of Statutory Auditor.

If the business on the agenda is partly transacted then what are the provisions?

  •   If the business on the agenda of the general meeting of the CHS is partly transacted then the said meeting shall be postponed to any other suitable date, not later than 30 days from the date of the meeting as may be decided by the members present at the meeting.

Whether the AGM can be adjourned due to want of quorum ?

  • AGM can be adjourned for want of quorum
    To the time as may be specified in the notice on the same day or
    To a subsequent date, not earlier than seven days.
    Holding of adjourned meeting will not required quorum.

What business cannot be transacted in AGM without due notice ?

  • Following business cannot be transacted in AGM without due notice
  • Expulsion of members of the CHS
  • Amendment of bye laws
  • Bifurcation, amalgamation, division of the CHS
  • Transfer of Property of the CHS

What is the minimum period of notice of AGM

  • 14 clear days notice is required to be given for calling the AGM.

Whether AGM is treated as invalid if the notice is not served to any members of the CHS?

  •   Once AGM is called it cannot be treated as invalid unless and until such order are passed by the Cooperative Court.

What is the period for finalizing the accounts of the CHS

  •   The period for finalizing the accounts of the CHS is 45 days from the closure of the cooperative year – which is 31st March. The accounts should be ready for inspection in the Societry’s office on 15th May every year.

What remedy is available if the accounts are not finalized before 15th of May ?

  • On failure for finalising the accounts of the CHS on or before 15th May committee may appeal to the Registrar for time citing reasons for the delay. And once extension permission is granted, to include the same in the Annual report explaining to members the delay and the grace period obrtained.

What remedy is available if the committee fails to finalize the account before 15th May or extended period ?

  •   Registrar may exercise his powers vested under section 79 (2) of MCS Act 1960 to finalize the account through an authorised officer.

What remedy is available if the AGM is not called in 90 days + 90 days?

  • Committee of the CHS may apply to the Registrar for extension of time on or before 31st July with a copy of resolution and required court stamp fee. Registrar may grant extension if request is genuine upto 14th November i.e for a period of three months. Under any ciurcumstances the AGM has to be held in 180 days (6 months) from the close of the cooperative years

What action can be initiated on failure to call AGM before or extended period?

  • Registrar may disqualify the members of the committee who is responsible for calling such meeting to remain or to get elected to the committee upto a period of Two Terms of five years each.

What remedy is available for challenging the resolution passed in AGM.?

  • Resolutions passed in AGM may be challenged in the Cooperative Court under section 91 of MCS Act 1960. By filing disputes.

What remedy is available in case resolutions are not recorded modified altered deleted etc.?

  •   Only remedy available is to file a dispute under section 91 of the MCS Act 1960 before the Cooperative Court.

Resolution passed in AGM/SGM neither stayed nor set aside by Court, Whether it is obligatory on the members to follow it ?

  • Resolutions passed in AGM/SGM remains in force unless and until stayed or set aside by the Cooperative Court.

Whether resolutions passed for removal of members of the committee can be brought before the AGM/SGM ?

  • No such resolutions can be brought before the AGM/SGM. Elected members cannot be removed from the committee before the expiry of terms, unless they themselves choose to resign

When SGM can be called ?

  •   SGM can be called at any time by the Chairman or the majority of the committee.
  •   SGM shall be called within a period of one month
  • On written requisition of 1/5 of the members of the society
  • At the instance of the Registrar
  • At the instance of the committee of the federal society – which is the Federation

Who can call the requisitioned SGM ?

  • Secretary of the society can call the SGM under the intimation to the Registrar.

What is the remedy available if the SGM is not called ?

  • On failure to call SGM the Registrar may call such meeting at the expenses of the CHS
  • The Registrar can order to recover such expenses from the persons concerned.

What is the minimum notice period required to call SGM ?

  •   The minimum notice period for calling such SGM is five days.Or in extreme emergency circumstances 24 hours

Whether resolutions passed in AGM/SGM can be modified ?

  •   Unless 6 clear months have expired after passing of the previous resolution no such resolution can be brought before the AGM /SGM for its cancellation or modification.

Whether AGM / SGM not held in the premises of CHS can be treated invalid ?

  •   AGM/SGM once held irrespective of the place of the meeting cannot be treated as invalid unless and until such order are not passed by Cooperative Court.

Whether a non-member can participate in the business of General Meeting ?

  •   No, non member has no right to participate in the business of General Meeting. However Associate/ Joint members, in the absence of the Ist named member can attend such meetings

Whether associate member can participate in business of General Meeting.

  •   Yes, an associate member can attend and participate in business of General Meeting in absence of original member and with written consent given by original member.

What is the period of provisional committee ?

  •   The period of provisional committee is of one year from the date of which it has been first constituted. Then the elections should be held to form a regular committee

When the subsequent committee is constituted

  • Subsequent committee is constituted after election to the committee as per approved Election Rules.

Election committee is required to be constituted as per the provision of Section 73 of M.C.S. Act 1960.

Which is the Competent Authority to challenge the election ?

  •   Election of Committee or its member can be challenged by filing dispute under Section 91 of M.C.S. Act 1960. Before the Cooperative court.

What are the disqualifications to elect or to remain on the committee ?

  •   Bye laws No 118 provides one of the following disqualification to remain on Committee.

Offenses by members/Managing committee members

  •  Defaults the payment of dues to the society within three months form the date of service of notice in writing.
  • Held responsible under section 79 or 85 or 88 of the MCS Act 1960.
    Sublets flat without prior permission of the CHS.
  • Remains absent for three consecutive meeting of the committee.

Whether the member of the ex committee can contest the election ?

  •   Ex managing Committee member can contest the election, if they are otherwise qualified. For two subsequent terms only.

What is the remedy available if the nomination to the election rejected by the Returning officer ?

  •   An appeal under section 152 A of M.C.S. Act 1960 may be filed within a period of three days before the concerned Registrar from the date of rejection of nomination.

If the member has paid his dues before the time of scrutiny of nominations, whether he can qualify to contest election ?

  •   If the member pays his dues before the time of scrutiny of nominations , he becomes eligible to contest the election of committee.

If the member held responsible under section 79 or 88 or 85 is eligible to contest the election of committee.

  • Member held responsible under 79 or 88 or 85 is eligible to be re nominated , re coopted, re-elected as a member of committee , after expiry of five years from the date of which he has ceased to be a member of the committee.

What is the remedy available if the committee members default the payments of dues CHS.

  • A Committee member who defaults the payment of dues of CHS incur disqualification to remain on committee.
    Remedy is to approach registering authority for removal of such committee member u/s 78.

A member of the committee make the default in the payment of dues of CHS and pays the same after some period, whether he is eligible to continue on the committee ?

  • Default of payment of dues incur disqualification to remain on committee.
    On the date of default such member ceases to continue on the committee and his seat shall be deemed to be vacant.
    Subsequent payment of dues wipes out default but not disqualification.
    Such member is eligible for re election or co option on vacant seat on payment of dues.

Whether the member of the committee can be removed by passing resolution in it ?

  •   Committee has no authority to remove the members from its committee.

What are the provisions for bringing no confidence motion against office bearers of CHS?

  • No confidence motion against president , Vice President , Chairman, Vice Chairman Secretary or Treasurer can be moved.
    For calling such no confidence motion , request application in M-18 from be signed by at least 1/3 members of the committeee and shall be submitted to the Registrar.
    Such meeting shall be presided over by the Registrar not below the rank of Assistant Registrar
    On the date of passing the resolution by 2/3 members present and voting the office of the office bearers stands vacated.
    If no confidence motion is rejected then no such resolution shall be brought within a period of 6 months from the date of resolutions.

Whether there can be two managing Committee for two buildings in one CHS ?

  • There shall be one managing Committee for one CHS irrespective of no of building or wings.

Who can accept the resignation of Chairman of the CHS ?

  • The bye laws number 132 (a) provides that the Chairman of the CHS may tender his resignation to the Secretary of the CHS by addressing a letter. The Committee can accept his resignation.

Two whom the entire committee can give its resignation in such a case what is the remedy?

  • Resignation of the entire committee shall be placed before the General Body meeting
    Even after acceptance of resignation of the entire committee by the General Meeting the are required to hold charge of the CHS till alternate arrangement are made.

What actions can be initiated for not holding the election before expiry of its term ?

  • Registrar can appoint an administrator in such a case.

Whether the decision taken by the committee after expiry of its tenure and before constitution of new committee are treated as invalid ?

  •   Section 77 of M.C.S. Act 1960 provides that the decision taken by the Committee under such situation cannot be treated invalid.

Whether the decision taken by the ex-committee after constitution of new committee and before handing over the charge of records to the new committee are invalid ?

  •   After constitution of new committee decision taken by the ex-committee is invalid and it has no force of law.

What remedy is available , if the ex-committee refuse to hand over the charge to the newly constituted committee ?

  •   Officer of the newly constituted committee may apply to the Registrar in detail for initiating action under section 80 of the M.C.S Act 1960 for seizure of documents with the help of police.

What are the circumstances to appoint an administrator under
Section 78 ?

  •   Circumstances to appoint administrator under Section 78 are :

Committee or its member make default in performing duties or
The act of the committee or its member is prejudicial to the interests of the society
Committee or its members willfully disobeys directions issued by the State Government or by the Registrar
Committee or its members are not discharging its or his functions properly
Committee or its member incur disqualification to remain on committee.

A What are the circumstances to appoint an administrator under
Section 77 ?

Circumstances to appoint administrator under Section 77 are :

  • If the committee is not constituted in first AGM
  • Terms of the committee has been expired
  • Sufficient members are not elected to form the quorum
  • Where two groups are claiming to be elected as the committee members and the election dispute is filed in Cooperative Court.

If meeting of the committee is not called by Chairman/Secretary what is the remedy available ?

  •   Bye laws No 133 provides that such meeting may be called by the Federation of the society, if Federation is informed accordingly.

Whether the Chairman is having casting Vote ?

  •   Bye laws no 135 provides that Chairman is having Casting Vote.

What is the tenure of Committee ?

  • Tenure of the Committee is as per bye laws of CHS.According to model bye laws tenure of the Committee is of 5 years.

When the CHS can coopt the member on the Committee ?

  •   Vacancies created on the Committee on account of death, resignation, disqualification and removal can be filled by coopting irrespective of the quorum.

What is the tenure of the Coopted Committee Members ?

  • The period of the office of the coopted committee members shall be Coterminous with tenure of the committee.

Whether decision taken by committee consisting of majority of coopted member is valid ?

  •   Yes. A coopted member has full rights and authority as an elected member.

How many funds are required to be raised by CHS. ?

  • Funds to be raised by CHS are
  • The repair and maintenance funds at the rate fixed by G.B subject to the minimum of 0.75 % per annum of construction cost of each flat.
  • Major repairs funds as and when required and decided by GB at the rate fixed on area basis.
  • The sinking funds at the rate fixed by G. B subject to the minimum of 0.25% per annum of construction cost of each flat.
  • Reserve funds as provided u/s 66 of the M.C.S Act 1960.

What is the difference in utilization of repairs and maintenance fund and major repairs fund?

  • Repairs and maintenance funds is utilized for meeting the expenditure on maintenance and normal repairs of the building of CHS by committee.
  • Major repairs fund is utilized with priod approval of G.B for major repairs such as plastering, Colour of buildings etc.

When Sinking Funds is to be utilized ?

  •   Sinking funds is to be utilized on recommendations of architect and with prior approval of G.B for meeting the expenditure on structural additions or alterations to the building /buildings of CHS.

What is the procedure for amendment of bye laws of CHS

  • Information of amendment shall be communicated to all members by giving 14 clear days notice of the proposed General Meeting.
  • Resolution is required to be passed by not less than 2/3 majority of the members present and voting in General Meeting.
  • The proposal for amendment of the bye laws shall be submitted for registration within two months in the prescribed forms from the date of meeting.
  • Amendments become effective after approval and registration by the Registering Authority.

Whether amendment can be imposed by the Registrar ?

  •   In the interest of members of the Society Registrar may impose amendment of by laws u/s 14 of M.C.S. Act 1960.

What are the circumstances of amalgamation or division of the CHS ?

  • CHS can be divided under the following circumstances
  • There shall be two or more different buildings.
  • Each building shall have separate water tanks and water connections.
  • There shall be a separate assessment by the local authority.

What is the procedure for divisions of the CHS?

  • Committee may apply to the Registrar
  • Committee shall convene SGM by giving 15 days clear notice to the members and creditors.
  • Resolutions for division shall passed by 2/3 of the members present and voting in such a meeting.Such resolution shall contains the details of scheme of division of the society.
  • After the meeting of the SGM notice in “G” form shall be given to all the members and creditors. Exhibit the notice on the notice board of the society as well as in the office of the Registrar and publish the same in at least one local newspaper inviting objections with in a period of one month
  • If objections are not received within a period of one months from the date of notice, it will be presumed that the member/creditor have not objection for such divisions.
    Thereafter the committee shall submit the report giving details and registration proposal for the registration of new society to the registrar.

Whether the Registrar is empowered to enforce division of the CHS ?

  •   In the interest of the members , Registrar may enforce division of the CHS

Who can become member of the CHS ?

  •   Member who fulfills the following conditions can become member of the CHS
  • A persons who is competent to contact under the Indian Contract Act 1872 or
  • A firm company or any other body corporate constituted under any law for the time being in force, or a society registered under the societies Registration Act 1860
  • A society registered or deemed to be registered under MCS Act 1960
  • A State Government or the Central Government
  • A local Authority
  • A public trust registered or to be registered.

What procedure is required to be followed by a person to become a member of a CHS.?

  •   Procedure for becoming member.

An application in the prescribed form giving complete details shall be submitted to CHS
Shall pay the value of five shares of Rs 50/- each along with payment of Rs 100/- towards entrance fee.
Undertaking as prescribed in the bye law are to be submitted.
A copy of stamped and registered purchased agreement.

What is a remedy available , if a society refuse a membership of the member?

  •   A person whose membership application is not accepted by CHS may apply to the Registrar u/s 23 (1A) in the prescribed H-1 form.

What remedy is available to a member whose application for membership is not decided by CHS within a period of three months ?

  •   On failure of CHS to dispose of the membership of a person within a period of three months m he may apply to the Registrar u/s 22 (2)

What remedy is available whose membership application is rejected by CHS?

  •   A person whose application for membership is rejected, may apply to the Registrar u/s 23 (2) of the M.C.S. Act 1960.

What % of membership of firm , company and body corporate are
allow in CHS ?

  •   Upto 60% of the total membership is allowed to firm , company and body corporate members.

What is the maximum number of tenements that can be allotted to body corporate in CHS?

  • Total no of tenements allotted to firm and companies shall not exceed 50% of the total no of tenements in a CHS.

What are the conditions to become associate member ?

  • To become associate member person shall submit

An application in prescribed form as provided in the model bye laws to the society
No objection certificate from the original member
Entrance fee Rs 100/-

What are the remedies available if the application for nominal membership is rejected , by CHS ?

  •   Person whose membership application for nominal membership is rejected he may apply to the Registrar u/s 23 (2) of the MCS Act 1960.?

What are the remedies available if the application for associate membership is rejected by CHS ?

  • Person whose membership application for associate membership is rejected, he may apply to the registrar u/s 23 (2) of the MCS Act 1960.

Flat is purchased by “A” and “B jointly who case exercise the right for membership.

  • Person whose name stands first in the share certificate shall exercise the right of the membership in the CHS.
    “A ” is the member of the CHS holding a flat subsequently ” B applies for associate membership claiming that he has contributed for purchasing the flat. Under this circumstance whether CHS can grant associate membership to “B”?
    CHS can reject the application for associate membership of “B” if there is no NOC from “A”

What are the right of associate member?

  •   Associate member may exercise the right of membership , if original member has authorised him in writing.

Whether a member of the CHS has right to see books and records of the CHS and obtain its copies ?

  •   Section 32 of the MCS Act 1960 provides the right to the member to see the books and account of the society and obtain copies of the documents on payment of copying charges as prescribed in the bye laws.

If a flat is purchased jointly by ‘A’ and ‘B” in the proportion of 60:40 respectively name of ‘A’ stands first and that of “B” stand second in Share Certificate “A nominates “C” . After the death of “A” whether the name of “B will stand first in the Share Certificate ?

  •   After death of A and on granting the application for membership of C and name of C will stand first in the Share Certificate not the name of B

“A” is the member of CHS who is NRI he gives power of attorney in favour of “B”. “B” applies to CHS for acquiring membership in place of “A” Whether CHS can grant membership to “B”

  •   On the basis of power of attorney membership cannot be granted to “B” in place of A

If a member has submitted two nominations on the different times nominating different persons, which nomination will be treated as valid ?

  • Bye law No 32 provides that the latest name of nominee will be treated as valid.

Deceased member has submitted nomination in favour of ‘A’ and a will in favour of ‘B’ whose membership application be decided by CHS ?

  • As per the provisions laid down u/s 30 of MCS Act 1960 CHS shall consider the application of ‘A’ for membership.

Whether the CHS can reject the membership application on the ground of non payment of stamp payment of stamp duty ?

  •   CHS can reject the membership application on the ground of non payment of stamp duty.

Whether CHS can reject the application for membership on the basis that the applicant is belonging to a particular group ?

  •   No CHS cannot reject the application for membership on the basis that applicant belongs to particular grouped, if he is otherwise qualified to become member.

Whether minor can become a member of the CHS ?

  • No, CHS cannot reject the application for membership on the basis that applicant belongs to particular grouped if he is otherwise qualified to become member.

Whether NOC of CHS is required to sell the Flat ?

  • Such NOC is not required as per model bye laws.
    Member shall inform his intention for sell of his flat as provided under Rule 24 of the MCS Rule 1961.

Whether the managing Committee is empowered to collect transfer premium more than Rs 25000/- if general body passed such resolution.?

  •   Bye law number 38 provides that the CHS may collect amount of premium at the rate to be fixed by the General Body meeting but within the limits as prescribed under the circular issued by the Department of Co-operation, Government of Maharashtra from time to time and therefore the general body’s resolution contradicting the Government circular shall not be acted upon.

Whether the managing committee can charge the transfer premium in case of mutual exchange of flat by members ?

  •   Bye law No 38 bars the CHS for collecting transfer premium for mutual exchange of flat amongst the member in the CHS.

Whether the managing committee of CHS has authority to collect the transfer premium for transfer of flat in family member ?

  •   Bye law No 38 bars the CHS for collecting transfer premium for transfer of flat to family members.

Whether member can transfer share or his interest within a period of one year ?

  •   Section 29 (2) provides that member cannot transfer any share held by him or his interest in the capital or property unless and until he has held such share or interest for a period of one year.

When non occupancy charges can be collected by CHS ?

  •   Non occupancy charges can be collected by CHS only when member has rented out his flat or given on leave and license basis.

How much non occupancy charges can be collected by CHS ?

  •   Non occupancy charges can be collected to the extent as decided by the General body meeting but not more than 10% of the service charges as has been stated in the circular dated 1st of August 2001 issued by State Government.

Whether service charges are to be charged according to the area and size of the flat ?

  •   Service charges are to be charged equally irrespective of the size of the flat as provided in bye law no 69 of the model bye laws.

Whether water charges are to be levied to the shop /office members ?

  •   Bye law no 69 provides that water charges can be charged on the basis of total number and size of inlets provided in each flat. Therefore , water charges shall be levied from those unit holders who have supplied water connections only.

There are two buildings in a society. One is provided with lift and other is without lift . Whether the lift charges are to be levied to the members of building having no lift.?

  •   The member of building , which does not have lift provision , need not be charged the lift charges.

Whether the managing committee of the CHS can charges compound interest ?

  •   Managing committee can charge simple interest as provided in bye law no 72 and not the compound interest. Charging Compound interest is a criminal offence punishable under the negotiable instruments act. And the interest should never be more than +2% over and above the maximum lending rate as declared by the RBI.

What is the remedy available to the managing committee of the CHS for recovery of dues of the CHS.?

  • Managing committee shall issue demand notices to the members concerned.
    On failure to pay the dues by members, , CHS may file proceedings u/s 101 of the M.C.S. Act 1960 for recovery of dues.

What remedy is available if member have not made the payment to CHS prior to registration of CHS ?

  • For recovery of dues of CHS prior to its registration, the remedy available is to file a suit in the Civil Court against the defaulters.

Whether the member can withheld the dues of CHS if his complaints are not attended to by the managing Committee ?

  • Member cannot hold back dues under any circumstances.
    Member can approach the Competent Authority as enumerated in the bye laws no 175 of Model Bye laws under the topic “redressal of complaint/”

What remedy is available for recovery, if member is not traceable ?

  •   If member is not traceable to issue notice for recovery of his dues, the CHS can publish a notice in the newspaper .

Whether society can disconnect the water supply of member for non payment of dues ?

  •   CHS cannot disconnect the water supply of members. They form a part of essential services – life support system. Under no circumstances the CHS or anybody, but the government can withdraw the life support systems – as provided under the constitution of india.

A and B are the member of CHS holding two different Flat. They do not belong to one family. Flat of A is locked. Both of them reside in the flat held by B. Whether CHS can charge non occupancy charge to B ?

  •   Non occupancy charges are applicable only when flat is rented out. If B is collecting rent from A, then CHS can collect non occupancy charges from B. It cannot be more than 10% of the normal Service Charges as being collected from other members.

What is the remedy available to the member to recover his excess payment from the CHS?

  • Member may file dispute u/s 91 of MCS Act 1960 in the Cooperative Court.
  • Registrar has no authority to decide the question of such excess payment u/s 101 of MCS Act 1960.

What remedy is available to recovery the dues after expulsion of a member ?

  •   Dues of members can be recovered from sale proceeds of flat of expelled member. However this is a very complicated subject. Please consult your lawyer first and then expel the member. Right to shelter is a fundamental right provided under the Indian constitution. Can the Cooperative Act over-rule the constitution of India, only the courts can decide.

Member sells his flat without paying the dues of CHS. Incoming member denies to pay the dues. What is the remedy ?

  • No Dues can be recovered from incoming members. While accepting the application form of the incoming member, the society should make sure that the outgoing member has cleared all his dues. However, if the sale has been done clandestinely, then the society can recover the dues from the incoming member – by refusing to transfer the flkat and refuse the new person’s right and title.

What remedy is available of CHS is not carrying out repairs of the flat ?

  •   Member may file dispute u/s 91 of the MCS Act 1960 before Cooperative Court.

Which is the proper authority to decide damage caused to the members flat while carrying out repairs by other member in his flat ? Whether member can withheld the dues of the CHS in such situation ?

  •   To decide the matter, member may file a dispute u/s 91 of MCS Act 1960 in Cooperative Court. Under this situation member cannot withheld the dues of CHS.

‘A’ is a member who reside in upper flat and carries out interior. This results in damaging the plaster of the ‘B who lives in the lower flat. Whether repairs to plastering of the ceiling of flat of B is to be carried out from the society’s funds ?

  •   Such type of repairs cannot be carried from funds of the CHS . The remedy available is to file dispute u/s 91 of MCS Act 1960 before Cooperative Court.

‘A’ is the member who lives in the flat which is above flat B has undertaken repairs. This has resulted in leakages in the flat of “B” which is below flat A . Whether such type of leakages can be repaired from societies funds ?

  • Bye laws No 160 provides that repairs of such tuype of leakages cannot be done from the funds of CHS. The two members jointly have to repair the same.
    Remedy available is to file dispute u/s 91 of the MCS Act 1960 before cooperative Court.

“A” is the member living in the upper flat, he does not carry out any alteration / modificiation and leakages started in the lower flat due to structural defects. Whether such leakages can be repaired from the funds of the CHS.?

  •   Such type of repairs have to be carried out from funds of the CHS.

A member “A” is having terrace flat. Plaster of ceiling of flat is damaged whether can be repaired by CHS from its funds ?

  •   Yes, the same has to be repaired by CHS from its funds.

Whether a member can claim compensation to repairs carried out by him which is supposed to carried out by CHS from its own fund. Which is the proper authority ?

  •   For compensations of the repairs carried out by member of behalf of the CHS , he may file dispute in the Cooperative Court u/s91 of MCS Act 1960 if CHS refuse to give him required credit.

Whether CHS is required to pay income tax ?

  •   Yes , CHS is required to pay income tax. It is now a corporate body and is taxable like all other entities.

Whether transfer premium and donation received by CHS are taxable ?

  •   Yes, transfer premium and donation received by CHS are taxable.

Whether amount received in sale of FSI is taxable ?

  •   Yes , Sale proceeds of FSI are taxable.

What are the taxable incomes of CHS?

  • As per the provisions of I. T Law Taxable income of CHS is:
  • Transfer premium.
  • Income gained from installation of dish antenna
  • Income gained from renting out premises of CHS
  • Interest earned from default in payment s by members.
  • Interest earned on deposits.
  • Income earned from sell of FSI
  • Parking Spaces
  • Misc Income Earned
  • Donations Received
  • and all other incomes which have not been collected as maintenance, electricity, water or property tax/municipal  charges

What are the rates of I.T. Leviable to CHS.

  •   Rates of I.T leviable to CHS
    For income upto Rs 10,000/- 10% of income.
    For income upto Rs 10,000/- to 20,000 , 20% of income.
    For income upto Rs 20,000/-& over 35% of income.

Whether CHS is liable to deduct I.T at source in respect of payments made by it to the contractor?

  •   Yes CHS is liable to deduct I.T. At source for its payments to contractor.

In what form CHS is required to file return ?

  •   CHS is required to file return in Form No 2.

Whether CHS is required to file IT return in case society incurs loss or has nil income?

  • Yes , CHS is required to file IT return even though it has incurred loss or its income is nil.

Whether excess collection from the members over actual expenditure is treated as income?

  •   Such excess collection from members over expenditure is not treated as income for the purpose of levying IT.

Whether stamp duty is leviable on leave and licence agreement ? If so what are the rates ?
* Yes, Stamp Duty is leviable on Leave and License agreement.
Rates of Stamp Duty for every 11 months are as under:

  • If annual Rent + deposit is
    below Rs. 2,50,000 then Rs. 750 Stamp Duty.
    between Rs. 2,50,001 to Rs. 5,00,000/- Rs. 1500/- Stamp Duty.
    Above Rs. 5,00,000/- Rs. 3000/- Stamp Duty.
    Registration fees is Rs 1000/-
  • Agreement for a period exceeding three years but not more than ten years with or without any renewal clause. Stamp duty is leviable on thrice the amount of average annual rent.
  • Agreement for a period exceeding ten years but not more than 20 years with or without any renewal clause.
    Stamp duty is leviable on 5 times the amount of average annual rent.

What are the rates of payment of stamp duty for sale of Flat in CHS ?
Sr NoMarket Value of FlatLeviable Stamp duty
1                 Does not exceeds                          Rupees 10000/-                    Nil
2                Exceeds Rs 100000/- but does not exceed Rs 250000/-           0.5 %
of the Value
3Exceeds Rs 250000/- but does not exceed Rs 500000/-Rs. 1250/- + 3% of the value above Rs 250000/-
4Exceeds Rs 500000/- then8750/- + 5% of value above 500000

Who is responsible transferor or transferee for payment of Stamp Duty ?

  • Section 30 of the Bombay Stamp Act 1958 provides that transfaree i.e. Purchasers in liable for the payment of stamp duty. But the general practice is that, it is shared 5-50 between the purchaser and the seller.

A is the member of CHS sells his flat to B and no stamp duty is paid B sells the said flat to C whether stamp duty for the agreement between A and B is recovered from C?

  • No, Stamp duty for the agreement between A and B cannot be recovered from C.
    C is responsible for the payment of Stamp duly between B and C

Whether stamp duty is leviable for transferring Share and Interest in the membership of CHS among the family members, where actual transactions has not taken place ?

  • The stamp duty is leviable as provided under clause (a)(b)(c) and (d) as the case may be of article 25 of schedule I of the Bombay stamp Act 1958 , on the market value of the property, which is the subject matter of the gift.

Whether Stamp duty is payable on mutual exchange of Flats by member of CHS ?

  • It is necessary to execute a deed of exchange for transfer of flats among members of CHS.
  • Stamp duty is leviable for such exchange under article 32 of Schedule I of the Bombay Stamp Act 1958.
    However no society transfer charges will be levied

A CHS has purchased plot for construction of premises for its members. Whether stamp duty is leviable on letters of allotment to its members ?

  •   Stamp duty is not leviable on such letters of allotment.

Whether stamp duty is leviable on transfer of right, title and interest of a deceased member of CHS in favour of nominee or legal heir ?

  • Stamp Duty is not required to be paid in such case.

What is the rate of payment of Stamp duty on the agreement for transfer of a Shop/Garage/Commercial Premises in CHS ?

  • The Stamp duty is payable at 5% of market value of commercial premises.

Whether the CHS can take donation.

  • CHS can not take donations, specially from transferor or transferee. If and when some member (please note the word MEMBER) wishes to donate something or cash to the society – all such amount received will be taxable.

What is the procedure for expulsion of member in a Cooperative housing society.?

  • CHS may follow the procedure u/s 35 of MCS Act 1960.
    If the expulsion is approved by the Registrar CHS may take possession of the flat.

What remedy is available is flat is occupied by expelled member ?

  •   CHS may file eviction suit in Cooperative Court.

Whether the member can sale the parking space already purchased by him to the other eligible person ?

  • NO. All parking spaces are the property of the Society. If the member has paid to the builder or anybody else, hardluck. he should not have.

Whether the provisions of Section 59 to 61 Indian Contract Act 1872 are applicable in case CHS submits an application to the Financial Institution stating for full and final payments and such application is accepted by the Financial Institution ? Whether interest and principal construed as different debts under the provision of section 59 to 61 ?

  • Provision of Section 59 to 61 of Indian Contract Act 1872 are applicable where a debtor owes several distinct debts to one person and voluntarily make payments.
    Hon. Supreme Court of India has laid down the ratio in Civil Appeal No 16902 of 1996 decided on Feb.10, 1999 that principal and interest are constructed as a single debt and therefore provisions of section 59 to 61 of the Indian Contract Act 1872 are not applicable in such case.

Society’s funds cannot be distributed amongst members
A builder is willing to offer a substantial sum of money for an open plot of land that exists in our society. The builder wished to put up a bungalow on the plot for his personal use and he also wants to become a member of the society. Do we have to take the registrar’s permission to sell the plot? Would it be legal for the society to divide the sale proceeds of the plot amongst members ?

  •   A society is the owner of its property. Therefore it can alienate its property in keeping with provisions of law and the bye laws. There is no restriction in law on a society to dispose off its property in any manner it deems fit. Such restrictive provisions, as for example, exist in trust law because the trustees do not have the untrammelled power to sell trust property. Although the trustees are legal owners of trust property, they have to act for the benefit of the beneficiaries. However you must consider whether it is at all necessary to sell the plot of land to the builder in view of the fact that he wants to become a member of the society. I would suggest that the society should continue to remain the owner of the plot and it should make the builder a member. He may then be permitted to develop the plot by putting up the bungalow and for this right he can pay the society an agreed sum of money.

This brings me to your question as to whether the money that the builder pays to the society for the sale of the open plot of land or otherwise can be distributed among members. The answer to your question is a categorical no. Distribution of the society’s money in the manner you contemplate is just not permitted by the Act. The purpose of the cooperative movement is collective well being, not individual profit.

If you study the provisions of Chapter VI of the Act and Chapter V of the Maharashtra Cooperative Societies Rules, 1961 it will become clear that a society has to set up a number of funds and has to make regular payments into them. Money from such funds is sued for different contingencies a society faces. The Act and the rules lay down clearly how the profit of a society has to be used. While dividend and bonus can be paid to members of agricultural credit or farming societies, no dividend or bonus can be paid to members of housing cooperative societies. The purpose of a housing cooperative society is to provide open plots or flats to its members. Thus the proceeds of the sale or otherwise of the open plot cannot be distributed among members. The money has to be credited to the account of the society. This does not mean that members of your society cannot derive any benefit from the income the society has made.

There are a number of societies that have substantial funds at their disposal due to some fortuitous circumstances. For example, some societies have secured permission to let out the ground floor to a bank or some other commercial institution, which pays handsome rent. This money in the hands of the society can translate into lower maintenance charges or better facilities. But a society cannot sell its property or deal with it in any other manner and then divide the proceeds amongst its members.

While A is the member of a co operative society and B is the associate member, the flat is occupied by B. Our society had earlier adopted a resolution to the effect that family members, including brothers and/or sisters, need not pay non occupancy charges. Recently, the society reversed this decision and its new resolution the society is now demanding non  occupancy charges from B. Is the society right in doing so? What is the basis on which a society can demand non occupancy charges ?

  • Your society is clearly wrong in demanding non occupancy from B. There seems to be a misconception regarding the status of an associate member. As far as the society is concerned, an associate member is no different from the first holder of a flat except that the first holder has the right to attend and vote at general body meetings. Even with regard to this right, the Maharashtra Cooperative Societies Act, 1960, provides that if the first holder is not available to attend general body meetings, the associate member (second holder) can attend and vote. thus, in effect an associate member of a society has the same status as the first holder. In a given case the associate member may not be a relative of the first holder and yet does not have to pay non occupation charges. It is therefore illegal for your society to demand non occupation charges from B. In a manner of speaking, he is as much as “owner” of the flat as the first holder. He occupies the flat as a matter of right and not as an outsider.

Coming to your second question, I may state as a broad principle, that a society does not have the right to demand non occupancy charges from each and every non member who is an occupant of any of its premises. For example, the family of the member, however broadly or narrowly the term “family” may be defined is not liable to pay non occupancy charges for occupying the premises. Similarly, a member cannot be asked to pay these charges merely because he has a paying guest living with him/her. Such charges become payable only when the member in question is not staying in the premises and has left it out to someone else.

In the year 1994, I purchased a shop in a building where there was no cooperative society. After some time, I received a bill for about Rs 40,000 of which Rs 35,000 were shown as transfer fees. The ad hoc committee running the affairs of the building did not have any satisfactory answer as to why I was not informed of the charges when I purchased the premises. I refused to pay the transfer fees and in retaliation, the ad hoc committee began sending bills in the name of the previous owner. In the year 2002, the committee stopped the water supply to my shop on the pretext that the civic body was providing it only on humanitarian grounds. A society has been registered in the year 1998 and it has been charging me interest on the transfer fees payable by me, which has now ballooned to three times the principal amount. The society is not accepting legitimate charges from me and is refusing to make me a member. I would be grateful if you could let me know if an ad hoc committee can demand transfer charges, whether it is legal to cut off water supply and whether the society can refuse to make me a member ?

  •   The committee and the society have acted in a high handed and illegal manner. From your question it appears that the building was developed by a builder/developer.If any assumption is correct, I need to point out that the building in question is the property of the developer. An ad hoc committee may be set up by purchasers of units to run the affairs of the building but such a committee has no legal standing. It can only be formed with the permission of the builder and is assumed in law to act on his behalf. The committee does not have the legal authority to make financial demands on owners of units in the building. The transfer between you and the original owner took place before the existence of the society and thus there is no question of paying transfer fees. The society was registered only in 1998, and as such it could exercise its rights under the Maharashtra Co operative Societies Act, 1960 and the rules and bye laws framed there under only from the date of its registration. It cannot demand of any sum of money from a unit holder for transactions that have been entered into before its date of registration.

To answer your queries, let me make it clear that the ad hoc committee was wrong in issuing the monthly bills in the name of the past owner of the shop merely because you did not meet its illegal demand for transfer fees. The society is also wrong in demanding that sum from you and for charging you interest on it. The stand of the society that it will not make you a member unless you pay the amount is equally illegal. You have a right to become a member of the society which has been formed for your building in which you have a shop. It is a criminal offence to cut off the water supply to your shop without sufficient cause. In your case, I have no hesitation in saying that the society does not have adequate cause. To my mind, the actions of the ad hoc committee and the society are nothing short of blackmailing tactics aimed a compelling a person to make payment of sums which are neither morally or legally due. You should approach the court of competent jurisdiction for relief.

Ours is a 12 storey building in which the occupants got together and formed a cooperative society. During the first general body meeting, the promoter of the society and his supporters got together and appointed their own nominees to the managing committee and they also adopted resolutions detrimental to a sizable number of members. Some of us complained to the deputy registrar but there has been no response from that officer. Most of the members are not paying their dues to the society. Are we bound by the decisions of the general body and can the society take action against us fro non payment of dues and for disobeying the resolutions passed? What is the way out if the society and the registrar office do not pay heed to our objections ?

  • Cooperative societies work on the principle of one man one vote – which in actuality is One Flat – one Vote. Therefore, it is often the case that a group in a society that has a majority succeeds in pushing through its own agenda at the general body meeting, whether in the matter of election of office bearers or passing other resolutions. Such meetings and the decisions taken therein do not become illegal merely because some members do not like the decisions taken. Anyone who assails the holding of a general body meeting or the decisions taken must produce legal proof to show that either the meeting was not properly called or that the decision are not enforceable as being contrary to the provisions of law or the bye laws or both. This legal proof must be presented either to the office of the registrar or the cooperative court, which are the two forums set up under the Maharashtra Cooperative Societies Act, 1960 to consider the grievances of members.

A person who feels that a society has wrongly taken a particular decision has three options open to him. Firstly, he can obey the decision till he gets a favourable order from either the registrar or the cooperative court. Secondly, he can disobey the decision and wait until the society takes action against him. Thirdly, he can disobey the decision and challenge its before the appropriate authority. If you disobey the decision of the society, you may have to face the consequences of your action, as there is an element of risk involved in doing so. A society has every right to initiate action against members who do not pay their dues or violate any decisions taken at the generally body meeting. However, such action cannot be arbitrary and must be in keeping with the provisions of the Act. If you and other members are genuinely convinced that those in control of the society are mismanaging it, you must approach the office of the registrar or the cooperative court.

We own a building in Bombay suburb, Maharashtra which was built in 1981. It consists of commercial units on ground floor and residential units in three upper floors with common toilet and sloping roof slab. All the tenants are paying the rent as per the standard rent but fully reimburse the municipal taxes. Due to some defects in external plaster, the structural members are spoiled. It is therefore necessary to undertake the structural repairs and replastering the external walls. It is also proposed to put MS railings on sloping terrace slab. The tenants are willing to share the expenses incurred of about Rs 1.65 lakh.Can the entire amount can be recovered from the tenants?

  • If not, what is the share that can be recovered from the tenants? Can the rent be increased to recover the expenses of repair? Can interest be charged during the period of such recovery? Will the rateable value for the purpose of municipal taxes be enhanced if rent amount is increased to recover the expenses or should instalments be taken from the tenants?

If the repair is carried out with the permission of the tenants, and such repairs are in the nature of major repair or substantial repair or heavy repair, or improvement or structural alteration, you are entitled to recover such expenses or increase the rent. The consent of the tenants must be in writing and 70% of the tenants ought to have given such consent. You can increased the rent @15% p.a. of the expenses incurred by you.
Such expenses incurred by you must be certified by the Architect from a panel of architects notified by the state Government or must be certified by the Municipal Authority. You are no entitled to charge any interest on it. If there is any addition to the building then the rateable value can be revised, otherwise it can not be increased.
My father (now retired from Central Bank of India) purchased a flat at Salt Lake, Calcutta in 1987 88. It is since being occupied and now the person who has occupied the flat is asking for astronomical figure for vacating the same. My father did one mistake i.e. during his working period he had let it out to the same occupant which one is not supposed to do if one takes a loan from the bank. But for the same reason we are having to pay a huge price as we cannot move to our own house and though my father has retired. We have to pay rentals at JSR where we are staying.
I’ve recently got a job at Calcutta and also approached few advocates but they say it’s going to take 10 yrs or so if case is filed. If there was a prohibition on letting out the flat, when the flat was purchased by availing a loan from the bank, your father could have contended that he has never let the premises but the same was given on license to that occupant.

  • Now your father having accepted such occupant as tenant by letting out the said premises, your remedy for recovery of the said flat back will be only under Rent Control Legislation. In Calcutta, if the premises are subject to West Bengal Tenancy Act, you will have to invoke the provisions of West Bengal Tenancy Act.

You have not mentioned the monthly rent of the said premises. Under the new Rent Act of the West Bengal, certain premises are exempted from the protection of such rent control legislation, if the rent of the premises exceed certain limit.
If your premises fall under such categories, then your premises will be exempted from the protection of the New Rent Act applicable to Calcutta. If not, then you can initiate the proceeding for your reasonable and bonafide requirement. If the facts narrated by you are properly pleaded and proved, you will get back the possession of your premises. You can also apply for expediting the hearing of your case because you are need of the premises for your personal requirement.

Warehouses and godowns not protected by Rent Act
One of our companies had let out godown premises to the Central Warehousing Corporation at Kolhapur. There is no written agreement but CWC has been a tenant for a number of years. We now want to either sell the premises or use them alternatively.

  • With the coming into effect of the new Rent Act in Maharashtra, is it possible for us to move the court to get CWC to move out. I am advised that the new Act does not apply to warehouses/godowns. A S Ruia

It is not correct that the new Rent Act does not apply to warehouse or godowns. Section 2 of the Maharashtra Rent Control Act 1999 deals with the application of the Act.
This section inter alia provides that the Act will apply to the premises let for the purposes of (i) residence (ii) education (iii) business (iv) trade or (v) storage in the area specified in the Schedule I and II. Kolhapur is in part I of Schedule I and the Act will apply to the premises let for storage.
Section 3 (1) (b) of the Act deals with the exemption and it provides that the Act will not apply to premises let or sub let to any corporation established by or under Central or state Acts.
Under Section 3 of the Warehousing Corporation Act,1962, the Central government by a notification in the official gazette established a corporation by the name of the Central Warehousing Corporation, which is a body corporate, having perpetual succession and common seal with a power to acquire, let, dispose off property and to contract and may by the said name, sue and be sued.
The Central Warehouse Corporation is thus established under the Central Act and therefore the premises let to such corporation is exempted from the protection of the Act.
Therefore, you can terminate the tenancy of such tenants as provided under Section 106 of the Transfer of Property Act, and after the expiry of the period of notice, such corporation will have to vacate the premises.
If such corporation fails to vacate the premises, you can file suit for recovery of possession of such premise so let, under General Law (Transfer of Property Act) before the court having jurisdiction to entertain and try the suit. This suit will not be under the Rent Control Act.
Has the revised standard rent already been finalised? I was under the impression that the matter is still with the Supreme Court which is yet to give its judgment.

If so. When is it due? I am a tenant in a building at Juhu scheme. I have two flats in different names of 550 sq ft carpet area each in the same building, one above the other. I have taken on rent a flat on 1st Floor on 15 October, 1980 and I had rented another flat on the 2nd Floor on 1 December, 1992. I have been regularly paying rents as per Standard Rent Act to the landlord for all these years in this building.

For the last six months, the landlord is not accepting the rent for both the flats. I have been sending the rent and other charges by money orders but he is refusing to accept them. He got the entire building repaired recently and is now asking all tenants to pay unreasonable cost (arbitrary cost) in cash only to him.
Some have already paid and others have not paid so far. But they are willing.

Open and Stilt Parking space cannot be sold
  • Developer fined for selling car parking spaceEmphasising that a flat buyer cannot be charged extra for a car parking space, a consumer forum has fined a developer that committed this “unfair trade practice”.
    The Central Mumbai District Consumer Disputes Redressal Forum last week directed Tata Housing Development Company to refund Rs 50,000 to Ghatkopar based Suresh Mehta and pay him compensation of around Rs 20,000.
  • “Car parking area is the common area of the society. Therefore, the opponent (the developer) had no right to charge any amount for the sale or use of the parking space,” observed the forum. It took into consideration a Supreme Court judgment which held that a developer can only sell a flat and has no right to sell a parking space.
    In his complaint, filed with the consumer forum last year, Mehta had said that he purchased on June 30, 2010, an apartment and car parking space at Betegaon, Palghar, for Rs 17.4 lakh. He maintained that Rs 50,000 was taken from him for car parking and another Rs 50,000 as clubhouse development charges.
    Mehta said he came across a judgment in August 2010 that held that a builder or developer cannot sell stilt or open parking as the space is part of society common area. The verdict also held that, once the occupation certificate is issued and the society formed, the developer ceases to have any title on the open space.
    Through a letter dated December 23, 2010, Mehta demanded a refund from the developer. He was told in response that the car parking was not sold; the developer said he was issued a right to use the space. Aggrieved, Mehta filed a complaint with the forum. The developer repeated its stand in the forum.
    The forum said the agreement showed that the total amount paid by Mehta included charges for the parking space. “The documents on record corroborate the contention of the complainant that the flat’s price was Rs 16.44 lakh and that he was required to pay Rs 50,000 for car parking space.” The forum held that this amounted to an unfair trade practice.
by Rebecca Samervel
Reproduced Courtesy : TOI

© 2013, AIDEC World. All rights reserved.

755 comments on “Cooperative Societies – Some easy answers to your easy questions
  1. Ours is a tenant ownership co-op society of 15 members having owned open plots. My plot is isolated with three side roads & one side members plot.I want to sale plot to builder for coomercial cum residence where wants to form society. But Managing Committee is not permitting .Can U guide me pl.

    • Sorry, since you a part of the coop society, you cannot make ‘Change of User’ decision without the explicit permission of the managing committee, your AGM as well as the requisite permissions and statutory clearances from Municipal authorities

  2. I purchased a flat in a building in Jan 2013 in Mumbai and paid one year maintenance to the builder. The building society was formed 2 months later and they did not receive the accounts from the chief promoter and the matter is still under dispute. The society wants me to pay the maintenance to them separately and obtain the maintenance money I paid to the builder from him myself. Per the Model society by-laws, one of the businesses to be transacted in the first AGM is to receive a report of the committee together with statement of accounts from the promoter. Is the society right in asking me maintenance for the year that has been paid to the builder and ask me settle the accounts directly with the builder?

    • Your society is wrong. The tentative managing committee which took charge from the builder, is supposed to take all the accounts from the builder/developer. If they have not taken the amount paid by you into account, and if you have the proper receipts for the maintenance amount paid to the builder – then it is a lapse on the part of the committee. Under no circumstances you are expected to pay the amount twice. The Bye laws are very clear about the same – if the society suffers any loss due to negligence/oversighyt by the managing committee members, the members are jointly and even personally responsible for the loss suffered by the society, and should reimburse the society for such loss suffered

  3. Hi,

    I have a similar issue as above where the society is asking me to pay the maintenance I paid to the builder as the account is not settled between the society and the builder. I have the maintenance fee indicated in the registration documents however they are not accepting it. What action can I take under such circumstances? Do I need to provide any written notice to secure my case?

    • You are not expected to pay twice. Write to your Society enclosing photo copies of the receipts of payments already made. The society is expected to reply to you within 30 days. If it does not, write again. Wait another 30 days – and write again. After three written notices, if the society does not reply, you may approach the Registrar to redress your grievance. Under no circumstances can the society charge you for payments already made. If they have not taken charge from the builder properly, it is the provisional managining committee’s responsibilty

  4. i have a plot in kolhapur under housing society .our society is kick out from last 20 years .i have a property card on my name for bank loan purpose for morgauge i need no objection certificate now who will give NOC under which rule

    • Since you already have the property card for your plot, and your society is disfunctional – it is imperative that you approach the deputy Registrar of Housing cooperative societies of your region, who has the authority to give you the required NOC. Otherwise, if your bank will accept it (most of the cooperative banks do accept) – an affidavit from you that the society is presently disfunctional hence a regular NOC is not possible and promise to give it to the bankers, as soon as a property managing committee is formed. By the way, no society can exist without a managing committee – you must be having a provisional managing committee – privisional committee is also authorised to issue such an NOC

      • Hey, I just wanted to know that whether an administrator of a society can transfer flats on the buyers name in absence of the society commitee?


          The administrator has no right to transfer any flats and/or put his signature to the share certificate.
          His job is just to administer and arrange for the elections and next committee to take charge. The seller and purchaser will have to wait till the next committee is in place.

          However under exceptional circumstances, the Deputy Registrar or the Registrar can transfer the flats and sign the share certificate…. but under no circumstances the administrator. If he does so, he is exceeding his brief and such a sale later might be termed null and void… as the transaction has been approved and signed by a person who is not authorised to do so.

          Further information, you may please refer :
          by HK Verma
          It costs less than Rs 100 and will answer all your querries and guide you how to go about. It will be readable on your mobile, PC, Laptop or even a tablet. It can be a permanent guide to your cooperative society problems

  5. This is commendable work of getting authentic information.Thanks.
    Ours is co operative society of plot holders in Nashik,.Kindly inform;
    1. what are the rules for subdivision of plots ?
    2.What legal action can be taken by society for recovery of dues ?
    Please oblige by replying the above queries duly quoting the references of the provision in rules
    Madhukar Sonavane Nashik.

    • Sub division as plots whether in a cooperative society or otherwise, as per their original size as registered with the collector/patwari. They can be combined and/or sub-divided with due legal process, but their rate of taxation will remain pro-rata and/or plot wise – whereas aplicable.
      As to your second question, recovery of dues, is sending three notices to the defaulter at 30 days each. And then 3 notices under section 101 – which is a very powerful tool in the hands of a decent managing committee. And with the help of the registrar, next 30 days the committee can repossess the plot. The repossesion is a 150 days process.. so one has to be patient. Interest will be applicable on the defaulter at the maximum rate, which is @21% PA, simple. Which will have to be cleared along with the origional dues.
      Once 101 has been served, no rebate on the principal amount and/or the interest can be given by anybody, including the AGM or SGM. If as a compromise it is done, it will have to be recovered from the Committee or the defaulter. However payment facility not exceeding 12 calendar months can be given to the defaulter. But payment has to be made to the society regularly. Default of even one payment will bring him back to square one and he will in most likelyhood loose the plot.
      The appeal to 101 is in the Cooperative court, High Court and then Supreme Court. Sessions court wil have no say
      I hope the above satisfies your question

  6. there is leakage from terrace which affects all flats. members having terrace flat are most effected.hey have sent few letters to society but society did not get the repair done. They have got the repairs done at their own and now demanding exorbitant money and stopped paying maintenance for many years. can society start proceding of 101 for reccovery

  7. i am a tenant in this society. earlier the maintainence charge was rs. 225 while the permanent residentials were paying rs. 175. now they have increased my maintainence to 400 while the permanet residers are paying 200 rupees .. i dont think its fair..

    • The sub-let premises has to pay 10% as non-occupancy charges – more than the owners of the premises who reside. The 10% is increase is of service charges only and not the entire bill. What your society seems to be doing is patently an illegal act of extortion. Under no circumstances can the charges be more than 10% of servi9ce charges





    • Non-Occupancy charges can be levied only in case of the flat being occupied by an outsider or being sub-let. Since B is the brother of A – no-non occupancy charges can be applicable – as long as B does not pay any rental to A. Please refer to the bye laws and see the definition of FAMILY. Being an employee of BMC or anything does not make any difference at all. The new committee will have to refund the charges illegally charged by the previous committee

  9. thanks for the reply.


    • Since it is a BMC Society, only present and ex-employees of the BMC are entitled to prchase the flat originally or even in resale.
      X must be an employee of BMC and so must be Y. Both have to be present or ex employees of the mumbai Nagarpalika
      Theoretically no outsiders can stay in flat, relative or not…but nobodyt can enforce this clause. So most of the societies just charge a non-occupancy charge of 10% and let anybody stay, whether an employee or not.
      No question of brother or sister. the purchaser has to be a BMC karamchari or ex karamchari.
      The Purchaser, if admitted as member of the Society, is eligible to Vote and contest for the Managing Committee elections and hence the Chairmanship also.
      Every member (here a member is not a person, but a flat) flat one vote…. is entitled to cast one vote.
      The earlier rule that a new member has to wait for 12 months before casting his vote, has been withdrawn in 2011. Now the moment a flat is transfered to your name, you are eligible for contesting anyt elections and/or joining any sub-committee.
      However, non BMC employees can be tenents, or sub-tenents, but cannot be admnitted as members. hence ineligible to contest elections.

  10. I have to purchase open plot in Co-operative Housing Society from XYZ whose is member of society. The society has transferred plot in the name of XYZ by sales deed. Can society legally sold plot to XYZ?

    • YES… what has been sold in a cooperative society is shares and right of posession. Moreover with the imposition of the new cooperative ACT, an existing member can have more than one premises/plots in the same cooperative society. UCLA is not applicable anymore, hence one can own shares and posession of more than one property

  11. My father purchase a flat in 1987 that time we were not aware about our bedroom (130 sq. Ft.) is on
    societies garage place , that time society didn't informed us and accepted our agreement of 570 Sq. Ft. total carpet area on that time. since society is not taking municipal tax on that particular bedroom Sq. Ft. they took only on remaining area, now society members are planning for redevelopment and they told us to sacrifice our extra FSI whatever we are going to obtain from builder on that bedroom (130 Sq. Ft.) we are living in this flat from 26 year. Does society have legal right to restrict me??IS THERE ANY LEGAL RIGHT to help protect my purchased carpet area with extra FSI (whatever decided by builder and society ),please tell me your suggestion on this situation earlier

    • If the place has been sold and shown in the sale agreement as regular place – it is deemed a regular place – irrespective of whether the society has been charging you municipal taxes on it or not. You have paid for it and have every right to it – provided you have papers to prove it. The society coulkd have objected at the time of transfer of the flat. There seems something fishy in the whole deal – howcome the society did not object to the deal when the agreement was being made, registered. moreover the society would have issued an NOC or given you Form 20 at the time you purchased the premises. It seems certain people are trying to defraud you of your rightful entitlement. You can file an FIR or acriminal case against the seller and the managing committee for Breach of Trust and Cheating you. Pls Consult your legal advisor – the soiety is in the wrong

  12. Our Society Provisional committee trying to lease out open stilt parking space, Basement under society to the DEVELOPER on more than 50 years tenure to receive corpus fund by making registered MOU. Therefore no members will have any right to enter into such premises for said periods. We few members (less than 50%) are apposing to make this kind of MOU for raising of funds.
    Is this legal if Majority voting in General body infavor of committe gives them rights to enter in to such agreement?

    • Your Society seems to committing an illegal act. The Builder and/or the society has no right over open and/or stilt parking spaces. They are for the use of the member on first come first serve basis. Your Society is committing a crimne by doing any kind of monetary transaction nover a parking space. The whole Committee can be prosecuted under section 146 of the maharashtra Cooperative Societies Act, as well as section 420 of the IPC. The so-called seller and the so-called buyer both will be breaching the law. Your members should unite and write to the managing committee and if need be file an FIR. General Body also has no right to authorise such a transaction. Not even the Registrar or even BMC do it.

  13. sir,
    we are bonafide member of our society and having a one shop , in bhayandar area . we are using the space in between two building which is our by-side with the permission of society and as wel as prev. gram panchayat. and it was decided to pay rs 500.00 monthaly to society .. before 20 years ago.. ,, and we paid them some about one year… there after , mobile tower installed in building and no maintances was charged by society and no bills or and demand by them till to day…. now , new commitie is incharge and the are asking / demanding the old dues for our by-side premises which was never demanded in writting or by oraly.. till the day… and disconnect our water connection… and giving us thretning adn not allowing use of the side- by premises which is just connect with our shop… …

    what action we can take towards them ….. is this demand of last 20 years is valid by society and binding to us…. PL ADVISE URGENTLY.


    • The previous Managing Committee of your Society was in the wrong for having allowed you to use the open spaces for any activity. As per the Supreme Court Judgement, all open spaces, including the parking, terraces as well as gardens are the sole ownership of the society and cannot be let out for any commercial purposes or activity with the permission of the local authorities. Even the telephone tower requires permission. If your society has not done it, they are in the wrong. As for charging back rent arrears, if you are not occupying the space legally, where is the question of the back rentals…. it is an absolute grey area. The society certainly cannot demand 20 years arrears…but since you have used the space, legally or illegally…. you should try to settle the matter with the committee amicably. It seems both of you, the comittee as well as yourself are in the wrong

  14. family member of a member of co op hsg soc ( whose name does not appear on share certificate ) can attend AGM / EX GM of soc? if yes what rights he has in meeting ? secondly can he be elected as executive com member ?

    • A person – family member or not – whose name does not appear on the share certificate cannot attend the AGM or any meetings of the society and has no voting rights. NO – since the person’s name does not appear on the share certificate and has no voting right – the person is not eligible for contesting the society’s elections in any capacity. Only a person, whose name appears in the share certificate as ist member, Joint member or Associate member have Rights to be exercised as cooperative society members. A Housing Cooperative Society does not deal with non-members. Even a tenent/subletee has to become a nominal member to deal with the socity

  15. We a CHS of 16 residential flats and 4 commercial block in front side of premises.
    We have a acute water shortage through out the year so we store daily water in a storage tank.
    One new commercial block owner has joined socity 2 years back and asking for water connection for his commercial block. CHS has pass the resolution in SGM and denied him water connection for commercial activity. He approch to the registrar and misguided him about the facts please provide remedy for it.

    • A commercial establishment is also a part of the society. Your society has committed an illegal act by denying him water connection. He is entitled to have a water connection – same as the residential premises. Yes you can have a Commercial rate for the water for him, as charged by the BMC. Your SGM has erred in passing such a resolution, which the registrar will surely reverse

  16. In our society there are two types of flats, 2 flats of 1 BHK and 2 flats of 2 BHK on each floor. Due to internal arrangement and location of pipe line, 2 inlets in 1 BHk and 4 inlets in 2 BHK are provided for convenience purpose. In addition to this there is common water tap provided from the same water tank for Car washing.
    All occupants are not having cars. There is no inlet provided for car washing tap. Moreover there is nothing mentioned in Bye-laws about method of charging for water used for car washing, which is in addition to what they use from inlet. At present water charges are equally distributed with the approval of AGM. But some members say that as per Bye-laws No. 69 water charges are to be distributed on the basis of inlets provided in each flat. As nothing is mentioned in Bye-laws about charging for water used for car washing in addition to what they use from inlets provided in each flat, we have obtained the approval of AGM. Under the circumstances, kindly advice whether the decision taken by us in order.

    • Yes the bye-law 69 says that the charges should be as per the number of taps/equipment used in the premises. But for convenience sake, most of the societies divide the water charges pro-rata basis and some societies charge per square feet. The water used for car washing, gardening, lobby washes etc is divided equally among all the society members, irrerspective of the area. It is like those living on the ground floor also have to share equally in the lift expenses. It is a cooperative society, small things should be let go. Even those not having cars, if they pay for the water, it hardly amounts to anything. Will you segregate a flat occupied by 2 members and 4 members or 6 members – that kind nit-picking is possible

  17. Are there any provisions under MCS Act, Maharasshta, about keeping pets ?.Now a days it has become a routine matter to keep pets without permission of Society. BMC also does not ask them to bring society's permission for granting licence. What to do about such nuisance, with due respect to provisions under Animal Act

  18. My query is about one time contribution for major repairs. Bye-laws provide for major repair fund, the contribution of which is to be calculated as area x construction cost x 0.75% or as may be decided by AGM. AS our society has not made provision for such fund, we are planning to get one time contribution from members for major repairs which includes entrance lobby, compound wall and terrace, office premises, lift premises, the area of which is common and has nothing to do anything with area of flats. Our Society consists of 12 shops of 200 sq.ft each, 24 flats of 450 sq.ft and 24 flats of 750 sq. ft. carpet. Kindly advise how to calculate one time contribution for major repairs considering common area. No doubt this is to be decided by AGM, buton what basis Managing committee to place the proposal to AGM. Your valuable advice is requested please.

  19. Hi, Actually i want to challenge the resolution passed in meeting the case is, my uncle fraudulently made the documents showing him as associate member by manipulating chairman & father is an illiterate person and his advantage was taken by his brother, share certificate is in my fathers name and now society says that we have no proof that ur father is a member.

    • This is a criminal case. You may file an FIR with the police for 420, criminal breach of trust and other relevant sections – against the people who have done the transfer fraudulently. Even if they are members of the managing committee, they are covered under the indian penal code. Even the registrar will not be able to help you – unless you can prove the signatures were forged

  20. Hii, i want to sell my bunghlow of co-operative society for building a hospital.Members of society are not giving me noc for the same. Can i haveany remedy for the same. please reply to my query as early as possible.

    • There is no special provision under Development Control rules to bend the cooperative laws for Hospitals or any other public utility buildings. You will have to follow the Cooperative laws, and once the Society agrees to the change of user, you will have to get a special NOC from the local municipal corporation. This hospital however will not be entitled to any concessional taxation or society charges – it will have to pay normal maintence, electric, water or service charges as any other cooperative member.It might also attract Commercial premises charges from the Society as well as the taxation authorities.

  21. Hii, I have one bunglow in co-operative society.I want to sell it for commercial purpose.Do i need to get NOC from members of the society?If they don't give NOC can i take any legal action against them?

    • If it is a residential society – you have to first get an NOC from the managing Committee of the society, who can issue you the same only after the approval of the AGM. Thereafter you would have to get an NOC from the BMC and then get its user Changed from Residential to Commercial. If the AGHM/Managing Committee/ BMC refuses to the Change of user proposal, there is no remedial measure under law. You would be wasting your time, money and energy trying to take legal action. Yes, if there is a precedent, they have made some premises commercial, then a legal recourse could help.

  22. hello,__please tell me if Mr. A is an owner who is yet not a member of the society wants to rent out his flat in CHS situated in Mumbai with the permission of the society? The said Mr. A will not become member for next one year as per sec.29 of the MCS Act but wants to rent out his flat right now and asking permission or NOC of society. Mr. A has registered Leave and Licence Agreement and NOC of earler owner.__Under these circumstances what society should do? Society may give NOC or not to Mr. A to rent out his flat?____
    regrds,__Mrs. swati__

    • I think you are refring to old bye laws. According to the new MCA.. the membership application has to submitted immediately on acquiring the shares. And the transfer of shares has to take place within 90 days of the application. If the managing committee fails to implement the transfer, the same can be done through the deputy registrar. Hence, the incoming member can apply to the managing committee for sub-letting the flat – subject to fulfilling all the conditions, including submission of proper forms and the paper work.
      Theoretically – YES, the new member cannot sub-let the premises till the time he has got the shares transfered in his name. Because the incoming sub-lettee will have to apply for a Nominal membership. If the original owner is not a member, how can the tenent apply for nominal membership.
      And If the shares have not been transfered, how can the new owner sign and register the document about something, which is officially to be still transfered. The Registration will be null and void.

      • sir,

        thanks for replying my mail. My query is Mr. A is lawful owner as he has purchased the flat from the member of the society vide Sale Agreement duly registered. Title is clear. My case is earlier owner sold the said flat immediately within 1 year hence, Mr. A is not getting membership as per sec. 29 of MCS Act. But he wants to rent out immediately. In this situation can society give NOC to Mr. A to rent out the said flat.


        • I will go point by point, to make it easier for the reader to follow:
          Unlike earlier times, the it is not essential for the previous buyer to retain the flat for 12 months. In new Act, one can dispose off the flat to a new buyer after 90 days – within which time the managing committee is bound to transfer the flat to the new applicant.
          Now the situation arises that, why is the new owner Mr A not getting a membership of the society. On what grounds it is being delayed. The Committee will have to explain and give reasoning for the delay beyond 90 days for trhe transfer of the share certificate.
          Most important of all – the incoming member has NO RIGHT and can not sub-let a flat, till the time the shares have been transfered in his name. If stamp duty has been paid on the same for sub-letting and registeration done – both will become null and void, because it is not his property to sub-let (till the time the shares are transferred).
          NO – till the shares are transfered to the new applicant – he cannot rent it out and the Society also CANNOT issue an NOC to a NON-MEMBER

          • Sir,

            Whether I am liable to pay transfer premium to society if I have not received share certificate from the society. Society has recently registered. I have purchased flat from the Builder. Please advice

          • Sir,
            I have executed the sale agreement after registration of society but society has not yet issues share certificate and AGM of society is also pending.


            Some societies are under the misconception that the transfer has to be approved by the AGM

            No Longer. Now it has to be approved by the Managing Committee… and the Share Certificate issued within 90 days of the receipt of the complete application along with all the relevant documents and transfer fees and premium in the society’s office.

            If any managing committee fails to do so, it is a criminal offence under section 146/J of the Maharashtra Cooperative Societies Act, under which the entire managing Committee individually is responsible and the fine may extend to Rs 10000 per head and prison term upto six months.

            It is in the best interest of the society to issue you the share certificate in time. Or refuse – so that you can approach the registrar

          • Yes, the Society will consider your application as RECEIVED only after full documents and monies have been received in the society’s office. It is in your own interest that you pay the transfer premium (not more than Rs 25000) to complete your application

            I would suggest you get a small book titled COOPERATIVE SOCIETY BYE-LAWS MADE EASY from It is an electronic book, which you will be able to read on your Mobile or PC/Laptop easily. It will answer most of your questions. It is priced just under rs 100/-

  23. Hello,

    1) Please tell me if a member wants to remove his membership from housing society and wants separate membership for his Villa / Bunglow attched to the Building situated in Mumbai. The said Bunglow has seprate water, light connection. Access / Way to the bunglow is also separate. If yes, what documents require and what is the procedure for the same.

    2) Also tell me can two Buildings get byfurcated / separated and registered individually if they have separate way, water connection? how many members require for each soceity for rormation / regisrtration of CHS? and what is the prodeure and what documents are require? Pl.tell me. As we members are facing such problem since many years and all are ready to byfircate. me out

    • A part of the cooperative society cannot be dis-membered – so the premises belonging to the cooperative society, will continue to be the ownership of the cooperative.
      If two buildings are part of a cooperative society, each building can be be formed into an independent cooperative society… provided there are minimum 11 members in of each building.
      Complete Registration process as prescribed in the MCA (given seperately).
      Demerging is quite a cumbersome process. Better option would be have a main Society – and independent administrative committees reporting to the main Managing Committee. Both the buildings can be financially and dministratively indepent and common areas the cost can be shared.
      Both the buildings will bring out their own balance sheets which in turn can be a part of the main MC’s balance sheet.
      If your members are prepared to undergo all the hassels of the split – you will have to take legal help, split at the BMC level for the land and thereafter the society registeration

  24. m-mother passed away on jan.2010 and nominated d1-daughter and gd-1 grandaughter both as her nominees, what are the proceedures to change the share certificate from m to d1 & gd1, please comment

    • If the owner passed away in 2010 – and you have still not applied for transfer of share certificate – it is patently bad in law. You should have applied within 6 months of your grandmother’s demise. I hope your managing committee does not create any other legal problems or levy any penalties.
      As for the nomination form in the name of the daughter and grand-daughter, it is fair enough. They would have to submit an affidavit to the Society that as they are the only legal heirs of the dceased. In case there are more – then a no objection certificate from each heir, on 100 Ruppes stamp paper declaring that they have no objection to the said flat being transfered to those nominated.
      The society will have to follow the same bye-laws as followed while admitting a new member (see the article – Transfer through nomination). Application fees will be applicable. But share transfer fees and the transfer donation of Rs 25000/- will not be applicable in this case. And the statutory 90 days period for share transfer can be waved off – the managing committee can transfer the shares immediately on receipt of the application.
      As for changing the sharinre certificate from mother to grand-daughter, first the shares will have to be transfered in the name of both the nominees. Then after some time – the mother can withdraw her name leaving the grand daughter as the sole owner. In this case a little gift fees of 1% might be applicable – pls check with your legal advisor.

  25. Hello

    I have purchased the resale flat from Owner. That time society was not formed.So he and I informed to Builder for his intension of saleing the Flat to me, by giving the written application for getting the NOC. and Builder has given the NOC to me, by paying primium charges for NOC.

    After that I have done the MOM and other payments ( own contribution) to 1st Owner and applied for the Home loan. Meanwhile the society get formed in next month.

  26. Also my complete process took place 2 months for Flat registration, which was after done after society formation., So I asked builder that I will take the NOC from Society, but there was no rules was made, even the builder has not transfered all the accounts and documents to society. I has taken almost 6 months, I both the parties can’t wait for next 4-5 months till the decision made by the working committee.

    I decided to go with Old NOC which was given by the builder before the Society formation, and completed my all formalities.

    Now after 1 year , Society is asking for the members who has made any purchase after society formation, they need to inform to society for such transcetions for resale of the flat during that 4-5 months.

    So what I have to do.? If they asked me to take new NOC by paying 25000/-, which is not possible now from my side, and even my bank is not asking me NOC now.So how I have to handle this problem, whether society will take any leagle action on me,..?So how I have to handle this problem?

    • Yours is a very simple case of second sale – before the formation of the society. Since the builder has issued you the NOC before the formation of the society, you need not pay the transfer premium of rs 25000/- and inform the society accordingly.
      As per regulations, when the Conveyance is delivered to your society, or the names of the original owners given to your society, your name should appear as the original buyer, it is none of society’s concern how many transactions have taken place before the society was registered, formed and takes charge.
      Any Society’s charges are applicable only when the Managing Committee actually takes charge and the Society Registeration number obtained. Prior to that, it is the builder who decides the amount to be charged from the proposed members.
      You can inform your managing Committee accordingly. And ofcourse even the lender bank will not get involved in this kind of extra charges being demanded by anybody.

  27. Ours is a plot society and registered as Society.Can we bill for sinking fund and reapir&maintfund?If yes what is the formula?

    • Whether a plot society or apartment type society – common fund collection is compulsory. Sinking, repair and maintenance funds are required – in plot typoe society for maintenance of connecting roads, water pipes and electric connections, security and other common amenities like garden etc. The collection here is mostly on Pro-rata basis – irrespective of the area of the plot. Everybody pays equally. Take the total expenditure and divide by total number of plots.

  28. Hi, is the society allowed to sell the open parking lots to the members?

    And the society collects an additional Rs 50000 to Rs 75000 every year for seepage work which is always a failure moreover they keep informing the members that there is no funds available

    • The society, or builder or any one is not allowed to sell open parking spaces. Some builders have started selling – but that is patently illegal.
      No – The society cannot collect such heavy amounts on regular basis. If and when the money is needed, they can always call a SGM and call for repair funds – as and when required. The quality of repairs, ofcourse the contractor will have to guarantee that repairs are of acceptable quality some committee member should take charge or an outside expert be appointed

  29. Grievances over certain practices adopted by secretary, chairman and committee members:-
    1)Demanding heavy parking deposit for car and bike open parking facility, also asking us to pay parking charges monthly and those who have paid the the deposit not yet provided receipt for the same.
    2)Secretary called for urgent society meeting by just giving one day notice for dissolving the committee.
    3)Taking undue advantage of the position, if we raise any concerns politely or formally it never get resolved they just say that the resolution is passed, so you need to wait till another AGM.
    4)We never get any formal responses or acknowledgment of our letters and try to divert the topic.
    5)Without intimating and providing correct bifurcation to the society members they are levying fines and arrears under maintenance receipt in parking charges section.
    6)Also suddenly demanding for heavy building repairing fund without intimating the society members and levied under maintenance receipt to pay at one go in next 45-60 days around 15000/-which feels to me as a mental harassment.(We have already funded/paid 40-50,000 almost each flat owners one years back for the building repair fund)

    Kindly advise

    • A Massive Querry…. I will try to divide it into smaller ones… hope you do not mind.
      Grievances over certain practices adopted by secretary, chairman and committee members:-
      1)Demanding heavy parking deposit for car and bike open parking facility, also asking us to pay parking charges monthly and those who have paid the the deposit not yet provided receipt for the same.
      NO DEPOSISTS can be taken for open or stilted parking charges. By Deposits I do not mean the monthly charges – but the bulk – in cash or kind – whether they provide the receipt or not. If your Committee is doing it – you can raise it in the AGm, or report it to the Registrar, if that also does not work, report to the Consumer forum or even file an FIR in the police for extortion. The parking space is not the managing Committee’s ownership – no body not even the builder can sell, mortgage or take advances for it. It can be given for parking on monthly rental as provided in the maharashtra Cooperative Act

    • 2)Secretary called for urgent society meeting by just giving one day notice for dissolving the committee.
      THAT is CORRECT -0 an emergency meeting can be calloed at 24 hours notice and the whole committee can quit enmasse. Just make sure you have a tentative committee to take care of the society when the committee steps down

      • Thanks for the advise..But i still need one quick advise, can Secretary call for a meeting for dissolving entire committee in one day notice period? And they have called for this meeting only because 25 members have raised concerns for not charging deposit for open parking which is formally signed and copy sent to Secretary. Instead of acting on the compliance of the issue they have called for urgent meeting to dissolve the committee by putting condition that elect new committee in this meeting or else there will be no change in the resolution which is passed for parking deposit. And they have re-elected by misguiding the 17 members who were present in the meeting out of total 49 flats. Poor only 11 members have signed to go with resolution is passed and ready to pay parking deposit. Kindly advise whether this practise can be adopted by secretary and committee members.

        • The whole process is completely illegal. First of all this is such an urgent matter – that an SOS meeting of 24 hours has to be called.
          In calling for the meeting, they have to set an agenda – which is all the members are resigning.
          Here comes the clincher – the outgoing committee has no powers to appoint anybody for the new committee.
          If the entire committee is going, the SGM will have to appoint an interim committee who will appoint a Returning Officer and the whole election process will have to be undergone again.
          Outgoing members cannot be part of the interim committee or even stand for re-election.
          First you have to solve the problem of the legitimacy of your managing committee – charging – Parking or otherwise comes later.
          And NO – no charges can be approved, increased or decreased by mere signatures – even if they are signed by 100% members. Any financial approvals have to be done by means of Physical presence – AGM and/or SGM. Mere circulars or resolutions will not meet the end of justice.
          I hope I am clear and not confusing. If still any problem, pls do write again.

    • 3)Taking undue advantage of the position, if we raise any concerns politely or formally it never get resolved they just say that the resolution is passed, so you need to wait till another AGM.
      4)We never get any formal responses or acknowledgment of our letters and try to divert the topic.
      The society is duty bound to reply to any communication submitted to it with 30 days of the receipt of the letter by it in the office. If it fails to do so, it is committing an offence which can be reported to the Registrar or even a police NC can be filed against the individual ignoring official communications – or you can file the NC Collectively against the whole committee also.
      You can also file an application through the RTI route – in which case it would be the responsibility of the regitrar to get you the reply

    • 6)Also suddenly demanding for heavy building repairing fund without intimating the society members and levied under maintenance receipt to pay at one go in next 45-60 days around 15000/-which feels to me as a mental harassment.(We have already funded/paid 40-50,000 almost each flat owners one years back for the building repair fund)

      • The Society cannot call for heavy repair funds out of the vlue. They have to get the structural audit report – Once every three years. This is mandatory and not at the whims and fancy of the managing Committee.
        The repairs and rectifications the structural engineer has recommended have to be carried out in a prescribed legal manner – in case need be by inviting tenders. The jobs cannot be given on anybody’s whims and fancies.
        No managing Commmittee member or any of their close relatives or associates can take such repair or maintenance jobs – even if the AGM has unknowingly approved.
        If there is doubt about payment capacity of certain members or all the members, the AGM can always reach a compromise and charge such members or even all the members on EMI basis.

  30. What remedy if the shop owners on ground floor and underground don't want to become member of society. Also they are not paying any maintenance charges. They are occupying the building ground floor and underground floor. they must pay.

    • Shops are Flat too – they have to pay the society maintenance PLUS 10 percent extra of service charges as non-occupancy charges. If they refuse to pay, after sending them three notices, you can declare them defaulkters and recover the dues to the society through section 101

  31. hello sir,
    A society having four building-
    can splitting of CHS have done?

    or new Chs can form for 1 bldg?

    What is the procedure for divisions of the CHS?

    • Yes it can be subdivided – if physically possible. Each building should have a minimum of eleven members to form a cooperative society. Rest of the rules regulations and laws will be applicable, as at the time of forming a new Society. please refer to the maharashtra Coop Societies Act – elsewhere in this Coop Societies Section

  32. 1. If a co-operative housing society having two buildings, admeasuring different FSI, is subdivided in two societies, how the open plot is physically divided? equally or proportionately?
    The members had paid on the basis of per square foot to the extent of the total carpet area of the flat, including land cost + construction charges and the land was purchased by the Promoted Society.
    2. Authority delegated the powers to decide the area of the subdivided plots and the Act/Rule under which
    the decision is taken.

  33. Respected Sir,

    Ours is a society that’s been redeveloped. Flats are ready. Builder has not been able to get the OC from the BMC due to the premium charged by BMC on open space deficiency. He is using arm twisting tactics by asking us to pay a huge amount that runs into crores. Now he has threatened usthat he will stop paying rent. He hasnt even paid us the Corpus that was agreed upon in the DA. How good is it to go in for a legal option?

    • Your only recourse is sending him a notice to Stop Work. Withdraw all power of attorney’s and file a an crminal FIR against him for breach of trust, forgery and cheating and forcible posession of your property. However, please consult your legal advisor before taking the legal course. Otherwise you have cut your hands and handed over to the developer.

  34. Hi,

    Have the following queries:

    1) The secretary of my building is functioning along with the brokers for allotment of flats to tenants and gets a cut from it, is it allowed in the official capacity as a secretary? (PS. my building comprises of lot of investors )

    2) with a written authorization addressed to the Chairman/Secretary can i ask my my maintenance bill as well as property tax bill to be handed over to my tenant in my abscence?

    • Your Secretary cannot work along with the brokers for subletting the flats. Any office bearer of the society cannot use his seat to earn money. For example, if the profession of your Secretary was Estate Brokrage – he can not practice his profession in the Society he is an office bearer. You can write to the Secretary and the Chairman citing the Bye relevant bye-law. It is not only an offence under the maharashtra Cooperative Societies Act, but is an offence under IPC also – misusing the position.

      As to the answer to your second question – YES – the Society infact should be delivering the bills and all relevant correspondence and documents to your owned/registered flat, whether occupied by you or a tenenant. You may write a simple letter to the society to do the needful – and they have to comply – because that is your Registered Address in the Society records.

  35. Our Cooperative Housing Society is having 18 Shops and 16 Flats having all different Carpet areas. No Major repair is being done. There is increase of Defaulters and it is very difficult to run the Society. There is also wrong numberings given by the Comittee to new buyers of Flat and Shops.

    Whom should we contact. Building is almost 19 year old.

  36. Hello Sir,

    Our Society Committee Members haad given wrong numbers to Share Certificates after selling. Some numbers are also duplicate numbers. How to change these numbers.

  37. Sir,
    Our CHS has passed a resolution to penalise members Rs.1,000/- for non attending AGM meeting.
    14days clear notice is to be given to the members before the AGM. I was not given the notice. What is the mode of communication of getting the 14 days notice, as per the law and decisions of the Co-operative Court/other courts in India. Regards Sukumaran

    • There was a proposal that a member has to attend atleast 1 AGM in 5 years. But that proposal has been dropped.
      The Committee has no right to penalise a member for not attending the AGM. It would be violative of a member’s fundamental rights. A country, where even voting is not compulsory, mandatory – how can non-attendance of an AGM be a penal offence. The members can file an FIR in the nearest police station for the managing committee for acting out of its mandate and even forcefully making a member do something, which the member does not wish to.
      However, in all fairnesss – the members should attend AGMs regularly, to make the work of the Cooperative Committee easy


    • An incoming member after submitting his application for membership, is considered a Provisional Member – but he is not entitled to participate in any of the society’s activities, till the shares have been transfered to his name.
      And during this period, since the outgoing member has already submitted his resignation – also cannot attend to the society’s activities.
      Though the period can be a maximum of 90 days – it is a gray area, which the Society bye-laws need to sort. But as things are at present – till the transfer of shares is affected, unfortunately and illegally, there happens to be no member representing the flat.
      Even if the Managing Committee, as a special coinsideration, allow the outgoing and/or incoming member to attend the society’s meetings, he/she cannot record his/her attendance, cannot vote and cannot participate in any proceedings. Such a member will have to be treated just as a visitor, observor

  39. What shall be the charges for Owned car parking and the owner which is not having car parking but parking his car into society premises.
    Is it mandatory to follow the MCS 97 constitutional amendment or we can follow our bye laws decided by AGM.

    • I could not understand the question properly. However the mandatory laws for parking and charges are:
      1. As decided by the AGM within the framework and laws of Maharashtra Cooperative Act and Rules for open and stilt parking spaces
      2. For covered Parking spaces (Garages) – maintenance as applicable to other flats
      3. If the builder has charged for any open parking spaces – it is bad luck for the owner, as the money has just gone down the drain. The AGM will have the right to allot a parking space and charge for it
      The presently in force laws are Maharashtra Cooperative Act 1960 and Rules 1961 (As ammended in February 2013). Any resultions to be passed by the AGM will have to be as per instructions in these. Any resolution which does not adhere to the ACT or RULES or the Constituion of india – is null and void.
      Every Managing Committee is free to decide on the monthly amount to be charged as parking charges – but in the absence of any clear cut instructions – it is still a grey area. But as a thumb rule, should not exceed the regular maintenance per sq ft being paid by members for other areas and for residential societies – should not be more than 500 to 700 PM

  40. Sir i am a tenant in a small society of 40 flats. there are 2 bhk and 3 bhk flats . me and wife are putting in 2bhk flat . we are regularly paying monthly maintenance . but due to water shortage , ever month society is charging additional Rs 1500/- for water. Now the problem is they are charging same monthly maintenance charges and additional water charges from every flat. when I objected to the same the committee members are not ready to listen , as many of them have are staying in 3bhk families with big families. 2nd when I said that I will not pay additional water charges , they are threatening to cut my water supply and power backup.

    please advise what I can do.

    • I am sorry to inform you – that youy will have to pay whatever the one bedroom or three bedroom pays. Cooperative society is based on a sense of mutuality. So this kind of expenses – security, maintenance, lifts, water etc are charged pro-rata basis – irrestive of the area occupied by the member or the number of people staying in the flat. Even if your premises is locked – and no one is using the water – you will have to pay these charges. So pls – grin and bear the vagaries of cooperative living

  41. I am a legally member of my co operative society.I rented my property to someone, but hence my society ask me to pay double(twice) maintenance,because i rented my property to someone.
    society not given any extra facility to my rent holder nor pass any resolution in AGM, only done one resolution by committee members and chairman and forcefully ask to me and other society members to pay extra maintenance because of only reason to give our property in rent.

    is it legal? please tell me what can i do?
    please give me some citation of gujarat high court or supreme court if u have, so i can give him one notice with citation.

    • Your Society is crossing the legal limits and its powers by asking you to pay double the maintenance – just because you have sub-let a flat.
      Under no circumstances can society charge you more than 10% extra – that too on just the service charges like security etc. This is called non-occupancy charges. If the Society insists upon double the charges, you can approach the deputy registrar of cooperative societies, the Consumer Guidance Society or even the local Police and file an FIR against the Committee members for misusing their position and extortion
      But before you take any action – have you taken the permission of the society to seb-let your flat and have made your tenant a nominal member?
      Before you chalenge the managing Committee, your legal paper work should be fool proof.

      • if my society ask me double or extra maintanance because of i sub let my property,Than i will apporch to sub rajistar of co-operative housing society and local police after taking permition for sub let my property in society and also inform to local police about my sub leting property details.
        then above procedure i will done.
        ok but is it any legal section or is it any judgement for this tipes of cases for my supporting?

        and buy the thank you so much for your support and help via your reply.


        • The Deputy Registrar of Cooperative Societies of your ward
          and refuse to pay the amount.
          Let them keep adding to your bill. agree to pay only 10% of THE SERVICE CHARGES – and not 10% of the bill.
          if they harass, police complaint is always a way out

  42. My brother is the owner of the flat. He works overseas and hence unable to attend AGM of the Society. I am his sister who is the nominee and also resides in the flat. What are documents are required, if I have to attend AGM or any other meetings. Besides attending, can I ask questions to the committee related to issues pertaining to the flat at the meetings on behalf of my brother? Or is there any other document required to be furnished for this. Please advice. Thanks.

    • Your situation is quite normal in many households.
      1. To begin with, Your brother has to write to the society intending you to coopt as an associate member. Giving reason that most of the time he is out of the country and unable to attend to society affairs. hence he wishes to coop you to represent you (not a PROXY).
      2. Thereafter both of you will have to fill up the requisite forms for Assoate membership along with the application fees applicable.
      3. The next managing Committee nmeeting, you will be coopted as an associate member and thereafter your name will have to appear as an associate member on the share certificate.
      4. To make things more legal and formal, it would be better if your brother goes to the nearest indian consulate, or if he comes to india, sign a Power of attorney in your favour – that you are authorised to do all deeds, sign documents, represent him in all manners, pertaining to the share certificates and the premises.
      Once you have you have your name on the share certificate and the power of attorney – you are as good as the owner of the shares and can ask all questions, lodge complaints and attend AGMs.
      And ofcourse if you have the Power of Attorney too – then you can represent your brother in all legal matters too.
      The Power of Attorney can be restricted to the Flat and Coop Society only and not be open. If any hesitation – it can be clearly mentioned that you can do all deeds which will be legally acceptable to your brother, except of moral turpitude, mortgage or sell the premises. Depends on mutual confidence.
      But the Society and the managing Committee will be out of your hair forever.

        • Another question. Would like to know if getting power of attorney from my brother, am i permitted to join the committee. What are the requirements for getting on the committee in general?

          Another situation – For eg.
          If the first name in who the flat is, doesnt attend meetings inspite of being there, can he/she give authority to another and on what basis. Can that person join the committee?

          • YES – according to new laws, provided the first named member withdraws his name and gives a power of attorney, the associate member can join the committee as a member and even become a Chairman or Secretary.
            The second instance – again, even if your brother is in the city, if hye withdraws from active participation, the power of attorney holder can continue to represent the owner. But the main condition is – the first name holder has to withdraw from all active participation in the Society affairs and nominate the power of attorney holder to represent him and accept and be responsible for all the decisions taken by his/her attorney holder

          • Thanks.

            The Committee had decided that if there is an internal leakage the two flats (one above and below) will share the expenses as 50-50. The flat we live is on the first floor and there is a stilt below where cars are parked which is purchased by the members from the builder. When I questioned the Committee at the AGM as per how we would go about with the expenses if there is a leakage in our flat, he said it would be borne by me alone. I asked them to take a call for the same as others have the benefit of sharing the expense but they had no answer and the Chairman just replied "Firstly you cannot question."
            The terrace expenses in terms of leakage are covered by the Society.
            Is there any way to tackle this issue?
            I will surely get the power of attorney done.

          • Any area, for which there is no owner, the costs have to be covered by the Society – that is the statutory law. If the Society is refusing to fulfill its obligations – you write to the Society reminding of its obligations as per the bye-laws. If it does not get it done, tell them you will get it done on your own, and deduct the Society’s share of the repair from your bill.
            Make sure that when you start deducting the society’s share from your bill, you deduct only the repair and maintenance charges and not the service charges. It is possible that the repairs will not be covered in one bill, you can spread over the amount over a couple of months till you recover fully.
            Remember to have a covering note with every bill you pay – giving the account – total amount spent, your share, society’s share, how much recovered and how much you recovering this month – till the balance shows zero.
            If you want to irritate them – you may charge as much interest on the outstandings as the society charges you. This time the society is at default. But you will have to inform them that you will be charging 18 or 21 percent on the amount the socity is not paying
            As to the chairman not allowing you to talk – you have every right to put forward your query/suggestion/grievance under any other matter – and the Chairman cannot stop you. You have every right to Freedom of speech – by stopping you he is curtailing your fundamental right not only under coop laws but the constitution of India – which is a criminal offence. You are as much a share holder and part of the Society and proceedings as the Chairman. The days of Royalty and zamindari are over

  43. Can you please send me a draft power of attorney as how you have suggested in your first reply. What is amount of the stamp paper used for this?
    Thx for your help.

    • Draft Power of attorney is given in the samples under Forms in the cooperative section.
      It has to be signed by both the parties – the power of attorney giver and receiver in front of a Notary. The stamp paper value is Rs 100.
      In case the power of attorney giver is settled abroad, he can go to the indian High Commission/ Consulate – where a special desk is for this purpose only. Get it authenticated by the High Commission/ Consulate Official, and here in india, you go to the Notary and authenticate your signatures.
      If the power of attorney giver is coming to India in near future – it would be ideal, both of you could go to the Notary and sign.

          • Specimen for Power of Attorney


            I, the undersigned, ………………………………………………………………., Indian habitat, resident of ………………………………………………………………………. ………………………………………………………………………………………… … wish to give this authorization regarding Flat No: ………….. in Building ……………………… Cooperative Housing Society Ltd, situated at
            ………………………………………………………………….. (here-in-after known as THE SAID FLAT), hereby appoint, nominate, constitute empower and authorize Mr / Ms ……………………………………………………………….., Indian habitat, resident of …………………………………………………………………………………………..
            …………………………………………….. as my true and lawful representative in respect of the Said Flat, to deal with, negotiate, sign any papers, documents, deeds for Leave and License agreements, Rental agreements, paying guest agreements and all concerned documents and things on my behalf. She is also authorized to do all deeds or acts and deal with all the statutory and other authorities – except sell the Flat / raise loans against it, or mortgage it.

            Any and all such deeds, documents agreed to and signed by the Power of Attorney Holder Mr / Ms ……………………………………………………., regarding the said flat, will be legally binding on the said Power of Attorney giver Mr / Mrs Ms……………………………………………………………….

            This Power of Attorney, however does not take away the right from Mr / Mrs Ms ………………………………………………………, to do all the above mentioned deeds individually and personally. This Power of Attorney gives the right of representation and signatures to the Power of Attorney Holder, but does not take away the rights of representation and signatures from the Power of Attorney Giver..

            Hence forth Mr / Mrs/ Ms ……………………………………………………………………………………………………………. the Power of Attorney Giver and/or Mr / Mrs / Ms …………………………………………………………………………………………….the Power of Attorney Holder can independently do any of the afore-mentioned tasks. Either of the Party’s signatures would be legally valid and binding.

            Specimen Signatures of Mr/ Mrs Ms are given hereunder for records

            Specimen Signatures of
            the afore-said Power of Attorney Holder/
            Constituted Attorney

            Power of Attorney Giver
            Dated : 07th August 1993
            Place : Bombay 400 049

            Signed and delivered in presence of the following witnesses



          • Thanks for the draft. At the court I was told to buy a Rs.500/- stamp paper for the same. You had mentioned Rs.100 stamp paper. Kindly let me know what to do.

          • At the court – who told you 500 stamp paper is required. As far as my knowledge goes, all affidavits were earlier filed on rs 200 stamp paper, which has been reduced to Rs 100 now. Pls double check with a lawer or Notary – to the best of my knowledge it is Rs 100

          • Thank you very much for all your help and guidance. I finally got the POA done as per your instructions. Rs. 100/- stamp paper was just right. The same is submitted too.
            It took us a long time to seek an appointment from the Secretary, he seemed to be too very busy. The committee has finally apologized.
            Thanking you once again. If I have any queries in future I will surely get back. God Bless.


    • Mr Ghosh, I am very sorry to say, but you are on slippery grounds. If it is a proper coop society you have a shop in – and they have been accepted donation from you – that is illegal. They cannot accept donations from non-members.
      In a coop society inheritence is not passed on – there is a legal formality and paper work, applications, stamp duty, registration to be formalised before you can become a legal heir.
      Yous over all situation is rather in a tricky state. On a personal level, if you can reach some compromise with the Managing Committe of the society will be very good and if you can get the terms in writing would be be ideal.
      In the worst case scenerio – the only recourse is legal – take a stay order against the society – so they cannot evict you and let it be a civil suit. It will continue for 20 years.. and you can decide what to do in the meantime.
      Strictly as per law – the society had no rioght to give you the place and you had no right to take the place.

        WHAT TO DO?

        • There is no concept of senior or junior member in a coop society. All are equal.
          Any member owning more than 1 flat does not mean he has more rights to the society than that owning 1 flat – in a cooperative all are equal.
          Whether one is a member of the managing committee or not, or whatever was written in earlier Nomination forms is now null and void – the simple fact now is that – Nomination form is a convenience paper for the society, telling the society whom to deal with, while a legal heir is being decided.
          YES – what does make a difference is THE WILL of your father. After submission of the will of your father, the Society will have to transfer the shares and the rights in the property in your name. If your father willed it to you – you will have his legal assets and liabilities.
          Submit an application to the society, along with the copy of the will and a copy of the Death certificate of your father.
          If they transfer it to you fairly and squarely, well and good, or else you will have no option but to take a stay order from the coop courts.
          Wish you the Best of luck. Hope the Society sees reason and transfers it to you.

          • WISH YOU A HAPPY NEW YEAR 2015.

          • Would you please consult a competent lawyer – your case seems more of a legal nature rather than under the Standard Rent Control act or Cooperative Bye-laws. Thank you for asking

  45. This is a good site and I thank all of those who take time to reply. I will also attempt to reply on any questions I have knowledge of. A questions from my side. We are the owners of a flat in a new building, for which the builder is delaying registration of our flat (We used have our own house before the building was formed). The society cannot get conveyance because we do not have registration and are threatening to penalize us – retrospectively – because the delay from the builder. We have documented proof that we have been following up with builder regularly and every which way with several reminders and visits. Can society fine us for the builder's delay? Thanks again for any help or comments

    • Your question is rather confusing. Main question – has the builder officially handed over the building to the flat owners. Has a proper Coop Society been formed.
      Has the land been transfered to the coop society.
      Has the society got 7/12 Uttara (certificate)
      Has the society got Completion certificate
      has the Society got Property certificate
      Has the Society got Building Completion Certificate
      Has the Society got occupation certificate
      All these certificates the builder is supposed to hand over to the interim office bearers of the society – before the official managing Committee takes charge.
      If any of these certificates are missing – be after builder’s life to get those certificates. By law, he is to provide you these certificates.
      I hope the stamp duty has been paid and the documents duly registered by the sub-registrar. On the basis of all these documents, your Society can approach the Collector and request him for `Deemed Conveyance’ – which can be later regularised by registering with the sub-registrar.
      Before proceeding any further, see that you have all the certificates. In the meantime keep pressuring the builder to give you the conveyance.
      Conveyance the most important document – without which the property is not yours – the land will remain the builder’s property till it is conveyed to the society

  46. i am staying in a rented flat since october 2013, during the same i gave a cheque of rs.5000/- for loading and unloading to the society as per their law. now that i renewed by leave and licence agreement for another 11 months the society is asking me to pay rs.10000/- as the loading and unloading charges which they have passed in their management meeting and is effective from 01 august 2014. Today was the registration done and at that particular moment after the resigtration the society manager informed us to pay the 10000 cheque to the society every year we renew the agreement which our owner was not aware. i would like to have the correct information whether it is legally permissible for the society to charge from the tenant such an amount on renewal. pls inform me and send me the comments on

    • I have answered your querry – in the following question. Depending on the Deputy Registrar or Registrar is no use – they are useless offices. Best recourse is extortion and blackmail and misuse of office and chair complaint.
      I have given you a detailed reply – somewhere – I can’t see it right now. If you can’t see it, pls let me know, I will write to you again.
      However in brief – NO – Please do not be bulldozed..what you committee is doing is absolutely illegal. Do not become a part of the illegal process. Remember – a bribe giver is as much guilty as the bribe taker. By giving to such extortion – you are becoming a part of the whole illegal process your society is following – and by not reporting or objecting, you become not just the victim, but a consenting partner to the whole illegal process.

    • Maharashtra Cooperative Act – as ammended in 2013 does not allow any charges to be recovered from members regarding the society.
      The society has no right to charge you loading/unloading charges in the first instance – or even in the 2nd instance. It is sheer black-mail and extorition.
      If you are brave enough and do not get intimidated by the tactics of the Managing Committee… file and FIR for Extortion, blackmail, harasment and misuse of the official position. Unfortunately most of the sub-enentas or even the flat owners give in to such unreaspnable demands of the Committee.
      Even any resolution passed by the AGM does not become law, if not allowedunder the Maharashtra Cooperative Act and Rules 1960 (as ammended in 2013). The AGM has no authority to pass any rule they please. This kind of rule is in sheer violation of not only the Act but Constitution of india – section 14 – which guarantees you a shelter.
      Hypothetically talking, If allowed under the Act, as required has it been incorporated in the bye-laws and registered with the deputy registrar? If YES – What is law and bye-law nos.
      At the most the Society can charge 10% as non-occupancy charges from the owner – 10% of the maintaenance charges only not the taxes (property and other such statutory taxes) – 10% of security, sweepers, salary etc.
      Our recommendation is have a heart to heart talk with the secretary/manager – and if they are adament, ask them to give you a receipt for the same mentioning why they are taking the amount and with the receipt file a Criminal FIR.

    • Depends – if the tennis Court is in the garden or play area – it is legal, but if it blocks the traffic or causes any kind of nuisance to any of the residents – it should be removed. In either case.. Since the tennis court would be utilising the common area belonging to the society, AGM’s prior approval approval is essential.

  47. As per the latest amendment to cooperatives societies act, a coopted member against a vacancy cannot, repeat can not hold an executive post. So rights are not same as elected member

    • You are mistaken. I hope we are talking of the Managing Commitee. A Co-opted member has all the rights and priviledges of an elected member – from the day of his co-option till the end of the Committee’s expiry of the term. A co-opted member can be an office bearer and even The Chairman or the Secretary. his has full rights as any elected member has.

  48. Hello,

    A person who has recently become a member of the Society can he speak in the AGM and can he propose or second resolutions in the AGM? If he cannot, what is the time span required for the same?


    • According to new bye-laws (2013) and Act – the moment the share certificate is signed – the new member has full rights and responsibilities of a full member. He however cannot contest the elections – for which he should have paid the monthly nmaintenance of atleast 12 months.
      However, to overcome this lacuna in the law, many new members pay the maintenance of 12 months in advance. it enables them to contest the elections.
      However there is no time period restriction for voting, attending the AGM,proposing and seconding resolutions, proposal forms for elections and is fully entitled to speak and propose or second any agendas.

  49. Hello sir we own two flats beside each other in a building. One is owned by my father and another by me. We have joined both the flat . Both of us are member of socity. Whether we our flat should be considered one or two while calculating maintenance.

    • For all technical are two different flat owners. Separate maintenance, lift or any other billing. The fact that you have joined two flats physically does not alter the fact that in building plans, and society records and BMC records – they are 2 independent units.

  50. I purchased flat in bank auction now society is asking many type of charges .
    .1. can soc deny electric connection ?
    2.what other charges soc can recover from seal and lock flat like maintenance, sinking fund, late fess, service charge, water charge, insurance, R.Fund after charging 21% interest ?.

    • For One.. society has no right to providing electric connection or not. Since you have bought the flat in a public auction – for which the society must have authorised the bank – the society is bound by the law to admit you as a member and provide you all the facilities due to a member – within 90 days of your having purchased the flat/shares/possession.

      As far as the second question is concerned, if the bank has not been paying the society dues, while the flat was in their possession – you will have to pay the dues. You should have checked with the bank and/or Society on this front. Now that you have purchased it – you are stuck with the previous liability. There is nothing you can do about it.

      As far as interest is concerned – most of the societies charge 21% interest on the defaulted amount. In your case, that is something you can challenge/negotiate with the society/bank… it is not your fault that the office bearers of the Society / bank were not vigilant enough to let the dues grow. The Society after 90 days – should have tried to recover the dues from the bank. And why was not bank paying the soity charges. After all the bank has the second lien on the premises – the first lien always remains the Societies.

      But my suggestion is, if the amount is not very high, pay off and settle the matter, because legal/litigation expenses sometimes might come to more than the original amount.

      Considering pros and cons – take your decision.

  51. This is very usefull website an eye opener for society related matters n queries. Sir i am staying in a society and my brother is the member of the society who is abroad since 5 yrs.Recently our society has passed a resolution to fine 1000rs to member for parking commercial vehicles in society.

    Since my brother who is abroad could not be present at the AGM . Can the committe directly fine the members without informing him or his family members .i had given the agenda by Committe 14 days prior to the agenda they had written “not to allow commercial any vehicles even if it belongs to owner/member” . Also we hav not yet recieve the minutes of AGM ,

    can the managing committe fine the member without informing them in case they do what shall i do ? Thank you

  52. I purchased the flat form first owner and registered my flat and paid the complete stamp duty before 02years due to financial conditions i was not able to apply for society membership, but now when i am applying for membership first owner has not submitted the form of application for society membership and No share certificate are prepared
    Now society is not willing to decide as the agreement has been registered 02 years back and we have file our Auditors report which shows there is no member but the collecting the society charges under the name of first owner and all my dues are regularly cleared so pl intimate which law or rules shall apply to transfer the share certificate under my name

    • It is a shocking lapse on the part of the Society. Few pertinent questions arise – in which everybody is at fault.
      Howcome the first owner never applied for the society membership.
      Who did the flat belong to
      In whose name the share certificate existed
      How come the society was able to issue you a NOC – when no previous owner existed
      How come you paid the stamp duty and registeration and the money when you had not seen proper papers
      Did you not see that the previous owner is not a member
      Many questions do arise.
      Since the stamp duty has been paid and the deed registered – the society will be well adviced to admit you as a member and take an indemnity bond from the previous owner that he has no right what soever on the shares and property and that he has transfered the same to you.
      It is in Society’s own interest the shares be allotted to someone at the earliest – in a cooperative society – no shares can remain unallotted/untransfered for more than 90 days.
      If your Managing Committee does not do so – they are committing an offence under the Cooperative Act section 146 – which can mean an imprisonment upto six months and fine – and for all the members of the managing Committee.
      All have been very negligent – sooner everybody rectifies the lacuna- better for all

  53. I have a flat with a garage in an apartment in kolkata.i pay the Maintenance bill every month alloted by the commitee but withput any notice they have stopped water sipply of my garage. When asked the reply is that they feel that the common meter reading is high.please help what can i do to start my water supply in garage again.

    • If you are paying your maintenance bills regularly – under any circumstances, the managing Committee// Society cannot disconnect your water and/or electric supply. These have been declared as essential commodities by the Supreme Court – and under the Essential Commodities Act as endorsed by the Supreme Court – No Body – REPEAT – NO BODY – except the statutory body like the municiapl corporation, police etc… duly authorised by the courts acn cut off your water or electricity.
      You Manaing Committee has committed a criminal offence for which an FIR can be lodged and Contempt of Court as well as misuse of position suits can be filed against them.
      In the best of interest of the society and everybody ask them to restore your water supply – else every member of the committee, under Coop act section 146 can be arrested and a minimum imprisonment of 6 months and individual fine upto Rs 10000 can be imposed.
      Hope better sense shall prevail upon your managing committee members

  54. I was a nominee to the house owned by my parents; upon their death I have submitted all documents to the Society which they have transferred in my name. I am currently residing outside India and it is impossible for me to make a trip to Mumbai, but the Society insists they cannot hand over the share certificate to an authorized representative and that I need to come personally to collect the share certificate.Please advise, my Society is in Maharashtra.Thanks.

    • The society technically is in the right – as the cooperative society does not recognise power of attorney and proxies.
      How ever in certain cases it has to make exceptions – yours is one such case. Either they can send the certificate to you by coureer/speedpost/ registered post – where they have the proof of delivery.
      The second is you go to the nearest embassy/consulate of India and sign a power of attorney/ letter of authority infront of the designated officer. The society is law bound to accept such a document and deliver the certificate to the designated person.
      Check up with your society, which option is acceptable to them. They are duty bound to deliver the certificate to you within 90 days of your having applied for the same.
      It is in the managing committee’s interest also, to deliver to you the share certificate.

  55. Hi wanted to know the procedure of transfer of shared certificate . If the flat is purchased from the first owner after formation of society and the shared certificate is in the first owner name how we get the same transfered to the new buyer

    • The flat in a coop society never gets sold – it is the property of the society. What takes place is the sale/transfer of shares pertaining to that premises.
      The first first owner will have to get a NOC from the Society. The seller and the purchaser will have to submit an application to seel and Purchase in Form 20-1, 20-2. After receiving the absolute NOC from the society transfer of money, signing of the agreement/sale deed, payment of the stamp duty, registeration have to be gone through.
      The seller will have to resign from the society in the prescribed form. And you will have to submite an application to the society for membership – along with the admission fees and share transfer fees and premium (which cannot be more than Rs 25000). Submit all the requisite forms asked by the society.
      Within 90 days, the managing committee has to approve and/or reject your application, and transfer the shares to you.

  56. hello sir

    First of all a big thank you for giving your valuable inputs and helping those who are in distress.

    Now coming to my problem, I have a shop in Mumbai which has a common toilet and no domestic water connection.For the last 3 years there is sewage water leakage in the corner of the shop(all drainage pipes from the above floor meet inside my shop and is covered with a wall) and the entire wall is dampen and infested with termite.

    The secretary bluntly refuses to get it repaired citing that it is an internal leakage.

    please let me know whom to approach in this case

    • Theretically.. you can approach the Deputy Registrar and the Managing committee/Secretary is duty bound to get it repaired on 33% basis – you pay 33%, the flat upstairs pays 33% and the society bears 33%. But it is easier said than done.
      Since yours is a commercial premises, it is advised, you get together with the flat owner upstairs and get the same repaired jointly – or even if you have to pay independty – do it, because it must be affecting your health and business.
      In a cooperative society the most useless and corrupt office is that of the deputy registrar. It is no point complaining to the reg office…it will take you a lomg long time to get your grievance redressed.
      yes in the meantime, if you want to take any action, write to the society 93 letters), to the registrar (3 letters) and approach the consumer Courts. It will be atleast 2 to 4 years project. But you can get part reimbursement of your expenses.
      So the best advise I can give is, write a letter to the society, copy to the registrar asking for your grievance to be attended to and then proceed to get it done on your own. I am sorry, theoritically there so many means – but poractically – nobody will help you.

  57. Hello Sir,
    I am a member in a tenant owner coop hsg soc (Maharashtra). We have purchased land, and are building flats. The land deal is done by the promoter on behalf of society. The promoter is now the chairman. My queries:

    – Considering its a TO soc, is it necessary to make a registered agreement (along with stamp duty) with society for all flat allocates?

    – Is share certificate, allocation letter and notarized agreement (100 Rs stamp paper) enough for legal ownership?

    – If above 3 docs are good enough, whats the difference in ownership rights when registered agreement is done?

    – If registered agreement is not done, is there any risk regarding to land and flat ownership?

    – Considering that there is no registered agreement does any single person e.g. Chairman/Secretary have rights to do any sell/purchase deals of the land/flats?

    – Can single member register agreement for himself for sake of security?

    • All cooperative societies – the ownership remains with the society. The promoter does become the chairman of the adhoc committee. But as soon as the the Society is registered withy the Registrar of Cooperative Societies, a regular committee will have to be elected and the present promoter headed committee will have to hand over the charge to the lected committee.

      Yes a Registered agreement is essential. The the previous owner has to enter into a written agreement with the builder/ promoter certifying that he is transfering the property to the builder/promoter. Yes stamp duty as applicable and prescribed by the Stamp duty office has to be paid and the douments duly registered by the sub-registrar of properties.

      To begin with, an agreement will have to be signed with the promoter that he his selling his interest in a particular flat/plot to you. On this sake deed again you will have to pay the prescrfibed stamp duty and it should be duly registered with the sub-registrar. Notary has no role to play in the sale of land. It is revenue department and the registarar only. At this stage no share certificate will be issued to you – you will get the amount paid receipt, stamp duty paid will be stamped on your agreement, and registrartion fees paid receipt plus documents will be given to you.

      With the registeration of the above agreement you have got the ownership rightsl. You are legally the owner of the Flat/ploit now.

      Registeration is now compulsory for all coop society deals. Anmd specially in the case of land transfer – it is most essential. And registeration is compulsory because the law in the courts recognioses only the registered documents – moreover in the local municipal records your name will bve entered once your documents have been registered.

      Rehistered agreement – First with the builder – transfering the land and building to the coop society is most essential. It is called the conveyance. Without this the builder/developer will always remain your owner. You will have no legal rights till the time the land is transfered to your name and duly registered..

      NO the secretary/chairman or anybody have no right to make any deals with anybody with the Annual Gereal Body’s permissions and resolutions. If any body tries to do so, the person is committing a criminal offence under the maharashtra Coop Act 2013 – section 146 – which can result in imprisonmenmt and fine or both.

      No, in a cooperative society a single member cannot register the agreement till the coop society has been formed, registered and the flat/;and transfered to the society.

      Pls see that the above formailities are complied to – or else, you will never be the owner of your plot/land/flat, despite having the so called papers.

      And pls note, Stamp duty has to be paid according to prescribed by the land and Revenue Department. Rs 100 is for just an affidavit ot declaration. However one might convince you he can get the stamp duty reduced – I can assure yopu – nobody can, at the junture you might have to pay less, but sooner or later, the authorities will recover the full amount with interest.

  58. our flat is registered in our name. share certificates r transfered to our name. We live in the flat. Its been 4 years now. A few weeks back the earlier owner of the flat complained to the society that he has not recd. any money from us. We presented all relevent documents to the society. v also produced written consent from other 2 earlier owners that they have recd. full payment n nothing is pending. (the flat was earlier owned by three of them)

    Yet the society has made a police complaint that owner of the flat is not known and v live in the flat.
    We were sanctioned bank loan against our flat which the society got stopped. IS THIS ALL RIGHT as per society laws??

    • The Society has no business to intervene – whether the previous owner has received the money or not. once the sale deed has been signed, Registered, transfer form signed, resignation to the Society by the previous owner submitted – The Society is bound to admit you as a member – which it has done by transfering the share certificate to you.

      The previous owner, if he has any complaints about non-receipt of money, can go to the police and file an FIR on his own. The Society has no right and should not intervene in such matters. By filing a complaint against you – the society is taking sides – which it is not allowed to.
      The society can definetely tell the Bank not to grant a loan against a specific premises – because the ultimate owner and the first lien holder is the Society – and no bank will give a loan without an NOC from the Society.
      You committee members are committing an offence under section 146 of the maharashtra coop Societies act – infringement of which is imprisonment and fine or both for the entire committee.
      Hence your managing Committee should be careful before entering into any litigation with the shareholders

  59. When my father in law was alive my wife's elder brother left the house and did not pay any attaintion to parents health from say around from 2002. I living abroad and started taking all responsibilities of my parents. My parents had transfer their flat in my wife's name and we paid full amount of flat to my mother in law with all legal procedure and stamp duty etc. but as they do not have any other place to stay and we are staying abroad we allowed them to stay in the same flat. Now since property pricing are going higher, my brother in law started coming to that house and now has a good relationship with mother in law and father in law expired two years before.

    The point is that now my mother in law and brother in law(herson) wants the flat back. and wants to pay the amount which I paid eariler while purchasing the flat or else they will go to court to get the flat back as maintainence is paid by her (mother in law) as they were staying in the same flat till now.

    Can you please suggest me some idea that if the maintainence is paid by my inlaws makes any sense that that flat belongs to them (as it is in my wife's name from last 10 years) but they paid maintaniance in society.

    • There is no process in law, where a property once sold, transfered and be taken back. Under no circumstances can anyone try to take your property, which is legally yours.

      If the society or anybody tries to interfere with your absolute ownership, you can always take a legal recourse.

      As far as your inlaws staying in your property, after selling you the same, it is on humanitarian grounds and by law in which one is required to take care of the elderly. They are just living with you and have no right over the property what so ever.
      Who ever pays the maintenance – since you have paid the legal market price and the property is transfered to your name – you are the absolute owner.

      Yes, if it was gifted to you or you had aquired it by any other means, then the acquisition could be challenged on inheritence grounds – but since you have paid for the same, no one can challenge you – not even the sellers.

  60. We bought a flat in my mother's name in 2003. We are staying there from last 11 years and paying maintenance charges regularly. Now, we have realised that the share certificate what we received from the previous owner does not show my mother's name. And when I approached the society to update the name the in the share certificate, the secretary is refusing and saying I don't know whether you have paid the stamp duty correctly or not. Register the sale deed and come. FYI, we had already paid the stamp duty in 2004 and the same has been affixed on the sale agreement. 1) What should be our course of action?

    • The Society is right. You should have got the share certificate transfered within six months of buying the flat. Since the shares have not been transferred, your flat remains in limbo.

      It is in your own interest to check up with the stamp duty office, as to what is the current rate of stamp duty in your area – and pay the difference. Thereafter it is compulsory to register the deed.

      Having done so, submit a copy of the uptodate stamp duty paid, copy of the registeration receipt and a copy of the sale deed, along with a fresh application form to the society. Who then will have to transfer it to you within 90 days of such complete aplication received by them.

      Revised, up-to-date stamp duty and registeration is mandatory for all coop societies now

  61. AIDEC World. Awesome work. This is the first website I am visiting where replies to queries are posted, til the previous day’s question. Awesome Awesome!!

    I too have a question.

    Only 20 out of 38 members of our society have a sales agreement signed by Builder/Promoter. 18 members are promoter members with a letter from CIDCO, Navi Mumbai, stating that the following members as per list attached are accepted for formation & registration of CHS. Therefore no stamp duty, registration charges have been paid.

    To get deemed conveyance what document shall these promoter members submit in place of sales agreement.

    Thanking you for your time

    • Yes.. If the land has been transfered/ conveyed to the proposed society, these promoters agreements from the builders can be used to form a Registered Coop Housing Society. Sometime, the land will be conveyed only after the registeration of the society. And at the time of registeration and possession – do not forget to take all the relevant docvuments – 7/12 uttara, BCC – Completion Certificate, OC – Occuption Certificate, Property card and other documents your legal experts ask for.

      Thank you for liking and appreciating our efforts

  62. I am having flat in a building having 20 members and till date builder not registered it as CHS for day to day mtce some 3-4 persons from bldg form a comitee. I have given my flat on rental basis so they demanding 850 p.m. as mtce charges bt from other owners charging Rs.700/- p.m.. Can you tell me is it correct and if not to whom i will complaint

    • Unfortrunately since the society has not been formed, you are not covered by the cooperative act. Since you are not a tenent, you are not covered by the Rent Act. You are at the mercy of the builder or the statutory courts – not the cooperative, but regular judicial ones – which takes ages and ages in civil cases to come to a decision. Best is for you to amicably and politely settle the matter with the builder or his representatives. He is still the ultimate owner of the property – till conveyed and the society formed

  63. Hello Sir. I am a dentist and has a shop in society. I am legally a member of society and pays all maintenance on time. I have requested society to provide water connection in my clinic for treatment of patients. As you know that for our profession, we dont require much more water. Can you please let me know by which rule society cannot give water connection in our dental clinic(shop)

  64. I made kitchen into a study room hence it has no water inlet there.water inlet is removed.but society is charging me for it .society also charged me for all the backlog.
    Is it right when the bye laws say charge according to inlets.

    • No the society cannot charge you for the same. But you did have an inlet there – so voluntarily you should offer to pay for the time you used the water. The inlet theory is obsolete – even though bye-laws refer to to it – in practice it is hardly followed anywhere.

  65. My question is in registered society can other than my flat owner give the parking slot of him to me ? M a tenant and the parking of other owner is empty he is whiling to give then society or member has any right to stop me using that parking ?

    • Yes – all the covered and open spaces are the absolute property of the Society. Any transaction – even a parking space, if the member is agreeing to allow you to park – an NOC has to be obtained from the Society. Because the parking space’s owner after all is the Society and the other member is a mere user/tenant

  66. respected concern,

    Please do reply on urgent basis. The society has levied charges in respect of collecton of fire protection charges. I would like to specify that society had not taken consent before starting fire extinguisher work. Can society levy charges afterwards directly.

    • NO – every item – essential or non essential has to be approved by the AGM or the SGM before levying any charges.
      YES – the managing committee has the powers to pass a resolution to levy and charges – if need on an extremely urgent SOS basis, but then they have to regularised and passed and rectified in AGM or SGM. If the Managing Committe is unable to get these charges passed, it will have to refund.
      Agreed Fire extingisher, Fire protection is an essential part of society maintenance, but how, when where and how much – has to be discussed in the general Body and then the charges levied on to the members.

  67. I hav purchased a flat in building under redevelopment.. Agreement is duly registered in my name nd builder has given noc nd dues certificate for the same. However builder hs nt provided any possession letter nor informed erstwhile society to admit me as a member. Now builder is demanding ransom money for the same. Society is demanding same ransom money to be paid to them instead of builder because they hv outstandings to be collected from builder. Further I hv taken physical possession the said flat irrespective of possession letter nd hv done some renovation work against which society has objected to nd cut my water nd power connections.. Please advise whether society can do so? What is the remedy available to me? Thanks

    • Seems you did not do proper paper work before signing the agreement. The builder as well as the society have not right to charge you a single rupees extra – over and above what has been agred to in writing.
      Your best would be talk to the society and the builder politely once again, and if they still insist upon their black-mailing tactics – and you have any evidence that they are doing so – approach the Deputy registrar and file a FIR for with police for Brachmail, extortion, breach of trust, cheating,non-fulfillment of promises and also floutingof the consumer protection act.
      PLEASE NOTE : This you can do if you have any concrete evidence against the builder and/or the society. Please also note that this sometimes can turn nasty and violent with the builder using his goondas to subdue you. So be careful.
      You can request the registrar to dissove this uscuplous committee and hold fresh elections. If a builder owes some money – you are not responsible – the Committee members are supposed to repay such losses to the society from their individual pocks. Read section 146 of the maharashtra Coop Act
      As far as cutting water supply and electricity – the builder as well as the society has no powers to do so. Water and electricity are essential services covered by Essential Services Act. These can be withdrawn only aftera judicial court asks the police or the Municipal Corporation to do so. If any society member or managing committee member, or even the builder, dares to do it – file a criminal FIR immediately – Not only the individual but the whole Managing Committee, or the builder himself will be personally and legally responsible for this criminal act. If they are threatening to do so, you may inform the society committee as well as the builder in writing of your Rights under the Consumer protection Law and Essential Commodities and Services Act. A copy of this letter may be submitted to the police station also, for their reference and records

  68. Would like to know if there is any rule according to the CHS law in Mumbai which says that buyer of a flat who has applied for a loan from a bank has to make the payment only in the PRIMARY SHARE HOLDERS NAME & not in the name of the associate member .even though both persons happen to be owners of the property

    • In Cooperative societies, even though the shares belong to 2 parties – the loan by the bank is given to the first named party in the share certificate. The second named party is the Joint holder or Associate holder/member. Though for repayment both are equally responsible – both are equally liable for all society’s outgoings and other matters – but unfortunately such is the law. Cooperative Act recognises the first name holder only – the second comes into picture if the first named holder has liabilities. Ironically for assets of the first named holder, a succession certificate will have to be produced

  69. I live on the 1st floor of my society building.Water leakage took place from my bathroom onto the ceiling of the garage below owned by another member. I hd never carried out any repair/ rennovation in the bathroom.The fault was due to the fact that the end of the drain pipe from the wash basin in my bathroom did not reach the nahni trap (from where the water on the floor is drained out into the mail drainage pipe of the building.This fault ( short pie length ) was introduced at the time of construction of the building itself. The leakage stopped when an extension was given to the drain pipe so that the water draind out into the Nahi trap. Who Should the total cost of repair since the leakage was the result of construction fault?

    • If the leakage has taken place from your premises due to your carelessness – the onus of getting it repaired is on you. Though some societies have a sharing arrangement, which to my logic is not correct. The repair of terrace however is the society’s responsibility.

      • The leakage was not due to any carelessness on my part.As I had explained the drain pipe from the wash basin was short and did not reach the Nahni trap releasing the water on the floor instead of the Nahni trap resulting in seepage through the floor tiles,underlying bricks , cement layer etc.As I have said the defect was a fault introduced at the time of construction of the building. The drain pipe is buried 1 and 1/2 feet under the floor. I had done no renovation repair work at all in the bathroom so had never done anything so the question of carelessness on my part does not arise. Can I be held responsible for bad quality of construction?

    • Yes. But the time period elapsed between the resolution first passed and its reversal by the 2nd committee – should be minimum six months. There need not be any logical reason for reversal of the decision – as long as the majority of the members present pass the resolution and the resolution is within the parameters of the MCA Act and all the laws

      • With reference to your answer above:- The actual case is like this:-One member 'A' was not satisfied with the decision of the Managing committee, but did not approach the 'Competent Authority' as per model bye-law 173 of MCHS act to contest the decision at that time itself . He waited for over year till the tenure of this Managing committee is over and a new Managing Committee is elected and formed and then raises the objection to the decision of the previous Managing committee. If this new Managing Committee changes the decision , then it means the new Managing Committee is sitting on judgement of decision of the previous Managing Committee; i.e it takes the mantle of Competent Authority.And that means any number of subsequent Managing Committees can go on changing the decisions of the previous Managing committees with no end to it.Then it means none of the decision of any Managing committee has any validity. Isn't this violation of bye-law 173 ?

  70. I need your guidance on following:-

    In 1984 my mother purchased the flat by her own name and become member of the society.She was also in member of committee for some time.
    However,in 1992 with written request to secretary/chairman she asked for my father as an associate member.The MC and AGM passed the resolution and made by dad as an associate member.Also my mother gave written consent that my father be no. 1 at share certificate and she at no. 2 accordingly share certificate changed and she requested so that my father can take part in election and become office bearer. From that period to now my father is MC and duly elected time to time also remain secretary for some time.
    Now in 2014 some members have taken objection that my father can not be in committee as original flat purchase agreement is in the name of my mother only (though after written request of mother my dads name put in share certificate for no. 1) Therefore he is not eligible for MC and lodged complaint at Dy registrar.

    Please guide.

    • Your mother purchased the flat and the flat was in her name. She participated in managing Committee – being the first member. She asked the managing committee to add your father as an associate member – Upto this point it is okay and all legal.

      However, under no circumstances can she or the Society’s managing committee make your father THE FIRST NAMED MEMBER. For him to become a first named member, your mother will have to gift the flat to your father, Gift duty paid, registeration, and thereafter application to the societyfor your father to be first named member. Hereonwards – it is not only irrergular but illegal too. Under vno circumstances can your rfather be promoted to the first named member from an Associate member. Your mother, your father and the managing Committee have all jointly committed a blunder under the Cooperative Act as well as indian Land & revenue Act. Sooner you get everything regularised – better for you.

      As to your father becoming a member of the Managing Committee even while being an Associate member – the law permits him to not only join the Managing Committee but even hold the office of Chairman, Secretary or Office Bearer.

      By law, Ofcourse your mother has to give in writing that he is authorised to do so – he can do anything and everything the first named member can do – except sell, lease or mortgage or do any deed in which the first named member and the society is likely to suffer a loss. And incase, knowingly or unknowingly he does so – the first named member – that is your mother will have to reimburse the losses thus suffered

  71. In January 2013 the old managing committee took a decision to distribute expenses on repair of water leakage from bathroom of my flat onto the ceiling of garage below owned by another member, equally among the two of us members and the society in the ratio of 1:3 . The leakage was due to fault introduced at the time of construction of the building and I had never undertaken any alteration, repair or rennovation in the bathroom or adjoining area. The other member did not want to bear his share but never approached the competent authority against this decision any time during the period the managing committee held the office. Later a new managing committee was elected later after a period of about over 1 year and 6 months this member was co-opted as a member of the new managing committee on the resignation of one elected member. He complained to the newly elected managing committee which changed the decision of the previous committee and asked me to bear full expenses after over 1 year and 8 months. The reason given was that there was no precedence of such decision and that the member had refused to pay his share. Does the new managing committee have the powers to change the decision which adversely affects me? Does this not amount to breach of contract? Is this not joint manipulation by this member and the managing committee?What is the remedy for me ?

    • The new managing committee has a right to change the bye-laws of the previous committee. But in monetary matters like this, the managing committee has no right to change the laws – without the approval of the AGM

      The new Committee cannot ask you to bear the full cost. The usual practice and the unwritten law in coop societies is 1/3. If the member below your flat is not paying – it is the society’s responsibilty to recover from him. They cannot change the laws and ask you to bear the full expenses.

      Moreover, even if the person concerned has become a member of the managing Committee, the laws are very clear about the member not being present in the meeting, if the matter being discussed concerns him. And he is not allowed to vote in the managing committee on such an agenda. If the managing Committee is insisting about your bearing the entire cost, you can approach the deputy registrar not only to redress your grievance, but complaint against the managing Committee for acting in a partisan manner, benefiting one individual

  72. A couple members in our CHS, Vile Parle (E), Mumbai have a flat each in their respective names. They want to purchase one more flat from the existing member of our Society. Is there any bar/restriction under the Society by- laws that they cannot own third flat in our Society?

    Our CHS is to shortly undertake external/common area painting of Society shortly. The total anticipated expenditure is assumed to be about Rs 26 lakhs. Is there any legal compliance that Socity should issue public notice and call for tenders from the contractors?

    • There is no bar on a member or the family members owning flats in a society – as long as they meet the membership criteria. Husband, Wife, XChildren – or even a single person can have multiple units in his name.

      As far as the painting and the estimated budget of Rs 26 lakhs is concerned – yes there is a stipulation that you will have to advertise in an english and a vernacular papers calling for tenders. The managing Committeee will then deliberate and call the shortlisted people for interview and later go to examine the previous work done by the contractors.

      This all should be communicated to the members through a circular.

      It is not essential that the contract has to go to the lowest tenderer. A person with a higher quotation can be allotted work – provided his work is of superior quality

      In the file, you should have minimum three competitive tenders – who has quoted for the painting job.

  73. In our cooperative Housing society in Mumbai, two elected members of the Managing Committee have resigned.One of them was the chairman and the other was the secretary. They were replaced by co-opting two new members.Now the treasurer of the MC is holding the posts of chairman and secretary in addition to his post as the treasurer. Can one person hold three posts of the Managing committee? It is not expressly clarified in the model bye-laws. If this is nor regular, what is the remedy or the society members?

    • You should not have allowed the treasurer to hold all the three posts. Call a meeting immediately – and though on temporary basis – elect a chairman and secretary. The Managing Committee cannot remain and run without the Chairman or the Secretary.

      The coopted members are also allowed and eligible to be considered and elected as Chairman and Secretary

  74. In my flat agreement is in the name of my father and mother now I want add my name to the agreement what is the procedure. I want to do this as my society says I cannot be a associate member as my name is not in the agreement . Now due to age my father has a hearing problem so I want to attend the meetings and take part in the society matters. please guide me

    • This is the most ridiculous excuse i have heard. Under no Circumstances can your name be added to the Purchase Agreement of your flat. It could have been done at the time of payment of Stamp Duty and Registeration. The only way the agreement can be in your name – is your mother and father gift you the flat – and for that you will have to pay gift duty, registeration and other charges. Best thing would be ask your mother and father to make a Will and Register it at the Court of the sub-Registrar. Simultaneously ask your mother and father to jointly file a Nomination form in the Society in the prescribed Form in triplicate nominating you as a member after their demise.

      As to your being admitted as an Associate member of the Society – there is no law which states that you have to be a joint purchaser and mentioned in the agreement. All you have to do is submit an application to the Society in the prescribed form – cosigned by your mother and father declaring that they have no objection to your being admitted as am Associate Member. However, in the normal course you will be an associate in name only.

      However, if you wish to take active interest in Society affairs, your mother and father will have to submit an affidavit (NO STAMP PAPER REQUIRED NOW) – declaring that due to ill health, they cannot participate in Socity’s activities, hence you are authorised to all deeds and actions – including contest managing committe elections and even become an office bearer like Chairman, Secretary or Treasurar.

      Your Managing Committee is absolutely in the wrong and asking you to do things not required by law and themselves doing things not allowed by society bye-laws.

  75. Query:

    in case of resignation of secretary and chairman, in maximum how many days should the committee execute a re election?

    Thanks in advance for your suggestion.

    • 30 days – the bye-laws stipulate that the managing Committee election should be held atleast once a month. No managing Committee meeting can be held with The Chairman or The Secretary (or temporarily nominated for the meeting)

  76. We have two wings in our Society – Wing A and Wing B. Wing B is a brand new building constructed in 2004 and Wing A was extedded by about 4 floors after redevelopment. Members of Wing A say that they have a VERBAL commitment from the Developer that all open parking spaces belong to Wing A. They dont have anything in writing from the Developer. I have been residing in Wing B since 2004 and have been paying parking charges since then till date. Due to shortage of parking in the Society, a member who has recently shifted in Wing A, wants a parking space, and I am being asked to vacate my parking space which I have been using since the last 11 years and paying charges fopr the same regularly.

    What is the legal position ? How can somebody who has recently shifted into the building be given parking space at the cost of a User since the last 11 years ?

    • The moot question is – if wing A and B – whenever constructed – are they ONE Coop Society. IfYes – then it is immaterial when one has occupied the premises or where the car is parked. A will have a right to park in B and B will have a right to park in A

      Your Managing Committee is being unreasonable – cannot say illegal but unreasonable – the unwriutten law is first come first serve. Since you have been parking for last 11 years – it is unreasonable for them to ask you to vaccate – however, it is not illegal – as they are bound to reshuffel the parking spaces every year.

      Any verbal understanding with the builder regarding open spaces or parking spaces is not binding on anybody by law

      Best way out for you would be to have a talk with the managing Committee.

  77. I have some dues to be paid to society. Society has charged interest on the principal. Now when I am paying the money, will they adjust principal first or interest? Can they adjust principal and interest on pro rata basis?

    • Once the interest has been added to the bill as arrears, it has also become the principal – so when you are paying, if you paying a lump sump, the amount will be deducted from your whole bill – as and when you keep paying, the same principal will apply. There is no provision in law for the principal to be paid separately and the interest to be paid separately.

  78. khanolkar j a
    I have been alloted a flat on 29/06/1989 in a REgd Chs registered(sub classification- Tenents Socoiety) on 26/06/1989. I have been also alloted a Share certificate on 03/07/1989. I was not a promoter member at the time of registration. Now some of the members say thatwe shouldhave a "B" tenure for our flat. P;ease clarify that whether "B" tenure is necessary as it involves a cost of around Rs.25000.00 perflat

    • Since you are not a Cooperative Society, you seem to be an Apartments Types Society – where everybody is the co-owner. Since you are not a promoter – they must be asking you to contribute an amount by which you can become the owner of your apartment.
      In a cooperative society, even after purchasing and allotment of shares, the flat remains the property of the Coop Society. In your case, you will be the actual owner.

  79. Sir, Please clarify…. Flat Sale Agreement is in name of 'A'. After Society formation 'A' manages to have his wife elected as Society Secretary (after becoming associate member and paying Rs 100/-) and later enters the wife's name in the Share Certificate. Whether this can be challenged ? Regards Khanna

    • It is perfectly legal and permissible under the law and bye-laws. An associate member has all the rights as much as the first named member. The only condition is that first named member will not and should not be allowed to participate in any of the societies activities. ONE FLAT – ONE PERSON ONLY – is the standard law.

      Even though the first named member will remain a member of the society, his wife will have to participate in all decision making processes. Both cannot be there

    • in which manner of “associate member” are legally allowed i.e. by

        Gift Deed as per law
        Power of attorney is not valid for Coope Societies – unless the person getting the power of attorney is an associate member.
        Any body can become an associate member (not necessarily a blood relative or a family member.) To become an Associate member, fill up the required form, and submite along with an application fees of Rs 100.
        The managing Committee will scrutinise it and admit the applicant as an associate member. If the Associate Member wants to stand for elections and do all deeds as per the first member, the first named member has to give the associate member a power of attorney and inform the society that henceforth, the first named member will be inactive and the associate member will represent him – and all deeds, documents signed by the assoaite member will be binding on the first named member.
        However the associate member cannot enter into an agreement for sale of the shares or property and the associate membership will automatically cease, in case of death or resignation of the first named member.


        Yes the wife can become an associate member.
        She has to apply in the requisite form along with an admission fees of Rs 100. That is all

  80. I want to ask u question

    without occupation certificate take possession is illegal but in our building members are taking possession and form co op hsg society it is legal?

    Now society is doing plastering and painting work now land owner is taking objection against work land owner said to society still he is land owner because still conveyance on his name land owner have right to take objection

    • YES… As to occupation Certificate – that is issued by the BMC and 90% of the buildings in Mumbai do not possess the same. I really still have failed to understand why the Builders as well as those members of the Society taking charge from the builder – do not insist upon the same. So even though legally, OC is an essential requirement – but most of the people overlook.

      However your second point – that the land owner still lays claim to the property – he is right and has every right to. Before starting construction of the building, why has the builder not signed an agreement and a conveyence deed with the land owner. Till the time the land owner signs the conveyance deed and the land is first conveyed to the builder and then to the coop society, legally the land owner remains the owner of the land. There is nothing you can do about it. And the tragedy is you society members can do nothing about it – because first the land has to be conveyed to the builder as parcel of land and then the builder has to convey it to the society as a building with ownership of land. Try to settle the matter amicably with the builder and land owner. If you go the legal way – through lawyers, it will be very costly

  81. Now my another question is our society register in 2001 but at present we have not oc if anyone ask to registrar under rti act about document registrar can cancelled the society?

    • Registrar has nothing to do with the OC – Occupation Certificate is the job and perrogative of the Corporation. In the absence of the OC and necessary permissions and conveyence, the BMC can even demolish the society.

      As far as Registrar is concerned, as long as the Society is Registered with the Registrar of Societies, he has no business to interfere

      Just see that your official documents like OC, /12 Uttara, Conveyance, Property Card are all in place.

  82. Our building had no Occupation certificate. Still society have rights to give contract of plastering and painting work without permission of MCGM

    • Any major expenses have to be approved by the AGM or SGM and minimum three tenders on record. OC has no role to play in repairs or upkeep of the building. It is the Society and the Managing Committee own perrogative in what condition to keep their society

  83. Sir,
    I purchased a flat in Feb 1973 from the first allottee. I repaid him his down payment made to the promoter/developer and have a letter from him acknowledging receipt of the payment and transferring his right, title and interest to me. The application for society formation was made in August 1973 showing the first allottee as member by oversight. The society was formed in Sept 1973. In Nov 1973 deed of assignment was made reflecting my name as the owner.However the share certificate issued in Oct 1985 showed the name of first owner on the face of the certificate with shares transferred in my name on 24.9.1973. Now after 42 yrs the parent society is asking for transfer premium saying that since the name of the first owner is on the share certificate, it is a transfer and I have to pay transfer premium. I explained to my society that thiss is not a transfer since the transfer took place before the society was formed but they are not ready to listen. The society has now included this transfer amount in my monthly maintenance bill and is pressurising me to pay the same.
    Please help.

    • Society is wrong. Whether this committee or their predecessors – have made a blunder – which this committee is bound to rectify. Infact they should be begging you to do the needful instead of asking you money for it.
      In law there is nothing called over-sight, it is a criminal offence – the property is mis-appropriated…. and the Managing Committee… present or earlier… is solely responsible for it.

      Ask them to do it amicably, or you’ll have to report the matter to the Deputy Registrar and the MC can be in trouble for flouting of bye-laws as well as a criminakl case under IPC for extortion

      • Pl let me know what corrective action can the society now take. Can they re-issue the share certificate to show my name as the original owner? Since the registration is made in the name of the first allottee, will there be any problem for me? What is my standing with regard to my property? What should I write to the society?? Pl help me.

        • Yes the Society will have to reissue the share certificate correcting the anamoly and give you in writing that they had made a mistake. You can write to the society pointing out the bye-laws and the mistake the managing committee has made

          • Thanks for your quick reply. Could you please let me know what section of the byelaws can I point out to the society. Also, will a different name in the application for registration form and the deed of assignment cause any problem?

  84. Sorry, one more fact I forgot to mention – The construction of the building started sometime in Dec 1972 and the building got completed only in Dec 1975 and possession was given thereafter.

    • That does not have any relevance. You Managing Committee has erred and they have to rectify their mistake. It is as simple as that.

      That cannot include this amount or any other thing (which has not been passed in AGM or SGM) in the bill. They are at liberty raise a separate bill if they so desire. Including in your regular bill and showing it as arrears is highly imporoper.

  85. Hi,

    What is the exact difference between Completion certificate and Occupancy certificate? Who issue these certificates, whose responsibility is to get them, is there any time frame to get them and what are the consequences of not having them?

    • Completion certificate is given by the BMC certifying that the building has been completed and adheres to the approved plans. It can be without fixtures – without electrical wiring etc
      Completion Certificate is also issued by the BMC. This certifies that the building is now complete in all respects, is of stable quality and fit for human occupation.
      Though both these certificates are mandatory/compulsory for the builder to obtain, before handing over the posession. But 85 to 90 percent buildings in Bombay do not possess the same.
      Not possessing a Completion Certificate, Occupation Certificate and Conveyance – the building, legally is illegal and can be demolished – Bombay’s Campa Cola is a case in point

    • Completion certificate is given by the BMC certifying that the building has been completed and adheres to the approved plans. It can be without fixtures – without electrical wiring etc
      Completion Certificate is also issued by the BMC. This certifies that the building is now complete in all respects, is of stable quality and fit for human occupation.
      Though both these certificates are mandatory/compulsory for the builder to obtain, before handing over the posession. But 85 to 90 percent buildings in Bombay do not possess the same.
      Not possessing a Completion Certificate, Occupation Certificate and Conveyance – the building, legally is illegal and can be demolished – Bombay’s Campa Cola is a case in point

    • Thanks a lot for replying.

      1) You are talking about BMC but are these certificates applicable for the housing societies in Pune also?
      2) I hope in your reply above second definition is for Occupancy certificate?
      3) Please reply about the time frame by which these certificate should be issued?

      • I am not talking about the BMC – I am talking about ANY BUILDING – including a cooperative housing society… and these certificates have to be issued by the BMC.
        Yes Occupancy certificate (OC) is the last one to be issued by the Corporation allowing the Flat Owners to occupy the building
        Theoretically these certificates/documents have to be obtained before the occupation of the building. Otherwise there is no time frame

  86. I am a owner of a flat in 6th floor in co-operative housing society mumbai, i have a servant staying with me as there are no separate servant quarters in society. Sometimes during free hrs like in evening my servant comes down and use to sit/walk in society premises open common area as we and other society members/family do. Also there is common washroom in society premises open area which is used by watchman and other people working on commercial shops of our society and my servant is also using that washroom. But few members of society make objection of sitting or walking of my servants on society open common area and using washrooms by him. please suggest and guide is my servant can not use society common open space and washroom?

    • What ever you and your servant is doing is perfectly all right and is not in contravention to any bye-laws of the society. However as a safeguard, you should submit to the society an application that you servant is living with you and enclose his photograph and police verification papers.

      If police verification papers and the application is missing from society records – and God forbid something untoward happens – you can be in massive trouble.

  87. Sir

    I and my wife owned a flat in joint name in Mumbai. I have two daughters whom i have nominated with proper formalities.

    Now i want to make my wife the sole owner of the flat & i want to delete my name as the 1st owner.

    Please advise the complete procedure.

    Waiting for your reply.


    • The nomination does not affect the ownership in any case. Moreover the nomination comes into affect only after the demise of the first named member. However, be careful, these days just the nomination form is not enough – leave a proper will for your daughters, so that they do not face any difficulties later in life.

      As to the fact that you wish to transfer your flat to your wife – there is only one option – Gift. After the first named member’s demise, the survivor can get transfer of one residential property free of revenue taxes.

      But if you wish to gift your flat to your wife – the chargeable rate of gift tax is 1% of the Market Value (Ready Reckoner value) PLUS Rs 30000/- as Registration fees.

      For the society this will have to be treated as internal transfer, hence no transfer fees will be applicable. However you wife will have to pay the share transfer fees plus the application fees for the society.

      As to the Income Tax liability – a gift is taxable in the hands of the receipient – that means IT applicable if any, will have to be paid by your wife.

      I would suggest, instead of gifting and all the complications – make an iron clad will (no need to go to a lawyer – whatever is in your mind, write it down) – have two people witness it and register the will. As per new laws, no stamp paper is required and the registertaion cost will be anywhere between Rs 100 to Rs 500.

  88. Hello ,

    I am from Mumbai , My question is that , I purchased a flat from a developer , in March 2012 ( Possession Letter / Registration , society formed in March 2012) , And I started paying amount (for Flat) in installments from the month of OCTOBER – 2011 to the Developer (flat was in possession of developer ), All advance Maintenance charges for a year has been Paid in Advance to the developer , and I was paying ALL my Maintenance Regularly to SOCIETY , but SUDDENLY after 3 Years , my Maintenance bills are showing Arrears of " Previous Dues" of those 5 Months (Oct ’11 – Feb ’12 ) , of which i was not in possession or Occupying the Flat , it was in possession of developer , i was SHOKED to see that ,

    NOW society is saying that , one has to pay the charges from the date of OCCUPATION CERTIFICATE i.e. in October 2011, I was not been informed about that amount from the developer i purchased from and also NOT even from Society in this 3 Years , BUT Society is saying that they got list of " Previous Dues " from developer , but in 3 YEARS we were NOT been INFORMED about it ………. ?

    Now WHAT should I do ? , should I pay for those 5 MONTHS …. ? of which I was NEVER Been told / Informed in Last 3 YEARS …. ? or Should I ONLY Pay for Municipal Property Tax of those 5 MONTHS , and do not pay the rest of the amount ….. because I was not in possession or Occupying that FLAT ….. Or Should I NOT PAY any amount towards those " Previous Dues " … ?

    Please Advice .

    Thank You

    • I am afraid your Society has been lax in taking possession from the builder and have not taken proper accounts and papers from the builder/developer.

      From the day you have signed the agreement with the builder/developer, whether you are occupying the flat or not – all expenses encurred are divided equally among the purchasers, till the society is formed. And all the accounts are handed over to the new society.

      It seems your builde/developer has shown expenses for those months, but not handed over the cash received receipts to your society.

      Under the circumstances unless your managing Committee canobtain a certificate from the develper/builder that you have paid him for those months – you will have to pay again for the lapse on the part of the develper/builder and/or the provisional managing committee who took possession of the premises.

      Have a talk with your Managing Committee and/or builder also – if they do not agree – you will have to pay. However, if you have any receipts that your have paid this amount to the builder – then you can submit the same to the Society clarifying your position that you have already paid the amounts.

  89. Hello!

    My question is, I have a shop in a registered premises society in mumbai. I am the first occupant in the building. I came to the society in 2001 and the society got registered in September 2011. Till august 2011 we had an outstanding amount of Rs.42000 which we were paying to the ad hoc committee to look after the society affairs. now in 2015, the society is demanding and forcing me to pay those 42000 pertaining to the time of builder I.e before the date of formation of society.

    Can a society charge maintenance which belongs to period before the date of formation??? please let me know the conclusion to this whether I am liabe to pay legally, whether the outstanding amount is legally due on me. I don’t know what the law says so please let me know that should i pay or no and what is the clause in the law which say so.

    please help me as I am in a tough situation.


      However one major question arises –
      why the Society was not formed.
      Any ad hoc committee cannot exist for more than 6 months – howcome you allowed an ad hoc committee to function for 11 long years. Did you or any other members ever raise any objections.
      I am afraid your Society has been lax in taking possession from the builder and have not taken proper accounts and papers from the builder/developer.

      From the day you have signed the agreement with the builder/developer, whether you are occupying the flat or not – all expenses encurred are divided equally among the purchasers, till the society is formed. And all the accounts are handed over to the new society.

      It seems your builde/developer has shown expenses for those months, but not handed over the cash received receipts to your society.

      Under the circumstances unless your managing Committee canobtain a certificate from the develper/builder that you have paid him for those months – you will have to pay again for the lapse on the part of the develper/builder and/or the provisional managing committee who took possession of the premises.

      Have a talk with your Managing Committee and/or builder also – if they do not agree – you will have to pay. However, if you have any receipts that your have paid this amount to the builder – then you can submit the same to the Society clarifying your position that you have already paid the amounts

  90. Hello,

    would like to get advice from you. The outstanding amount of Rs.42000/- is due till date which belongs to the time before the date of formation. M not denying to pay the outstanding amount but I just want to know whether the outstanding amount is legally due on me. Because the society can charge maintenance only after the date of formation and not on outstanding amount before that. How can the society claim the money which does not belong to the period before the date of formation.

    Pls advice.

    Thank You


      From the time when you have signed the agreement with builder and the Society is formed – the builder takes the maintenance from you.

      If you any proof of this amount having been paid to the builder, then you can produce the same to the society. If not you will have to pay to the Society. The Society takes charge of the premises with assets and liabilities from the builder. Any unpaid amounts to the builder – the society can recover from you,

  91. I leave in co-op soc. With 241 member. AGM of the soc. was held on 27 th sept.2014. MC purposely noted wrong minutes of the resolution passed but there is no such resolution was passed. In that context I have raised my objection but they are not responding to that. Tell me what are the remedies aviable to me.


      This is a very common practice – many managing Committees or AGMs do it.

      The simplest recourse for you is to lodge your protest with the Managing Committee that such a resolution was not discussed and hence you are not bound by the same and are not compelled to adhere to it.

      After 30 days send a reminder to the society that no response is means that the point raised by you is deemed to have been accepted by the MC.

      After this if you wish to take further action, ask for a photo copy of the minutes (not the circulated ones – but the ones noted in the register). The Society is legally bound to provide you a copy on payment of photocopy charges.

      You can write a letter to the Registrar with the copy of the photocopy of the recorded minutes, circulated minutes and your letter. But frankly – approaching the registrar would be a waste of time. So better keep quite and not adhere to the defective resolution.


      It will depend on the Development Control rules formulated by the Municipal corporation of nagpur. In all probability – it will be required.

  92. Hello!
    My question is, there are 19 members in a premises society in which i have a Shop. The society is in process of issuing share certificates to the society members. In the sample share certificate format it is mentioned as Authorised Share Caital Rs.100000/- divided into 2200 shares of Rs.50/- each. Now the Bye-Laws of society which were originally registered with the registrar are lost. So bye-laws adoption is in process. So Is it correct to print the line "Authorised Share Caital Rs.100000/- divided into 2200 shares of Rs.50/- each" in the share certificate? And the share capital collected at the time of formation of society is Rs.12100/- and entrance fees Rs.900 as per the record. So is it correct or will it cause problems regarding the authorized share capital. I would also like to inform you that the paid up share capital is Rs.11000/-.
    Please give me your valuable inputs.


      Your question is very technical – and concerns more with shares and capital rather than Cooperatives.

      How can the society lose the original Registered Articles/memorandum. have they lodged a police complaint for it ? Have they applied to the Registrar of Societies and/or Registrar of Cooperative socities (they are 2 different organisations)… One can always get a photo copy from either of the two organisations. It is most essential that your society applies for a copy of the same – without that the society is in trouble.

      As to the printing on the share certificate … it has to match with whatever was written and registered at the time of registering the society.

      I fail to understand if the registered share capital is One lakh Rupees – howcome 2200 shares of Rs 50. This makes it one lakh ten thousand Rupees. Something is wrong somewhere.

      The subscribed capital is always less than the authorised capital.

      For clearer picture of the financial aspects – pls consult some CA who will be abke to guide you better

  93. Hello,

    I am planning to buy a plot in a bungalow co-op society in Pune. The builder told me that I would not get an individual 7/12 extract but instead would get membership of the society. Would this create any problems if I decide to sell the plot in future?



      The builder is right. This being a cooperative society, only one 7/12 Uttara is issued – for the combined free hold land, which will continue to belong to the Society. Just be careful that when the builder hands over the possession of the Society to Society managing Committee he hands over and transfers the conveyence, property card, Completeion certificatie and the 7/12 uttara transfered to the society.
      No you will not have any problems while selling – because what you will be selling is the shares of the society – and just right of posession to the bunglow. It will be a very simple affair – as simple as when you transfer a flat in a cooperative housing society

  94. hi, I invested in an apartment complex floated by a cooperative society. Now, all but one block are constructed. However, the construction of the last block, which is where my flat is, is stalled due to lack of funds, and apparent bungling of finances by the society management. We see no hope of construction getting completed. The management is allowing possession of completed flats by other members, even while the EWS wing is also not complete. We do not know how they got the occupancy certificate! Our EMIs are however going and we have paid up between 95 to 100% of the costs. What are our legal options? Can we ask bank to freeze our EMIs till construction resumes?

  95. Hello Admin,

    I want to ask about subleting charges. it can be charge AD hoc society also or only Registered society can charge the Subleting Charge.please advice


      Yes the Society can charge sub-letting charges – it is called – NON-OCCUPANCY CHARGES which can be a maximum to the tune of 10% of your total monthly bill.

      The society can levy extra parking charges for a sub-lettee – for example if the parking charge for a member is rs 300 per month, for a sub-lettee it can go upto Rs 500 to 600 PM – but in anycase not more than the double to what is charged to the members.

      No other extra charges are to be paid to the Society. however the BMC may increase your property tax – which is and when done – you cross the bridge when you reach it.

  96. Hello admin,
    We purchased flat in society which has around 370 flats divided in 9 buildings. Builder gave contract for 3 years of maintenance during purchase of flat base on first completion of each building. This resulted some of building having maintenance contract ended 2 years back and some in 2015. Few members whose contract was completed 2 years back created temporary volunteer committee while builder was still managing other buildings. Now when all buildings contract is over, without any election or providing option to members of building whose contract ended in 2015 to join committe, builder gave hadover to old that committe which is applying many slefish laws and trying to misuse funds for their own benefits without disclosing details and opposing to do elections. Please advice in such case what legal action can be taken to dismental that temporary committee of limited building and opt for fresh elections for new committee with all buildings involvement.


      You are in a very peculiar position – you are not yet a registered coop society hence outside cooperative laws purview, some members have taken charge and are living and maintaning the building – hence outside the Builders Association or BMC purview and since the building has not been handed over to proposed members officially – you are outside the purview of the judicial system also – unless you have some brilliant lawyer – and frankly – a brilliant lawyer today might be more expensive than what you might have to pay….

      The option for you is Form a union/ ad hoc committee, and write to the builder to hand over the buildings to and the registered society to this committee – along with all papers and accounts. If need be include Chartered accountants and lawyers (if you have some as members).

      This will not be easy – but if the members are united, will have to bull doze their way into the taking charge of the proposed Society.

      For your guidance I might point out that
      No ad hoc committee, elected among yourself (builder has no right to appoint any) is supposed to function for more than six months.

      If the charge cannot be taken from the builder within six months – the term of this committee might be extended for another six months. But after that this committee has no right to be in office and a proper election has to be held.

      If it has not been held so far – then the ad hoc committee is in violation of bye-laws and have committed an offence under section 146 of Cooperative laws – which is punishable with imprisonment upto sex months and a fine upto rs 10000.

      But the million dollar question is again = Are you a Cooperative society…??

  97. Our is a 12 storey building in Mumbai suburbs with shops on ground floor and flats from 1st to 11th floor. The entry to shops and resident is separate and distinct. Further the electric and water meter are separate. The shop owner are charge heavy amount on account of residential flat. My question is can we have separate society formed for administration each for shop and flats. Please give ur valuable input.

    • No. Earlier times the BMC used to allow – as in the case of Heera Panna. But of late the practice has been discontinued, because the land and the conveyance belongs to the coperative society – and it is too much os a complicated affair to separate out the land fom the main 7/12 and property card.

      However the shop owners and residents can sit together and come to a reasonable compromise. All said and done – shop keepers have to pay may more than (sometime double the amount) than the residences. And even though the shops are situated on the ground floor have to pay lift monthly charges and lift maintenance charges.

      However some societies charge extra for water supply to the commercial premises – they can do so only if the Municipal Corporation is charging them extra – otherwise they also have to pay the same rate for water as the residents.

      Items which can be charged extra to the shops are : Security, parking only. For all other charges they are to be treated at par with other residential members

  98. Sir l leave in CHS …and my dad&mom joint owners of flat. I want to take NOC from society because of passport clearance.

    I am still 21.

    There is registrar in our society so board of adminstration does not grant me NOC because from last 4 year we are not paying maintenance of society .

    We not pay maintenance on the ground that they wrongly charge parking charges e.g we don’t have any vehicle or car but they still charge parking in bill receipt.

    So I want to know on above matter I have right to get NoC or Not.

    Or either I take legal action on board of adminstration.

    Give me sir better advice

      The society will not grant you an NOC. The laws are very clear about one thing – under no circumstances, the member can withold the payment to the society. Since your parents have not paid for last so many years, the administrator is within his rights by refusing to grant the NOC

      Any legal action, or approaching the registrar also will be of no use – since the law is very clear again on this subject – In case of any dispute, pay first and then challenge and claim a refund

      The best way would be to sit with the administrator, explain him your whole situation and reach a compromise. You have no other go – as for the purposes of passport, residence proof is essential, which in your case can be obtained from the Society only

  99. Mumbai.Sir i have purchased commercial premises but there Is no water connectionin it.

    As I use this premises for coaching I need water.

    i have made aplicacation to society since one month but no response.

    And sir bathroom toilet and kitchen is allowed in such premises. Please advice.


      Whether a commercial or residential premises – the society is duty bound to provide you water connection in every premises. Yes, it is a different matter – you might have to pay for the installation charges.
      If the society still refuses to do so – you can write to the society and tell them if they do not get it done on your own.
      As far as bathroom in a commercial premises is concerned – theoretically speaking, every premises should have its own bath/toilet – but then the society has to permit you to make the alteration with BMC permission.

  100. Dear Sir,

    I am a unit holder and a committee member of a premises society in Mumbai suburb. Recently the registrar has sent us a letter stating that the committee is disbursed and the day to day working of the society will be taken care of by a administrator. Out of the 5 managing committee members 3 are associate members including me.

    As a member I want to know what steps we can take to avoid any administrator appointment and we can take back the charge of our society.

    Please share your helpful views.



      An associate member has full right be a Managing Committee member and an office bearer.
      The Registrar in the normal course will not send an Administrator without someone having complained of mismanagement.
      The Deputy registrar has every right to dismiss a legally elected managing committee on receipt of persistent complaints from members or a joint petition against the Committee.
      The Registrar will appoint an Administrator to look after day to day affairs of the society in the absence of any elected managing Committee. And the Administrator is duty bound to hold the elections and form a new Managing committee within a period of six months
      And while leaving, the Administrator is duty bound to hand over the complete charge of the papers/documents and accounts to the new office bearers and the committee

  101. Dear Sir,

    I am a unit holder and committee member of a premises society in Mumbai suburb. Recently the registrar has sent us an order stating that the society’s managing committee has been disbursed and an administrator has been appointed to look after the day to day working of the society. Out of 5, 3 members are associate members including me. So as a committee member what alternative we have so that we can challenge the decision of register. What action can we take to reverse the registrar order and put a stay on appointment of an administrator.

    Pls guide me.

      Yes – you have every legal right to take a stay order from the cooperative court against the appointment of the Administrator.
      My personal view is that the litigation is very expensive and cumbersome. Let the Administrator be there for 6 months and then see that the society is run properly, efficiently and smoothly – as per the maharashtra Cooperative Act

  102. Sir wanted to know that if a society is unregistered

    and a Plot is in name of society with chief promoters name

    then on death of promoter can his legal hiers be owner of such plot.

    and that plot is from 30 years in possession of chief promoters and his hiers

      Yes. For it to be called a society and the members have any legal right to ownership, the plot has to be transferred to the Society, otherwise it remains the propertership of the promoter and/or his legal heirs.

  103. My society has multiple cases where 2 individually sold flats we pre modifed before posesstion as one flat and center wall was removed and i some cases the second door as well. So infact they purchsed 2 adjacent flay and modifed as one from inside.

    How do we charge monthly maintanence? Consider then 2 flats or 1?

    What us a leagal answer we should give to grevience received from such owners?

      This has been done in atleast 2 flats in a cooperative society. It is perfectly allowed under the BMC rules – the only thing is that it has to be done under proper architectural supervision after due permission from the BMC

      As far as combining 2 flats and converting it into one – that cannot be done – because legally and in the Building development plans and under the property tax – it remains as a separate unit.

      But showing it as 2 separate units is profitable for the society, it gets everything double – lift charges, security, water, electricity and everything the owner will have to pay as the next door neighbour.

      So my personal feeling is and even the law says so – that there is nothing wrong in it – and on the contrary benefits the society


        NO – in the tenant ownership society – the flat owner is the part owner of the land owner too. The Managing Committee and the Society is just a caretaker and management and governing council – has no ownership rights. Here all the ownership is of members and the bills also are addressed to the members.
        In the case of ownership society – the Corporation is supposed to send bills to the individual owners. If the BMC is addressing it to the Society, that is bad in law and should be brought to the notice of the billing authorities in the corporation

        At the most they can ask the society to collect the property tax on its behalf from the members and deposit in government treasury. At the most the Society in ownership case is a fascilitator and not the owner

  104. Our Newly constructed Society is having 2 wings , A wing having 7 Floors & 20 Flats occupying Area of 8400 CARPET sq. Ft. & B Wing having 14 Floors & 27 Flats Area Occupied 16900 CARPET SQ.FT. TOTAL CARPET AREA OF FLATS 25300 Sq.Ft.

    A wing has one small Otis lift( Capacity 4 Pepole ) for which running monthly Charges are Rs 5000 per month & Annual Maintenance is Rs 52000 . B Wing has .2 lifts of Schindler ( Capacity 10 People) ,running monthly charges are Rs 20,000 & annual Maintenance charges of Rs 2,25,000/

    Society wants to distribute distribute these charges

    Society wants to distribute these charges of Rs 3,04,000 Sq. Ft wise to all Members. Where has Members of A Wing want it to Distribute these charges Wing wise in-terms of Bye Law 69 (a) (iv) equally by 20 Members residing in A Wing. Kindly advise.

      NO – it cannot do so. It will have to be distributed pro-rata basis – but wing wise only. Whatever expenses encurred on Wing A will have to distributed among Wing A members and similarly all the expenses of Wing B…including the maintenance and electric bills – will have to be paid by members of Wing B.

      The society cannot subsidise one wing from the income of the other wing. Even water, electricity etc should be paid by the members as per the expnses of their own wing.

      • I have come across a similar situation. My society consists of 3 wings of 27 floor buildings (3 buildings). 2 wings are of 3 BHK flats and have private lifts opening in their homes and have total 166 residents, 83 each; there are total 8 lifts in these buildings, i.e. 4 each. Third wing has 3 lifts and 110 residents. Currently there is only one meter for all 3 buildings connected to the lifts.

        There is a dispute on the mechanism for distributing the electricity charges consumed by the lifts. 2 wings with 4 lifts each have the argument that this is a common electricity charge, hence as per model bye laws of Maharashtra (97th Amendment), these are service charges, and hence to be shared equally by all flats. Third wing with 3 lifts and 110 residents have the argument that these are not common electricity charges and in fact are per building charges as the no and nature of lifts are different; per building charges fall under Any Other Charges and hence can be fixed by society general body. The proposed structure by third wing is to divide these wing-wise and then to be equally divided by the no of flats in each wing, currently this is a proposed division by 3 as the electricity meters are not separate.

        Kindly advise what is the right legal interpretation and how the billing should be made legally.

        • For full details, I would recomend you go throught:

          COOPERATIVE SOCIETY BYELAWS MADE EASY by HK Verma at Amazon.Com. It costs less than 100 bucks and is readable on your mobile or PC. You will get answers to most of your questions

  105. Asked u before about open plot of unregistered society.

    We lost matter 3 times

    now going to appeal in mantralay

    can u suggest some points while will help us in matter.

    Other members of society are objecting For name of legal hiers in that property


      Unregistered society is legally not a society, hence has no legal status.

      What you should try to do is – whatever land and buildings you have get them registered as a society at the earliest then lay claim about other matters. Without registeration, you have no legal standing what=so=ever

      See how mantralaya can help you. Best of luck

  106. In our society some members are not paying monthly maintanes charges from last 3 to 4 years and done unlegaly construction in society common plot

      Send them notices under section 101 of the Maharashtra Cooperative Societies Act
      Follow it up with a reminder after 30 days
      Follow it up again with a reminder after 30 days
      If still no action – hand over the matter to the Registrar, who will recover the Society’s dues with interest by auctioniung those flats.

      As far as illegal construction is concerned, if it is a major one – report to BMC requesting them to demolish. if a minor one, demolish by the society’s workmen, after due notice.

  107. Dear Sir,

    Recently an administrator has been appointed in our premises society and after the appointment he has given some papers to society office for change in signatories in the society bank account. My question is, can an administrator do so and operate society bank account? and what are the other things he can get under his control?


      YES. The Administrator is a one man Managing Committee. And he will be there till next elections are held. Though he is suposed to attend the office everyday at a certain time, he might come once a week or once a fortnight.
      An Administrator is the worst thing to happen to a society. Take care. Ask your co-members to wake up even now and become a real cooperative.

  108. For How many years can CHS appoint a same external auditor ? Should he be from registered panel of Auditors ? If yes since which year a paneled auditor is mandatory ? Where to check weather his name of external auditor is included on the panel of registered auditors or not ?
    Many thanks for this facility of solving queries on CHS matters.


      An external auditor can be appointed in a cooperative society for a maximum period of 2 consecutive years. His appointment has to take place in the AGM – and the AGM cannot pass on its responsibility to the Managing Committee.
      His appointment terms and conditions also have to be presented to the AGM for approval
      The auditor has to be from an approved panel of the Registrar. the list is available with the Registrar’s office..or even the auditor can tell you/show you his approval letter from the registrar

  109. Our Apartment at Chennai consists of 14 flats each of them are properly documented and registered But the Association is not yet registered although the apartment is 26 years old.. Few owners are interested in registering the Association and few of them not.. I would like to know what is the latest rule in this for registering the Association … Even if majority willing to register the association and if its done, whether the Byelaws in the document registered will be applicable to those who are not part of the members in the registered society…. Please reply to this querry and help out

      The Society/Association, compulsorily has to be registered with the Registrar. since you already have a majority, who want to register the society – better do it fast. not doing it is unlawful.

      By registering the society, the bye-laws you submit to the registrar, will be applicable to all – including the members who did not agree to the formation of the society.

  110. Sir I bought a flat in Malad 1 bhk on the 21st of Feb ’15. The flat was divided in 2 flats with a wall and had 2 entrances. Work started sometime in March 1 week. Lots of breaking and remodelling had to be done and work is still on. Today 22nd April the secretsry s husbands barges in and tells me that how much longer will the work go on . The noc given to u is time bound and people in the building are complaining bout the hammering etc. I live on the 5th floor and also I ask the workers to stop work between 2 and 4 cause the Secretary requested me to. I am abiding by the rules told to me so how can the Secretary s husband come and tell me that they might call a society meeting and have my house remodelling work stalled incase I dont finish it soon. It’s only been 2 months and in these 2 months 2 walls had to be broken and 2 walls had to be constructed plus a bathroom had to be remodelled. All that is done so why am I being harassed. Can the Secretary along with other members stall my house work if it is delayed by a few days not months! And is the noc time bound?? Need answers sir please. Thank you.


      I hope by remodelling 2 flats into one, you have taken Architectural and Structural Engineer’s consultation, and the due permission obtained from the Society and the BMC. These are most essential, else – your entire remodelling/alteration will be considered illegal.

      As far as the society asking you to stop work between 2 to 4 – most of the Societies have this bye-law, so that the children, senior citizens and those who snooze at the time do not suffer due to noise pollution. The instructons are usually not to stop work, but do noit do any work with marble cutter, drilling, hammering etc – which produces noise. Your workers can continue with noiseless work.
      Your Secretary’s husband has no locuii standing coming into your house. If the Secretary or Managing Committee has to convey anything to you, ask them to put it in writing and send you – and you also reply in writing – so that a proper paper trail is left of the permissions granted and denied, objections raised and solved.
      Two months is a long time – you should ask your workers to hurry up, before other members also start raising objections. Work delayed by few days is understandable, but a few months certainly not. You should try to rush up
      Yes the Managing Committee, if other members raise objections can stall your work and issue you a stop work notice.
      Would repeat again that since you are breaking walls and remodelling the bathroom – please consult some architect/engineer and also write to the society giving them a time frame as to when your work is likely to be completed

      • There is renovation of bathrooms going on in my house (only tile change and bathroom fittings change). Today police came to the house and demanded the work be stopped. A neighbour complained about the noise and that he has an ailing father in the house who is getting disturbed. We have NOC from the society for the renovation work and also follow all rules such as no noise between 2pm to 4pm and no noise on Sundays. Please help on what action or permission can be taken so that the stalled work can be completed. Work for about 3 to 4 days is pending to complete the tiling and fittings related drilling work

        • KIND ATTN : DISHA

          You can continue the work…. as long as it complies with the stipulations set by the sociiety and the the Municipal Corporation. Just see that when the time cutter or other high decible cutters are used, the windows remain shut so that the dust does no pollute the outside air and the noise does not disturb the whole society.
          lso compulsarily you have to give high decible work an off betwen 1 (or 2 ) and 4 (you can continue with plastering or fiting workks) and close at 6 or 7 – as stipulated by your society.

          Even if the neighbours complain to the police, the police cannot take any action as it is permitted by the society.
          Further information, you may please refer :
          by HK Verma
          It costs less than Rs 100 and will answer all your querries and guide you how to go about. It will be readable on your mobile, PC, Laptop or even a tablet. It can be a permanent guide to your cooperative society problems

          • Thank you for your reply. However, the police said that they will not see any society NOC. They threatened that if there is any work with noise they will take away the equipment and levy a fine. Please could you let me know a way out of this? Can I get an NOC from the Police? What is the procedure? Should I get any legal opinion? It seems that this particular neighbour has connections with the police and BMC and is simple harassing us. Common law abiding citizens like us have no way out of such things. A few days back he even got BMC officials at our place for inspection – they found everything to be in order. Inspite of that he called the police on the basis on noise nuisance. This is just going to create a huge hassle for us and our work is stalled.

  111. Hi,

    Under what circumstances can the voting rights of a member be curtailed by the committee? Are there any specific procedural steps that committee need to perform before taking such action?

    where can a member challenge such action by the committee?

    If the committee has curtailed voting rights (under challenge by the member) and there is a no confidence motion being passed. Does the said member has right to cast his vote. It would be very helpful if you give reference to bye laws and/or section of cooperative society

    Thanks in advance




      The Managing Committee cannot curtail Voting Rights of any member. The law is very clear about it – A memeber has a right to Vote.

      If the managing committee has any grievance against some member, there are ways and means by which same can be addressed. For example – a defaulter can be served with 101 notice… and the outcome will decide whether the person is a member or not.

      As long as the person’s name appears on the share certificate, the managing Committee or even the Deputy Registrar cannot stop a member from voting.

      However from your letter, I am surprised – if a No-confidence motion has been in place against the Managing Committee – how is it conductng the elections. Any such elections would be illegal.

      Moreover, according to the revised Maharashtra Cooperative Society’s Act – the election now have to be conducted by the registrar.

      Approach the Registrar. He will appoint a Presiding Officer and make arrangements to conduct the elections in the Society. The outgoing Managing Committee has no say in the matter. This election if challenged – will be held null and void and illegal.

  112. Sir,

    I have a flat in ulhasnagar, Thane, Maharashtra.

    Our cooperative society audit was going on,

    It takes time as auditor says.

    We want to install security system in our building. If it is allowed during audit process.


      Audit is going on for the last financial year – or even if the current financial year – audit has no connection with the installation of the Security System. The Society/Managing Committee can have it installed – audit or no audit.

      In fact installing a security camera is now compulsory for all cooperative societies. It is not in the laws of the Coop Society but instructions from the Police Commissioner and local Police.

  113. Dear Sir / Madam
    Kindly advise us on the following matter.
    * Society has entered into Development Agreement with the Builder in 2007
    * This plot belongs to MHADA and lease to Society for 99 years
    * Builder has gone into liquidation in 2014
    * In this case how do we cancel the development agreement with the builder and appoint new developer
    * There is a arbitration clause in the agreement
    * Society has already sent Developer Agreement Termination Notice in Jan 2014
    * Society has also made an application to Registrar of Society to appoint new developer.
    * The proposed buyer of the flat other than existing members have put an stay for appointment of new developer
    * In this case, please advise how do we appoint new developer.


      I am sorry, your society is in such a mess. This is a completely a legal matter – and I do not think you would be able to come out of it without litigation (not withstanding the arbitration clause)

      Yes first and foremost – you should see that the builder’s liabilities are not passed on to your society as well – then it would be a difficult situation.
      Involve MHADA (not that it helps anyone – but you can try)
      All the best of luck to you and your co-members

  114. hi in our society I was sec for 15 years and I have resigned from the post of sec and whole commistee submited resign to dy registrar and registrar appointed 3 person as adm board for a period of 3 months and after one year election was held and these 3 persons along with 2 other persons were elected un opposed and after taking ffice they are harassing the exsec in paritcular. some resolutions were passed by violating byelaws during adm board tenure. Now sec has made a mind to sell his flat and the buyer wants to take loan and requires noc for it. The new commitee has penalised teh sec and informed that resolutions were passed few months back and it is implemented now. the new sec has also made an illegal encroachment by extending his ground floor flat. it seems they r harrassing using illegal means to defame and penalise without any regard to byelaws & laws. please guide me properly


      Your society seems to be in a big legal mess. The whole thing has to be sorted out from the begining.

      To begin with – who allowed you to be a Secretary for 15 years – that is illegal. The third term of your Secretaryship – all decisions taken by you become null and void.

      The registar does not appoint a 3 man committee – it appoints an administrator, who will hold the elections. In the elections, anybody is allowed to contest as per the Bye-laws and rules – is allowed to contest. The only safe guard being that those conducting the elections and the retrning officer cannot contest and be coopted at a later stage – in the committee they were instrumental in forming.

      If anything is happening, the Managing Committee is exceeding its powers (please approach the registrar – pardon me, but that will be a waste of time), and same is the cace with cooperative courts – but you will have to go through the formalities – or go to the High court directly to redress your grievances.

      The best way would be some sane people from the Society and the managing committee sitting together and sorting out the problems. If you decide to go in for the legal process – the cost will be phenomenal – and the cost of both – the defendent and the prosecutor will have to be borne by members.

      So try to sort out the matters among yourself. Or take advice from an impartial person, who will arbitrate.

  115. Our society is registered society . We have 4 flats with terrace and builder was charging maint. charges for the terrace. Now we can charge maintenance for same terrace which was purchased by flat owners.

      Terrace maintenance is 50% that of the covered area. yes you have to pay the maintenance as well as the property tax for the same.

      Only one flat will have to pay these charges not all the four flats

  116. My mother a senior citizen is living in a flat for the last 45 years. She has an enclosed garage not under the main building but within the boundery walls of the society. Ad per the rules all building over 40 or so years have to be certified by a civil engineer. Her building underwent lots of external and internal repair work. Her closed garage was also repaired from inside but the outside beam/ column and chajja which is in a bad shape were not repaired cos the society said it is hers. Is this right or shd she repair it at her own expense


      Since the premises is within the society premises – whether a part of the main building or not – it becomes a part of the cooperative Socicety.

      And it is the responsibility of the Society to take care of external and internal structural repairs. Beams, columns and Chacjjas are definetely part of the Chajja – and the responsibility of the Society.

      Since your mother is a senior citizen (perhaps) – since she is staying there for 40 years, it would be good to write a letter to the Chairman/ secretary to get the need ful done. If need be send photographs along with the letter (should not be difficult with a camera in every phone these days. No ned to take a print, just insert the same in your letter through the MS word.

      If the Society does not pay heed, send another letter that if the work is not done, and the society fails to fulfil its obligations towards members, you will be compelled to get the repairs done at your own cost and deduct the same from the subsequent billing.

      Please ensure that you have a Received proof by the society on both the letters.

      And if the society does not get it done. get it done on your own. With the monsoon just about a month away, you cannot afford to take a risk.

      It would be safe, if you could send a copy of both the letters to the deputy Registrar at Mhada also. Not that he will do anything, but just keeping the authorities informed.

  117. My father put my name as the nominee in the housing society nomination register, I have a sister,and my mother alive, Am I owner of this plot ? If not, what purpose of nomination?


      Nomination in a cooperative society means – the person authorised to deal on behalf of your family with the Society.

      However, incase of your father’s demise, you will have to give an undertaking to the society that you will abide by the Will / Sucession Certificate – in which other legal heirs get their rightful share.

      The best way to deal with such an issue is that along with the nomination form, your father gives an undertaking/affidavit to the society that the the shares and the rights and title in the capital of the society be transfered to you. In your case if your mother and sister can give an undertaking to the society waving off their claim to the property – you will become the sole inheritor of the property.

      This in no way effect other properties and/or moveable or immovable assets. they would still be continued to be governed under the law of succession and inheritence – equal share among all the legal inheriors.

      The purpose of nomination form is to make it easy for the society to identify the person with whom it has to deal next…

  118. Hello. We charge interest only on balance principal outstanding (simple interest). If a defaulting member makes partial payment, should the same be adjusted against principal or can it be first adjusted against outstanding interest. In the first scenario, defaulting members take advantage and pay only principal and when the interest figures reach extraordinary height they request for waiver citing financial difficulties. Waiving off will set a wrong precedence for others. What is the remedy for society here?

      You are doing the correct thing by charging Simple interest on the principal amount only. As per law, a coop society is not allowed to charge compound interest.
      If a person makes a partial payment, the amount should be deducted from the total outstanding. it cannot be done on pro-rata basis. Suppose a person has 11250 outstanding in January and pays the society a partial payment of 2500 on 18th of jan. So the simple way of Mercantile accounting is ; 11250 – 2500 = 8750. So the month for february would be
      Rs 8750 Plus the interest for the month of january.
      Rs ???? Bill for the month of February.

      You can not accept only the principal. The payment has to be adjusted against the total outstanding.

      However, please remember one thing – The managing Committee, the General body or nobody has the powers to write-off / waive off any interests, which have been already billed, accounted and audited. Any waiver of interest or any other amounts due to the society can be done by the Deputy Registrar and Joint registrar only.

      Financial difficulties or not – a cooperative society is a collective movement – where everybody shares equal burden of the maintenance and every other matter. Waiver of interest or any thing else – makes it illegal – and not a part of the cooperative movement. If A pays 10 Rs per sq ft, even Z has to pay the same. It is not allowed that G, or R pay Rs 9 per sq ft. That would be against the collective spirit of cooperative movement. If a member is really in financial difficulty – the other members can come together, pool in funds, on a personal level on behalf of the particular member and pay to the Society on his behalf. The society will officially be not involved in such a collection drive and no receipts can be issued for the same to donating members.

  119. Dear Sir

    Pls advise me for below

    When i was chairman (New society), during my period of 18 months, I had prepared the Share Certificates. (with the help of an auditor) . Filled the Certificates & kept with us

    Due to some circumstances, we were unable to distribute the same to members. Then a new committee formed. We handovered all the share certificate to New committee for distribution.

    In our Audit report this is mentioned that share certificates were prepared by this commiitee

    When members were asking for Share certificates, they were giving excuses for first six months, After that, they have printed New SC & started issuing the same

    When some members asked, why signature of new committee is on this certificates, as it was prepared by all committee.

    They said that since there were some misprint hence printed new SC

    Then I checked the new & old SC, but there is not a single line mistake, they also printed same as it was by me

    Then started giving excuses that in some SC, old committee overwrite the names, hence changed the SC. Then one other members said there are some blank SC, then you should prepared that one, for such small mistake, why new SC printed

    There is no answer from them. They said, we will pay the printing charges.

    Its not the question of printing charges. Its prestige issue, there is no value of old comm members who worked hard.

    Can any action can be taken on such matter. If so then pls advise

    Thanks & regard

    Manoj jain
    email :


      If the certificates were printed and signed by your committee…the committee folowing you should have distributed the same.

      Issuing of the certificates by the new committee is illegal. Suppose I had bought the flat in January 2014. How can the new committee which has taken over in 2015 – sign a share certificate supposed to be issued in 2014. It is completely illegal and criminal.

      If there was some flaw in the printing of the previous certificate, this committee should get the new certificates signed by you and your secretary at that time.

      Otherwise the certificates will be considered fraudulent and null and void and all the society members will suffer in this battle of egos.

  120. I purchased a flat from the builder in 2011. The project was completed in 2007 and many flats were already occupied.

    At time of purchase we only registered the agreement of sale and were to pay the balance registration charges at the time of sale execution after society formation.

    The society was formed in 2014.. the builder handed over empty accounts and buildings that badly needed repainting, non functional pool and generator. He also informed that there flats owners ( who had purchased in the intervening period) has executed their sale seeds.

    Now even a year later the conveyance deed hasn’t been executed. The society secretary on being questioned says that the 3 flat owners who have executed the deed are a legal problem. They have collected the balance registration amount over a year ago.

    my questions are

    1. What are the builder’s responsibilities at hand over

    2. What legal problems can arise if the society executes the conveyance seed ( regarding flat owners with already registered deeds.

    3.What happens to the interest earned by the registration amount collected over a year ago.I paid a substantially larger sun as my purchase was later and of a higher anount

  121. Hi,
    In Mumbai installing grills outside the window is a very common phenomenon. We call it for safety purpose but indirectly we occupy space as much as we cud so as to use that space. I would like to know it is whose responsibility to maintain the area that lies between window and the grills. (CHS or the owner installing the grill). This the dispute we are having in our CHS and as a chairman, I wud like somebody to clarify me
    Thanks alot

      The concrete wall between the grills is the responsibility of the Society. Everything concrete – External is the responsibility of the society And everything within your carpet Area (or Built up) is the owner’s responsibility. Just make sure your grill does not spoil the beauty of exteriors of your society and does not cover more than 12 inches space

        • KIND ATTN : A RAKESH

          The AGM cannot pass a resolution going against the MC Act. If it has passed a resolution which is contrary to the act – it is illegal and null and void.
          The AGM cannot pass a resolution of 50:50 sharing for external maintenance/ repairs of the building. The external and common areas like lobbies, lifts, staircases – repairs are 100% responsibility of the Society. For internal (within the flats) such a resolution can be passed.

          Visit Amazon.con and get yourself a copy of Cooperative Bye laws made easy. Priced under Rs 100 – it is an excellent source of information and will solve your day to day querries

          • Sir in that case all those who have extended their premises (carpet area) externally, which is another a upcoming trend, is illegal as it amounts to encroachment of the building space. Thnxs for ur reply and guidance.

          • Kind Atnn: A Rakesh

            Yes that is correct. The open space provided by the builder has to remain open. Any encroachment is violation of the FSI and is illegal.
            You are most welcome – if satisfied by the replies

  122. Dear friend,
    Our building is more than 100 yrs old. In 2006, in AGM we decided to collect funds for major repairs. We informed our secretary that we will immediately pay , only after the contract is finalised and we see that work is going to start. But we received society bills , with interest levied on the major repair fund. We complained to the secretary about interest, but of no use. In 2012, AGM, it was discussed that repair will start soon, so we pay our share of repair , on which we reminded to secretary that from begining we said we will pay only after repair starts, so why this interest. So it was assuted that thge interest will be waived & we will send new bills. Immediately we paid the repair funds, but again they added interest on the previous balance in the bills. We wrote to the secretary again & again , reminding about the 2012 AGM, and his promise.but he flatly refused thgat he did not commit anything.since 2012 we are not paying the society bills, as the compounded interest is Rs 1.5 lakhs.approx. now the secretary has sent us a letter , threatening to take legal action. Still the repair work had not started. Kindly advice.

      You may write to the Chairman and secretary collectively about the resolution. And if they continue to charge interest, you may collectively write to the Chairman/Secretary and a copy to your external auditor.

      If it does not bring any result, call a special AGM and question all the Managing Committee members, why resolutions passed in earlier general Bodies are not being implemented. If they still refuse to come to their senses, file an FIR for extortion, black-mail and register a complaint with the Registrar under Section 146 of the Maharashtra Cooperative Societies act. This section, the whole managing committee can be hauled up, fined Rs 10000 individually (from their own pockets) and can result in imprisonment of upto six months. Hope this will bring your Managing commmittee from their ego trip.

      You can send the entire managing committe a notice also – under section 146 – specifying that the following members plan to initiate proceedings under this section against the Committee – and entire cost, consequences will be individual and personal responsibility of the Committee members.

  123. Hi,
    My society charge me a penalty of Rs. 1000/- against non submission of my vehicle papers in society office. i didn't agreed to pay this penalty but society didn't accpt it & didn't take my monthly maintenance amount & asked me if you pay the penalty then only society will except your maintenance amount.
    is this fair can society behave like this with tenant if there is any legal document on this pls, mail me on or help me out from this problem.

    Thanks & Regards


      NO ! They cannot levy a penalty for late submission of your car registeration papers. Infact it is entirely illegal for the society to ask for complete set of papers.

      It is none of society’s business whose car you are driving – it could be your own, your wife’s, company given, rented, hired, or borrowed from a friend… as long you have one parking space – and you park just one single car. It is invasion of your privacy.

      If you are a sub-tenant in the society, then the society cannot deal with you directly. they will have to deal with the share holder. Sub-tenants have no rights in a cooperative housing society. Infact, all sub-tenants are expected to join the society as nominal members.

      • For full details, I would recomend you go throught:

        COOPERATIVE SOCIETY BYELAWS MADE EASY by HK Verma at Amazon.Com. It costs less than 100 bucks and is readable on your mobile or PC. You will get answers to most of your questions

  124. Can the committee members of the co-op hsg society park their cars in a fixed place allotted to them years ago. Also can they at their convenience park any car of their fly members in their parking place.

      NO to both the questions.
      Theoretically hey have to take a lottery system at every AGM to allot parking spaces. One Flat one parking space. That too to a car owned by the Member or his family member (as defined in the bye-laws) staying with him, or a car allotted to him or his family member by his company.
      No outside cars are allowed to be parked in the society premises – whether belonging to a family member or not.

      Moreover they cannot park the car any where at their convenience – office bearer or not – all the members of a cooperative socity have to park their vehicles at the allotted parking spaces.

  125. I have been given a flat in a CHS on a will bythe deceased in 2006. In 2008, when thenew ccommittee was appointed, they started harassing me to leave the premises for two days and that they would then give me a NOC to enter the house freshly. In reality, they were trying to cheat me as the committee had a deal with the adjacent neighbour to sell the flat. (I had already providedthe ccommittee with a copy of the will. When I refused to vacate my flat, they tried many ways to make me leave by bringing goons and also forced the police to get involved. When none of the measures worked, they cut off my water supply in December 2008 and stopped giving me the monthly maintenance bills for the next 4 years,. When the renovation of the building commenced in 2012, the society sent the maintenance bill of the past 4 years which included the water charges.

    I have been suffering for more than 6 years because of the disconnected water supply. The society has demanded that I pay the maintenance bills and water supply charges which I never received. Till date no water connection has been given. Please advise me of how I should deal with this.


      It is sad indeed that despite your having a legal will your Society is trying to cheat you out of your legal inheritence.

      You may file an FIR with the local Police bringing all the facts to their notice and giving a xerox copy of all the documents.

      Under no circumstances please vaccate the flat. Since you have inherited the flat, you do not require the society’s NOC. You just have to register your the will along with the deed at the sub-registrar transfering the flat in your name.

      Thereafter, you have to complete all the formalities including submitting an application for membership. Only thing is do not pay the transfer charges of Rs 25000.

      Within 90 days the Committee is supposed to transfer the flat to your name. if they do not, you may approach the Deputy Registrar to do so.

      Regarding payment ; Again NO. they cannot bill you for so back dated dues.

      I am not trying to promote, but i suggest you go through a book COOPERATIVE SOCIETY BYE-LAWS MADE EASY at Amazon.Com.

      Go to Amazon Com, type the name of the book – you will be taken to kindle – and you can buy a Online version for less than 100 Rupees. I think you will find it most useful and will answer most of your questions.

  126. I was allotted stilt parking by builder in 2007 before the court order. Land is still not conveyed to society by builder. I pay property tax for the stilt. Can society charge parking charges? Can I sell it along with flat to the new member?

      Yes. Stilt parking can be sold when you sell the flat.
      If you have bought the place from the builder, it is yours. But the society can charge you for parking.

      Conveyance of the land has nothing to do with parking charges or maintenance. however it is in the interest of the society that the conveyance be done as fast as possible.

  127. Maintenance of the area between the windows and grills installed is whose responsibility, as often such space is used by Members as their personal ones


      Irrestpective of who is using what area, all the external walls and areas – big or small, is the responsibility of the Society. From your querry it seems the area between 2 grills forms a part of the main buildings – so it is more important that the society takes care of its building.

      Visit Amazon.con and get yourself a copy of Cooperative Bye laws made easy. Priced under Rs 100 – it is an excellent source of information and will solve your day to day querries

  128. sir, I m very satisfied with your prompt replies and appreciate ur willingness to guide ppl. Being newly appointed as a office bearer, I don't want to do injustice to anybdy, hence would like to clarify few points
    1) Our bldg. had gone for Major Repairs which was undertaken after due consent and passing the resolution in AGM wherein all member accepted to contribute accordingly. Now there is a member whose contribution, as final instalment, is due since April 2015. He undertook some repairs in June 2015 which falls under society preview without intimating to society, the scope and cost involved. he had kept the condition b4 the society to reimburse him for repairs he had undertaken, if society wants to get his pending contribution. Is he right in doing so? If not, wht action can be taken beside 101
    2) Can a builder sell two different units in a bldg. as one unit, though the area mentioned in Sale Deed is double, but only one flat no is mentioned, whereas, member holds two share certificates indicating 2 different units and Name also appears in the same sequence in both the certificates.As per master plan of the builder there are 2 different units. Pls guide me if this practice is fine. If yes, tomm member can allege to pay for single unit towards monthly maintenance, since he holds only one unit. pls advice the action if the member is wrong.

      The society was at fault by not repairing what it had to do. After due notice to the society (or even no notice) he has a right to get his grievance rectified and deduct the amounts from Society’s repair bill.\

      No it cannot be done. Since there are two different share certificates and the master plan shows it as 2 units – the society will have to divide it as 2 units and check up with the municipality for the property tax rectification. Two units cannot be officially – on paper – be combined with out BMC permission. Physically they might be one but officially they will always remain 2 – paying taxes, maintenance for the both

      Since you are a new office beare : I would recommend you download e-version of :
      COOPERATIVE SOCITIES BYE LAWS MADE EASY from it will help you immensly in your day to day functioning.
      If you want a printable copy of the same : email to :

      • I accept it was society's job to get the repairs done. But how far the member is right in holding up his dues of Rs 40,000/-, which was due long before, against his claimed repair expenditure of rs 10,710/- (whereas, he actually paid Rs 10,000/-). Another point, ours is a 20 yrs old building and our monthly subscription is Rs 2000/- out of which Rs 810 goes towards taxes and water charges and Rs 1140 towards Service charge (includes salaries and other day to day expenses) and mere Rs 50 as sinking Fund. When MC proposes increase in subscription fee, these very members who expects heaven from society, gang up to reject the proposal arguing we shall contribute when the situation arises for such expenses and no nobody does actually. Sir, with no amt separately for Repairs & maintenance at society's disposal, how MC can oblige to bye laws pertaining to maintenance and repairs. Does members enjoys only the right and duties are left only for MC.

        As far as my second queries goes the member do pay subscription for both the flats separately. But is the Sale agreement (which lies unregistered) between the builder and member still valid as only one flat no is mentioned therein. And since the order of sequence in the share certificate is the same, can both Joint owner (1st and 2nd Name holder), in the same AGM, have the privilege to attend together and cast their votes as 2 votes arguing since they hold 2 flats they have 2 votes. can 1st member actively participate for one flat no and becomes inactive for another flat no so as to enable 2nd member to be active and thus both can vote. Pls advice


          I understand your predicament. I have gone through the phase. But somehow you will have to bulldoze. Most important is : Repairs and maintenance fund collection is Compulsory (the amount to be decided by the AGM), and so is the Sinking Fund.

          Sinking Fund you can use with statutory permissions, but Repair and maintenance is for the upkeep of the building.

          Do you have a gym, club house, swimming pool – if no, then I feel 2000 per month is a fair enough collection. Recheck your budgets – if you have no luxury items – you should be able to manage. Most of the Societies charge something between 1200 to 1500… if those modern amenities are not available.

          You should try to bull doze a resolution – a mandatory increase of 10% per month (besides the statutory charges like water, electricity etc. Then you want have to get it passed annually.

          The builder is at fault if he has not registered the flats. Ask the owners to get the Flats registered at the earliest. Yes, both can attend the AGM and Vote. Vote is 1 Flat – 1 Vote. If a family owns 4 flats and have 4 different members of the family as associates or Joint, all can attend and vote. 1 person per flat only.

          Both members and the Managing committee have Rights and Responsibilities, duties and obligations. Increasing taxes at the drop of a hat is not advisable – after all certain people – specially senior citizens – it is possible – cannot afford. The MC should learn to manage and live within means it has.

          20 Year old society – is considerably new – it should not require any major/ structural repairs for another 15 to 20 years, if the building is constructed properly.

          • Sir plz guide me, what if few members chooses to ignore society's request, to register their sale agreement. what are the implication (disadvantages) on society and what action does a society can take on such Members


            According to section 17, since the flat is not the property of the Flat owner and continues to remain the property of the society – even after the share transfer. As per IT Act or other acts, there is no need to register the documents.

            BUT.. Maharashtra Revenue Department has over-ruled this and made it COMPULSOLRY FOR ALL THE AGREEMENTS TOBE REGISTERED. There are clear instructions to all the societies not to transfer the flat to the new owner without Registeration of all the documents.

            Those members who have not registered – you can send them notices to register the same within 9o days. If they do not do so, in the next AGM you can cancell their membership on the grounds their documentation is not complete.
            Those with non-registered documents under any circumstances cannot be members of a cooperative society

  129. Can one individual own 2 flats in a single building society and can both the joint owners together can attend the AGM and general body meeting and exercise voting right


      Owning 2 Flats in a building – YES
      Can a joint Owners of both flats attend the AGM – YES
      (provided the first named owner withdraws his name from the active membership of the society and appoints the Joint Owner to in future do all deeds/ sign documents/ contest society elections) instead of the first owner
      And ofcourse the Joint owner will have voting rights as well as can contest the elections

      For further details download the e-version of COOPERATIVE SOCIETIES LAWS MADE EASY from

  130. Could you please send me a sample copy of handing over charge of a Secretary of the Society?


    Dr Garain


      Take a complete inventory of all the files, papers, documents, finances, FD certificates and moveable and immovable properties.

      Secondly do not sign individually – take a collective charge. If you sign anything individually – you will individually be answerable for that. Managing Committee is a collective / Cooperative efoort – so let it remain so.

      For any further information you can download Cooperative Society Bye laws made easy from (Kindle Books)

  131. In our society, Husband and wife holds two flats and the order of their names (1st Share holder & 2nd Share holder)appearing in shares is also in the same sequence. my 2 questions are 1) Is this fine 2) can both attend AGM/GBM and vote simultaneously.


      The answer is YES to all your querries.

      The usband and wife can hold as many flats in a society as they wish – and either one can be first and second member.

      Following the bye-laws for the second member, both can attend and vote at the AGMs and even contest elections.

      The embargo on holding more than flat was removed in 2003. Now any individual can hold as many flats as he wishes in the same society or in any other society, also within the smae taluka…or any other jurisdiction.

  132. Can a Coorp society own other property apart from in its society. say to give those out for rent or to make good to some of its members for other wrongs done by giving them flats in other locations?

    • The simple and short answer is
      A Housing cooperative society cannot own any other building or do any business except concerned with the building they own. It has to be a non-profitable venture.

    • Yes – read the Bye-laws carefully or even the maharashtra Cooperative societies Act. This has even been ruled by the Bombay High Court.

      For ready reference you may get a copy of COOPERATIVE SOCIETY BYE LAWS MADE EASY. It is an E-book and you can easily read on your mobile phone or even your PC or lap top. Go to and get yourself a copy.

  133. It is stated in the act though that they may invest in certain movable properties under sec 70. Hence wondered about immovable property(outside society building)? ! What if it is not for profit motive but for welfare of members

    • The answer is still NO – read carefully – the Cooperative society will not indulge in any business activity. And for a Society, the welfare of members is taking care of the Society’s immediate property – and not investing outside. What purpose does it serve to invest outside.

      The society very clearly means – what has been allocated as per the Registered Conveyance

      Infact the society cannot buy and sell a flat / premises in its own society and neither can the office bearers buy any disputed / distress property. And if a distress sale has to be made, it has to be done under section 101 through the Registrar

  134. Dear Sir,

    I have purchase flat – resale and my old owner has already given conveyance charges and registration and stump duty fees to society, still society wants me to pay the same charges again. they are saying until deeds are not done till that time whosoever purchase has to pay again the above charges.

    I want to know if bylaws has any such procedure, please let me know as he was saying this is written in the bylaws and rule of gov as per gov of Maharashtra.

    Please help me as they asking society transfer fees + conveyance charges + stamp duty registration charges.

    Bhawani Singh


      The stamp duty and registeration to the government and transfer charges to the society has to be paid, as many times, as a transfer takes place.

      The rate of the stamp duty is finalised by the revenue department as per the ready reckoner and the registeration charges are also based on the same.

      The society transfer charges are : Rs 500/- for the share transfer, Rs 25000/- as transfer premium, and Rs 100/- as application/membership fees.

      BHesides this if thesociety wishes to charge anything, it is illegal. Do not pay.

      You are requested to get a copy of COOPERATIVE SOCIETY BYE LAWS MADE EASY from – an ebook which you can easily read on your phone or computer or laptop – it will give you all the details you looking for. It is very reasonably priced – less than Rs 100/-.

      • Sir this is actually land conveyance charges which society wants me to give. they have already charges the same on old owner. and now as I’m the new owner of the flat they wants me to give the same charges again.


          There must be some mistake. As a flat owner… new or old – individually you have nothing to do with the conveyance. It is the job of the First Managing Committee to get the land conveyed to the society from the builder/ previous owner at the previous owner’s cost.

          You as a new member are certainly not expected to pay any dues of the previous owner or the society. You are liable to pay the dues for the society or taxes – from the day you have paid the stamp duty and registered your sale deed with the previous owner.

          It was society’s job to have recovered all the previous dues from the outgoing member. If they have not done so – technically under section 146 – the Managing committee has caused a loss to the Society and are to reimburse the Society from their personal and private incomes and not burden the members for their lapses.

          Request you get a copy of Cooperative Bye laws made easy from


            Whether the previous owner has paid or not – under no circumstances can they impose Conveyance charges on an incoming member.

            If they insist on doing so – ask for a separate receipt for the amount paid. And with that receipt file an FIR in the Police station for extortion.

            Conveyance and Stamp duty is the job of the first committee. And is they have not done so yet – hard luck – but then it will have to divided among all members equally. But mind you – that is again illegal – this amount they should utilise from their resrve fund.

            But the moot question still remains… how did they allow you to purchase the shares / flat, without having recovered the full outstandings from the previous owner. If they have not done it, under section 146 – the managing Committee members are expected to make good any losses thus suffered by the society personally, rather than penalise the incoming members.

            The law is very clear about it… do not pay a single paise more than what is prescribed in the law. Any outstanding dues of the previous owner is none of your responsibility – unless you have agreed to the liability in writing

          • Dear Sir,

            As our housing society is resign from his post and told us in the meeting that the procedure of select new secretary is tough, as a person who stand for the post has to pay 10,000 deposit and then committee will come from Pune Maharashtra to do the society.

            He also said that it was previous rules taht society can select secretary but new rules are different and they must be select the post by follow above rules, they have to deposit and society call commitee for the new election.

            I want to know as he said these are changed rules accordingly, as we all want select one member and elect him as secretary.

            is there any way in the new By-Lays that member can elect their learder without following their producer?



            He is just bluffing. The resignation of the Secretary/The chairman does not mean the entire committee is dissolved or fresh elections have to be held.

            After the Chairma/ Secretary has resigned, rest of the Committee will accept the resignation and elect a new Chairman/secretary from among the members present. Or coop a new member and elect him/her as Chairman/Secretary.

            No 10000 Rs have to be deposited. The law is simple. If the entire committee resigns, or the term is over, approach the registrar in your ward, who will conduct the elections. There is no need to go to pune.

            By all means the managing Commmittee can elect their leader – nobody is stopping them. Just ensure that the person who is resigning as The Secretary/Chairman resigns from the committee also – because sometimes the ousted person if remains in the committee, creates major problems for the incoming person

          • Can they pass any such bill in the AGM as to charge new member with such amount which I mentioned above (Conveyance charges). I mean if all member do pass such bill where new flat purchaser charge, (Both old and new) the conveyance charges and Camera installation charges (They install CCTV camera so they charge each of member now the work is done, but conveyance deed is not done) – can they Pass such bill and how much this could be valid as per society law.

            can I still oppose to pay they charges which they pass in the AGM which was paid by old owner already.

            Will Registrar and police help me in this matter and stop society to do any such things in future.

            Please GUIDE.


  135. Please advise the further course of action where three society has common space & one society has done the borewell work without consulting rest society’s chairman/ secretary. This common space is basically a garden which are utlized by all member of three scociety. Now we have submitted the written complaint to sub registrar office but have not received any feedback as such after 18 days. There is no conveyance deed as all society under the complex has difference view.

    Kindly advise.


      The major problem is that no conveyance deed exists – so technically whether three societies or one society – no one knows. I am really surprised why when the amnesty was announced your societies did not get the conveyance or deemed conveyance.

      In the absence of a conveyance, it is difficult to specify what belongs to whom – so it is better for all three of you to get together and sort out the problem mutually.

      In the absence of a conveyance, no legal authority – the Registrar or even a cooperative court will be able to help you.

      As far as the borewell is concerned – approach the BMC to find out whether it is legal to install one. If there is no conveyance, whoever has paid for it – all three can use it – since the open space belongs to all the three socities

      You are requested to get a copy of COOPERATIVE SOCIETY BYE LAWS MADE EASY from – an ebook which you can easily read on your phone or computer or laptop – it will give you all the details you looking for. It is very reasonably priced – less than Rs 100/-.


      You must be misinformed. There is no restriction of holding more than one flat by any individual, or family members in the same society or else where.

      Quoting to bye laws in details is rather difficult. would request you to please refer to the Bye laws or the Act. or to make it easier, Cooperative Society bye laws made easy at Amazon.

  136. Hello sir,

    My Flat owner is my mother. Still, can I be eligible for becoming the committee member of my CHS ? If no under what law. Please help.

    Also whom to contact in Pune, for over dues of maintenance by other flat owners. I want to file a complaint.


      If you are a cooperative society, you will have to first become an associate member along with your mother.
      Then your mother will have to give an affidavit/undertaking to the society that henceforth you will be representing her in all matters pertaining to society affairs.
      After your admission as Associate member – you will be entitled to vote and stand for elections of the managing committee.

      For outstanding dues first you have to follow the procedure as precribed under bye law no 101 and then approach the Registrar. The Registrar’s office in pune sonewhere in Shivaji nagar.

      • Ok thanks a lot for the prompt response. So for attending the meetings also, my mother needs to give a letter to the society that I shall represent our house. is it right ?

        Is there any clause for the same in Bye-Laws that I can put up in front of our committee.

  137. Dear Sir,

    1. My mother and Father were joint owners of our flat. Now after my Father’s demise in 2011. My mother will become the sole owner right ? In this case Can I become a member of the committee of our CHS ? If no under what law I cannot become.

    2. What is the procedure to file complaint against members having overdues for maintenance charges. Chairman/Secretary/Treasurer are not taking any steps against them. Whom to contact in Pune?

    Anupam Navare


      The answer to your first querry has been given in your other mail. If your father has left a will, his part of the ownership can be transfered to the legal heir – which in most probability would be your mother. If there is no will, the flat will not be automatically transfered, but a Succession Certificate will have to be obtained from Pune Courts Certifying that your mother is thelegal heir and you children have no objection to the flat being transferred to her name. Only then the Society can transfer the flat to your mother. Your becoming an Associate member – the process can be started when your mother has become the owner of the shares.

      As an ordinary member there is nothing you can do about non-payment of dues by other members. It is the Managing Committee which has to take action. At the most you can keep writing, and in the AGMs keep coaxing the members to file recovery proceedings against defaulting members.

  138. Hi, need your guidance please.
    Our daughter purchased a flat in a registered CHS on resale in Nov2014 and we, her parents live there. Now, we have our own flat in the suburbs which we plan to sell and , in order to avoid paying capital gains, plan to buy off a small share in our current flat , paying that amount to our daughter and executing a sale deed, pay stamp duty and registering the same.
    Our names have to be incorporated in the share certificate.
    The society says that we could become associate members after paying a nominal fee. Will this be valid? Or, are we liable to be made joint owners?
    The present society transfer fees are steep n are we liable to pay this?

    • Kind Attn : JOY

      Interesting. What you are trying to do is perfectly okay as far as the cooperative society law is concerned.

      Unfortunately, what you are trying to do is called `Colorful Camaflouging’ in Income tax Terminology. The law is very clear – you have to buy an independent residential premises with the amount you receive as payment for your present residential premises. If it is a commercial premises – you will have to acquire a commercial premises.

      This is my personal opinion – however I would suggest you consult some good Charted Accountant to guide you on the Income Tax front. On the Society front it can be done.

  139. hello i live in malad west mumbai my society went for redevelopement but due to a COD rule of defence which doesnot allow developement 500 meters around defence area my redevelopement work has been stoped ny building is demolised and the builder has also stoped paying us rent what should do????please help


      It is most unfortunate – but your Managing Committee and the developer should have reconfirmed the development rules before commencing redevlopment.
      Since it is defence matters, you will not get any relaxation. All you and the builder perhaps can do is approach the INS Hamla (I think that is the defence establishment there) authorities and request them to allow you to RECONCOSTRUCT your building as per the previously existing plan. For that there should not be any major problems – I feel.

      If Bombay defence establishment does not agree – try to approach the defence ministry in Delhi with your problem. One thing is certain – extra FSI and redevopment will not be permitted – but atleast you can get your houses back in a new building

      Now who will bear the cost, the developer or the society – you will have to sort out mutually – because both the parties have been careless about pre-confirming laws before tearing down the existing structure.

      And No – the builder will not pay you any rent beyond a certain period. That is a major problem in redevlopment

      • thank you for your reply sir but there is a hudge building kalpataru towers at the door steps of cod defence land in kandivali and my apartment was 270 meters away from defence area why my construction work has been stoped.Is this COD rule applied only for us middle class people.why is this defence system partial??

  140. My society is located in mumbai and it is of 10 floors in which first 2 floors are for commercial use and the rest 8 floors are residencial apartment. Now BMC have sent us notice of property tax which is ~50 lacs. In this tax, commercials is also added is near about 65% of the total amount. Now I want to know, is it Okay to pay only residential tax because BMC is asking us to pay tax both residential and commercial tax and BMC is not ready to split the amount to be paid.
    Is it ok, BMC is behaving or we can pay only residencial dues?
    Kindly reply…

    • For full details, I would recomend you go throught:

      COOPERATIVE SOCIETY BYELAWS MADE EASY by HK Verma at Amazon.Com. It costs less than 100 bucks and is readable on your mobile or PC. You will get answers to most of your questions

  141. hello, i want to know what can be done and what should we do…
    our society committee is illegal and therefore some of the members dint pay for building repairs…however some of them paid the full amount(24000) over the years now only 2 members are left to pay. today they are demanding interest on it ( by saying they are reducing the interest from 21% to 10% p.a.) from the year they started collecting amount (2005)not when the work was actually done. (2011)

    i want to know if the society committee is illegal and we are ready to pay the repairing amount (24000, we already paid 5000) can the charge interest on it , if yes how much?

          • KIND ATTN: B A SHAH

            If the BMC has charged interest, the society has every right to recover it from the member – just that amount – and not its own interest

          • KIND ATTN : NS

            Your brother will have to become an associate member of the society for the power of attorney to take effect.

            If your father is unable to attend to day to day affairs, just power of attorney will not do – as the coop laws do not recognise Proxy/power of attorney. Your brother will have to take associate membership by filling up the required form along with an admission fees of Rs 100. When admitted, his name will be added to the share certificate as asociate member and then the power of attorney has to be submitted to the society that your brother will look after day to day affairs.

            However, his becoming an associate member does not hinder or hamper your share in the property. Because in case of the demise of the first holder, the associate membership automatically stands terminated and the shares/property transferred to legal heirs.

    • Thanks for reply ,sir !!.
      however,I am not able to understand how B.M.C has any concern with this matter?. let me explain you briefly sir….
      our society decided to repair the building and therefore the society collected amount of RS. 24000/- from all the members over a period of 2 years.
      They started collecting repairing fund amount from members from august 2005..Some members din’t pay at that time because they were not sure when society will start repairing work.
      Society committee(illegal) commenced the repairing work from march-2011.Those members who had not paid the repairing bill amt were charged 24% p.a. by the society .Every year they charged interest on principal amt. + interest from the members who had not paid the repairing fund amt..Society was getting Bank interest from collected amt.. By illegal I mean 3 members out of 5 elected society committee members do not own flat on their name and they had not taken the bonds and have not registered the society committee with the registrar of the society .I have read that if the society committee will not registered their committee to the registrar of society in 15 days society becomes automatically illegal.At present old committee is dissolved.And new committee is elected by legal and illegal members.
      The new committee demanding the repairing amt.(24000)and 10% p.a. interest from 2005 till date. Can the society committee charge interest?


        BMC is ccomes into the picture when you stop paying the society. make sure you do not stop paying the property tax

        For full details, I would recomend you go through:
        COOPERATIVE SOCIETY BYELAWS MADE EASY by HK Verma at Amazon.Com. It costs less than 100 bucks and is readable on your mobile or PC. You will get answers to most of your questions

  142. HI Sir,
    BMC has send us the notice for property tax which is due from last 5years when builder start the construction. Builder has not paid any prperty tax amount which is collected from us in advanced while we taking the possession.
    Now BMC sent us the notice to society for pay that Tax which is almost 48L.
    BMC give us the OC 2011 and that due is from 2010
    can we need to pay that tax or can ask bmc to collect form Builder we will pay our dues form 2014 …..



      If you have not paid earlier, you have to pay
      Even if you have paid to the society and society has not paid to the BMC you will have to pay again. At the most you get instalments to pay. If you have to challenege – I am afraid, you will have to take a legal route.

      We wonder why your managing Committee did not realise that property tax was not being paid.

      • Thanks for reply Sir,

        We all residential memebrs are ready to pay our due property tax from 2010 to till date but commercials owner are not ready to pay.
        We ask BMC to spilt reseidential and commercial so we will pay residential owner part …but BMC reply first payall dues then only they will seprate that propery tax after 2015

        Builder is the Owner of that all Commercial(1st & 2nd floor and Ground floor shops)and he ask us to sign on100rs Bond that society has allocated open parking for his commercial use and society will not tak any objection in future then only he will pay that property tax….is BMC staff and Builder (commercial OWner)playing with us or harrasing us for sign that bond ….all members are not ready to sing that bond they are ready to again pay that property tax but bmc not ready to collect residenital only.

        • KIND ATTN : SATISH

          Please do not sign any affidavits or bonds with the builder. All open spaces are the property of the Coop Society – do not hand them over to the builder.

          If BMC has raised commercial taxes against some properties/flats, and they belong to the builder – builder is law bound, as any other member to pay those commercial taxes. or else, the managing committee/ Society has every right to serve a notice to the builder under section 101. Builder cannot keep the places under his wings for an indefinete period – once the society is formed, he has to obtain share certificates for the premises under his possession and those premises will be treated as any other flats.

  143. Those who have not been allotted ‘parking’ space either by builder or developer or MC (of CHS) are allowed to park their vehicles in common area (inside the society premises)? What is the legal provision?

      No… There is a specific area allotted for parking of Cars. The Parking lot can not trespass the garden or children’s play area.
      Any parking spaces allotted by the builder and/or developer, have no legal standing – as far as the Coop act is concerned. The Managing Committee has the sole right to allot parking spaces. General principal being – 1 parking space per flat. If any more are available, to be allotted for the 2nd car on lottery system.

      The Managing Committee has jurisdiction within the four walls of the cooperative society – all outside roads and spaces belong to BMC – so if you park there, you will have to directly deal with BMC

  144. Can the MC issue a notice stating that only the Members, or in in their absence the Associate Members should only attend the Meeting. No proxy or a holder of Power of Attorney / Letter of Authority shall be be eligible to attend the General Body Meeting. Please note my Dad has signed a POA in favour of my brothers to look into the day to day affairs and the legality of the Society as he is unable to look into the same due to old age.


      Yes the society is right – No proxies are Power pof attorney’s are permitted in the Cooperative Socities – Specialy housing societies.

      Your brother can become an associate member and the first named owner can appoint him as his representative in the society matters.

      For full details, I would recomend you go throught:

      COOPERATIVE SOCIETY BYELAWS MADE EASY by HK Verma at Amazon.Com. It costs less than 100 bucks and is readable on your mobile or PC. You will get answers to most of your questions

  145. Dear Sir,

    Thanks for your replies..

    Ours is a CHS in mumbai comprising of 48 members. MY society MC has given works contracts to outsiders without presenting 3 quotations and getting it approved in AGM, the contract value was for 98000/-, (please note this works contract was not of urgent nature) when questioned them, they said we can do so, as limit of MC to spend without AGM approval has been increased.
    If I am not wrong sanctioned amount as per bylaws for society was Rs 50000/- for society with 50 members and below. I would like to know what is Limit amount that Managing committee can spend as per new bylaws, for society works without seeking prior approval of AGM or SGM. Please also quote the section no. of this in the Byelaws.




      What your MC has done is not regular, but neither is it illegal. MC has the discretion of spending upto one lakh without AGM approval. For every thing, the MC cannot seek AGM approval – if need be the MC can take a decision and then get it rectified in the next AGM/SGM.


      • Dear Sir,

        Thanks for your prompt reply to my above query and queries of others here, it helps.

        I recently came across section 157(a)(b)(c) of model bylaws (print 2014) wherein it is mentioned the limit for one time expenditure for society with 50 members and below is Rs.50000/- that MC can spend without approval of AGM.
        Could you be kind enough to tell me wherein, in bylaws, GR or other refrence books, its mentioned, the limit increased to 1 lakh.

        Thanks for taking the time to reply to my queries.


        • KIND ATTN: STEVE

          Yes the bye-laws do not permit it. But you can pass a special resolution in the AGM that the MC has the authority to spend upto 1 lakh without approval of the AGM. That is – if you have faith in your managing Committee.

          If not – then, YES – the upper limit is Rs 50000 only and the MC has to get AGM approval and minimum three tenders before alloting any work. If they fail to do so, they can be hauled up under section 146 – which can result in upto 6 monhs imprisonment, upto Rs 10000 fine, besides making good the loss suffered by the society

          • To,
            AIDEC WORLD

            Dear Sir,

            Thank you very much for your prompt replies to my queries. Seldom do we come across knowledgeable and learned bloggers replying with such magnanimity to queries of common citizens within 24 hours.
            God Bless you and your loved ones abundantly.


  146. Dear Sir.

    I am the resident of a town in the outskirts of Mumbai ( To be precise it is Boisar )

    In September 2013 I purchased a flat from a builder. and in February 2014 he formed CHS of our residency and informed to us in the month of July .

    During society handover meeting we addressed all the issues related to amenities,work quality, general problems and society maintenance. And for those issues builder gave commitments that he will resolve all the issues.

    But there was one issue related to the service tax which builder was asking from the buyers who purchased property under construction. And those buyers refused to pay that saying that builder never told us during property selling process that we need to pay service tax.

    Now there are 36 flats out of which 16 flat owners are suppose to pay service tax. And due to non paying of that service tax by 16 members builder has refused to give us our maintenance corpus which he had collected from US ( advance 24 months maintenance ).

    in addition to this builder is saying that till the time i get service tax them i wont give you balance amenities ( Such as ; road, additional Boring ).

    Further to this there were 10 flats unsold when the society was hand over to us. Here the question arise is when he sell out those 10 unsold flats whether he or buyer is liable to pay us 24 months maintenance or shall we be charging transfer premium?

    Kindly advice in this regards whether we go into legal action against the builder for non payment of maintenance corpus as well as non conformance to the amenities assurance.

    Your advice in the matter of unsold flat maintenance as well as transfer premium would be highly appreciated.

    Best Regards

      The builder is right about Service Tax – Building Construction has been brought under the purview of Service tax – and like all other taxes, it is the purchaser who has to bear the brunt. So the members who have not paid, will have to pay him the tax.

      As to his witholding facilities – it is completely illegal. he cannot do it. Send him a notice declaring that he has not completed the building and provided the facilities which are statuorily to be provided. Write to BMC that the builder has not built the road. he should be compelled to build the road and provide remainder facilities.

      As to the unsold flats, the Society cannot bear the maintenance cost of the unsold flats. The builder will have to pay all the taxes – including property tax – like any other member. The unsold flats are to be treated as being owned by the builder. The society cannot be expected to pay for the unoccupied premises and unsold shares.

      If need be you can adjust your service tax against the 2 years maintenance charges the builder owes the society. He will try to get away by not paying – but there is no law, which forces the members/society to bear this cost.

  147. Thanks Sir

    Thanks for your reply.

    Can you please let me know whether builder or buyer is responsible to pay us 24 months maintenance of the flats which are sold after formation of the society.

    Or would it be legal to charge transfer fees from the buyer or builder?

    Best Regards


    • Since it would be first sale – no transfer fees is applicable. But the builder will have to pay society charges, even though he will not be a member of the society. Or if he wants, he can get the share certificates in his name and then sell to the next buyer. But even then no transfer premium will be applicable – however the usual transfer fees of rs 500 will have to be paid by the incoming first member.

      Thereafter whenever the flat is sold, you can charge the transfer premium upto Rs 25000

  148. Dear Sir, can u tell me for how long a person can keep a plot vacant in cooperative society. does bmc and society takes action on this if plot is kept vacant for long period of years. not constructed.

    • KIND ATTN : AK
      2 Years.
      Thereafter the Society will have to confesticate the plot – as per applicable local laws.
      BMC does not come into the picture – it is a cooperative society matter.
      For safety sake, make one or two rooms and show them as construction. then the society cannot take any action. Remember to get the lans of the these one or two rooms passed by the BMC to show it is a permanent and legal structure.

      Thereafter you can build at your convenience whenever you wish.

      • Thank u sir for ur reply….have one more question….sir, my father is three brothers A, B,C and plot which was pur by their father was trsfred in their name when he was alive also in share certificate it was entered in that year.Now C has trfred his share to A and his son without our consent. When we came to know this we approached society but they told that A and C had told them its their family matter and will see to it. Also we are asking documents from soc for past two years but still not recd and even also registrar had ordered them so.. at that time we also came to know that in sale deed that’s registered they had attached some diff share certificate and xexox copy of share certificate withus the only document provided by soc is different. In forge certificate at back side they had changed date of entry and signed is done by A in year that he was secretary and shows that after death of their father its been transferred as devolved . And in original certificate date and SIG is also diff date in which that were trsfred…. for this we had filed criminal case in metropolitan court on A, his son ,C, society… but now they had applied for quashing of this case in high court. So what acc to u is we r on right track …r case can be quashed….also society is in their hands as ASon is secretary. And both secretary and chairman r hand in hand.also soc says that we had done all trsfrs legal and scrutinized and are accurate. They say this as family matter and don’t provide us any doc on order of A , his son who’s a secretary. Had started even harassing us.

  149. Sir, please reply –
    we stay on the 7th floor of a chs. i.e. the top floor. we have terrace above us due to which we have severe leakages from the terrace and parapets walls. Also, we have severe leakage and dampness on the south wall ( outside wall of our flat ), due to which we have to spend huge amount for the colour and interior work every year. After several requests for last three years, the society has done some repair of the parapets walls. But our south wall is yet not repaired by them.
    now, my main question is that, if we carry out the work of the south wall ( appx. Rs.30 to 40,000/- ) on our own and do not pay our regular maintenance bill, is it legal as per the bye laws ?
    Many members of the top floor have done that previously, so is it legal or it may cause any problem due to non payment of the maintenance bill.
    please let me know at an earliest.


      Repairing the leakages from terrace or any external walls is the responsibility of the Society.
      If it fails to do its duty and maintain the building – send a notice to the society that if it does not get the faults rectified with a specified time 930 days) – you will be compelled to have them rectified at your own and charge them to the society. A Copy of this letter should be sent to the Deputy Registrar of the ward concerned.

      If the society fails to repair it, have the faults photographed and send to the society with a letter that you are getting it done on your own. if within a week the society does not respond, go ahead get it done on your own.

      After having repaired the portion, write another letter to the society enclosing the photocopy of the bill you have paid. And inform the society that, due its non-performance of its obligations, you have been compelled to do so and will be deducting the amount from the society bills. Don’t forget to send a copy of all your correspondence to the Registrar for records and reference.

      For full details, I would recomend you go throught:

      COOPERATIVE SOCIETY BYELAWS MADE EASY by HK Verma at Amazon.Com. It costs less than 100 bucks and is readable on your mobile or PC. You will get answers to most of your questions

  150. Sir

    I have bought flat in month of May 2015, and also submitted all relevant prescribe forms of society membership transfer, My society secretary informed me “your membership transfer is only after AGM” and AGM not yet declared. Is there any provision in law to transfer the membership before AGM i.e. before August 2015.

    Or I have to wait till AGM.

    Sachin P.


      Your society and the secretary are absolutely in the wrong. Within 90 days of your application, the managing Committee is bound to issue you a response – either accepting your application and issuing you the share certificate. Or rejecting your application – giving valid reasons thereof.

      According to new maharashtra Coop Act – the AGM has no role to play in the transfers.

      If the Committee does not transfer the share certificate even after 90 days, approach the deputy registrar of your ward who will do it himself or ask your committee to do the needful. Your Committee is committing a legal offence under section 146 of the MCA which entails imprisonment an fine or both

      You may get a copy of COOPERATIVE SOCIETY BYE LAWS MADE EASY by HK VERMA from AMAZON.COM – this inexpensive kindle book will be most helpful to you. You can read it on your phone or even your PC.

  151. Dear Sir,
    We are three independent residential societies enclosed by common compound wall and a single gate, all three societies share the security and cleaner expenses. In one of the societies, a playschool is being run in three shifts in two adjoining flats on ground floor, one is that society members own flat who is running play school, other is on rental. No one resides in both flats, after school is shut for the day, they are only used for playschool.

    There are more than 200 students enrolled. The children, their Parents who come to drop and collect them, as well as hired teachers and staff, cause a lot of nuisance and commotion which affects our society.
    Matter was taken up by our society members with the committee to shut down the school but the secretary of that society said he will look into it and for some days matters were ok, now again its back to square one and that secretary is not bothered and doesn’t listen. Both playschool flats are not contributing anything extra for running school in our residential society towards security and cleaner/sweeper charges. Our society Managing committee is also favoring the play school as they are friends with the owner..
    Please advise what is our remedy to stop this nuisance as we also have senior citizens who are affected during afternoons by nuisance created by this playschool.

    Thank you,



      A play school cannot be run from a cooperative society. Any school is expected to have its own building. It is purely a commercial venture. Giving tutions to 8-10 students is a different matter and 200 students can in no way be termed as self-employment. (Architects, CAs, Doctors, and other self employed professionals are allowed to use 30% of the covered area of their residential flats for commercial purposes – without paying non-occupancy charges.

      How has the society concerned allowed it. They Managing committee by allowing such a venture is committing an offence under section 146 of MCA, which entails 6 months imprisonment and fine upto Rs 10000 for each committee member.

      This is purely change of user of the premises. Lodge a complaint in the Police, and write to the BMC questioning how BMC has issued a licence for such a premises.

      Moreover check for other clearances – like fire-brigade, commercial charges as property tax, commercial charges for water and electricity. Is it registered as an educational institute – or any registeration at all.

      It is an unpopular move – but someone will have to bell the cat

  152. Dear AURTHOR OF AIDEC World

    Thank you very much for your prompt replies to my queries.
    Seldom do we come across knowledgeable and learned
    Bloggers replying with such magnanimity to queries of
    Common citizens within 24 hours.
    God Bless you and your loved ones abundantly.

    After I go thought
    (Tenant Co?Partnership Housing Society) 2014.
    This is as per mention below.

    112 A Banking Account shall be opened by the Society in the nearest
    State or District Central Co-op Bank / a Scheduled Bank having
    Awarded “A “Audit Class in last three consecutive years,
    Nationalized Bank, and in any other mode permitted by general or
    Special order of the State Government, as provided under section
    70 of the Act and the account shall be operated upon and all
    Acquaintances and discharges shall be signed by the Secretary
    Jointly with the Chairman or Treasurer.


    A} Funds Deposits in Nationalized bank to earn more Interest is approved
    By NEW mcs 1960 under which bye-laws &
    B} If not pls specified that its was already approved in AGM but
    How ever it is mandatory also to take permission from Registrar?

    **** ******** ***************** **************** ****************

    2 WHO CAN justify & POWERS of Levy/IMOPSE a FINE TO Managing Committee?

    A] Managing Committee paid fine from society account (COMMON)


    And & if any one objection from the MEMBER(s) of the society. R
    Regard the same that mistake was done by MEMBERS OF MANAGING COMMITTEE,

    !!!!! Kindly recommend remedy for the same.

    Warm Regards


  153. Dear Sir,

    Thanks for your prompt response, to the playschool issue, I am much obliged.

    We will be having our AGM in the first week of August, I will raise the playschool issue as per your info given here, to strengthen my case I want to know under which section of CHS Model By-Laws act can I quote this problem.
    I can then quote the same, to my society’s MC to take up the issue, as they have been stalling to tackle the other committee that looks into our residential complex’s service management.

    Thanking You



      It is change of user of the premises.
      Does it have legal permissions
      Cooperative society flats cannot be used for commercial purposes

      Please go through COOPERATIVE SOCIETY BYE_LAWS MADE EASY by HK VERMA at AMAZAON.COM / AMAZON.IN. It will answer your these questions and many others as well.


        If any external plaster or part of a building falls due to negligence, lack of repairs or any other thing… the managing Committee… not only the Chairman or The Secretay, the entire Managing Committee is legallly and morally responsible for it.

        Under section 146 of the Bye laws the entire committee can face imprisonment upto 6 months each and a fine of Rs 10000 eacxh. This is clearly failure to fulfill their obligations and deriliction of duty.

        If the members of the Managing Committee do not have the time to even maintain the building, They have no right to be in the committee.

        If due to the negligence of the Comittee someone is physically hurt or the property damaged, the managing committee is legally duty bound to bear all medical expenses and reimburse for the damaged caused due to their negligence.

        The aggrieved person can even file a police complaint and The Chairman and The secretary. The Main and foremost responsibility of the managing Committee is looking after the Society’s building.
        Further information, you may please refer :
        by HK Verma
        It costs less than Rs 100 and will answer all your querries and guide you how to go about. It will be readable on your mobile, PC, Laptop or even a tablet. It can be a permanent guide to your cooperative society problems

  154. Hi
    My mother is the owner of flat in cooperative society and is also the member
    Ours is 43 years old building and hence our society members have recently took decision to sell off the property
    They approached lot of builders however got one builder who agreed to purchase our property in full however my mother and I are not satisfied with the amount that is paying to us hence since starting we never gave our acceptance to secretary to sell off the property to this particular builder however still our secretary and others members decided to dispose off the building and agreed with the said amount offered by builder
    Its been a year now all of them have taken thier share of money and vacated their flats and we live alone in the society
    Please advice can they force us to vacat us our flat and also suggest can I claim for stay order or appeal court to seal off my flat until I get the best price for my flat


      I understand your position. Going by the law of land – yes you are right – you can not be forced to part with your share certificates.

      But unfortunately – the cooperative law provides that if 70% of the members have agreed – rest of the members have to agree also. That is a traversity of justice, but then that is the cooperative law. You can challenge it in the courts – but personally I would not advice it.

      Builder mafia is very strong. Your mother and you will not be able to face their goonda-might. Try to negotiate with the builder’s representative – a bit – if agrees, well and good, otherwise just take whatever your Managing Committee has agreed and go away. Sometimes Your own Committee’s sell you off – That is life.

      Please go through COOPERATIVE SOCIETY BYE_LAWS MADE EASY by HK VERMA at AMAZAON.COM / AMAZON.IN. It will answer your these questions and many others as well. It can be read on your mobile phone or your laptop or PC.

  155. Dear Sir,
    There is ongoing discussion to get our building under redevelopment plan, initial builder after the whole thing going through fell apart due to MC negotiations. Apparently the society member are very annoyed with the way MC is handling things related to the redevelopment Plan. Since the building is over 35 years old, one of the MC member who has conveniently moves to another location given the building dilapidated state has gone and submitted a letter to the registrar stating that in the event of a clamity with the building the current MC’s will not be held responsible, please note none of the society members were briefed abt this letter prior to Submission. Can the current MC’s at their sole discretion issue letters such as this even though the redevelopment plans are stalled as it is in not the personal benefit. If not what is the counter action tht can be taken against this.

    Thanking you hoping for a prompt reply

    • Managing Committee is not authorised to handle the redevlopment plans with the approval of the SGM.

      For any further details, please refer to the special Chapter REDEVLOPMENT in :
      by HK VERMA
      It will answer your these questions and many others as well.
      It can be read on your mobile phone or your laptop or PC.

      • Thank you sir for the prompt response, but what action can be taken against the MC member who has issued a letter to the registrar stating that MC will not be responsible in case something happens to the building without the informing the society members.

        • KIND ATNN: NS

          Individually you might not be able to do anything – despite the fact that the Secretary has committed a gross improperiety.

          However, if some of you – atleast five can get together… write a letter to The Secretary, asking him under what resolution and date, and who has authorised him to write such a letter.

          Any cuch letter cannot be and will be not binding on the Society and its members. The Managing Committee is and will be responsible for the upkeep of the buildings of the Society. Any loss of Property or lives, the managing Committee, as provided under the Maharashtra Cooperative Act, will be collectively and individually responsible.

          The Secretary and the Managing Committee is committing a criminal offence under MCAct Section 146 – by shirking their main responsibility – which is the upkeep and security of the Society’s buildings and members. Punishment under section 146 can be imprisonment upto 6 months and fine upto Rs 10000 for each Committee member personally.

          After you have delivered and got a received stamp and signature on the duplicate of this letter, xerox it and send a copy to the Ward officer of your Ward in BMC, and the Deputy Registrar of your Ward of cooperative Societies and also the nearest Police Station – along with a covering letter saying that the enclosed letter is for their information, records and action – if any.

  156. Queries

    A} Funds Deposits in Nationalized bank to earn more Interest is approved
    By NEW mcs 1960 under which bye-laws &
    B} If not pls specified that its was already approved in AGM but
    How ever it is mandatory also to take permission from Registrar?

    **** ******** ***************** **************** ****************

    2 WHO CAN justify & POWERS of Levy/IMPOSE a FINE TO Managing Committee?

    A] Managing Committee paid fine from society account (COMMON)


    And & if any one objection from the MEMBER(s) of the society. R
    Regard the same that mistake was done by MEMBERS OF MANAGING COMMITTEE,

    !!!!! Kindly recommend remedy for the same.

    Warm Regards


      More or less – A Cooperative Society funds have to deposited in a Cooperative bank Only. That is the law.
      However, for your day to day activity, you can open a current account in the Nearest Nationalised bank and at no given time you can have more than a lakh of Rupes in that current account.
      AGM or even the Registrar have no say in the above law.

      The BMC – Registrar or police or the courts can impose a fine on the Managing Committee.
      It depends on the kind of fine – but in most of the cases, the fine is imposed due to lack of supervision and/or dereliction of duties by the MC Members. Section 146 of the MCA provides that the Managing Committee Collectively and/or individually is to pay these fines or reimburse the society for any losses suffered due to non performance.

      It might be pointed out here, if the Managing committee refuses to do so – pay fines from their pockets – there is a provision for imprisonment and fine – both under section 146.

      For any further details, please refer to :
      by HK VERMA
      It will answer your these questions and many others as well.
      It can be read on your mobile phone or your laptop or PC.

  157. Very Very Thanks for your valuable reply ,

    if you dont’mine,
    i AM seeking some good Advocates for the CHS matters [CONSUMER COURT] mumbai or thane for “T WARD ” which is nearby or me.

    thanks Again
    Warm Regards



      I am sorry I will not be able to help you in that aspect. ou may make enquries with ourlocal communities and find out a suitable canadidate.

      • Thanks Again
        in regards with Hearty Appraised Work..
        if possible leave your E-Mail in on my Mail ID
        I want to Meet YOU personly……

  158. Sir,
    I got my flat in lieu of a chawl room where I was residing earlier now after possession of the flat can I sell it within six months and to tell u it is an ownership flat not an sra project where any clause or objection is written of disposing of my flat further more secretary is saying that I cannot sell the flat within a years time of purchasing from lic of india where as i got the flt, in lieu of a chawl room is that possible and I have paid all my dues to the society its a three year old society further more the secretary is not givin me noc

    • As per current bye-laws a flat can change hands 4 times a year. If your premises is not covered under the SRA, and the premises is already transfered in your name – you have every right to sell…. even within 24 hours of thetransfer of share certificate.

      As far as the society not granting NOC.. as per new bye-laws you do not need it. The seler and the purchaser both have to submit a FORM-20 (I think) intention of resignation and the purchaser intention of buying your shares… and submit it to the society minimum 15 days before the actual transaction takes place. If society has any objection, it will have to intimate to you and the purchaser in writing.
      The society is now law bound to transfer the share certificate after receipt of the application – within 90 days. Else you may approach the registrar… who will do the needful himself or ask the Managing Committee to transfer.

      You may please refer to :
      by HK Verma
      for full details and answers to any other questions you might have.

  159. Can a MANAGING COMMITTEE charge any amount as (Open to Air) Parking Charges for a Licensee by calling it a Non Occupancy Charge ? How much maximum can be charged for (Open to Air) Parking Charges for a Licensee by calling it a Non Occupancy Charge ?

      Whether a licensee or a flat owner – everyboady has to pay for utilising the society’s open spaces – specuially parking. Yes the society has every right to charge for parking of a car. One Car is usually reasonably priced parking, say around Rs 500, 2nd car, double and so on.

      The licensee can not be right demand a parking space. If available, the society will allot it. As to the charges, yes, the Managing Committee has every right to charge for parking. Only mistake they are making is calling it Non-Occupancy charges…. which cannot be more than 10% of the service charges.

      In most of the Socities they have a resolution passed that the licensee will have to pay double the charges for parking the vehicle, than what is charged to a regular member.

      There is nothing you can do about it – except ask the society to correct the head – and start charging you under Parking.

  160. Dear Sir,
    I am a tenant of a pagdi building in mumbai and in there are total 19 tenants in the building. The building is around 60 years old and with lost of requests to the landlord he is not going forward for the redevelopment. So i want to know whether we can form some association or a co-operative housing society (so that we can obtain conveyance of the property and do something for redevelopment). And if possible then what is the procedure for the same.
    Kindly let me know the same.
    Thanking you in anticipation.


      You are tenents and your legal status will always remain the same.

      Any redevlopment procedure will have to be initiated by the landlord – or those who own the land and the premises. You are not even a Cooperative society, and unfortunately you cannot become one now.

      The best course of action for you is to sit with the landlord and sort out the matters

  161. Dear Sir,
    I want to know if a person is a contractor in the CGH society (in Delhi) for some work and given this, his/her spouse or dependent children can become member in that society?

      As long as none of them is a managing Committee member – anyone can undertake the work – provided correct procedure has been following and minimum three tenders are on record for any work over Rs 20000

  162. If I become a secretary of society what caution I need in this process, as our secretary is not good in nature, and he did not handle society in manner of spending money and maintain society.

    If I become secretary than what things I need to be clear as whatever he has done would affect me, in term of fraud in funds, and use money on trivial things.

    Can he make trouble.
    And how i take help from Registar office to handle this?


      Utomost caution should be taken while taking over charge from the previos Secretary. All papers/ documents and assets and liabilities should be brought on record.

      To be on safe side – you can give a memorandum to the managing Committee that you will be resposnible for the goings on in your society from the day you have taken charge.

      However that will not absolve you any liabilities or legal complications your earlier Secretary might have created. But you can certainly clear up the mess and bring your society on regular track. Most of the Chairmen and/or secretaries forget that sooner or later, the law does catch-up with their illegal doings

  163. what is way – if our secretary is working alone himself, as he doesn’t want other to involve in any business or work of society.

    can we inform Registrar office regarding this, as no body knowing anything (any process about any work of society) because of his involvement in every work, and he dose everything alone (I mean he indicate that the work of secretary is all prepare monthly charges, receipts, payment voucher, maintain cash memo, all those comes under Treasure and chairman) and what Treasure and chairman do only agree whatever he suggest and do sign on the bills that only rest are done by him.

    Can we complain about this, and how we proceed as he dominate our society, abuse everyone.

    Please help.


      Call a special General Body meeting of the Society and as prescribed in the Bye laws move a No-Confidence motion against the Committee.

      Please Note that you can move a No-Confidence motion once in six months only

  164. our flat is held jointly by my dad and myself where my dad’s name shows first in the share certificate and my name stands second.Here I am the associate member.My dad has passed away.In this circumstance i understand that the associate member he automatically becomes the member and can make nominations.Pls guide me and also let me know if any change in the name order needs to be incorporated in the share certificate.


      You are mistaken. The associate membership automatically comes to an end on the demise of the first named member. With effect from 31st of March 2015, through the Bombay High Court judgement all nominations have also become invalid.

      Easiest thing for you would be, if your mother is alive, get the flat transferred to her. Then after 90 days of the shares being transferred to her, she can gift it to you. No No stamp duty is applicable while transferring the flat to her, however all the documents and the copy of the death certificate of your father will have to be registered. A nominal duty (I think Rs 500) is applicable.

      When she gifts the flat to you, again no stamp duty is applicable but registration of the gift deed is compulsory.

      If you do not wish to go through the gifting process – then you will have to obtain a succession certificate from the jurisdictional court.

      For the complete process, how to transfer to your mother, or how to receive the gift, please refer to:

      it will be easily readable on your mobile phone, on your tablet, laptop or PC.

  165. Whether a notice period is required for passing a resolution in SGBM and the resolution passed has alterations different handwritings and incorporations.which were restricting legal rights of general members


      For any resolutions to be informed and incoprporated..minimum 14 days notice has to be given to the Members by the Managing Committee and circulated to the members before the General Body.

      ASny resolution passed in the general body has to be sent to the registrar for approval, after due stamping by the registrar and it has to be duly incorporated in the Society’s Bye-laws alloting it a new number – as to what Bye-law number it should be refered to in future.

      This bye-law has to be implemented within 180 days of its passing by the general body or else it becomes null and void. If per chance it is felt that the resolution passed is wrong and should be scrapped – unfotunately, it can not be done immediately. The Society will have to give it a period of 180 days and hold another AGM in which it will be resolved to cancel the previous resolution.

      The wording of the resolution passed in the AGM is binding. No words or its character can be changed either in the minutes book or while implementing. If it is done, the whole resolution becomes null and void and not binding on the members.

      For the complete process, please refer to:

      It is very reasonably priced at under rs 100/- and it is be easily readable on your mobile phone, on your tablet, laptop or PC…. becoming your permanent reference guide to any cooperative matter

  166. Dear Sir,

    I buy a flat, and taken money for put it on rent, but when approach to Society, to inform them that I’m putting my flat on rent but they said, my flat still not transfer (society transfer) so I can not put it on rent. or they will send me notice, so I gave them 25000 for transfer and 7551/- for name transfer.

    I want to know can a person who buy a flat can not put his flat on rent, before society name transfer, or he can.

    what is bylaw says – please I want to know.

    can I put my flat on rent, even my name is not transfer, can Registrar office help in this.

    Please help me.



      Yes the Society is Right… the shares have to be transfered in your name first, you have to take physical possession of the flat – and only ten you are entitled to sub-let the flat, that also due approval of the society and will have to pay the non-occuancy charges and enhanced parking fees as decided by the AGM.
      Just paying the money does not entitle you to anything – it just represents that your application is now complete to be considered for Membership by the managing Committee.

      For the complete process, please refer to:
      It is very reasonably priced at under rs 100/- and it is be easily readable on your mobile phone, on your tablet, laptop or PC…. becoming your permanent reference guide to any cooperative matter

  167. Dear Sir,

    I have one problem regarding society transfer, as when I taken loan, they took from me original flat registry, old registry and share certificate (which is on old owner name) which I submitted to the bank, but when I went to society FOR NAME TRANSFER they asked me about the original share certificate (they said without original share certificate they can not transfer name and share certificate) which I have submitted to the bank, when I asked to bank person, he said they do take all documents and society don’t need this.

    Now I have problem, Society want it, and Bank says they don’t need it.

    Now what I do, do society really want this, or just LOD (list of documents will work in the name transfer) – this simply stun my mind.

    Can you tell me the procedure according bylaws. (procedure of name transfer)

    Can registrar office help to get this matter solve, are they listen if I write them letter regarding this problem. if not where should I go.

    Do i really ask Bank to help or society – and if yes what way should I show them – I mean what should i tell them which way I can get it done.



      The society is right… they cannot transfer the flat and shares to your name, unless they have the original share certificate in their hand.

      Usually the banks the banks let the original share certificate remain with you and take an undertaking from ou that you will submit it to the bank as soon as your name in incorporated in the certificate. Your bank will have to cooperate – there is nothing the society can do about it.

      Request you Bank to cooperate… if need be give them a self-attested or bank manager attested photo-copy and give an affidavit that you will return the original as soon as your name has been included in the certificate. The bank is acting unreasonable. No society will transfer the share ertificate unless they have the original in their hand.

      For the complete process, please refer to:

      It is very reasonably priced at under rs 100/- and it is be easily readable on your mobile phone, on your tablet, laptop or PC…. becoming your permanent reference guide to any cooperative matter

  168. Dear Sir,

    Can we ask this kind of question – Society related to direct Registrar office, through mail, phone number or via letter.

    Or we can go there and ask any kind for inquire – at inquire counter. Do they have inquire counter?

    Is this kind of facility is there in Registrar office?

    Please let me know.



      Sorry, you can not ask registrar any questions – you can just inform him what is hapening, or write to him your complaint.

      No the registrar’s office does not have an enqiry counter, where your questions can be answered. You will have to ask you questions to your lawyer.

      But we recommend the following :
      You get a copy of this and most of your questions will be answered :
      It is very reasonably priced at under rs 100/- and it is be easily readable on your mobile phone, on your tablet, laptop or PC…. becoming your permanent reference guide to any cooperative matter

  169. Dear Sir,

    I want to sell my house, and buyer is member of minority community. When I approached the society’s secretary to inform him, he said society does not allow sale to members of the minority committee to purchase a house in our society, when I reminded them of the Law they said Ok we will first meet the buyer and he will have to sign a affidavit on stamp paper agreeing to our terms and conditions.

    Our society comprises 40 members of Row houses and is under the Housing Board (Mhada), and our society does not have the conveyance deed as of yet.
    When I ask them to give me appointment to bring the buyer to meet them, they keep on dilly-dallying.

    I have had this problem before too, and lost previous buyer.. Brokers know of our society views and therefore the buyer asked for NOC from our society.
    I would appreciate your advise as to what is my remedy.

    Thanks and appreciate all the help you’ve given to above queries.

    Thanking You.

    L. Dias


      I am surprised that despite it being made abundantly clear that any kind of communal discimintion will be a criminal offence – some Managing Committee’s indulge in this kind of discrimination.

      You should write to the Chairman/Secretary informing them of your intention to sell the house to :………… According to the Cooperative Act presently in force, no NOC is required from the Society. Just inform them and see that the person you are selling the shares is not ineligible to hold shares under the Indian law – which is morality, criminality, mental imbalance and so on….

      Please note that, whatever you have to communicate with the society do so in writing and take the Received Signature from the Society’s office. Even for the meeting with the purchaser, ask for a date and time in writing.

      Since it is a MHADA society, conveyance is not very important. But you will have to take permission from MHADA also and pay to MAHADA some transfer charges.

      If your Chairman and/or Secretary creates some problems on the communal grounds, please report the matter to your local police station and file an FIR against all the Managing Committee members.

      Earlier days there were provisions for community based societies – like Wilingdon in SantaCruz, or casaBlanca in Bandra, or Millat Nagar in Andheri – but that provision has been withdrawn. Now every cooperative society is bound to admit persons of all casts and religions.

      I hope the above will solve your problems to an extent.
      I suggest you get a copy of :
      from AMAZON.COM
      This will answer most of your questions and also inform you of various court rulings given on various subjects pertaining to coop socities.
      It can be easily read on your mobile phone, laptop, PC or tablet.

  170. If share certificate is in the name of two persons and second person wish to sale the flat what is the procedure to follow? Whether second owner can make sale deed with the permission of first owner?


      Cooperative Society has no concept of Joint Ownership. Suppose A and B have pooled in money, and both have signed the sale deed. However the Society will accept One of the two as the Main member and the name of the second person will be as a Joint/ Associate member… However all the rights will remain with the first named member A

      If B wants to sell his part of the share, he certainly would have to take an NOC and endorsement from A – as rights to the property of A will also be affected.

      After getting an NOC from A, B will have to execute a sale deed/ gift deed in the name of C.

      In the meantime A will have to apply to the society in the prescribed form and request them to remove the name of B as associate/Joint Member.

      After B & C have gone through the legal formalities (stamp duty, registeration etc), C will have to apply to the Society in the prescribed aplication form along with the appropriate fees to be admitted as an associate member.

      Please note that what has been sold/transferred here is the share portion of B only, without affecting the share of the A – who will continue to be the first named Active member.

      Incase of demise of A – D or anybody else or even B or C can become become the first holders, provided A has willed his share to them.

      All your questions are answered in
      Available from :
      It is easily readable on your mobile phone, tablet, Laptop and PC.

  171. Dear Sir ,

    I am a society member of co op society under SRA scheme which was redeveloped in 2007 … Since the co op has formed in 2007 the managing committee is the same till date and there were no election held ..we were never shown any society accounts since the start .. Everytime we demanded the statements or details of the funds available with the society ,we were denied ..and our society has 4 locked flats on ground floor from last 8 years when we the MC about these flats they say they belong to the builder ..we have no right to do anything about them …

    MC is manipulating all society members from last 8 years taking advantage of majority of the illiterate citizens in the society ..Please advise me the way out ..Your advise would be of tremendous help..

    Thank You Sir…….


      Your Society and Managing Committee is commiting an offence not only under the Coop Act, but even the IPC. By not holding the elections in due course they are liable for prosecutions – which will include imprisonment as well as fine – to all the members of the managing Committee and not only the Chairman or Secretary. And this fine will have to be paid from the Managing Committee members own funds – and by Cheque.

      The Managing Committee is duty bound to hold elections after five years. On the last day – when by law the term of the committee expires, the tenure of the existing committee become null and void. They are not authorised to sit on the chairs or hold posts, sign documents or manage the Societity’s funds. They are doing it illegally.

      Your best course of action is write to the managing Committee that they are not authorised to occupy the ofice anymore. Get this letter signed by as many members as possible. Take a received signature on the duplicate copy. If they give it well and good, otherwise… send the duplicate copy to the Deputy registrar of your ward by coureer or personal delivery.

      If your Managing Committee resigns well and good – if not, after 15 days write a letter to the Deputy Registrar that your Committee is forcibly occupying the office. If need be file a police complaint – not necessarily an FIR even an NC would do. Request the Registrar to dismiss the illegal committee and hold elections at the earliest. Being a typical government office, at Registrar someone will have to follow up.

      The Registrar will dismiss the committee – if need be even hold an enquiry. Appoint its own Administrative officer who within six months will hold the lections – as NOW prescribed under the Maharashtra Cooperative Act.

      Like earlier times, there is no need to be afraid of the Adminitrator – now he has to get out within 6 months.

      If you Managing Committee goes respectfully well and good, otherwise they will have to be thrown out.

      A Cooperative society – under the SRA or otherwise – has the same Byelaws and adminstered asper the Maharashtra Cooperative Act of 2013

  172. The M/C members did not promptly repair terrace leakages, which in turn damaged both the ceiling and flooring of my flat as water percolated even further. Also they took nearly 4 yrs to do do external repairs. Internal repairs still pending. As i had given clear indication of selling the flat my 20 lakhs are locked up since then. For new property I was forced to take extra loan and paying extra emi. Suffering from financial loss as well as less resale value. Chairman openly ridicules Complaint redressal procedure. Letters not ack. What options available to recover my losses as well teach them a lesson.


      I am sorry there is nothing you can do now. While the leakage was there and you were undergoing harasment, you could have fought tooth and nails to get it rectified. But now that the event is over – irrespective of the loss you have suffered due to the irresponsible behaviour of the managing Committee – there is only one way for you to take REVENGE – report to the Registrar of your ward under section 146 – which will entail upto 6 months imprisonment and Rs 1000 every society member.

      Reimbursement of your losses – the cooperative movement has no provision for making good any losses suffered by a member due to negligence. However you may take action under the Consumer protection Act and claim damages.

      For any further information, please refer to:
      available from
      It is an ebook – easily readable on your mobile phone, your tablet, your laptop or your PC. It costs less than Rs 100. It will keep you uptodate with your problems with the society and guide you what to do

  173. Dear Sir ,

    What is a destination about dues on interest 21 % it is general or some loop-holes are there , i read somewhere that total 21 % out of sum exclude BMC OR PROPERTY TAXES …. or any ?

      No you are mistaken. The interest to be applicable by the society can be a maximum to the tune of 21% Simple interest per annum – or lesser if decided by the AGM.

      Make sure it has to be a simple interest and not Compound…. interest on unpaid dues and not interest on interest.

      The interest is applicable to all outstandings – including BMC, water, electricity or any other dues.

      How ever no interest is applicable on any extra bills raised by the society like special maintenance or painting etc. But there again one should pay within reasonable period of time.

      For any further information, please refer to:
      available from
      It is an ebook – easily readable on your mobile phone, your tablet, your laptop or your PC. It costs less than Rs 100. It will keep you uptodate with your problems with the society and guide you what to do

  174. Dear Sir,

    Our society, a couple of years back, relaid the compound flooring with paver blocks. How will the cost towards this exercise be apportioned. Is the compound not a common area where every member uses irrespective of the area of his/her flat

    Your response will be greatly appreciated. Thanks

    best regards


      A cooperative society is run on mutuality – everybody is an equal owner. The open spaces belong to the society and everyone has to contribute equally for maintenance of the same.

      The laying of pavers is society is nothing new. Most of the societies are doing it. Yes the proper procedure has to be followe, AGM approval obtained and tenders called before allotment of the contract.

      All the residents/ share holders have to equally contribute pro-rata (and not area basis – per flat/premises basis0… for such road laying. It is for the benefit of all the members.

      For any further information, please refer to:
      available from
      It is an ebook – easily readable on your mobile phone, your tablet, your laptop or your PC. It costs less than Rs 100. It will keep you uptodate with your problems with the society and guide you what to do

  175. i am a tenant in a CHS. can the MC bar me from hiring a maid residing outside the society due to security concerns even if i get the police verification done? the society is less than a year old and MC wants only the existing maids to be employed as ‘they have been with us from day 1 and we should not take away their income’. no police verification have been done for these maids and there is no verification process currently being followed by the society.
    also on similar lines, is there any legal standing for the MC to deny entry to a person employed as my driver (police verified) and cleaning my car in the premises on grounds of security? currently the same rant of ‘everyone has to employ the guy we employ’ is their only justification.


      NO ! The society or the Managing Committee can not stop you from hiring a maid, a driver, a car washer or any personal servant of your choice. All you are required to do is get the person concerned’s verification done by the nearest police station.

      The Society and/or the Managing Committee has under the Cooperative Act or any other laws prevelant in the country, cannot stop you. It is an intrusion on your fundamental right and intrusion of your demoractic right to choose…. for which the managing Committee can be prosecuted under the Indian penal Code.

      To the second question, it is none of anybody’s business – for how long a person has been working in The society. Society is not anybody’s agent or broker – that any incoming members and/or tenents will have to employ someone of the Society’s choice. The entire managing Commmittee besides the IPC can be hauled up under secton 146 of the Coop Act – which provides imprisonment upto six months for each member of the committee and a fine upto Rs 10000 to be paid by each member from their personal funds.

      You may right a letter to the society pointing out that they are infringing your fundamental rights as well as committing an offence under section 146. Send a copy to the nearest police station as well as the Registrar of your ward

      For any further information, please refer to:
      available from
      It is an ebook – easily readable on your mobile phone, your tablet, your laptop or your PC. It costs less than Rs 100. It will keep you uptodate with your problems with the society and guide you what to do

  176. hello, i am a tenant in a young CHS (less than a year old). can the committee bar me from hiring/employing a maid or a cleaner residing outside the society due to security concerns even if i get the police verification done? can the committee disallow entry to these people i employ?
    committee has handed over the monopoly of these services to a select few without any police verification just because ‘they have been with us since day 1 and their work is good enough for us’. currently no process of verification exists for anyone being employed by a resident.