After getting occupancy certificate of the constructed structure the next step builder submits the copies of legal papers along with the list and documents of the members of the constructed building with an application for Registration to Registrar of the Co-operative Housing Societies. Normally as per under Section 10 of MOFA 1963, builder has to register the Co-Operative Housing Society of the builder within the 4 months from the date of occupancy certificate.
Managing Committee of the Society
It is the duty of the Registrar to register
the society and on registration of the society it becomes a separate legal
entity. Thereafter, the management of the affairs of the society is carried out
by the managing committee which is elected by the general body meeting of the
society. It may be of interest to note that in a co-operative society the
principle is one member one vote. In a co-operative society the right to be
exercised in the general body meeting is a personal right. This is one of the
reasons why even a person holding a power of attorney cannot attend the general
body meeting of the society. THE quantum of the capital being introduced by the
member is not of much importance. Preference should be given for formation of a
private limited company if one member propose to acquire majority of the flats
in the building.
Documents for Registration of Co-Operative housing society
1. Application for registration of Society
in Form A along with Statement A. Enclosure to application for Registration as
per Rule 4(1) of Maharashtra Co-operative Societies Rules, 1961.
2. Information about proposed society in
Statement ‘B’ (vide Govt. Circular dated 2-5-1980).
3. Information about promoter members of
the proposed society in Statement ‘C’ (vide Govt. Circular dt. 2-5-1980).
4. A Statement of Accounts as per Form D.
5. Model Bye-laws.
6. Bank Balance Certificate.
7. R.B.I. / Treasury Challan for payment of
Registration Fee of Rs. 2500/-.
8. Title Clearance Certificate from an
Advocate
9. A true copy of the approved Building
Plan.
10. Letter of Authority Granting permission
to commence construction work/Completion Certificate (if applicable).
11. Affidavit on Rs.100/- Stamp Paper from
atleast 10 promoter members to the effect that they are residing in the area of
operation of the Society (Proposed), made before a Competent Authority.
12. Affidavit from the Chief Promoter on
Stamp Paper of Rs. 100/- executed before the Competent Authority in form ‘Y’.
13. Certified True Copy of agreement made
on Stamp paper and registered between the builder, promoter and purchasers of
flat.
14. Where the promoter members are firms/
companies, a letter of authority from such firms/companies authorising the
promoter to sign on behalf of firm/company.
15. In case of such proposed societies,
names of 60% of the flat holders of the total number of flats constructed or
proposed to be constructed as per the plan approved, must be included in
Statement ‘A’ to be attached to the Registration Proposal.
Registration of Co-Operative Housing Society
On allotment of name and
permission to open a bank account by the Registrar, the Chief Promoter has to
collect Share Capital, Entrance Fees from promoters and deposit the same in the
branch of the bank permitted by the Registrar. It should be noted that the
amount cannot be withdrawn from the Bank till the Society is Registered or its
Registration is refused, except with prior written permission of the Registrar.
The Chief Promoter should submit Registration Proposal to the Registering
Authority within a period of 3 months from the date of issue of Letter of
Reservation in the name of the proposed Society. The documents that are
normally to be submitted to the Registering Authorities.
Procedure for Proposed Co-operative Housing Society
The procedure for Registration of a society
begins with electing a Chief Promoter in a meeting of the Promoter. The builder
under the Flat Owners type of co-operative society has the first right to act
as the chief promoter. The developer/flat purchasers should call for a meeting
of the Promoters by issuing the notice under Agenda of the meeting given at
least 14 days notice to the Promoters. In this meeting, a Chief Promoter is
elected who can exercise such powers and carry out such functions as are
mentioned in the minutes of the Promoters of the proposed Co-operative Society.
After electing the Chief Promoter, the proposed name of the society has to be
decided by the Promoters.
Normally, the name reservation
proposal should be accompanied with the signature of atleast 10 Promoters who
have attended the meeting. It is a common belief that the Society should
consist of atleast 10 members. If the number is less than 10 then special
permission from Government has to be taken. In such cases, the garages/car
parking may be allotted to other relatives of the promoter to reach number of
10. It would be of interest to note that the model byelaws define flat as a
‘Flat means a separate set and self-contained set of premises used or intended
to be used or intended to be used for residence, or office or show-room, or shop,
or godown and includes a garage, or dispensary, or consulting room, or clinic,
or flour mill, the premises forming part of a building and includes an
apartment’.
Types of Co-Operative Housing Society
There are basically four types of
Co-operative Housing Societies connected with the housing.
(a) Open Plot Societies
(b) Flat Owners Societies
(c) Tenant Societies
(d) Housing Board Societies.
In Open Plot Societies,
members purchase or take one lease a plot of land and themselves construct the
building. Due to bureaucratic formalities and lack of specialised knowledge, a
few societies are formed under the head of open Plot Societies. When a builder
constructs flats and sells them to Flat Owners, the Society when formed is
called Flat Owner’s Society. When Landlord forms a Society of tenants, it is
called Tenants Society. When a Society is formed by Allottees of flats and
building is constructed by the Housing Board Authorities, i.e. Mumbai Housing
and Development Board, then the Society so formed is of the type of Housing
Board Society. The procedure that should be followed for formation of societies
of the above said types is different for different types of Societies. Members
who wish to form Co-operative Housing Societies are generally ignorant of the
procedural aspects and as a result of the same they have to run from place to
place and get entangled in bureaucratic delays.
Formation of Co-operative Housing Society
Practically every developer has to form a Co-operative Housing Society at one point of time or another. With the limited amount of options available with regard to management of the affairs of the building i.e.
(a) Condominium
(b) Private Limited Company and
(c) Co-operative Society,
(excluding the unrealistic rental housing), it will not be an exaggeration to state that in atleast 90% cases particularly in Mumbai the Promoters and/or the Builders have formed a Co-operative Housing Society. The basic requirements for Registration of Co-operative Housing Society normally is not known to the flat purchasers. It is here that apart from the statutory obligations cast upon the builder, the builder as a friend, philosopher and guide of promoters helps in forming a Co-operative Housing Society.
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