FORMATION OF CO-OPERATIVE HOUSING SOCIETY

PREAMBLE:

By Sudhakar Dokhane

Past President PEATA (INDIA)

POsted on 9 June 2003

Non-availability of vacant plot of lands, rising land prices, increasing construction cost, and acute shortage of housing stock due to Rent Act, Urban Land (Ceiling & Regulation) Act, independent dream house/bungalow construction have gone beyond the reach of a common man.

With the result construction of multi ownership apartments on co-operative basis has became a necessary. To facilitate to construct such multi ownership apartments, like other Co-operative activities, formation of Co-operative Housing Society has emerged as suitable solution. Such projects are undertaken by private sector developers as well as by the registered co-op. housing societies, in any metropoly or developing town.

TYPES OF SOCIETIES

The Co-operative Housing Societies are divided in 4 classifications i.e.

1. Open Plot Society (Tenant Co-Partnership Society).

2. Flat Owners Society (Tenant Co-operative Society).

3. Tenant Society.

4. Housing Board Society.

OPEN PLOT SOCIETIES

In this classification the co-operative housing society has to purchase an open plot of land to construct the flats for their members thereon.

FLAT OWNERS SOCIETIES

The Co-operative Housing Society formed by the members who have purchased the flats in a building constructed by a builder/developer is known as Flat Owners Society.

TENANTS SOCIETIES

When the tenants of existing building. join together and form the co-operative housing society, can be registered under this category.

HOUSING BOARD SOCIETY

The flat owners of the building constructed by Maharashtra Housing & Area Development Authority (MHADA) when form the co-operative housing society it is known as Housing Board Society.

Note: Other than above categories the flat purchasers of a building if so desired can form an Association of Apartments or Condominium; which are not fully protected under the provisions of co-operative society Act. Hence such bodies are rarely formed.

HOW THE CO-OPERATIVE SOCIETY CAN BE FORMED:

It is essential that the prospective flat purchaser has to enter in to agreement for purchase of flat before initiating the process of formation of Co-op. Hsg. Society, of the respective category mentioned above. Following preliminaries are to be completed for the formation of such body.

1. Minimum 10 members are essential for formation of a Co-op. Hsg. Society.

2. Firstly the Promoter of proposed co-op. Hsg. Society should prepare the list of the prospective members.

3. The said members should call for a meeting and elect one of them as a “Chief Promoter”, and also should propose the name of “The proposed society”, and pass necessary resolutions thereof; together with for opening of Bank Account and should record the minutes of the meeting in separate Minutes Book.

4. The Chief Promoter has to apply to the Dy. Registrar of Co-op. Societies for “Reservation on Name” & “Opening of Bank Account” in the name of proposed society.

5. After receipt of such permission for reservation of name & opening of bank account from the Dy/Asst. Registrar of Co-op. Societies, the Chief Promoter along with any one member should open joint saving bank account in any urban Co-operative Bank, in their vicinity.

6. All the prospective members should contribute a specific amount in equal, for expenses, share capital; entrance fees etc. and should deposit the same in the said saving bank account, to be operated by the chief promoter jointly.

7. The permission so granted for reservation of name & opening of bank account is valid for 3 months only.

APPLICATION FOR REGISTRATION OF SOCIETY:

After obtaining approval for “ Reservation of Name”, the Chief Promoter has to prepare proposal for registration in prescribed formats for submission of the registration authority which should accompany the documents as per following check list, together with registration Fees, within 3(three) months from the date of issue of approval of “Reservation of Name” of proposed society; failing which the application for registration of society can not be accepted, unless earlier permission is renewed for obtained a fresh one.

CHECK LIST OF DOCUMENTS

(TO BE SUBMITTED ALONG WITH APPLICATION FOR REGISTRATION)

1. FOR TENANT CO-PARTNERSHIP HOUSING SOCIETY (OPEN PLOT)

1. Application for registration of society in Form A along with Statement A, enclosures to application for Registration as per Rule 4 (1) of MCS Rules, 1961.(4 copies)

2. Court fee stamp of Rs.1/- to be affixed to application form ‘A’.

3. Information about promoter members of the proposed society Statement ‘C’ (vide Govt. Circular dated 2.5.1980). (4 copies)

4. Information about proposed society in statement ‘B’ (vide Govt. Circular dated 2.5.1980). (4 copies)

5. Statement of accounts as per Form D.

6. Model Bye-Laws, (4 copies).

7. Bank Balance Certificate from the District Central Co-op. Bank Ltd./ Maharashtra State Co-op. Bank Ltd.

8. Detailed scheme of the working of the proposed society.

9. R.B.I./ Treasury Challan of payment of Registration Fee of Rs. 500/-( for backward class co-op. housing society, Registration Fee of Rs. 5/-)

10. True certified copy of Agreement of Purchased of Land or Purchase Deed of Land.

11. One copy of 7/12 extract, where it is applicable.

12. N.O.C. from the Competent Authority about release of land under Urban Land Ceiling Act or certificate of non applicability of provisions of Urban Land Ceiling Act or Understanding from the Chief Promoter.

13. In case of Govt. land or land from Semi Govt. authorities, a copy of allotment letter from the authorities regarding grant of land.

14. Non objection certificate from the Charity Commissioner if the land belongs to the Trust.

15. Certificate from the concerned authority that land is in Residential Zone.

16. Title Clearance Certificate from Advocate.

17. Certificate from Registered Architect to the effect that adequate plots are available with the proposed society for construction.

18. Affidavit on Rs. 20/- court fee stamp paper from at least 10 promoter members to the effect that area residing in the area of operation of the society (Proposed) made before Competent Authority.

19. Affidavit from the Chief Promoter on stamp court fee stamp paper of Rs.20/- duly made before the Competent Authority.

20. Affidavit from the Chief Promoter on Stamp paper of Rs. 20/- duly executed before the Competent Authority in Form ‘Y’.

21. Where the promoter members are firms/ companies a letter of authority from such firm/companies authorizing the promoter to sign on behalf of Firm/Company.

22. In case the proposed society intends to take loan from Maharashtra Co-op. Housing Finance Society Ltd., or any other financing institutions, for construction, at least 20% members from backward classes must be enrolled as members, When 20% backward class members are not available, a certificate from the Dist. Social Welfare Officer to the effect that no persons of Backward Class are available, be obtained and enclosed with the Registration Proposal.

23. In case of such proposed societies, 90% promoter members must sign the statement A to be attached to the Registration Proposal.

24. A copy of the order regarding name reservation of proposed society be enclosed. ( If the period of reservation on name has expired, a copy of order extending the same be enclosed.)

2. FOR TENANT CO-OPERATIVE HOUSING SOCIETIES (FLAT OWNERS)

1. Application for registration of society in Form A along with statement A, enclosure to application for Registration as per the Rule 4 (1) of MCS Rules, 1961. (4 copies).

2. Court fee stamp of Rs.1/- to be affixed to application form ‘A’.

3. Information about promoter members of the proposed society in Statement ‘C’ (vide Govt. Circular dated 2.5.1980). (4 copies).

4A. A Statement of Accounts as per Form D.

5. Model Bye-laws (4 copies)

6. Bank Balance Certificate from the District Central Co-op. Bank Ltd./ Maharashtra State Co-op. Bank Ltd.

7. Detailed scheme of the working of the proposed society.

8. R.B.I./ Treasury Challan of Registration Fee of Rs. 500/-. (For backward class co-op. Housing Society, Registration Fee of Rs. 5/-)

9. True certified copy of Purchase Deed of Land/ Agreement for Purchase of Land/Agreement for Development of Land.

10. One copy of 7/12 extract or property card extract, where it its applicable.

11. N.O.C. from the Competent Authority about release of land under Urban Land Ceiling Act or certificate of non applicability of provisions o Urban Land ceiling Act or Undertaking from Chief Promoters.

12. In case of Govt. land or land from Semi Govt. authorities, a copy of allotment letter from the authorities regarding grant of land.

13. No objection certificate from the Charity Commissioner, if the land belongs to the Trust.

14. Certificate from the Local planning authority that the land is in Residential Zone.

15. Title Clearance Certificate from the Advocate.

16. A true copy of the approved Building plans.

17. Letter of authority granting permission to commence construction work/ Completion Certificate (as applicable).

18. Certificate from a Registered Architect in support of construction work scheme, area & value of project.

19. Affidavit on Rs. 20/-Stamp Paper from at least 10 promoter members to the effect that they are residing in the area of operation of the society (proposed) made before Competent Authority.

20. Affidavit from the Chief Promoter on Stamp Paper of Rs. 20/-executed before the Competent Authority in form ‘Y’.

21. Affidavit from the Chief Promoter on Stamp Paper of Rs. 20/-duly made before the Competent Authority in Form ‘Z’.

22. Certified True copy of registered agreement made between the builder promoter and purchasers of flat.

23. A certified list of sold and unsold flats from the Builder. If the flats have been sold, its cost, the names of purchasers and their addresses to be furnished by the Builder Promoter.

24. Where the promoter members are firms/ companies, a letter of authority form such firms/companies authorizing the Promoter to sign on behalf of firm/company.

25. Affidavit from the Chief Promoter in lieu of ‘Z’ form, the Chief Promoter and other promoters who are signing the registration proposal should execute an Indemnity Bond on Rs. 5/- stamp paper, before the Competent Authority.

26.along with an Affidavit in ‘Z’ form, the Chief Promoter and other promoters who are signing the Registration proposal should executed an indemnity Bond on Rs. 100/- stamp paper before the Competent Authority .

27. Incase the promoter Builder is not co-operating in forming the society, true copies of tax-bill form the Local with the registration proposal in place of Architect Certificate.

28. Incase 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 and out of these 60% promoters, 90% promoters must sign, the application.

29. A copy of the order regarding reservation of name of proposed society be enclosed.( If the period of reservation of name has expired , a copy of order extending the same, be enclosed).

REGISTRATION OF SOCIETY OF LESS THAN 10 MEMBERS

Even though it is mandatory that there should be minimum 10 (ten) members/ promoters for the formation of co-op. housing society under the provision of Maharashtra Co-op. Society Act. 1960. In certain cases when it is not possible to have 10 members in a building, construct the building with 10 flats, it possible to form a co-op. hsg. Society with as special permission from the State Govt. provided it should comply with the following requirements:-

1. Carpet area of each flat should not exceed 650 Sq. Ft. (60.39 Sq. Mtrs.)

2. It should be certified by the architect that flats proposed/or existing are less than 10 members, and full F.S.I. is proposed to be consumed / or consumed.