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AUDIT OF ACCOUNTS OF THE HOUSING SOCIETY

a. The Society shall appoint the Statutory Auditor in its General Body Meeting from the panel of Auditors approved by State Govt. and same Statutory Auditor shall not be appointed for more than two consecutive years. The Statutory Auditor shall submit his Audit Report as provided in section 81 of the Act.

b. It shall be the responsibility of the Committee to get the Accounts Audited within a period of six months from the closure of financial year and in any case before issuance of Notice of the holding of the Annual General Body Meeting.

c. The Remuneration of Auditors so appointed shall be decided by the General Body Meeting of the Society.

d. The Society may, if it considers it necessary, appoint an internal Auditor, to audit the accounts of the Society, at the Annual General Body Meeting.

The Secretary of the Society shall produce or cause to be produced all the books, registers, records before the Internal Auditor and the Statutory Auditor, in the office of the Society or where the records are normally kept and furnish such information as may be required by him for the conduct of the Audit of the Accounts of the Society.

a. On receipt of the audit reports from the Statutory and Internal Auditors, the Secretary of the Society shall prepare draft audit rectification reports on the objections raised and suggestions made, in the Audit rectification Report in form ‘0’ prescribed under Rule 73 of the MCS Rules 1961 and place the same before the meeting of the Committee, held next after the date of the receipt of the audit reports, for its approval. The Audit Rectification shall be done by the Committee within three months from the date of audit report. The committee shall submit Audit Rectification Report to the Registrar and the Annual General Body Meeting of the Society.

b. If the Committee of the Society fails to submit Audit Rectification Report to the Registrar and the Annual General Body Meeting, all the Members of the Committee shall be deemed to have committed an Offence under section 146 of the Act and shall be liable for Penalty under section 147 of the Act

By admin|February 3rd, 2020|AUDIT OF ACCOUNTS OF THE HOUSING SOCIETY|Comments Off

BUILDER’S HANDOVER PROCESS IN MUMBAI

The date of handover from builder to the registered owners association is an important day for new apartment owners and all residents. It has to be taken seriously and detailed due diligence must be done when interacting with the builders during this handover process. Once the formal handover to the Owners Association is completed, the onus is on the association to run the affairs of the society and to ensure its smooth functioning. The association must be prepared for this day for 3+ months leading to this event.
It is recommended that owners collaboratively engage with the builder right from late construction stages that will help them to take-up this responsibility in future. The builders can also reach out to representatives from the owners group to assist in the selection of maintenance agency which prepares them for the handover process.
Based on our experience in interacting with various builders and associations, we have collated a check list that associations can use when in dialogue with the builder on the handover process:
1. Get approved building plan which includes block-wise and floor-wise details
2. Collect the Completion Certificate which ensures adherence of the approved plan
3. No Objection certificates from pollution, fire, water and electricity authorities
4. Hard copy and soft copy (in CD) of all approved engineering drawings; look for approval seal on the drawings
5. Registration and parent documents
6. Drainage, sewage, Fire protection and common area power layout drawings
7. Car parking layout drawings (with numbering)
8. Asset Inventory of all movable and immovable equipment purchased; numbered in order (list needs to be exhaustive)
9. Record of recent service history on key equipment’s like lifts, DG sets, STP and WTP
10. AMC and warranty details; Original bills of equipment purchased (motors, Sewage and Water Treatment Plant, Generators, Gym items like treadmill)
11. Lift license details and next renewal date
12. STP/WTP vendor details, plant layout, operation manual and drawings
13. Receipts of property, electricity and water payments paid
14. Handover of corpus amount to the association
15. Share recent expenses incurred on various maintenance activities and account heads; will assist to budget coming year (staff salaries, purchase of cleaning material, swimming pool maintenance etc)
16. Contract signed with maintenance agency; agreed SLAs
17. Insurance taken for assets and third party lift insurance
18. Audited account statement at the time of handover
19. Arrange for introductory meeting with important suppliers and vendors

By admin|February 3rd, 2020|BUILDER’S HANDOVER PROCESS IN MUMBAI|Comments Off

CONVEYANCE SERVICES FOR SOCIETIES IN THANE

CONVEYANCE SERVICES FOR SOCIETIES IN THANE:-

In most of the cases people believe that a Purchase Agreement is the final document they need to own. However, a mere purchase agreement does not pass on the developer’s rights on the land to the society. Societies need to make sure they have the complete right to the land, and mere society registration and formation does not provide those rights.
A Conveyance Deed helps societies to gain the right of their land. Post this builder relinquishes his legal right on the land.
We the “VED LEGAL” provide end-to-end conveyance services to the societies including execution of Conveyance Deed, Deemed Conveyance, and Deed of Apartments. We work closely with co-operative societies and government officials and make sure the complete process is hassle free.
With our team of legal advisers and professional approach, we have handled more than 100 cases across Pune. We guide our clients through the complete process of transferring builder’s rights, allocation of additional space and finally establishment of society rights, as per the law.
Our conveyance services include:
Apartment formation:
• Deed of Declaration • Deed of Apartment
Co-operative Societies Conveyance:
• Conveyance deed with builder’s consent • Deemed Conveyance – without builder’s consent

By admin|February 3rd, 2020|CONVEYANCE SERVICES FOR SOCIETIES IN THANE|Comments Off

DIFFERENCE BETWEEN CONVEYANCE AND DEEMED CONVEYANCE

Conveyance –
A generic term for any written document which transfers (conveys) real estate property or real property interests from one party to another.
So by the above definition its very clear that if someone willingly transfers their legal right of the property to another party they would need to create a document which transfers this right. Such a document is called Deed of conveyance.
The important point here is – Willingly. Now in case of housing societies the builder/promoters have to ideally create deed of conveyance and hand over it to housing societies that to within 4 months after project completion. However, due to lack of knowledge many builders do not create such documents. There have been cases where builders have later on denied to create such documents and asked additional money to provide signatures on these documents. You will find all sorts of reasons for not creating the document. This results in issues for societies in future. Therefore, government has amended the Maharashtra Ownership Flats Act, 1963 (MOFA) to make sure if builders run way from such responsibilities the societies do not suffer. This amendment is called Deemed Conveyance. This amendment allows society owners to gain the legal rights of the land even if the builder is not willing to transfer the rights, in front of designated competent authority.

Deemed Conveyance –
The Promoter (Builder/ Developer) is legally required to convey the land and the building within 4 months of formation to the society or any legal body of the flat purchasers. However, it has been the experience that many promoters (Builders/Developers) have not conveyed the land and building to the legal bodies. Therefore, government has amended the Maharashtra Ownership Flats Act, 1963 (MOFA) and provided for the deemed conveyance in favor of the legal bodies. Under the provision, deemed conveyance means after the expiry of 4 months of formation of the legal body, the land and building is deemed to have been conveyed to the legal body and to bring the same in the revenue record, Competent Authority has been designated who will hear the parties on the basis of applications received from the aggrieved party and transfers the title in favor of the legal body by passing the necessary order and deemed conveyance certificate and appoint an authorized officer to execute the conveyance deed in favor of the society and execute on behalf of non-co-operative builder or the land owner. Getting the title of land and building by adopting the above procedure is known as deemed conveyance.

By admin|February 3rd, 2020|DIFFERENCE BETWEEN CONVEYANCE AND DEEMED CONVEYANCE|Comments Off

First General Meeting – Housing Society

The First General Body meeting of the Promoters, who have signed the Application for Registration of the Society, shall be held within the period of three months of the date of the registration of the Society, as provided under Rule 59 of the Rules. It shall be the responsibility of the Chief Promoter Society to convene First General Body meeting within the stipulated period.On failure of the Chief Promoter of the Society to hold the First General Body meeting within the period mentioned in bye-law no 86, the Registering Authority shall cause it to be convened.Clear fourteen days’ notice of the First General Body Meeting of the Society shall be given by the Chief Promoter of the Society or as the case may be, by the Officer Authorized by the Registering Authority, to all the promoters, who have signed the application for Registration of the Society.
At the First General Body Meeting of the Society, the following business shall be transacted:

i. Election of a President for the meeting,

ii. Admission of new Members (other than the promoters) who have applied for Membership of the Society.

iii. Receiving and Approving the Statement of Accounts, as prepared by the Chief Promoter of the Society, as on fourteen days prior to the date of the First General Meeting of the Society ( ie: as on the Date of Notice ).

iv. Constitution of a Provisional Committee until regular elections are held under bye-laws of the Society. The Provisional Committee shall have the all powers and functions as that of the Committee elected in accordance with the Act, Rules & Bye-laws.

v. Fixing the limit up to which funds may be borrowed.

vi. Authorising the Committee to secure conveyance of the right, title and interest in the property in the name of the Society, from the Promoter Builder,

vii. Appoint internal Auditor of the Society for the year, if necessary and fix his remuneration.

viii. Authorise One of the Members of the Provisional Committee to call the first meeting of the Provisional Committee,

ix. Consider affiliation of the Society as Member of the Housing Federation of the District and other institutions mentioned in bye-law no. 6,

x. Consider any other matter to be brought before the meeting with the permission of the Chair, excepting those requiring proper notice.

(IN ADDITION FOLLOWING ARE APPLICABLE FOR PLOT-PURCHASED TYPE SOCIETY)
i. To review and approve the Report of the Chief Promoter of the Society regarding the work done and proposed to be done with reference to the financial and physical aspects of the scheme of construction.
ii. To confirm the agreement for purchase of the plot/building for the Society entered into by the Chief Promoter of the Society with the vendors.
iii. To approve the site plan and the scheme of construction.

iv. To confirm the appointment of Architect of the Society made by the Chief Promoter of the Society or to appoint an Architect if no such appointment is made by the Chief Promoter of the Society or -to appoint a new architect in place of the one already appointed.

Where the First General Meeting fails to elect a Provisional Committee, the Registering Authority shall be competent to Nominate such a Committee, including the Chairman and the Secretary of the Society for a period of one year.The person, who presides over the First General Meeting shall record the Minutes of the Meeting, sign them and hand them over to the Secretary of the Society elected at the first meeting of the Provisional Committee or nominated by the Registration Authority under the bye-law no. 87(b).The Chief Promoter of the Society shall, immediately after election of the Office Bearers of the Society, at the first meeting of the Provisional Committee or its nomination by the Registering Authority under the bye-law no. 87(b), hand over to the Chairman of the Society or any Member of the Provisional Committee authorised by it on that behalf :-

a. all records of the Society, particularly the copy of the application for registration of the Society, received back from the Registering Authority,

b. the copy of the by-laws of the Society registered by the Registering Authority,

c. the certificate of registration of the Society,
d. the challans for amounts credited into the bank,
e. the counterfoils of the used cheques and the unused cheques, forms
f. the bank pass books,
g. the copies of all the agreements entered into by him with different parties,

h. the statement of accounts as prepared by him,
i. the applications for Membership,
j. the statement of information of the promoters,
k. the vouchers for amounts expended,
l. the cash balance, if any,
m. the site plan/ the scheme of construction (for plot purchase type)
n. the minutes of the first general meeting of the Society,
o. the files of the correspondence with the Registering Authority, the Local Authority,

p. and all such other records, also in digital form and assets of the Society as are in his possession, not withholding anything with him.

q. prepare a documents handover report

The Provisional Committee or the Nominated Committee shall have the all powers and functions as the committee duly elected in accordance with the Act, Rules & Bye-laws of the Society.The Provisional Committee or the Nominated Committee shall be in office for a period of one year or until the regular elections are held under the Bye-laws of the Society.The Chairman of the Provisional Committee or the Nominated Committee shall handover charge of all the assets and documents & papers of the Society to the’ Chairman of the newly elected Committee at the time of its first meeting, leaving nothing with him/them including the record mentioned under bye-law no. 89.

By admin|February 1st, 2020|First General Meeting - Housing Society|Comments Off

(H) Transfer of shares and interest in the capital/ property of the society

a. A member, desiring to transfer his shares and interest in the capital/property of the society shall give 15 days’ notice of his intention to do so to the secretary of the society in the prescribed form, along with the consent of the proposed transferee in the prescribed form.
b. On receipt of such notice, the secretary of the society shall place the same before the meeting of the committee, held next after the receipt of the notice, pointing out whether the member is prima-fascia eligible to transfer his shares and interest in the capital/property of the society, in view of the provision of section 29(2)(a)of the Act.
c. In the event of ineligibility ( in view of the provisions of section 29 (2)(a)& (b)of the act) of the member to transfer his shares and interest in the capital/property of the society, the committee shall direct the secretary of the society to inform the member accordingly within 8 days of the decision of the committee.
d. “No objection certificate” of the society is not required to transfer the shares and interest of the transferor to transferee. However in case such a certificate is required by the transferor or transferee, he shall apply to the society and committee of the society may consider such application on merit, within one month.

e. The transferor/ transferee shall submit following documents and fulfill compliance as under.

i. Application in the prescribed form, for transfer of his shares and interest in the capital/property of the society, along with the share certificate.
ii. Application in the prescribed form for membership of the proposed transferee
iii. Resignation in the prescribed form member and transferor.
iv. Registered agreement with stamp duty paid
v. Valid reason for the proposed transfer
vi. Undertaking to discharge all the liabilities to the society by transferor
vii. Payment of the transfer fee of Rs.500/-
viii. Remittance of entrance fee of Rs.100/- payable by the proposed transferee
ix. Payment of 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. No additional amount towards donation or contribution to any other funds or under any other pretext shall be recovered from transferor or transferee.
x. Submission of ‘No Objection’ certificate, required under any law for the time being in force or order or sanction issued by the government, any financing agency or any other authority;
xi. The undertaking /declaration in compliance with the provisions of any law for the time being in force, in such form as is prescribed under these bye-laws.

a. The procedure for disposal of applications for transfers of shares and/ or interest of Members in the capital/property of the Society as laid down under the bye-law No. 62 shall be followed by the Secretary and the Committee of the Society.

b. A meeting of the Committee or the General Body, as the case may be, shall not refuse any application for admission to Membership of transfer of shares and interest in the capital/property of the Society except on the ground of noncompliance of the provisions of the Act, the Rules and the Bye-laws of the Society or any other law or order issued by the Government in exercise of the statutory powers vested in it.

c. If the decision of the Committee/General Body meeting as the case may be, on the application for transfer of Shares and/or interest in the capital/ property of the Society is not communicated to the applicant within three months of its receipt, the transfer application shall be deemed to have been accepted and the transferee shall be deemed to have been admitted as a Member of the Society as provided under Section 22(2) of the Act.

d. Any transfer made in contravention of the Act, Rules or the Bye-laws shall be void and not effective against the Society

The Transferee shall be eligible to exercise the rights of Membership on receipt of the letter in the prescribed form from the Society or order under section 22 or 23 of the Act from the Registrar; subject to the provisions of the MCS Act 1960, Rules and Bye-laws.

By admin|February 1st, 2020|(H) Transfer of shares and interest in the capital/ property of the society|Comments Off

Conditions for Membership of housing societies

An individual / applicant who is eligible to the member and who has applied for membership of the society in the prescribed form, may be admitted as member by the committee on complying with the following conditions :-Applicant has fully tendered the value of at least ten shares of the society , along with his application for membership ;Applicant has paid the entrance fee of Rs. 100/-, along with the application of membership ;Applicant has submitted the application , as prescribed , of the particulars in regard to any house ,plot or flat owned by him or any of the members of his family , anywhere in the area of operation of the society . Applicant has submitted undertaking in the prescribed form to the effect that he shall use the flat for the purpose for which it was purchased by him ;Applicant has furnished an undertaking in the prescribed form, if he/ she has no independent source of income ;Applicant has submitted , along with the application for membership of the society , a certified copy of the agreement , duly stamped and registered entered into by him / her /them with the promoter builder or transferor under section 4 of the Maharashtra ownership flats act;Applicant has furnished such other undertakings / declarations, in the prescribed forms as are required under any law for the time being in force and such other information as is required under the bye-laws of the society along with the application for membership. In case of societies registered under the jurisdiction of special planning authority like CIDCO / MHADA / SRA / MMRDA etc. the applicant should be eligible person as per the provision of respective Act and the directives of the Govt./ the planning authorities , if any.
An individual , a firm , a company or a body corporate , registered under any law for the time being in force, who/which is eligible to be an associate member and who/which shall apply through member in the prescribed form such membership , along with the entrance fee of Rs.100/-, may be admitted as associate member by the committee.
A Firm, Company or any other body corporate , registered under any law for the time being in force , which is eligible to be a member of the society and has made an application for membership of the society in the prescribed form may be admitted as a member by the committee of the society on complying with the following conditions :-
i. Applicant has sent , along with application for membership of the society , a certified copy of the agreement duly stamped entered into by if , with the promoter ( Builder ) or transferor under section 4 of the ownership flats Act 1963 with certified copy of resolution of the firm or company as the case may , authorizing to sign the application .
ii. Applicant has paid , along with application for membership , full value of at least 10 shares and entrance fee of Rs. 100/-
iii. Applicant has complied with the conditions mentioned in the notifications issued by the state government, from time to time, under the second proviso to section 22 of the Act.
iv. Applicant has furnished the undertakings/declarations in the prescribed forms required under any law the time being in force along with the application for membership.
A Sublette , a licensee or a care-taker , or occupant who is eligible to be a nominal member and who shall apply through member for such membership in the prescribed form applicable along with entrance fee of Rs.100/- may be admitted as nominal member by the committee.
The procedure for disposal of application for membership of the society, as laid under the bye-law No. 65(a) to (g) shall be followed by the secretary under the committee of the society.

By admin|February 1st, 2020|Conditions for Membership of housing societies|Comments Off

(D)Restrictions on Rights of Associate and nominal members

No associate member shall have any rights or privileges of an active member except as provided under section 27(2) of the act and he fulfill the conditions of bye-law22 (a)
A nominal member shall have no rights such as member.

By admin|February 1st, 2020|Restrictions on Rights of Associate and nominal members|Comments Off

REGISTRATION OF CO-OPERATIVE HOUSING SOCIETIES IN PUNE

According to the Law, every Builder / Developer has to form a Housing Co-operative Society with limited options available in this regard to managing the affairs of the building i.e.
(a) Condominium
(b) Private Limited Company and
(c) Co-operative Society, (excluding the unrealistic rental housing),
It wouldn’t be an exaggeration to state that in at least 90% the Promoters and / or the Builders have formed a Housing Co-operative Society.
The basic requirements for a Co-operative Housing Society Registration normally are unknown to the flat/unit purchasers. It is the statutory obligation cast upon the builder, where the builder acts as a friend, philosopher, and guide of the promoters and helps them in forming a Co- operative Housing Society.
There are four types of Housing Co-operative Societies
(a) Open Plot type Societies [Tenant ownership]
(b) Flat Owners Societies [Tenant Co-partnership]
(c) Tenant Societies
(d) Housing Board Societies.
The procedure for Co-operative Housing Society Registration begins with electing a Chief Promoter in a meeting of the Promoters. The builder under the Flat Owners type of co-operative society has the first right to act as the chief promoter. The developer / flat purchasers should call for a meeting of the Promoters by issuing the notice under Agenda of the meeting given at least 14 days notice to the Promoters. In this meeting, a Chief Promoter is elected who can exercise such powers and carry out such functions as are mentioned in the minutes of the Promoters of the proposed Co-operative Society. After electing the Chief Promoter, the proposed name of the society has to be decided by the Promoters. Normally, the name reservation proposal should be accompanied by the signature of at least 10 Promoters who have attended the meeting. It is a common belief that the Society should consist of at least 10 members. If the number is less than 10 then special permission from Government has to be taken. In such cases, the garages/car parking may be allotted to other relatives of the promoter to reach a number of 10.
It would be of interest to note that the model bye-laws define flat as a Flat means a separate set and self-contained set of premises used or intended to be used or intended to be used for residence, or office or showroom, or shop, or 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. 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 need to be submitted to the Registering Authorities for Housing Co-operative Society Registration are as under:
1. Application for registration of Housing Co-operative Society in Form A along with Statement A. Enclosure to application for Registration as per Rule 4(1) of Maharashtra Co-operative Societies Rules, 1961.
2. Information about proposed Housing Co-operative Society in Statement ‘B’ (vide Govt. Circular dated 2-5-1980).
3. Information about promoter members of the proposed Housing Co-operative 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. S.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 at least 10 promoter members to the effect that they are residing in the area of operation of the Society (Proposed), made before a Competent Authority.
12. An affidavit from the Chief Promoter on Stamp Paper of Rs. 100/- executed before the Competent Authority in form ‘Y’.
13. Certified True Copy of an 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 authorizing the promoter to sign on behalf of firm / company.
15. In the case of such proposed societies, names of 60% of the flat holders of the total number of flats constructed or proposed to be constructed as per the plan approved, must be included in Statement ‘A’ to be attached to the Registration Proposal. It is the duty of the Registrar to register the society and on registration of the society; it becomes a separate legal entity. Thereafter, the management of the affairs of the society is carried out by the managing committee which is elected by the general body meeting of the society. It may be of interest to note that in a co-operative society the principle is one member one vote. In a co-operative society, the right to be exercised in the general body meeting is a personal right. This is one of the reasons why even a person holding a power of attorney cannot attend the general body meeting of the society. The quantum of the capital being introduced by the member is not of much importance. Preference should be given to the formation of a private limited company if one member proposes to acquire the majority of flats in the building.

By admin|February 1st, 2020|REGISTRATION OF CO-OPERATIVE HOUSING SOCIETIES IN PUNE|Comments Off

CONVEYANCE SERVICES FOR SOCIETIES MUMBAI

CONVEYANCE SERVICES FOR SOCIETIES MUMBAI:-

By admin|February 1st, 2020|CONVEYANCE SERVICES FOR SOCIETIES IN MUMBAI|Comments Off

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