­

Advocates for transfer of share of member in Co-operative Housing society in Pune

(a) A member, desiring to transfer his shares and interest in the capital/property of the Society shall give 15days 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-facie eligible to transfer his shares and interest in the capital/property of the Society, in view of the provisions of Section 39 (2) (a) of the MCS Act 1960.
(c) In the event of ineligibility 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 the 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 a application on merit within one month.
(e) The Transferor/ Transferee shall submit following documents and make the compliance as under:

  1. application for transfer of his shares and interest in the capital/property of the Society, in the prescribed form along with the original share certificate;
  2. application for membership of the proposed transferee in the prescribed form,
  3. resignation of outgoing member in the prescribed form byelaws No.27 (a) Appendix No. 13
  4. Registered agreement duly stamped.
  5. valid reasons for the proposed transfer.
  6. undertaking to discharge the liabilities to the society by the transferor;
  7. payment of the transfer fee of Rs. 500/-.
  8. remittance of the entrance fee of Rs. 100/- payable by the proposed transferee.
  9. Payment of amount of premium at the rate to the fixed by the general body meeting but within the limits as prescribed under the circular, issued by the Department of Co-operation Goverment 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 tranferor or transferee.
  10. 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.
  11. 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.
    Note: The condition at Sr. No. (ix) above shall not apply to transfer of shares and interest of the transferor in the capital/property of the society to the member of his family or to his nominee or his heir/legal representative after his death and in case of mutual exchange of flats amongst the members or a registered gift deed executed by the member.

(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.65 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 or transfer of shares and interest in the capital/property of the Society except on the ground of non compliance 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 3 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) The transfer made in contravention of the Act, Rules or the bye-laws shall be void and not be 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; subject to the provisions of the MCS Act 1960 & Rules made thereunder.

 

FOR MORE DETAILS CALL:

VED LEGAL,

Adv. Gajanan Rahate

Mob: 9763040088

E_mail: [email protected]

 

Advocates for transfer of share of member in Co-operative Housing society in Pune

A co-operative society is the perfect fit for a residential building as flat-owners have common needs (water connection, watchmen, etc) and interests (maintenance of common areas, such as the terrace and compound). If you’ve purchased a flat in a new building, it would probably be best if you took interest in forming a society. The builder may also be statutorily obligated to form a society. For example, under Maharashtra Flat Ownership Act, 1963, a builder must form a society within four months of selling 60% of the flats.

 

But you needn’t wait for the builder to form the society. In many states, including Delhi and Maharashtra, ten flat-owners are enough to promote a co-operative housing society. A building without a housing society usually indicates that there is a dispute between members or a general lack of interest. If you’re considering buying a house in a building where the society has not been formed, find out what the problem is. If the builder does not form a society, rights to the terrace and the compound continue to rest with him.

 

We, the “VED LEGAL” provide registration and formation services which help you at every step of society formation, right from inception to final handover. We look after all the legal complications involved in society formation and carry out necessary negotiations with developers.

 

We have also completed the registration process for various projects. We specialize in society formation of housing societies, commercial societies, maintenance societies and large townships. We help developers and societies with complex registration process during society mergers, society split, and federation registrations.

 

Our specialized services include:

  • Initial screening
  • Gap identification and ratification
  • Process documentation and finalization
  • Dispute resolution
  • Society name reservation at respective co-operative departments
  • Account formation and legal documentation

 

FOR MORE DETAILS CALL:

VED LEGAL,

Adv. Gajanan Rahate

Mob: 9763040088

E_mail: [email protected]

Advocates for transfer of share of member in Co-operative Housing society in Pune

KEYWORDS:-
Advocates for register a new housing society
Advocates for Society Formation in Pune
Advocates for Society Registration and Formation
Cooperative Societies Registration in Pune
Housing Society Formation Pune
List of Documents Required for Society Formation
Best Society Formation lawyers
Advocates for transfer of Share in Pune
Advocates for transfer of share of member in Co-operative Housing society in Pune

Builder’s Handover Process
Builder/ Promoter is not co-operating in registering the Co-operative Housing Society

ADVOCATES FOR REGISTER A NEW HOUSING SOCIETY:
A co-operative society is the perfect fit for a residential building as flat-owners have common needs (water connection, watchmen, etc) and interests (maintenance of common areas, such as the terrace and compound). If you’ve purchased a flat in a new building, it would probably be best if you took interest in forming a society. The builder may also be statutorily obligated to form a society. For example, under Maharashtra Flat Ownership Act, 1963, a builder must form a society within four months of selling 60% of the flats.

But you needn’t wait for the builder to form the society. In many states, including Delhi and Maharashtra, ten flat-owners are enough to promote a co-operative housing society. A building without a housing society usually indicates that there is a dispute between members or a general lack of interest. If you’re considering buying a house in a building where the society has not been formed, find out what the problem is. If the builder does not form a society, rights to the terrace and the compound continue to rest with him.

We, the “VED LEGAL” provide registration and formation services which help you at every step of society formation, right from inception to final handover. We look after all the legal complications involved in society formation and carry out necessary negotiations with developers.

We have also completed the registration process for various projects. We specialize in society formation of housing societies, commercial societies, maintenance societies and large townships. We help developers and societies with complex registration process during society mergers, society split, and federation registrations.

Our specialized services include:
• Initial screening
• Gap identification and ratification
• Process documentation and finalization
• Dispute resolution
• Society name reservation at respective co-operative departments
• Account formation and legal documentation

FOR MORE DETAILS CALL:
VED LEGAL,
Adv. Gajanan Rahate
Mob: 9763040088
E_mail: [email protected]

*REGISTER A NEW HOUSING SOCIETY

First general body meeting (before registration)
In this meeting under Society’s Model Bye-law 3(iii), the Chief Promoter (could be the builder) is primarily selected by the promoters, who are members co-signing the registration application before the Registering Authority, under Bye-law 3(xii).
Application for registration
Normally, the name reservation proposal should be accompanied with the society resolutions and signatures of at least 10 Promoters who have attended the meeting. 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.
Co-operative Societies Commissioner & Registrar’s GR No. SAGRUVO/1094/Pra.Kra 277/14C dated 10 March 1995 says “By exercising the powers in section 7 of the Co-operative Societies Act 1960 the government is pleased to exempt the provision of minimum 10 members for registering co-operative Housing society under sub-clause 1 in Section 6 of the said Act subject to the conditions that the plinth area of each flat in the proposed co-operative Housing Society should not be more than 700 sq. ft and FSI should not be balance for utilization in the proposed societies land/ building.
If builder/ promoter is not co-operating in registering the Co-operative Housing Society, then in that case, the application for registration of society be submitted in Form 6 (Rule 12) before the District Deputy Registrar, who has been given power under section 10(1) of the Maharashtra Ownership Flats Act 1963. While submitting the said proposal, a Notarized Indemnity Bond of the members who applied for the registration of society on the stamp paper of Rs. 200 is required.
Approval by Registrar
It is the duty of the concerned Registrar to register the Co-operative Housing Society, by scrutinizing the proposal submitted after fulfillment of above mentioned documents, and shall make an arrangement of issuing certificate of registration society under Section 9(1) of the Maharashtra Co-operative Society Act 1960, and copy of the registered bye-law, memorandum regarding registration of society to the chief promoter. The order regarding registration of society should have been sent for publishing in government gazette to the Government Printing Press for appropriate action. It is necessary to take decision on the registration of the society within a period of two months from the date of the proposal of the society submitted to the Registrar.
If proposal of society registration is denied or no decision is taken within two months then it is necessary to send that proposal to the Divisional Joint Registrar, Co-operative Societies under Section 152 of the Maharashtra Co. operative societies Act, can be approached.

First General Body Meeting obligatory Agenda (after registration):
• To elect a Chairman for the meeting
• To admit persons to membership who have applied for membership of the society.
• To elect a provisional Managing Committee
• To receive and approve the statement of account as prepared by the Chief Promoter of the society up to 14 days prior to the first general body meeting of the society.
• To authorize the committee to secure conveyance of right title and interest in the property in the name of the society from the promoter builder
• To impose restrictions on raising loan amount from outside
• To appoint internal auditor and to fix his remuneration
• To authorize one of the members of the provisional committee to call the first meeting of the provisional committee
• To take decision about taking membership of District Housing Federation and other institutions
• To give power to one member of provisional management committee to call meeting of the managing committee
• To consider the matters raised by the member except these matters which are necessary for giving advance notice with the permission of chairman and eleventh hour matter and to make resolution in that regard.

*BUILDER’S HANDOVER PROCESS:-
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

*SOCIETY REGISTRATION AND FORMATION
Forming a legal society is of utmost importance. It helps society owners to reap unlimited benefits and maintain smooth functioning. It is mandatory for developers to create societies and provide a final handover to the owners. However, many developers do not comply with these procedures and hence flat owners lose that added benefit that a legal society enjoys.
We, the “VED LEGAL” provide registration and formation services which help you at every step of society formation, right from inception to final handover. We look after all the legal complications involved in society formation and carry out necessary negotiations with developers.
We have also completed the registration process for various projects. We specialize in society formation of housing societies, commercial societies, maintenance societies and large townships. We help developers and societies with complex registration process during society mergers, society split, and federation registrations.
Our specialized services include:
Initial screening
Gap identification and ratification
Process documentation and finalization
Dispute resolution
Society name reservation at respective co-operative departments
Account formation and legal documentation
*SOCIETY FORMATION AND HANDOVER
60 % of the Promoters are must be ready to form Co-op. Housing Society.

If flats are sold as per the Maharashtra Ownership Flats Act,1963 [MOFA] then it is the duty of the Builder / Developer to form society and hand over the Account + Documents to Provisional Working Committee [PWC] In this case the builder become CP and other flat owners become Promoters for Registration purpose. This society registers under Co-operation.

When the builder is not registering society due to some reasons or not support to registered society then flat purchasers can apply for registration of Co-operative Housing Society under Non Co-operation. In this case one of the flat owners should be elected as CP for Registration purpose. In this case some more time is taken to registered society as registrar is issue notice to builder for Non Co-operation. If no response then ex-party decision are taken for registration of the society. Now all the case of Non Co-operation Registration decisions is given by District Deputy Registrar [DDR] then society is registered

All flat owners should hold meeting and elect Promoter. All power for Registrations, documentation etc. should be given to promoter. The resolution should be passed and must be sign by all flat owners who wish to become member of the Co-operative Housing Society

Appoint Consultant / Legal Advocate for registration and ask him to comply all requirements. All members together also can do work for registration.

For registration of Co-op. Hsg. Society the following documents should be filed to Dy. Registrar / Asst. Registrar of Co-operative Department area concern in order as follow:
• Applications for Name to be reserved for Proposed Society’s
• Form of resolution electing a CP and Promoter and giving them authority for doing certain acts on behalf of the proposed society
• Application form “A” 4 copies
• Information in Annexture ” A ” ” B ” ” C ” 4 copies
• Bye-Law of the Society 2 copies
• Details of Accounts Annexture ” D ” 2 copies
• Bank Balance Certificate in Original 1 copy in Original
• Agreement of Flat 1 copy
• Advocate Search Report 2 copy [Title Certificate]
• Society’s Building Plan 2 copies
• Lay Out Plan 2 copies
• Sanction Plan from Authority 2 copies
• O.C / C.C copy 2 copies
• Promoter’s Guarantee in form ” X ” On Rs. 100/- Stamp paper & notarized 1 copy
• Guarantee in form” Y ” On Rs. 100/- Stamp paper & notarized 1 copy
• Guarantee in form ” Z ” On Rs. 100/- Stamp paper & notarized 1 copies
• 7/12 or City Survey Revenue Record of Land [not more than 1 month old] 1 copy
• Promoters Affidavit On Rs. 100/- Stamp paper & notarized 1 copy
• Indemnity Bond On Rs. 100/- Stamp paper & notarized 1 copy
• NA Certificate / ULC 2 copy
• Plot area Land Map 2 copies
• Scheme
• Registration Fee Challan for Rs.2500 1 copy original
• Builder Non Co-operation form Z On Rs. 100/- Stamp paper & notarized if required 1 copy
• CP Affidavit for Child Labour on Rs. 100/- Stamp paper & notarized 1copy

On submission of above document the Dy./Asst. Registrar will go through the papers And document. If found OK he will make order for issue of Registration Certificate.

If any deficiencies are found then the applicant will be inform accordingly and documents will be corrected wherever necessary. When all papers are in order, he will issue order for issue of Registration Certificate.

Registration Certificate is issued with covering letter and Officer’s name is mentioned who will attend First General Meeting. Normally the Officer concern is not attending meeting. In absence , all member has to hold meeting and has to elect Provisional Working Committee [PWC] whose working period will be ONE Year. After electing PWC the member of PWC has to submitted the M-20 bond on Rs. 100/- stamp paper with the sign of Officer’s whose name is in Covering latter to Dy./Asst. Registrar. All Rule and Regulations ,resolution and minutes which is written in AGM Register must be sign by Officer’s name is mentioned in covering letter it is the most important step.[Many society forget this which create problem latter] After First Annual General Meeting PWC is replaced with new Working Committee [WC] whose working period will be FIVE Year.The new WC election can conduct before PWC time over with proper election process. WC also has to submitted the M-20 bond on Rs. 100/- stamp paper with the sign of election officer to Dy./Asst. Registrar

When application for Name reservation of Society has given, the Dy./Asst. Registrar give instruction to Open Bank Account in Dist. Central Co-op. Bank The Account has to opened in the name of CP And deposit all money of Share Capital Contribution [per member Share Money is Rs. 50*10 = Rs. 500 i.e. 10 share of 50 rupees each] and Member ship Fees of Rs. 100/- i.e. Per member you have to deposit Rs. 600/- in bank and obtain Bank Balance Certificate and submitted it to Dy./Asst. Registrar. After First Annual General Body Meeting the Bank Account has to transfer in the name of Society. For bank Account operation Chairman sign must and either Secretary and Treasurer. Expenditure has to be made as per provision of Bye-Laws. Bank and Cash Transaction [Collection and Payment are handled by Treasure when Billing Clerk or Accountant are not been kept.
*DUTIES AND RESPONSIBILITIES OF THE MANAGING COMMITTEE OF COOPERATIVE HOUSING SOCIETY:-
Putting a board displaying name of the society, full address with registered survey No. and Registration No. near the main gate of the society which could be seen easily.
To raise funds for the society.
Recommend to the society for deciding maintenance fee, repair and deposit amount.
To give membership, pass the resignation of members similarly to take decision regarding nomination of the members.
Internal inspection of the flat.
To take decision on the various applications received from the members.
To take action against the defaulting members.
To issue Share Certificate to the members.
To call monthly meeting of the committee and finalize its minutes.
To determine agenda of the annual meeting and to call Annual Meeting in prescribed period.
To organize special general body meeting as required.
To make arrangement of election for the formation of a new committee before expiring the term of the managing committee.
To select office bearers by forming the new committee after election.
After taking charge of the office by the members of the managing committee,it is obligatory on them to execute bond under Section 73(1) (1AB) in M-20 (bond paper of Rs.100/- and each separately on the cost of the society) and to include the same in the record of the society. Similarly, the responsibility to inform the concerned Registrar in the regard is entrusted with Secretary.
It is necessary to take detailed note of taking charge, handover of record with its detailed list of the record received in the minutes of the managing committee meeting. Thereby the record regarding exactly which files received in whose possession and on which date is available with the society permanently.
To fill up the vacant post in the managing committee as per provision in the bye-laws and Rule No. 60(5) of Maharashtra Co-operative Rule 1961.
To accept the resignation of the members of Managing Committee.
To keep neatly the files of members and society records.
To finalize the financial statement of the society within 45 days at the end of the financial year.
To submit society’s record for Audit.
To make available papers mentioned in Section 32 as per members demand.
To take decision as per provisions in by laws and laws on the complaints received from the members.
To give necessary information to the members if he contacted society for selling of the flat and co-operate him for selling as per provisions in by-laws and laws.
To take decision on the applicant regarding letting of the flat and inform the same to the concerned member within prescribed time limit.
To make agreements as necessary on behalf of the society.
To take necessary action for keeping the property of the society in order.
To take insurance policy of the building and property of the society.
To give approval for change in utilization of flat.
To inspect flat of the member internally by taking prior appointment for the purposes of leakage/structural audit etc.
To initiate action as per provision in law if the member makes hindrance in internal inspection.
To sanction the amendments in laws, rules, bye-laws suggested by the government from time to time with the approval of the general body meeting.
It is obligatory on the part of the government to give details of the bill/bifurcation and also as per which resolution/ bye- law if the members demand so.
It is obligatory on the part of the society to accept less amount paid by the member than the amount shown in the bill and it is necessary to give receipt of thereof.
There is a provision in the sub-rule about how much maximum interest to be charged. However, it is necessary to make resolution in the general body meeting about charging interest.
By doing structural audit of the building, necessary repairs should have been carried out with the approval of the general body meeting.
If the society does not have funds and if any member is ready to do leakage work on his own cost, then to form the rules in that regard and take approval of the general body meeting for the same.
To submit the fault rectifying report in ‘O’ form by rectifying the faults in the audit report, within three months to the Auditor and to send its copy to the Registrar.

*WHY A CO-OPERATIVE HOUSING SOCIETY IS BETTER THAN APARTMENT OWNERS ASSOCIATION?
1. The builder is interested in using the increased FSI which will be awarded by the govt. for that area at any time in future. If the ‘Society’ is formed, then upon the transfer and conveyance of land in favour of the Society, the increased FSI will be owned by the Society and the builder shall not have any right over it. But if it is an Apartment, then the builder owns that increased FSI and can use it anywhere. Thus, the builder will keep taking advantage of every increase in FSI throughout in the future.
2. In an Apartment, the builder retains the ownership of the open spaces which are not included in the saleable area. Example – Terrace or any open parking/stairs space which is not included in the saleable area. But in case of Society, the builder cannot retain any right on any of these areas and has to hand over everything to the Society. The Maharashtra Apartment Ownership Act also provides for the ownership of an individual Apartment in a building and to make such Apartment heritable and transferable property.
3. Bye-laws and Rules of ‘Society’ are binding on all the residents and nobody can act as per his/her whims. Hence, if the Society decides to ban any objectionable commercial activities in the flats such as noise-making music classes or using the flat for catering or courier activities etc or not to rent out to bachelors etc, then all the residents have to abide by it. But if it is an Apartment, then owners can violate the Apartment Rules and the Apartment Body can just file a case in the Civil Court. However, while the Society disputes are resolved in a separate Court i.e. Co-operative Court dealing with Society matters and hence they are fast resolved whereas, the Apartment matters have to be taken to the normal Civil Court and hence they typically take years and decades to resolve.
4. When the building contemplates redevelopment after 25-30 years, the Society’s decision will be final and hence the Society members will have negotiation power with the builder at that time. But if in case of an Apartment, the consent of every Apartment-owner is required and hence it goes into an endless delay due to lack of a common decision acceptable to everybody. There are many instances in Mumbai wherein finally the dilapidated buildings had to be forcefully vacated by an eviction order from Court since they became unlivable. Thus, while the decisions are taken on a ‘majority’ basis in Society, the Apartment goes with rule of ‘Acceptable by Everybody’. So if the builder has retained even one flat in an Apartment, he will play a veto card in his favour at the time of redevelopment.
*FORMATION / 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.

*CHECKLIST FOR HANDOVER OF SOCIETY FROM BUILDER
During the handover procedure it is important to record and file all details related to the process so that even if problems arise years later, all you need to do is look through this set of records and, accordingly, figure out what to do next.
The builder-residents society handover procedure needs to be structured, but that’s not where the process ends. There are a few things you should remember to check even after the builder hands over your society.
1)Make sure all society related issues are recorded and filed: All defects that you find should be typed as a letter with a signed acknowledgement of the same from the builder, so he is obligated to fix them. All important e-mails should be printed and kept safely for future references.
2)Make sure you make good use of the builder provided warranty period: Builders generally offer a warranty period within which defects are to be pointed out and duly fixed.
3)Form a team of volunteers to check and cross check all formalities are done correctly: Apart from the Management Committee, it is recommended that you bring together a group of residents to volunteer in making sure all necessary documents have been collected and all required formalities have been done. (To learn what documents you need during society handover, read ‘Keep a Check on These When Builder Hands Over Your Housing Society’)
4)Get a community management software to help you keep a permanent track of records: Getting a society management portal will prove significantly helpful in the overall management of your community activities in the long run. (For example: Common Floor Groups portal. With its many features such as Discussion, Complaints, My Dues, Issue Tracker, Documents repository this portal will serve as a platform to execute and manage community related activities effectively.)
5)Keep originals safely and copies separately with the Committee President: Make sure you keep originals of documents at a safe place such as the Association office and their copies with the Committee President which, when his tenure ends, are passed on to his successor.
6)Make sure you have all documents mentioned on the ‘Handover’ Checklist: Double check that you have all documents mentioned on the handover checklist in ‘Keep a Check on These When Builder Hands Over Your Housing Society’.

*BUILDER-NON COOPERATION CO-OPERATIVE HOUSING SOCIETY
If builder/promoter procrastinate in registering the Co-operative Housing Society, then in that case, the application for registration of society be submitted in Form 6 (Rule 12) before the authorized officer (District Dy. Registrar in the respective district, who have given power under section 10(1) of the Maharashtra Ownership Flats Act 1963 (For making regulation for encouraging their constructions, their sale, management and transfer).
While submitting the said proposal, following documents are Necessary.
• 7/12 extract of the land or property card.
• Competent Authority Certificate regarding non-Agricultural land.
• Order regarding applicable/non-applicable Land ceiling Act Map of the construction approved by the competent authority.
• Letter of given permission for construction.
• Completion certificate of Construction.
• Development Agreement if the land is taken for development.
• Power of Authority letter of the Land.
• Copy of the Title search Report.
• Agreement copy of the flat purchased.
• Architect certificate regarding construction.
• List of the Members.
• Scheme of the Society.
• Application regarding reservation of Name.
• Minimum 10 Members shall necessary for the registration of the Society.
• Application for registration of Society (A Form)
• Table containing information of the society (B Form)
• Table containing information of the members (C Form)
• Statement of Accounts of the members (D Form)
• Notarized guarantee letter of the chief promoter of society on the stamp paper of Rs. 100/-
• Notarized Indemnity Bond of the members who applied for the registration of society on the stamp paper of Rs. 200/-
• Affidavit of the Members (Minimum 10 promoters’ Affidavit)
• Two copies of bye laws approved by the Commissioner, Co-operation and Registrar, Maharashtra State, Pune.
• Bank balance statement of the promoter members who have deposited Rs.500/- each as a share and admission fee Rs.100/- in District
• Central Co-operative Bank after getting sanction for the reservation of name in district of Rs.2500/- paid as society Registration fee in the Government Treasure.
The proposal submitted after fulfillment of above mentioned documents, the competent authority by taking hearing, issued orders to the concerned officer for registering the society.
The scrutiny of the registration proposal submitted after fulfillment of documents as mentioned above and criterion will be done after taking into consideration the instructions in the circular/ directives regarding registration issued by the Government/ Commissioner, Co-operation. It is obligatory on the concerned Registrar to make registration by considering various provisions in the Act and Rules and instructions given in the circular/ directives.
PROCEDURE FOR REGISTRATION OF CO-OP. SOCIETIES
1.The first Step is to get 10 Individuals together who are desirous of forming a Society.
2.A Provisional Committee should be formed and a chief Promoter should be elected from amongst them.
3.A Name for the Society has to be selected.
4.An Application has to be made to the Registration Authority for reservation of Name and a letter to that effect has to be obtained confirming the reservation of Name. The name once reserved is valid for 3 Months.
5.The entrance fees and share capital has to be collected from the prospective members.
6.A Bank account has to be opened in the name of the proposed society as per the directions of the registration Authority. The entrance fees and share money has to be deposited in the bank account and the certificate from the bank has to be obtained in that respect.
7.The registration fees has to be deposited with the Reserve Bank of India and receipted 1challan thereof is to be obtained.
8.The application for registration of the society should be submitted to the Registrar of Societies of the concerned municipal ward. The documents to be submitted for registration are as follows:
a. Form No. A in quadruplicate signed by 90% of the promoter members
b. List of promoter members
c. Bank Certificate
d. Detailed explanation of working of the society.
e. 4 copies of proposed bye-laws of the society.
f. Proof of payment of registration charges.
g. Other documents like affidavits, indemnity bonds, any documents specified by the Registrar also have to be submitted.
9.The Registrar will enter the particulars in register of application maintained in Form “B” and give serial number and issue receipt in acknowledgment of the same.
10.On registration, the Registrar will notify the registration of the Society in the Official Gazette and issue Registration Certificate.

the societies which can be registered under the MOFA :

• having objects for promotion of the economic interests or general welfare of its members; or of the public, in accordance will co-operative principles
• a society established with the object of facilitating the operations of any such society

The societies which cannot registered under MOFA:
• if it is likely to be economically unsound
• the registration of which may have an adverse effect on development of the co-operative movement
• the registration of which may be contrary to the policy directives which the State Government may, from time to time, issue.

 A society may be registered with limited or unlimited liability.

Conditions of registration:
• at least ten persons or such higher number of persons as the Registrar may determine from time to time according objects and economic viability of a society and development of the co-operative movement
• at least five societies as its members for federal society
• any society made before the commencement of this Act.

Evidence of Registration:
• A certificate of registration signed by the Registrar
I. MEMBERSHIP:

(A)Classes of Members:
The membership of the society shall consist of-
(i) Members, including associate members and
(ii) nominal members.

(B)Eligibility for Membership:

(a) No individual shall be admitted as a member of the society except for the following, that is to say-
(1) Who is competent to contract under the Indian Contract Act, 1872;
(2) a firm, co-operative society 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;
(3) a society registered, or deemed to be registered, under the MCS Act 1960
(4) the State Government or the Central Government;
(5) a local authority;
(6) a public trust registered under any law for the time being in force for the registration of such trusts.
(b) A minor or a person of unsound mind, inheriting shares and/or interest of the deceased member in the capital/property of the society, or if nominated may be eligible for admission to membership of the Society through his guardian or legal representative, on an application in the prescribed form, along with undertakings /declarations, in the prescribed forms, mentioned in the application.

“Notwithstanding anything contained in these bye-laws, admission of a person to membership of the Society direct or as a result of transfer of shares and interest of the existing member, in the capital/ property of the Society, shall be subject to the approval of the concerned competent authorities such as collector of the District, if the society has been given land by Government/CIDCO/MHADA. or any other authority for constructing houses thereon.

• “Family” means as defined under Bye-law No. 3 (xxv).
• Signatories to the application for registration of the Society shall be deemed to be the members of the Society after its registration.
• The number of members in the Society shall be limited to the number of flats constructed in the building. Excess members shall not have right, title or interest in the society’s property or shall not be eligible for voting. It shall be binding on the committee to induct the members to the extent of the number of flats.

A firm registered under the Indian Partnership Act, 1932, a company registered under the Indian Companies Act,1956, a Society registered under the Societies Registration Act, 1860 or a Co-operative Society registered under the Maharashtra Co-operative Societies Act, 1960, a local authority, the State/Central Government, a public trust or any other body corporate, registered under the law for the time being in force, as provided under Section 22(i) (b), (c), (e) and (f) of the Act may be eligible for admission to membership of the society. However, admission of firms and companies to membership of the society and holding of flats by them shall be regulated in accordance with the notifications issued by the State Government from time to time under the second Provision to Section 22 of the Act.
(C) Conditions for Membership:

(A) An individual who is eligible to be 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:
(i) he has fully paid the value of at least ten shares of the society, along with his application for membership;
(ii) he has paid the entrance fee of Rs.100/-, along with the application for membership;
(iii) he has given the application in a prescribed form as prescribed the particulars in regard to any house, plot or flat owned by him or by any of the members of his family, anywhere in the area of operation of the society;
(iv) he has given an undertaking in the prescribed form to the effect that he shall use the flat for the purpose for which it was purchased by him;
(v) he has furnished undertaking in the prescribed form, if he has no independent source of income:
(vi) he has sent, along with the application for membership of the society, a certified copy of the agreement, duly stamped entered into by him with the Promoter (Builder) or transferor under Section 4 of the Ownership Flats Act, 1963
(viii) he 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.
Note : The conditions at (iii), (iv), (v) and (vii) above shall not be applicable in respect of the unsold flats.
(B) 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 has made an application in the prescribed form for such membership, along with the entrance fee of Rs. 100/- may be admitted as such member by the Committee.

(C) 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 which has made an application for membership of the society in the prescribed form may be admitted as a member by the general body meeting of the society on complying with the following conditions:-

(i) it has sent, along with the application for membership of the Society, a certified copy of the agreement duly stamped entered into by it, with the Promoter (Builder) or transferor under Section 4 of the Ownership Flats Act, 1963
(ii) it has paid, along with the application for membership, full value of at least 20 shares and entrance fee of Rs. 100/-
(iii) the firm or the company has complied with the conditions mentioned in the notifications, issued by the State Government, from time to time, under the Second provision to Section 22 of the MCS Act, 1960;
(iv) the firm or the company has furnished the undertakings/declarations in the prescribed forms required under any law for the time being in force along with the application for membership.
• The conditions at (i) and (iii) shall not be applicable to the firm/company of the Promoter (Builder), applying for membership of the Society in respect of the unsold flats.
A Sublettee, a licensee or a care-taker, or occupant who/which is eligible to be a nominal member and who shall apply through original member for such membership in the prescribed form, applicable to him/it, along with entrance fee of Rs. 100/- may be admitted as such 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 and the Committee of the society.

II. RIGHTS OF MEMBERS:

(A)Getting Copy of the Bye-Laws:

A member shall be entitled to receive a copy of the registered bye-laws of the society on payment of the price thereof as per clause 172
(B)Inspection of Books and Records:

A member shall have right to inspect free of cost books, registers documents etc. as provided in Section 32 (1) of the MCS Act 1960 and get copies of the documents as provided under Section 32(2) of the MCS Act 1960, on payment of the fees prescribed under the bye-law No. 172.
(C) Occupation of Flats:
24. (a) The member, who is deemed to have been allotted the flat under the bye-law no. 76(a) of the Society shall have a right to occupy the flat subject to the terms and conditions set out in the letter of allotment in the prescribed form under the said bye-law.
(b) The associate/nominal member may have a right to occupy the flat with the consent of the member and permission of the Society, subject to the conditions set out by the Society.
(D)Restrictions on Rights of Associate and Nominal Members:
25. No associate members shall have any rights or privileges of a member except as provided under Section 27(2) of the MCS Act, 1960 26. A nominal member shall have no rights as such member.
(E)Resignation of Membership:

(1)Resignation by a Member:
(a) A member may resign his membership after giving three months notice, in the prescribed form to the Secretary of the Society as provided under Rule 21 (1) of the MCS Act, 1961.
(b) No resignation of a member of the Society shall be accepted unless such member has made payment of the charges payable to the society in full.
(c) Where any charges are found payable by the member of the Society, the Secretary of the society shall intimate the same giving full details and reasons of dues thereof to the member within 15 days of the receipt of the notice of resignation, advising him to make payment thereof within 30 days of the date of the intimation.
(d) Where there are no charges of the society outstanding with the member, the Committee shall accept the resignation of the member and the Secretary of the Society shall communicate the same to the member within a period of 3 months from the date of the receipt of the notice of the resignation. If nothing is communicated during the said period, then it shall be deemed that resignation is accepted.
(e) Where any resignation is rejected, the Committee shall record the reasons therefor and communicate the same to the member concerned within 3 months of the date of receipt of notice of resignation.

(2)Resignation by an associate member:
An Associate Member may resign his membership any time by writing the letter of resignation to the Secretary of the Society, through the member, with whom he held the shares of the Society jointly. The Secretary of the society shall place the letter of the resignation of the Associate member, before the meeting of the Committee, held next after the receipt of the letter of resignation, duly recommended by the member for acceptance by the committee. The decision of the committee, accepting the resignation of the Associate Member shall be communicated by the Secretary of the Society to the member and his associate member within 15 days of the decision by the committee. If the resignation is rejected, the committee shall record the reasons there of in the minutes of its meeting and the Secretary shall communicate the same to the member and his associate member within the time specified above. If the resignation is not granted within the said period then the same shall be deemed to be accepted.
(3)Resignation by a Nominal Member, Occupying the flat on behalf of the Firm, Company or any other Body Corporate:
If there is a nominal member, occupying the flat on behalf of a firm, company or any other body corporate, he/ she may resign his nominal membership, at any time, by writing the letter of the resignation to the Secretary of the Society through the firm, the company or any other body corporate, on whose behalf he is occupying the flat. The Secretary of the Society shall place the letter of resignation, before the meeting of the committee, held next after the receipt of the letter of the resignation of the nominal member duly recommended by the firm, the Company or any other body corporate for acceptance by the Committee. The decision of the committee, accepting the resignation shall be communicated by the Secretary of the society to the firm, company or the body corporate and the nominal member, within 15 days of the decision by the Committee. If the resignation is rejected, the committee shall record reasons therefor in the minutes of its meeting and the Secretary shall communicate the same to the firm, company or the body corporate and the nominal member within the time specified above. if the committee does not take any decision there of within 3 months, the said registration shall be deemed to be accepted.
(4)Resignation by a Nominal Member, who is Sub-lettee, Licensee,Caretaker etc.:
A sub-lettee, licensee, caretaker or possessor of a flat or ; part thereof, who has been admitted as a nominal member of the Society may resign his nominal membership at any time, by writing the letter of the resignation to the Secretary of the Society, through the member who has been permitted by the committee to sub-let, given on leave and licence or caretaker basis the flat or part thereof or part with its possession in any other manner. The Secretary of the Society shall place the letter of the resignation before the meeting of the committee, held next after the receipt of the letter of resignation duly recommended by the member concerned for acceptance by the committee. The decision of the committee, accepting the resignation shall be communicated by the Secretary of the Society to the member concerned and his sub-lettee the licensee, the caretaker, or as the case may be, the possessor of the flat or part thereof, within 15 days of the decision by the committee. If the resignation is rejected, the committee shall record reasons therefor in the minutes of its meeting and the Secretary of the Society shall communicate the same to the member concerned and his sub-lettee, licensee, or caretaker etc. within the time specified above. If the committee does not take any decision thereof within 3 months, then it shall be deemed that the resignation is accepted.

On acceptance of the resignation of the member, under bye-law no. 27, the society shall acquire the shares and interest of the member in the capital/property of the Society and pay him the value thereof as provided under the bye-law no.66.
(F) Nomination by Members:
A member of the Society may, by writing under his hand, in the prescribed form, nominate a person or persons, to whom the whole or part of the shares and/or interest of the member in the capital/property of the Society shall be transferred in the event of his death. The acknowledgement of the nomination by the Secretary, shall be deemed to be the acceptance or nomination by the Secretary. No fees shall be charged for recording the first nomination. A member may revoke or vary his nomination, at any time, by making an application, in writing, under his hand, to the Secretary of the Society. The acknowledgement of the variation in nomination/subsequent nomination by the Secretary shall be deemed to be the cancellation of the earlier nomination.Every fresh nomination shall be charged a fee of Rs. 100/-

On receipt of the nomination form, or the letter of revocation of the earlier nomination, the same shall be placed before the meeting of the Committee, held next after; the receipt of the nomination form, or the letter of revocation of the earlier nomination, by the Secretary of the Society for recording the same in the minutes of the committee. Every such nomination or revocation thereof shall be entered in the register of nominations by the Secretary of the society within 7 days of the meeting of the committee, in which it was recorded.

Subject to the provisions of the Section 30 of the M.C.S Act, 1960, bye-laws Nos. 17A or 19, on the Death of a member, the society shall transfer the shares and interest of the deceased member in the Capital/ Property of the Society to the Nominee/Nominees and in the proportion with the shares and interest held by the deceased member, in case property is purchased by member and associate member jointly. In the event of death of the member, Nominee/Nominees shall submit the application for membership, within six months from the death of a member. If there are more than one nominee, on the death of a member, such nominees shall make Joint application to the Society and indicate the name of the nominee who should be enrolled as member. The other nominees shall be enrolled as Joint associate members unless the nominees indicate otherwise. The Nominees shall also file an indemnity bond in the prescribed form indemnifying the society against any claims made to the shares and the interest of the deceased member in the Capital/Property of the society by any of them, in case only one nominee is indicated by the Nominees for membership of the Society.

Where a member of the Society dies without making a nomination, or no nominee comes forward for transfer, the society shall invite, within one month from the information of his death, claims or objections to the proposed transfer of shares and interest of the deceased member in the capital/property of the Society, by a public notice, in the prescribed form exhibited on the notice board of the society. It shall also publish such notice in at least two local news papers, having wide circulation. The entire expenses of publication of the notice shall be recoverable from the value of share and interest of the deceased member in the capital/ property of the society. After taking in to consideration the claims or objections received, in response to the said notice, and after making such inquiries as the committee considers proper, in the circumstances prevailing, the committee shall decide as to the person, who in its opinions, is the heir or legal representative of the deceased member. Such a person will be eligible to be a member of the Society subject to the provisions of the bye-laws Nos.17(a) or 19 provided that he gives an indemnity bond, along with his application for membership in the prescribed form, indemnifying the Society against any claims made to the share and interest of the deceased member in the capital/property of the society, at any time in future by any person. If there are more claimants than one, they shall be asked to make the affidavit as to who should become a member of the Society and such person, named in the affidavit shall furnish the indemnity bond as indicated above along with application for membership, referred to above. If, however, the committee is not able to decide as to the person who is the heir/legal representative of the deceased member or the claimants do not come to the agreement, as to who should become the member of the Society, the committee shall call upon them to produce succession certificate from the Competent Court. If, however, there is no claimant, the shares and interest of the deceased member in the capital/property of the Society shall vest in the society.

If there is a single nominee and if he demands payment of the value of shares and interest of the deceased member, in the capital/property of the society, the society shall acquire the same and pay him the value thereof as provided under the bye-law no. 66. If, however there are more nominees than one and if they demand payment of the value of the shares and interest of the deceased member in the capital/ property of the society, the society shall acquire the same and pay them the value thereof as provided under the bye law referred to above in the proportion mentioned in the nomination form. If no proportion is mentioned in the nomination form, the payment shall be in equal proportion.

If, in the opinion of the Committee, there is only one heir /legal representative of the deceased member and if he demands payment of the value of the shares and interest of the deceased member in the capital/ property of the Society, the Society may acquire the same and pay him the value thereof as provided under the bye-law No.66 after obtaining the indemnity bond referred to in the bye-law No.35. If in the opinion of the Committee, there are more heirs/legal representatives than one and if they demand payment of the value of shares and interest of the deceased member in the capital/property of the Society, the Society may acquire the same and pay them value thereof in equal proportion as provided under the bye law No.66, after obtaining the indemnity bond referred to in the bye-law no. 35, from all their heirs/legal representatives jointly.
(G) 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 15days 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-facie eligible to transfer his shares and interest in the capital/property of the Society, in view of the provisions of Section 39 (2) (a) of the MCS Act 1960.
(c) In the event of ineligibility 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 the 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 a application on merit within one month.
(e) The Transferor/ Transferee shall submit following documents and make the compliance as under:
1. application for transfer of his shares and interest in the capital/property of the Society, in the prescribed form along with the original share certificate;
2. application for membership of the proposed transferee in the prescribed form,
3. resignation of outgoing member in the prescribed form byelaws No.27 (a) Appendix No. 13
4. Registered agreement duly stamped.
5. valid reasons for the proposed transfer.
6. undertaking to discharge the liabilities to the society by the transferor;
7. payment of the transfer fee of Rs. 500/-.
8. remittance of the entrance fee of Rs. 100/- payable by the proposed transferee.
9. Payment of amount of premium at the rate to the fixed by the general body meeting but within the limits as prescribed under the circular, issued by the Department of Co-operation Goverment 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 tranferor or transferee.
10. 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.
11. 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.
Note: The condition at Sr. No. (ix) above shall not apply to transfer of shares and interest of the transferor in the capital/property of the society to the member of his family or to his nominee or his heir/legal representative after his death and in case of mutual exchange of flats amongst the members or a registered gift deed executed by the member.
(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.65 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 or transfer of shares and interest in the capital/property of the Society except on the ground of non compliance 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 3 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) The transfer made in contravention of the Act, Rules or the bye-laws shall be void and not be 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; subject to the provisions of the MCS Act 1960 & Rules made thereunder.

(H)Exchange of Flats:
The members, desiring to exchange their flats, shall make a joint application to the Secretary of the society, containing the following details:

(1)The names of the members concerned;
(2)The distinctive numbers of their respective flats;
(3)The carpet areas (in sq. meters) of their respective flats;
(4)The building number / numbers and name / names of the building /buildings in which their respective flats are situated;
(5)The reason for exchange of flats.
(6) Registered Deed of exchange with the necessary stamp-duty having been paid.

The procedure for disposal of applications for exchanges of flats as indicated in the bye-law no.65 shall be followed the Secretary and the Committee of the Society.

(I)Sub-letting etc. of Flats
(1) A member may, apply to the society , of his intention of sub-letting of his flat and on receipt of the permission in writing of the Committee, subject or give on leave and license basis or care-taker basis his flat or part thereof or part with its possession in any other manner under the following circumstances:
(i) Where the member is required to go out of the area of operation of the Society for a long duration on account of exigencies of service or business or on account of the prolonged illness;
(ii) Where the member is unable to occupy the flat owing to absence of facilities for education of his children or is unable to secure admission to the school in the locality for them.
(iii) Where the employer, with a view to ensure efficient discharge of duties, requires him to stay in the accommodation allotted to him by his employer.
(iv) Where a member satisfies the committee about his inability to occupy or continue to occupy the flat for any other genuine reasons;
43(2) No member shall be permitted by the committee to sub-let, give on leave and licence basis or care-taker basis, his flat or any part thereof or part with its possession in any manner unless:
(i) he has made an application in the prescribed from;
(ii) he has furnished the application for nominal membership of the proposed sub-lettee, licensee, care-taker in the prescribed form;
(iii) his application contains the undertaking that
(a) he shall, by joining the society as a party to the proceedings initiate necessary legal proceedings against the sub-lettee, licensee, care-taker, on his failure to get vacant possession of the flat or part thereof on expiry of the period of sub-letting, giving on leave and licence or care-taker basis the flat or part thereof or parting with his possession in any other manner and meet the cost of the legal proceedings required to be incurred by the Society;

(b) he shall pay the charges of the Society every month during the period of sub-letting, licence etc.;

(c) he shall pay non-occupancy charges to the Society. Nonoccupancy charges shall be charged in accordance with the circular issued by the Government of Maharashtra and the Commissioner for Co-operation from time to time and shall not be levied if the flat is occupied by the “Family” of the member as defined under these bye-laws. Provided that while permitting the sub-letting, giving on leave and licence or care-taker basis the flat or part thereof or permitting parting with its possession in any other manner, the committee shall restrict the period thereof 11 months or for more period as desired by the managing committee, which may, on the request of the member be extended for similar period or part thereof from time to time.

(d) Non-occupancy charges shall not be levied to the flat purchaser who is intending to become a member and who submits the documentary evidence thereof. 44. The procedure for disposal of the application for permission for sub-letting, giving on leave and licence or care-taker basis, flats or part thereof or parting with their possession in any other manner, as laid down under the bye-law No. 65 shall be followed by the Secretary and the Committee of the Society. 45. No member of the Society shall assign, mortgage or create any charge on his occupancy right in the flat without the previous permission in writing of the committee. Provided that such permission of the society will not be required for assigning, mortgaging or creating any charge on the occupancy right in the flat for the purpose of obtaining loan ,either for purchase of the flat or for liquidating the liability incurred by him for the said purpose by way of loan or advance from the employer of the member or from the Life Insurance Corporation of India or from the Bank or the Society or any other agency approved by the Commissioner for Co-operation and Registrar.

III. RESPONSIBILITIES & LIABILITIES OF MEMBERS:

(A) Maintenance of Flats by Members:
Every member shall keep his flat clean.

(a) No member shall, without the previous permission of the committee in writing, make any additions or alterations in his flat.
(b) The member, desirous of making any additions or alterations in his flat, shall make an application to the Secretary of the Society, giving all the required particulars. Further action on such application shall be taken by the Secretary and the Committee of the Society as provided under the bye-law No. 65.

(a) For facilitating discharge of functions mentioned under the bye-law no.156 by the Committee, every member shall allow the Secretary of the Society, accompanied by any other member of the Committee, to enter upon his flat with prior intimation to the Member, to examine its condition for ascertaining the repairs, if any, necessary. The Secretary of the Society shall make a report to the Committee, indicating therein the particulars of the repairs to be carried out by the society at its cost and those by the members at their cost.

(b) On receipt of such report, the Committee shall ascertain the cost involved in the repairs, which are required to be carried to be carried out by the society at its cost as provided under the bye-law No.160(a) and cause the notice to be served on the member for such period as the Committee thinks adequate, of its intention to carry out the repairs and there-upon the member concerned shall allow the workmen engaged by the society directly or through its architect, access to his flat for carrying out the repairs. If the member concerned fails to give access to his flat, without reasonable and convincing reasons, the Secretary of the society shall have authority to enter upon the flat and carry out the work under the supervision of the member of the committee duly authorised by it in that behalf or the architect appointed by the society.

(c) In respect of the repairs to be carried out by the member at his cost, the committee shall cause the notice to be served on the member, indicating therein, the particulars of repairs necessary at his flat and calling upon him to carry out the repairs to his flat to the satisfaction of the architect approved by the Society, if any, at his cost, within such period as the Committee may allow. On his failure to comply with the notice, the Secretary of the society or the architect appointed by the Society shall have authority to enter upon the flat and cause the repairs to be carried out after giving due notice to the member concerned. The amount spent by the society on such repairs shall be recoverable from the member concerned.
• No member, without the previous permission of the committee, in writing, shall stock or store any kind of goods or materials, which are combustible, obnoxious or other goods, for the storing of which requires permit/sanction of the competent authority under any law relating thereto.
(a) No member, shall do or suffer anything to be done in his flat which may cause nuisance, annoyance or inconvenience to any of the members of the Society or carry on practices which may be repugnant to the general decency or morals of the members of the Society.

(b) It shall be competent for the committee either sou-moto or on receipt of the complaint from any member to take steps to stop all such practices referred to in the Bye-law No.50(a) forthwith.

(B)Expulsion of a Member:
A member may be expelled from the membership of the society, if such a member:
(i) has persistently failed to pay the charges due to the Society,
(ii) has willfully deceived the society by giving false information,
(iii) has used his flat for immoral purpose or misused it for illegal purpose habitually,
(iv) Has been in the habit of committing breaches of any of the provisions of the bye-laws of the Society, which, in the opinion of the Committee, are of serious nature,
(v) Has furnished false information or omitted to furnish the material information to the Registering Authority at the time of registration of the Society. 57.
(a) The cases of expulsion from the membership of the Society shall be dealt with in the manner provided under Section 35 of the Act, read with Rules 28 and 29 of the MCS Rules 1961.

(b) Expulsion from membership may involve forfeiture of the shares held by the member. Where the Committee decides that expulsion from membership should also involve forfeiture of the shares, it shall make necessary reference to the proposed forfeiture of the shares in the notice to be issued under Rule 29 of the MCS Rules 1961

The member, duly expelled from membership of the Society, shall cease to be the member of the society, with effect from the date on which the resolution of expulsion from the membership of the society is approved by the Registering Authority. The forfeiture of the shares may take effect simultaneously with expulsion.

The member, who has been duly expelled from the membership of the Society, shall not be entitled to continue in occupation of his flat and he shall arrange to hand over peaceful and vacant possession of his flat to the Secretary of the Society within such period as the committee may allow. On his failure to do so, he shall be liable to be evicted from his flat.

If the meeting of the general body of the Society has decided not to forfeit the shares, the interest of the expelled member in the capital/property of the Society and the value thereof shall be acquired by the Society and the value thereof shall be paid to the expelled member, within 3 months of his handing over possession of his flat or his eviction from it, after following the procedure as laid down under the bye-law no.66 in respect of payment of the value of the shares and interest in the capital/property of the society acquired by the Society.

No member of the society, who has been expelled from its membership, shall be eligible for re-admission to membership in the society, until expiry of the period of one year from the date of his expulsion, provided that on the recommendations of the meetings of the general body of the Society, the expelled member may be readmitted to its membership, as a special case, before the expiry of the period of one year, with the prior permission of the Registering Authority.
(C) Cessation of Membership:
The person shall cease to be the member of the Society.
(i) on his resignation from membership of the Society having been accepted by the Committee.
(ii) on transfer of all his shares and interest in the capital/property of the Society.
(iii) on his death.
(iv) on his expulsion from the membership of the Society.
(v) on being adjudged as an insolvent or legally disabled from continuing as member.
(vi) If the where abouts of the member are not known for continuous seven years and if his shares and interest in the property/capital of the Society is not claimed by anybody else.
(vii) On cessation of right/title and interest as a member in the property of the Society by way of legal attachment or sale. The committee shall take further action in the matter as indicated in the bye-law No. 61.
The person shall cease to be the associate member of the society when the original member ceases to be the member of the society or on the death of the associate member or on the acceptance of the resignation of the associate member by the committee. The committee shall take further action in the matter as indicated in the Bye-law No. 61.

If there is a nominal member, occupying the flat on behalf of the firm, company or any other body corporate he shall cease to be as such member of the Society.
(i) on his death,
(ii) on the acceptance of his resignation by the Committee,
(iii) on cessation of membership of the original member on whose behalf he occupies the flat in the Society,
(iv) on cessation of his nomination on account of expulsion of the original member,
(v) on intimation from the original member of termination of the occupant’s nomination, The Committee shall take further action in the matter as indicated in the bye-law no.61.
The nominal member, who is the sub-lettee, licensee or care taker or possessor in any other manner of the flat or the part thereof shall cease it be as such member of the Society:
(i) on his death,
(ii) on his resignation having been accepted by the Committee,
(iii) on the cessation of the membership of the original member,
(iv) on the expiry of the period for which the flat or part thereof was permitted to be sub-let, given on leave and licence or care-taker basis
• The words “original member” used in the by-laws Nos. 57, 58, 59 and 60 mean the member, with whom the associate member held the shares of the society jointly, the Firm, the Company or any other Body Corporate, on whose behalf the nominal member occupies flat in the society’s building or the member who has been permitted to sub-let, give on leave and licence or caretaker basis his flat or part thereof or part with its possession in any other manner.
• The committee shall record the facts of cessation of members membership of the society under the bye-law no.57 and of associate and nominal members membership respectively under the bye-laws Nos. 58, 59 and 60, in the minutes of its meetings and accordingly the Secretary of the Society shall inform the concerned members in writing within seven days of the dates of such decision of the Committee.
(D)Restriction on Holding more than One Flat:
Individual member of the society may hold more than one flat, in the building/s of the Society in his name or in the name of any of the members of his family, Subject to the conditions as provided under the provision of Section 6 of the MCS Act 1960
(E)Liabilities of a Member and the Past Member:
The liability of a member of the Society shall be limited to his shares holding in the Society.

The liability of the past member of the society for the debts of the society, as they stood on the date of the cessation of his membership and the liability of the estate of the deceased member of the society for the debts of the society as they stood on the date of his death shall continue for the period of 2 years from the date of his cessation or death respectively as per the provisions of Section 33(1) of the Act.
(F)Other Matters:
(a) All the applications for
(i) admission to membership of the Society, including associate and nominal membership
(ii) approval to the transfer of Shares and interest in the capital/property of the Society,
(iii) permission for sub-letting or giving flats or parts thereof on leave and licence or care-taker basis,
(iv) permission for additions and alterations in flats,
(v) allotment of parking spaces and stilts,
(vi) permission for exchange of flats,
(vii) permission for holding additional flats,
(viii) permission for assigning , mortgaging or creating charge or interest in flats,
(ix) permission for use of terrace, and
(x) for any other purpose provided under the bye-laws but not specifically mentioned above, shall be addressed to the Secretary of the society. Every application received by the Secretary shall be acknowledged by him.
(b) On receipt of the applications, the Secretary of the society shall scrutinise them and bring any short comings therein to the notice of the members concerned within 7 days of their receipt for compliance.

(c) The Secretary shall place all the applications, complete in all respects, or incomplete, before the meeting of the Committee or the general body, as the case may be held next after receipt of the applications.

(d) The committee or the General Body, as the case may be, shall consider all such applications at its meetings and take decisions thereon;

(e) The committee shall ensure that all the applications received by the Secretary of the Society are disposed off within the maximum period of 3 months from the dates of their receipt ;

(f) If the Committee or the General Body, as the case may be, rejects any applications, it shall record, in the minutes of its meetings, the reasons for rejection of the applications.

(g) The Secretary of the society shall communicate the decisions of the Committee or the General Body, as the case may be, to the applicants concerned within 15 days of the decisions of the committee or the General Body, as the case may be, with reasons, where the applications are rejected by the Committee or may be, with reasons, where the applications are rejected by the committee or the General Body, as the case may be if the society does not communicate the decision to the applicant within three months from the date of receipt of application for membership, including nominal or associate membership, the applicant shall be deemed to have been admitted as a member as provided under Section 22(2) of the MCS Act 1960
Wherever the question of payment of the value of the shares and the interest of any member of the Society, in its capital/property, as the result of acquisition of the same by the society arises, the following procedure shall be followed:
(i) The value of Shares shall be decided in accordance with the provisions of Rule 23 of the MCS Rules 1961
(ii) The shares and interest of the expelled member, in the property/ capital of the society shall be valued by the Government approved valuer.
(iii) Within one month of the date of demand for payment of the value of the shares and interest in the capital/ property of the Society, or acquisition of the same by the Society, the committee shall, by publication of the notice in at least two widely circulated newspapers and exhibition thereof on the notice board of the Society, invite offers for price proposed to be paid for acquiring interest in the flat, within such period as is mentioned in the notice.
(iv) On receipt of the offers, the committee, in its meeting, shall scrutinise the same and decide to accept the offer which is the highest, which shall not be less than the approved value as determined in (ii) above.
(v) The committee shall then advise the person, offering the highest price, to make an application for membership of the Society, in the prescribed form, along with a demand draft for the price offered, value of 10 shares of the Society and the entrance fee of Rs. 100/-.
(vi) On realisation of the demand draft and within one month of the admission of the said person to membership of the Society, the committee shall arrange to pay the value of the interest in the flat realised by the Society
• to the member whose resignation has been accepted by the Committee, or
• to the nominee/s legal heir/s of the deceased member who demanded payment of the value of the Shares and the interest in the capital or property of the society, or
• to the expelled member. together with the value of the shares as determined under (i) above, after deducting the following.
o Outstanding amounts, if any, due from such member:
o the entire expenses of the publication of the notice:
o Expenses incurred for the disposal of the interest of the member in the property/capital of the Society. The payment shall be made in the manner provided under the bye-laws Nos. 36, 37 and 55 to the nominee/ nominees or heir/heirs, respectively.

FOR MORE DETAILS CALL:
VED LEGAL,
Adv. Gajanan Rahate
Mob: 9763040088
E_mail: [email protected]

INTRODUCTION
The Maharashtra Ownership Flats (Regulation of the Promotion, Construction, Sale, Management and Transfer) Act, 1963 (Hereinafter referred to as “the MOFA”) was an attempt to mitigate all the unscrupulous practices pertaining to promotion, construction, sale, management and transfer of flats sold on an ownership basis within the State of Maharashtra.

The Act defines a “flat” as:
“A separate and self-contained premises, which is used or is intended to be used as a Residence, Office, Showroom, Shop, Godown, carrying on of any industry or business including a Garage and the premises forms part of a building.
Explanation: Notwithstanding that provisions are made for sanitary, washing, bathing or other conveniences as common to two ‘or more sets of premises, the premises shall be deemed to be separate and self-contained.”
Moreover, a “promoter” is one who is defined as follows:
“…a person who constructs or causes to be constructed a block or building of flats [or apartments] for the purpose of selling some or all of them to other persons, or to a company, co-operative society, or other association of persons, and includes his assignees; and where the person who builds and the person who sells are different persons, the term includes both.”
The Sections 10 and 11 under MOFA jointly regulate the conveyance of title. Section10 mandates that as and when the minimum requisite individuals for a co-operative society or company have purchased flats, the promoter is required to submit an application, within the prescribed period, for the registration of the conglomerate of persons who take the flat either as a cooperative society or as a company.
This is followed by Section 11, wherein, the promoter shall take all the necessary steps to complete his title and convey, to the conglomerate of persons, registered either as a company or a co-operative housing society, who purchase flats, his right, title, and interest in the building and execute all the relevant documents thereof in accordance with the agreement. This period for the execution of the conveyance could either be agreed upon or if not, then the execution must be done in the prescribed period and documents of title, in the promoter’s possession or power is delivered.
Therefore, once the title is conveyed to the conglomerate of persons registered as a society, here is when the question of transfer of shares crops up, which is discussed in detail in the following paragraphs.

LAW RELATING TO TRANSFER OF SHARES OF A SOCIETY IN MAHARASHTRA

Section 29 of the Maharashtra Co-operative Societies Act, 1960 and Rule 24 of the Maharashtra Co-operative Societies Rules, 1961 and Bye-laws 37 and 38 are the major provisions concerned with the transfer of flats.

PROCEDURE FOR TRANSFER: COMPLIANCE WITH ESSENTIAL REQUIREMENTS
Under Section 29 (2) (a) of the Maharashtra Co-operative Societies Act, 1960, a member has to hold the shares for at least a period of one year before he transfers his shares together with his interest in the flat. According to the Rule 24 of Maharashtra Co-operative Societies Rules, 1961 every transfer of shares, as a mandate, has to be as per the bye-laws adopted by the Society, order to be effective. Further important requirements for transfer are as under:

• Clear fifteen days’ notice in writing is required to be given to the Society indicating therein the name of the proposed transferee, his consent and the value proposed to be paid by the transferee. On receipt of this notice, the secretary of the society will place it before the meeting of the committee held next, pointing out whether the member is prima facie eligible to transfer his shares and interest in the capital or property of the society or not. If the committee is satisfied that the member is prima facie eligible to transfer his shares and interest in the capital or property of the society or ineligible therefor, it will direct the secretary to inform the member within three days.

• All dues and liabilities of the transferor due to the Society including any charge in favor of the Society on the share so transferred, are to be discharged;

• Application in the prescribed form, for transfer of shares and interest in the capital/property of the society, along with the share certificate are to be submitted;

• Resignation by the original member has to be tendered

• The application has to be submitted by the proposed transferee for membership of the Society

• Payment of Transfer fee as may be prescribed under the bye-laws of the Society, i.e., Rs.500

• Transfer premium at the rate fixed by the general body, but within the limit prescribed by circulars issued by the Government from time to time. As per the circular dated 20/12/1989 the transfer premium should not exceed 25,000/-

• A copy of duly registered agreement with appropriate stamp duty must be paid to the Society

• Declaration by the transferee to use the flat for residence purpose only, or state the reasons otherwise when use is apart from residential purpose

• An Undertaking by the transferor to discharge all liabilities to the Society

• If the transferor has availed of any loan for purchasing the flat from any bank, housing financing agency, no objection from that bank or housing financing agency is required to be submitted to the Society.

DISPOSAL OF TRANSFER APPLICATIONS
The Bye-Law no. 38 deals with the disposal of transfer applications. The Secretary should scrutinize the documents received and verify as to the conformity with the Act, Rules, and Bye-laws of the Society and place the same before the Managing Committee of the Society for its approval. If such application is rejected, the Secretary has to communicate the decision to the applicant within 15 days from the date of the decision or within 3 months from the date of receipt of the application, whichever is earlier. If the applicant does not receive intimation from the Society within 3 months from the date of submission of application, it is deemed that the application for membership is accepted.

RESTRICTIONS ON TRANSFER OF SHARES
Under Section 29 (2) (a) of the Maharashtra Co-operative Societies Act, 1960, no share can be transferred unless the share has been held for one year before the transfer and it is made to no one else but the member of the society, or one whose application for membership has been accepted or one who is deemed to be a member of the society.

TRANSFER V. TRANSMISSION OF SHARES
Transfer of shares in a CHS together with the interest of the member in the flat allotted to him as a member of the society can be by way of sale or by gift whereas transmission takes place on demise of the member either according to the will of the deceased member or according to personal law of succession applicable to the deceased member, in absence of his valid will.
Under Section 29 (2) (a) of the Maharashtra Co-operative Societies Act, 1960, no share can be transferred unless the share has been held for one year before the transfer and it is made to no one else but the member of the society, or one whose application for membership has been accepted or one who is deemed to be a member of the society.

TRANSFER V. TRANSMISSION OF SHARES
Transfer of shares in a CHS together with the interest of the member in the flat allotted to him as a member of the society can be by way of sale or by gift whereas transmission takes place on demise of the member either according to the will of the deceased member or according to personal law of succession applicable to the deceased member, in absence of his valid will.
In case of transfer by sale, proper sale deed is required to be executed by and between the seller and the buyer, proper stamp duty as per the market value of such flat as specified in the Stamp Duty Ready Reckoner is required to be paid and the sale deed also needs to be registered as required under The Registration Act,1908. Further, as per the bye-law of the Society, transfer premium up to a maximum of ` 25,000/- is payable to the Society. Whereas in the case of transmission no such documentation is required and as such, no stamp duty is payable as well no transfer premium is payable to the Society.

CONCLUSION
Every Society must have their bye-laws laid down so that compliance becomes easier in cases of transfers between members.

FOR MORE DETAILS CALL:
VED LEGAL,
Adv. Gajanan Rahate
Mob: 9763040088
E_mail: [email protected]

Advocates for transfer of share of member in Co-operative Housing society in Pune

INTRODUCTION
The Maharashtra Ownership Flats (Regulation of the Promotion, Construction, Sale, Management and Transfer) Act, 1963 (Hereinafter referred to as “the MOFA”) was an attempt to mitigate all the unscrupulous practices pertaining to promotion, construction, sale, management and transfer of flats sold on an ownership basis within the State of Maharashtra.

The Act defines a “flat” as:
“A separate and self-contained premises, which is used or is intended to be used as a Residence, Office, Showroom, Shop, Godown, carrying on of any industry or business including a Garage and the premises forms part of a building.
Explanation: Notwithstanding that provisions are made for sanitary, washing, bathing or other conveniences as common to two ‘or more sets of premises, the premises shall be deemed to be separate and self-contained.”

Moreover, a “promoter” is one who is defined as follows:
“…a person who constructs or causes to be constructed a block or building of flats [or apartments] for the purpose of selling some or all of them to other persons, or to a company, co-operative society, or other association of persons, and includes his assignees; and where the person who builds and the person who sells are different persons, the term includes both.”

The Sections 10 and 11 under MOFA jointly regulate the conveyance of title. Section10 mandates that as and when the minimum requisite individuals for a co-operative society or company have purchased flats, the promoter is required to submit an application, within the prescribed period, for the registration of the conglomerate of persons who take the flat either as a cooperative society or as a company.
This is followed by Section 11, wherein, the promoter shall take all the necessary steps to complete his title and convey, to the conglomerate of persons, registered either as a company or a co-operative housing society, who purchase flats, his right, title, and interest in the building and execute all the relevant documents thereof in accordance with the agreement. This period for the execution of the conveyance could either be agreed upon or if not, then the execution must be done in the prescribed period and documents of title, in the promoter’s possession or power is delivered.
Therefore, once the title is conveyed to the conglomerate of persons registered as a society, here is when the question of transfer of shares crops up, which is discussed in detail in the following paragraphs.

LAW RELATING TO TRANSFER OF SHARES OF A SOCIETY IN MAHARASHTRA

Section 29 of the Maharashtra Co-operative Societies Act, 1960 and Rule 24 of the Maharashtra Co-operative Societies Rules, 1961 and Bye-laws 37 and 38 are the major provisions concerned with the transfer of flats.

PROCEDURE FOR TRANSFER: COMPLIANCE WITH ESSENTIAL REQUIREMENTS
Under Section 29 (2) (a) of the Maharashtra Co-operative Societies Act, 1960, a member has to hold the shares for at least a period of one year before he transfers his shares together with his interest in the flat. According to the Rule 24 of Maharashtra Co-operative Societies Rules, 1961 every transfer of shares, as a mandate, has to be as per the bye-laws adopted by the Society, order to be effective. Further important requirements for transfer are as under:

• Clear fifteen days’ notice in writing is required to be given to the Society indicating therein the name of the proposed transferee, his consent and the value proposed to be paid by the transferee. On receipt of this notice, the secretary of the society will place it before the meeting of the committee held next, pointing out whether the member is prima facie eligible to transfer his shares and interest in the capital or property of the society or not. If the committee is satisfied that the member is prima facie eligible to transfer his shares and interest in the capital or property of the society or ineligible therefor, it will direct the secretary to inform the member within three days.

• All dues and liabilities of the transferor due to the Society including any charge in favor of the Society on the share so transferred, are to be discharged;

• Application in the prescribed form, for transfer of shares and interest in the capital/property of the society, along with the share certificate are to be submitted;

• Resignation by the original member has to be tendered

• The application has to be submitted by the proposed transferee for membership of the Society

• Payment of Transfer fee as may be prescribed under the bye-laws of the Society, i.e., Rs.500

• Transfer premium at the rate fixed by the general body, but within the limit prescribed by circulars issued by the Government from time to time. As per the circular dated 20/12/1989 the transfer premium should not exceed 25,000/-

• A copy of duly registered agreement with appropriate stamp duty must be paid to the Society

• Declaration by the transferee to use the flat for residence purpose only, or state the reasons otherwise when use is apart from residential purpose

• An Undertaking by the transferor to discharge all liabilities to the Society

• If the transferor has availed of any loan for purchasing the flat from any bank, housing financing agency, no objection from that bank or housing financing agency is required to be submitted to the Society.

DISPOSAL OF TRANSFER APPLICATIONS
The Bye-Law no. 38 deals with the disposal of transfer applications. The Secretary should scrutinize the documents received and verify as to the conformity with the Act, Rules, and Bye-laws of the Society and place the same before the Managing Committee of the Society for its approval. If such application is rejected, the Secretary has to communicate the decision to the applicant within 15 days from the date of the decision or within 3 months from the date of receipt of the application, whichever is earlier. If the applicant does not receive intimation from the Society within 3 months from the date of submission of application, it is deemed that the application for membership is accepted.

RESTRICTIONS ON TRANSFER OF SHARES
Under Section 29 (2) (a) of the Maharashtra Co-operative Societies Act, 1960, no share can be transferred unless the share has been held for one year before the transfer and it is made to no one else but the member of the society, or one whose application for membership has been accepted or one who is deemed to be a member of the society.

TRANSFER V. TRANSMISSION OF SHARES
Transfer of shares in a CHS together with the interest of the member in the flat allotted to him as a member of the society can be by way of sale or by gift whereas transmission takes place on demise of the member either according to the will of the deceased member or according to personal law of succession applicable to the deceased member, in absence of his valid will.
Under Section 29 (2) (a) of the Maharashtra Co-operative Societies Act, 1960, no share can be transferred unless the share has been held for one year before the transfer and it is made to no one else but the member of the society, or one whose application for membership has been accepted or one who is deemed to be a member of the society.

TRANSFER V. TRANSMISSION OF SHARES
Transfer of shares in a CHS together with the interest of the member in the flat allotted to him as a member of the society can be by way of sale or by gift whereas transmission takes place on demise of the member either according to the will of the deceased member or according to personal law of succession applicable to the deceased member, in absence of his valid will.
In case of transfer by sale, proper sale deed is required to be executed by and between the seller and the buyer, proper stamp duty as per the market value of such flat as specified in the Stamp Duty Ready Reckoner is required to be paid and the sale deed also needs to be registered as required under The Registration Act,1908. Further, as per the bye-law of the Society, transfer premium up to a maximum of ` 25,000/- is payable to the Society. Whereas in the case of transmission no such documentation is required and as such, no stamp duty is payable as well no transfer premium is payable to the Society.

CONCLUSION
Every Society must have their bye-laws laid down so that compliance becomes easier in cases of transfers between members.

FOR MORE DETAILS CALL:
VED LEGAL,

Adv. Gajanan Rahate
Mob: 9763040088
E_mail: [email protected]

Advocates for transfer of share of member in Co-operative Housing society in Pune

  • Procedure for Transfer of Shares of Existing Member of Society.

1) No Transfer of shares shall be effective unless,-

  1. a) It is made in accordance with the provisions of bye-laws:
  2. b) A clear fifteen days notice in writing is given to the society by the transferee indicating there in the name of the proposed transferee, his consent, his application for membership, where necessary, and shall pay transfer fee of Rs 25000/- or less.
  3. c) All liabilities of the transferor due to the society are discharged
  4. d) The transfer is registered in the books of the society.

2) Any charge in favour of society on the share so transferred will continue unless it is discharged.

  • Nomination of person for transfer of his share

1) For the purpose of transfer of his own share or interest under sub-section (1) of section 30, a member of society may, by a document signed by him or by making a statement in any book kept for the purpose by the society, may nominate any person or persons. Where the nomination is made by the document, such document shall be deposited with the society during the member’s lifetime and where the nomination is made by a statement shall be signed by the member during his lifetime and attested by one witness.

2) The nomination made under sub-rule (1) may be revoked or varied by any other nomination made in accordance with that sub-rule.

3) (i) Where a member of a society has not made any nomination during his lifetime, the society shall on the member’s death, by a public notice exhibited at the office of the society, invite claims or objections for the proposed transfer of the share or interested of the member who is dead within the time specified in the notice.s

(ii) After taking into consideration the claims and objections received in reply to the notice or otherwise, and after making such inquiries as the committee considers proper in the circumstances prevailing, the committee shall decide  to the person who in its opinion is the heir or legal representation of the deceased member and proceed to take action under section 30, and will transfer the share certificate in the name of person who is Nominated by the Committee .

Registration of nominations

The name and address of the person nominated for the purposes of sub-section (1) of section 30 and any revocation or variation of such nomination shall be entered in the register kept under Rule 32.