Cessation of Membership

The person shall cease to be the Member of the Society:

a. On his resignation from Membership of the Society having been accepted by the committee.

b. On transfer of all his shares and interest in the capital/property of the Society.

c. On his death.

d. On his expulsion from the Membership of the Society.

e. On being adjudged as an insolvent or legally disabled from continuing as Member.

f. If the whereabouts of the Member are not known for continuous seven years and if his shares & interest in the property/capital of the Society is not claimed by anybody else.

g. On cessation of right/title & interest of a Member in the property of the Society, by way of legal attachment or sale.

h. Any transfer if void as provided under bye law number 38 (d) 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 Member, whose name stands first, 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.

However the associate member shall not cease to be Associate Member when the First Member ceases to be the member of the society if Associate Member holds title and interest in the property jointly with the member.

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 :

a. On his death.

b. On the acceptance of his resignation by the Committee.

c. On cessation of Membership of the original Member on whose behalf he occupies the flat in the Society.

d. On cessation of his nomination on account of expulsion of the original Member.

e. On intimation from the original Member of termination of the occupants nomination

The Committee shall take further action in the matter as indicated in the bye-law No.58.

The Nominal Member, who is the sublettee, licensee or care-taker or possessor in any other manner of the flat or the part there of shall cease to be as such Member of the Society:

a. On his death.

b. On his resignation having been accepted by the Committee.

c. On the cessation of the Membership of the original Member.

d. On the expiry of the period for which the flat or part thereof was permitted to be sub-let, given on leave and license or care-taker basis or occupied in any other manner. The Committee shall record the facts of cessation of Members Membership of the Society under the bye-law No. 54 and of Associate and Nominal Member’s Membership respectively under the bye-laws Nos. 55, 56 and 57, in the Minutes of its Meetings and accordingly the Secretary of the Society shall inform the concerned Members in writing within 7 days of the dates of such decision of the committee.

MEMBERS, THEIR RIGHTS, RESPONSIBILITIES AND LIABILITIES

I. MEMBERSHIP

• Classes of Members 16. The Membership of the Society shall consist of (i) Members, including Associate Members and (ii) Nominal Members.

(B) Eligibility for Membership

1. No individual shall be admitted as a Member of a Society except the following that is to say –
2. Individual who is competent to contract under the Indian Contract Act, 1872;
3. a Firm, Company or any other Body Corporate constituted under any Law for the time being in force, or a Society registered under the Societies Registration Act, 1860;
4.  a Society registered, or Deemed to be Registered, under the Act;
5.  the State Government or the Central Government;
6.  a Local Authority;
7. a Public Trust registered under any Law for the time being in force for the registration of such trusts;
8. 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.
9. Notwithstanding anything contained in these bye-laws, admission of a person to Membership of the Society directly 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 and the land grant terms as applicable, (provided if the Society has been given land by Government/CIDCO/MHADA/SRA” or any other authority )

A Firm registered under the Indian Partnership Act, 1932, a Company registered under “the Indian Companies Act, 1949, a Society registered under the Societies Registration Act. 1860 or a Co-operative Society registered or deemed to be registered under the Maharashtra Co-op. 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(1) (b), (c), (d), (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 Proviso to Section 22 of the Act.

Conditions for Membership

a. An individual / applicant who is eligible to be the Member and who has applied for Membership of the Society in the prescribed form, may admitted as Member by the Committee on complying with the following conditions :-

i. Applicant has fully tendered the value of at least Ten shares of the Society, along with his Application for Membership;

ii. Applicant has paid the Entrance Fee of Rs. 100/-, along with the Application for Membership;

iii. Applicant has submitted the application as prescribed, of the particulars in regard to any house, plot or flat owned by him or any of the Members of his family, anywhere in the area of operation of the Society;

iv. Applicant has submitted undertaking in the prescribed form to the effect that he shall use the flat / unit for the purpose for which it was purchased by him;

v. Applicant has furnished an undertaking in the prescribed form, if he / she has no independent source of income;

vi. Applicant has submitted, along with the application for Membership of the Society, a certified copy of the agreement, duly stamped and registered entered into by him / her/ them with the Promoter Builder or Transferor under Section 4 of the Maharashtra Ownership of Flats Act;

1. Applicant has furnished such other undertakings/declarations, in the prescribed forms as are required under any law for the time being in force and such other information as is required under the Bye-laws of the Society along with the application for Membership.
2. In case of Societies registered under the jurisdiction of special planning Authority like CIDCO / MHADA / SRA / MMRDA etc. the applicant should be eligible person as per the provision of respective Act and the directives of the Govt. / the Planning Authorities, if any.

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 shall apply through Member in the prescribed form for such Membership, along with the entrance fee of Rs. 100/-, may be admitted as Associate 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 has made an application for Membership of the Society in the prescribed form may be admitted as a Member by the Committee of the Society on complying with the following conditions:-

i. Applicant has sent, along with application for Membership of the Society, a certified copy of the agreement duly stamped entered into by it, with the Promoter(Builder) or transferor under Section 4 of the Ownership Flats Act.1963,with certified copy of resolution of the firm or company as the case may, authorizing to sign the application.

ii. Applicant has paid, along with application for Membership, full value of at least 10 shares and entrance fee of Rs. 100/-.

iii. Applicant has complied with the conditions mentioned in the notifications, issued by the State Government, from time to time, under the Second Proviso to Section 22 of the Act.

iv. Applicant has furnished the undertakings / declarations in the prescribed forms required under any law for the time being in force along with the application for Membership.

20. A sublettee, a licensee, a care-taker, or occupant who is eligible to be a Nominal Member and who shall apply through Member for such Membership in the prescribed form applicable, along with entrance fee of Rs. 100/- may be admitted as Nominal Member by the Committee. 21. 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.

MEMBERS, THEIR RIGHTS, RESPONSIBILITIES AND LIABILITIES

I. MEMBERSHIP

• Classes of Members 16. The Membership of the Society shall consist of (i) Members, including Associate Members and (ii) Nominal Members.

(B) Eligibility for Membership

1. No individual shall be admitted as a Member of a Society except the following that is to say –
2. Individual who is competent to contract under the Indian Contract Act, 1872;
3. a Firm, Company or any other Body Corporate constituted under any Law for the time being in force, or a Society registered under the Societies Registration Act, 1860;
4.  a Society registered, or Deemed to be Registered, under the Act;
5.  the State Government or the Central Government;
6.  a Local Authority;
7. a Public Trust registered under any Law for the time being in force for the registration of such trusts;
8. 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.
9. Notwithstanding anything contained in these bye-laws, admission of a person to Membership of the Society directly 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 and the land grant terms as applicable, (provided if the Society has been given land by Government/CIDCO/MHADA/SRA” or any other authority )

A Firm registered under the Indian Partnership Act, 1932, a Company registered under “the Indian Companies Act, 1949, a Society registered under the Societies Registration Act. 1860 or a Co-operative Society registered or deemed to be registered under the Maharashtra Co-op. 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(1) (b), (c), (d), (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 Proviso to Section 22 of the Act.

FUNDS, THEIR UTILISATION AND INVESTMENT UNDER BYE-LAWS FOR SOCIETY FORMATION

• Raising of Funds :-

The funds of the Society may be raised in one or more of the following ways: Modes of raising the funds of the Society

a. by entrance fees,

b. by issue of shares,

c. by loans and subsidies,

d. by deposits,

e. by voluntary donations, (but not from Transferor and Transferee)

f. by contributions towards cost of building or buildings,

g. by fee on transfer of shares, along with the occupancy right, assignment h. by premium on transfer of occupancy right over the flats,

i. by corpus fund from Promoter Builder

j. by any other mode permitted under these bye-laws,

k. by way of statutory requirements.

l. by way of non-occupancy charges, leasing / hiring of open spaces m. by way of corpus fund, in case of redevelopment

LEVY OF CHARGES OF THE SOCIETY

The contribution to be collected from the Members of the Society, towards outgoing and establishment of its funds, referred to in these bye-laws as ‘the charges’ may be in relation to the following: (i) Property Taxes, (ii) Water Charges, (iii) Common Electricity Charges, (iv) Contribution to Repairs and Maintenance Fund, (v) Expenses on repairs and maintenance of the lifts of the Society, including charges for running the lift. (vi) Contribution to the Sinking Fund, (vii) Service Charges, (Viii) Car Parking Charges, (ix) Interest on the defaulted charges, (x) Repayment of the installment of the loan and interest, (xi) Non-occupancy Charges, (xii) Insurance Charges, (xiii) Lease rent, (xiv) Nonagricultural tax. (xv) Education and Training Fund (xvi) Election Fund (xvii) Any Other Charges.

The Service charges of the Society referred to at 64 (vii) above shall include the following:

a. Salaries of the office staff, liftmen, watchmen, malis and any other employees of the Society.

b. Where the Society has independent Office, the property taxes, electricity charges, water charges etc. for the same.

c. Printing, Stationery and Postage,

d. Travelling Allowance and conveyance charges to the staff and the Members of the Committee of the Society.

e. Sitting fees paid to the Members of the Committee of the Society,

f. Subscription to the Education Fund of the Maharashtra Rajya Sahakari Sangh Ltd.

g. Annual Subscription of the Housing Federation and any other co-operative institution to which the Society is affiliated.

h. Entrance fees for affiliation to the Housing Federation and any other cooperative institution.

i. Audit Fees for internal, Statutory and reaudit, if any.

j. Expenses incurred at meetings of the general body, the Committee an the Sub-Committee, if any

k. Retainer fees, legal charges, statutory enquiry fees.

l. Common electricity charges.

m. Any other charges approved by the General Body at its Meeting. However such charges should not contradict the provisions of the Act, Rules and Bye-laws of the Society.

a. The Committee shall apportion the Share of each Member towards the charges of the Society on the following basis:

i. Property taxes : As fixed by the Local Authority

ii. Water Charges: On the basis of total number and size of inlets provided in each flat.

iii. Expenses on repairs and maintenance of the building/buildings of the Society : At the rate fixed at the general body from time to time, subject to the minimum of 0.75 percent per annum, of the construction cost of each flat for meeting expenses of normal recurring repairs.

iv. Expenses on repairs and maintenance of the lift, including charges for running the lift : Equally by all the Members of the building in which lift is provided, irrespective of the fact whether they use the lift or not.

v. Sinking Fund : As provided under the bye-law No. 13(c).

vi. Service Charges: Equally divided by number of flats / units.

vii. Parking Charges : At the rate fixed by the General Body of the Society at its meeting under the bye-law No. 84/85.

viii. Interest on the delayed payment of Charges: At the rate fixed under the bye-law No. 72 to be recovered from the defaulter Member.

ix. Repayment of the installment of the loan and interest: The amount of each – installment with interest fixed by the financing agency.

x. Non-occupancy charges: At the rate fixed under the byê-law No. 43(b)(iii).

xi. Insurance Charges: The built up areas of each flat, provided that if there is increase in the insurance premium due to storing any specific goods in any flat, used for commercial purposes, the extra burden of insurance premium shall be shared by those who are responsible for such increased premium in proportion of the built up areas to their flats.

xii. Lease Rent : The built up area of each flat / unit.

1. Non-Agricultural tax: The built up area of each flat / unit

xiv. Education & Training Fund : Rs. 10 per Flat/unit per month.

xv. Election Fund: Equally by the Members and as prescribed by the Election Authority in the Rules

xvi. Any other charges: As may be decided by the General Body Meeting of the Society.

The Committee shall fix in respect of every flat the Society charges on the basis laid as down under the bye-law No, 66 (a).

The following repairs and maintenance of the property of the Society shall be carried out by the Society at its costs:

1. ( i ) All internal roads, (ii) Compound walls, (iii) External water pipe lines, (iv) Water pumps,(v) Water storage tanks, (vi) Drainage lines, (vii) Septic tanks, (viii) Stair cases, (ix) Terrace and parapet walls, (x) Structural repairs of roofs of all flats, (xi) Stair-case lights, (xii) Street lights, (xiii) External walls of the building/ buildings, (xiv) All leakages of water including leakages due to rain water, and leakages due to external common pipe line and drainage line, (xv) Electric lines upto main switches in the flats (xvi) Lifts, (xvii) The damaged ceiling and plaster thereon in the top floor flats, on account of the leakage of the rain water through the terrace.(xviii) Generators,(xvix) Security Appliances (CCTV, Intercom, Group Mobile, Mass Data Sharing Devices, Siren Bell) (xx) Rain Water Harvesting,(xxi) Sewerage, Storm water Drain & Water Treatment Plant (xxii) Common areas not specifically allotted ,Swimming Pool, Gym, Sauna Bath, Coffee House (xxiii) Common Parking Space (xxiv) Solar and alternate energy devices. (xxv) Garden (xxvi) Community hall.
2. All the repairs, not covered by the bye­law No. 158(a) shall be carried out by the Members at their cost. The expenditure of the internal leakage due to toilet, sink etc. should be borne by concerned flat holders, with intimation to the Society

The Secretary of the Society, shall prepare bill/demand notice in respect of the charges of the Society payable by Members on the basis of the bye-law No. 70 (a) and issue the same to all the Members on or before the date fixed by the Committee in that behalf. Every Member of the Society shall pay the amount mentioned in the bill /demand notice in full within such period as may be fixed by the Committee.

a. A Member shall be deemed to have committed default in payment of the charges of the Society, if the payment mentioned in the demand notice/bill is not made within the period as prescribed under Section 73CA of the Act. The Secretary of the Society shall bring the cases of defaults in payment of the Society’s charges to the notice of the Committee for taking further necessary action.

b. In case of default by Member in payment of maintenance and service charges, the committee shall initiate a recovery proceeding under section 101 of the Act. A Member shall be required to pay simple interest at twenty one percent per annum, or, at such lower rate as may be fixed by the General Body, on the outstanding dues to the Society, from the date the amount was due as prescribed under Bye-law no. 69, till full and final payment by the Member

RIGHTS AND DUTIES OF MEMBERS

(A) Rights of Member

a. A Member shall be entitled to exercise such rights as provided in the Act, Rules and Bye-laws. Provided that no Member shall exercise the rights of Member of a Society, until he has made such payment to the Society in respect of Membership, or acquired such interest in the Society.

b. Provided further that, in case of increase in minimum contribution of Member in share capital to exercise right of Membership, the Society shall give a due notice of demand to the Members and give reasonable period of time to comply with.

Active Member

c. A Member shall be termed as an ‘Active Member’ if he / she fulfill the following conditions: viz.

i. He / She has attended at least One General Body Meeting in previous consecutive period of five years, Provided that nothing in this clause shall apply to the member whose absence has been condoned by the General Body Meeting of the Society.

ii. He / She has purchased and owns Flat / Unit in the Society, and

iii. He / She has paid the Society Maintenance Service and other charges regularly

d. A Member who is not an ‘Active Member’ shall be ‘Non-Active Member’.

e. Society shall classify the Members as ‘Active’ or ‘Non-Active’ Member at the close of every financial year.

i. Society shall communicate to every Non-Active Member about his classification, within a period of 30 days from 31st March of every year as prescribed under these By-laws as per Appendix – —–

ii. In case of a dispute about classification of a Member being Active or Non-Active, an appeal shall lie with the Registrar within a period of 60 days from the date of communication of such classification.

1. A ‘ Non Active Member’ can be reclassified as ‘Active Member’ from the date he satisfies the conditions laid down under Byelaw no. 22(c).

(B) Getting Copy of the Bye-laws, Audit Report & Inspection of Books & Records and getting copies thereof

a. A Member shall have right to inspect free of cost books, registers documents etc. as provided in Section 32 (1) of the Act and get copies of the documents as provided under Section 32 (2) of the Act, on payment of the fees prescribed under the bye-law No. 172.

b. A Member shall be entitled to receive a copy of the Approved Bye-laws, Audit Report of the Society, on payment of charges prescribed thereof.

FUNDS, THEIR UTILISATION AND INVESTMENT UNDER BYE-LAWS FOR SOCIETY FORMATION

• Raising of Funds :-

The funds of the Society may be raised in one or more of the following ways: Modes of raising the funds of the Society

a. by entrance fees,

b. by issue of shares,

c. by loans and subsidies,

d. by deposits,

e. by voluntary donations, (but not from Transferor and Transferee)

f. by contributions towards cost of building or buildings,

g. by fee on transfer of shares, along with the occupancy right, assignment h. by premium on transfer of occupancy right over the flats,

i. by corpus fund from Promoter Builder

j. by any other mode permitted under these bye-laws,

k. by way of statutory requirements.

l. by way of non-occupancy charges, leasing / hiring of open spaces m. by way of corpus fund, in case of redevelopment

PROVISIONS FOR DEEMED CONVEYANCE UNDER MOFA

Amendments in Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 2005 giving a huge relief to hundreds and thousands of flats purchasers in Maharashtra. Conveyance to the societies was a burning issues which have integrated many problems like property tax, housing finance documentations and major repairs or redevelopment.

The highlights of the amendments are as under:

• Builder/s will have to execute the conveyance.
  Power is given to the District Deputy Registrar to act as Competent Authority. (Sec. 5A)
• Power is given to Competent Authority for registration of Co-operative Society under the provisions of Maharashtra Co-operative Societies Act, 1960. (Sec. 10(1) )
• It is the duty of the promoter (builder) to file with the Competent Authority within the prescribed period a copy of the conveyance executed by him (Sec. 11(2))
• If the promoter fails to execute the conveyance in favour of Co-operative Society, Company or Associations or Apartment Owners as the case may be, then the flat purchasers can approach the Competent Authority with true copy of registered agreement of all the flat purchasers including Occupation Certificate, Registration Certificate of the society then in such circumstances the Co-operative Society, Company or Associations is entitled to have unilateral deemed conveyance (Sec. 11(3))
• The proceedings before the Competent Authority have to be completed within a period of 6 months. The Competent Authority must verify the authenticity of the document produced before him and after giving a reasonable opportunity to the promoter, if satisfied will issue a certificate to the Sub-Registrar or any other Registration Officer under the Registration Act, 1908, certifying that it is a fit case for enforcing unilateral execution of conveyance deed conveying the right, title and interest of the promoter in the land and the building in favour of the applicant, as deemed conveyance(Sec. 11(4))
• The sub registrar after receipt of the certificate issued by the Competent Authority along with the unilateral instrument of conveyance can issue summons to the promoter to show cause why the unilateral instrument should not be registered as deemed conveyance. However, reasonable opportunity of being heard may be given to the promoter. If the Sub-Registrar is satisfied then he will register the unilateral conveyance as ‘deemed conveyance’. (Sec. 11(5))
• The Competent Authority has been created who has powers to award criminal imprisonment to the builder/s for a period not less than 6 months and not more than 1 year and / or along with fine ranging from Rs 10,000/- to 50,000/- (Sec. 13(3)(a) & 13(3)(b))
• The builder/s if convicted will not be able to carry on construction activities for a period of five years. However, the disqualification shall not affect the permission for construction of flats already granted. (Sec. 13 (4), 13(5) & 13(6) )
• The Competent Authority shall be deemed to be a public servant as per the provisions of Indian Penal Code. (Sec. (13B)
• Proceedings before Competent Authority shall be aimed to be judicial proceedings as per the provisions of Indian Penal Code. (Sec. 13C)
• Competent Authority shall be deemed to be a Civil Court for certain purposes. (Sec. 13D)

No action can be taken against the Competent Authority for acts done in good faith by the Competent Authority. (Sec. 13E)

SHARE CAPITAL UNDER BYE-LAWS FOR SOCIETY FORMATION

The Authorized Share Capital of the Society shall be Rs …………………………..divided into …………… shares of Rs. 50 each

1. A Share Certificate, prescribed in bye-laws, bearing distinctive number and indicating the name of the Member, the number of shares issued and the value paid there on, shall be issued by the Society to every Member for the shares subscribed by him, within a period of six months of the allotment of the shares.

• The Committee of the Society shall issue a duplicate share certificate, “So Marked”, on application to its members on production of following documents.

1. if the share certificate is lost – copy of police complaint lodged, and an affidavit in that regard.

2. if the share certificate is soiled, burnt, torn, disfigured etc. affidavit in that regard. 10. Every such Share Certificate shall bear the seal of the Society and be signed by the Society’s Chairman, the Secretary and one Member of the Committee, duly authorized by the Committee. The same shall be issued by the Secretary of the Society.