October 2019 - Ved Legal

Need for Deemed Conveyance

Need for Deemed Conveyance
A Co-Operative Housing Society is the owner of the Land & Building & individual member enjoys the ownership right of the Flat/ Shop based on the Share Certificate issued by the Co- Operative Housing Society.

A vast majority of Co- Operative Housing Societies does not have the Conveyance in their favour & hence are not the owners of their Land & Building. In this situation, even though each member of the Co- Operative Housing Society has paid full consideration and is in possession of the Flat/ Shop allotted, he does not enjoy the benefits of title ownership of the Flat/ Shop.
In case of Co-Operative Housing Societies formed long back, many of the Buildings are in dilapidated condition and their repairs are not economically viable. The best solution available for these Co- Operative Housing Societies is to go ahead with Redevelopment. The non- availability of the Conveyance & therefore free/ marketable Title affects the Redevelopment Process badly.
In case of Co- Operative Housing Societies formed recently, the Redevelopment at the moment is not on the agenda. However the non- availability of the Conveyance and free and marketable Title may affect its present Revenue and may be a hindrance in Redevelopment process in future.
Therefore Deemed Conveyance is in the larger interest of the Co- Operative Housing Societies (and their each and every member) who are denied their right of Conveyance by the Land- Owners & Property Developers.

By admin|October 26th, 2019|NEED FOR DEEMED CONVEYANCE|Comments Off

DEEMED CONVEYANCE PROCEDURE FOR CHS BECOMES EASY

The Maharashtra government has relaxed the terms for the deemed conveyance (DC)-ownership right of plot certificate from the builder, by bringing down the number of documents required from 12 to 8 and stipulating that DC will be given even if the society does not have an Occupation Certificate (OC) or the Building Completion Certificate (CC).
It is mandatory for land-owners or developers to convey the title of the plot within four months of the formation of the housing society. In many cases, the builders fail to convey the title of properties to the housing societies, in the hope of availing more floor space index (FSI) that may become available in future, or to avail the benefits accrued to them in case the property is redeveloped.
If the builder fails to convey the property, the Maharashtra Ownership Flats Act (MOFA) allows societies to apply for DC. However, having OC was mandatory and was insisted upon by the officials of the cooperative registrar’s office. OC is given only when the building is complete in all respects and has complied with the mandatory norms laid down by the government authorities to make it ready for occupation. Since most of the builders abandon the projects before complying with the norms and conditions, OCs are not given to the societies. Developers just hand over the possession and exit the project, leaving the residents high and dry.
However now, the DC will be issued even if housing societies have submitted such documentary evidence as the formation of the society or the payment of property tax by the society.
As per the GR issued on 22 June 2018, by the state cooperation department, it has been made mandatory for the registrar of cooperative societies to register documents of the applicants within a day. Besides, as per the Maharashtra Right to Public Services Act, 2015, the DC should be issued within six months. If an official fails to provide and approve it within the prescribed period, then he or she will be penalized between Rs500 and Rs. 5,000/-
The applicants should submit the applications with a court fee of Rs 2,000. In case the FSI has already been consumed, a certificate of an architect that the total FSI has been consumed would suffice. In addition, they have to give an indemnity bond stating that they will take responsibility for the building and adhere to all required rules and regulations. If there are more than one society on one plot, the details of proportionate area and ground coverage should be furnished.
The documents required for conveyance include society registration certificate, approved layout, 7/12 extract, sale deed of each flat owner or heir document, list of registered members of the society, occupation certificate, non-agriculture certificate of that particular plot and notice copy etc. In the absence of sale deeds of all members, the sale deed of even one member would be sufficient, states the GR.
While submitting the conveyance application and documents to the registrar, a copy of the same application also needs to be submitted to the stamp duty and registration department for its speedy approval. The applications will be accepted online as well as offline. The officials of the concerned department such as urban, cooperative, forest and revenue department will have to work in unison so that the applicants are not required to shuttle from one department to another.
The system of issuing DC was started three years ago. However, due to stringent conditions there was no response from cooperative societies. Commenting on the issue, Ramesh Prabhu, Chairman, Maharashtra Societies Welfare Association said “This was a positive step. In many cases, the builders exited the project without getting the OC, and the residents had to bear the brunt. This relaxation will ensure that majority of the societies get deemed conveyance. By a fair estimate over 10,000 cooperative housing societies in Mumbai and neighboring areas, are yet to get the DC. Now they should come forward to take advantage of these relaxed norms.”
There are a sizable number of housing societies in Mumbai that are struggling to get the DC. In absence of DC, redevelopment of some of the societies has been delayed. Some of the developers used to sell the flats till they held the ownership right of the layout and were misusing this right, causing impediment in the way of redevelopment.

By admin|October 26th, 2019|DEEMED CONVEYANCE PROCEDURE FOR CHS BECOMES EASY|Comments Off

How to register the society and which documents required for it?

Ans: It is obligatory to apply for co-operative society or Association of Apartment within four months from the taking possession of galas/flats/shops/units by holders, necessary for forming the co-operative society or Association of Apartment according to provisions mentioned under section 10 of the Maharashtra Ownership Flat Act 1963 and rule 8 of Rules 1964 there under. While taking into consideration of these provisions it is necessary to make an application for getting permission for opening bank account by keeping the name of the proposed society reserve by the builder/promoters/chief promoter to the Registrar, co-operative societies in the concerned. It is necessary to make selection of the chief promoter in the primary meeting of the members. If not desire to work as Chief Promoter for some reason than in such situation, any member from the galas/flats/shops/units holder can be selected as a Chief Promoter. However while submitting proposal it is necessary to submit consent letter that builder promoters are ready to co-operate for the work of registering the society. Following papers are necessary for submitting the proposal for getting permission for opening the bank account.

1. Application for opening the bank account by reserving the name of the proposed society in the prescribed format. (On adhesive court fee stamp of Rs.25/-)
2. Copy of the minutes of primary meeting (in the prescribed format)
3. Photo copy of the sale deed/development agreement executed between the original owner of the land and builder promoter.
4. Photo copy of the 7/12 extract or the Property Registered Card.
5. Photo copy of the power of attorney if given to the builder, promoter by the original owner.
6. Copy of the order form competent office under Urban Land Ceiling Act 1976.
7. Detailed scheme of the proposed society and its nature
8. List of the proposed members.

It is necessary to submit the proposal for official registration within three months of the date of getting permission for opening bank account by reserving the name of the proposed society for registration. If for some inevitable reasons, it was not possible to submit the registration proposal in the prescribed time limit then it is necessary to submit an application for extension of time limit for submitting the proposal of registration by the Chief Promoter.

In case of registration, the chief promoter should have to submit following documents:-

1. Application for registration in the prescribed format under rule 4(1) of the Maharashtra Co-operative Societies Rules 1961-Form A (Annexure A)

If the number of galas/flats/shops/units mentioned in the application submitted for registration is more than 10 then inclusion of promoter members for 51 per cent galas/flats/shops/units out of the total galas/flats/shops/units built or to be built in the said application. Otherwise, by preserving such proposal as immature, it is denied for registration. It is necessary that 51 per cent members out of the total members included in the application for registration should have to sign be their name. It is necessary that 10 members of the different families (Definition of the family) includes mother, father, son, husband, wife, unmarried daughter). Similarly minimum 10 members should be the residence in the jurisdiction of the society. As per prevalent policy of the government even less than 10 member’s society can be formed. However in such proposals the carpet /built up area of each galas/flats/shops/units should not be more than 700 sq. ft. Similarly it is also necessary to ensured that the entire F.S.I to be available as per prevalent constructions rules has been used and there is no possibility of additional construction work.

2. Form-B : Information of proposed society (In prescribed format)
3. Form-C : Information of Promoter Members
4. Form-D : Accounts statement (In prescribed format)
5. Detailed scheme of the proposed societies and its nature.
6. Balance statement of saving accounts in the Pune District Central Co-operative Bank (Share Capital of Rs. 500 and in addition Admission fee of Rs. 100/- of each promoter member and its total amount)
7. Original chalan of payment of Rs. 2,500/- as a co-operative housing society’s registration fee paid in the Government Treasury.
8. A photo copy of the sale deed or Development agreement executed between original land owner and builder/promoters.
9. Photo copy of the 7/12 extract or Property Registration Card.
10. Photo copy of the Power of Attorney given to the builder promoters by the original land lord.
11. Photo copy of the NOC from the Charity Commissioner if the land is of Public Trust.
12. A photo copy of the land search report or title certificate from the advocate.
13. Photo copy of the order issued by the competent officer under Urban Land Ceiling Act.
14. True copy of the construction lay out approved by the Municipal Corporation.
15. Photo copy of the permission for commencing construction or of completion certificate issued by the Municipal Corporation.
16. Architect certificate endorsing to the construction of the building of the proposed society.
17. Minimum 10 persons affidavit on the stamp paper of Rs.20 (individual) regarding they are residence in the jurisdiction of the society and there is no residential house, open plot in their name or in the name of the other persons in the family depend on them in the jurisdiction of the society. (Affidavit should be made before the competent officer)
18. Guarantee letter of the Chief Promoter on the stamp paper of Rs.20/- in the prescribed format registered before the competent officer.
19. Guarantee letter of the builder promoters on the stamp paper of Rs.20/- in the prescribed format ‘Z’ registered before the competent officer and in accordance with that information in A B C D Table.
Table A: number of galas/flats/shops/units sale, name to whom it sale, area of the galas/ flats/shops/units and its price.
Table B: number of galas/flats/shops/units not sold and its area.
Table C: Name of the person to whom the galas/flats/shops/units was sold and total amount received from him.
Table D: Details of the expenditure, name of the person to him galas/flats/shops/units was sold, amount of the share capital, amount of the admission fee and price of the galas/flats / shops /units .
20. A photo copy of the registered agreement executed between the builder promoters and galas/flats/shops/units holder.
21. A photo copy of the receipt of the payment made in respect of the registration fee of the galas/flats/shops/units and stamp duty of the promoter members mentioned in the application made for registration.
22. The signature of the minimum 10 promoter members at the end of model bye laws no 175 is necessary.

Main objects of formation of a Society?

Ans: The main objects of the formation of a Housing Society are as under:
1. To obtain conveyance from the owner/Promoter (Builder), in accordance with the provisions of the Ownership Flats Act and the Rules made there under, of the right, title and interest, in the land with building/buildings thereon as described in the application for registration of the Society;
2. To manage, maintain and administer the property of the society;
3. To raise funds for achieving the objects of the society;
4. To undertake and provide, for on its own account or jointly with cooperative institution, social cultural or re-creative activities;
5. To provide Co-operative Education and Training to develop co- operative skills of its Members, Committee Members, Officers and Employees of the Society.
6. To do all things, necessary or expedient for the attainment of the objects of the society, as specified in the bye-laws.

By admin|October 25th, 2019|How to register the society and which documents required for it|Comments Off

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)

By admin|October 25th, 2019|PROVISIONS FOR DEEMED CONVEYANCE UNDER MOFA|Comments Off

CONVEYANCE SERVICES FOR SOCIETIES:-

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

By admin|October 25th, 2019|Conveyance Services for Societies|Comments Off

COMPARISON BETWEEN CO-OPERATIVE HOUSING SOCIETY AND CONDOMINIUM

Act – Co-operative Society, which is regulated by the Maharashtra Co-operative Societies Act, 1960.
Act – An alternative to a Co-operative Housing Society was introduced by the Maharashtra Apartment Ownership Act, 1970. Condominium is a Building or Complex of Buildings containing a number of individually owned Apartments or houses. ownership of common areas is shared by all.
Requirement for formation – Generally require minimum 10 members/Flats to form CHS.
Requirement for formation – In Condominium, even one person who owns the entire building can form a Condominium provided there are at least five Apartments in the building.
Conveyance Deed of the land – The title of the land and the building is transferred and conveyed to the Society, which becomes the owner thereof.
Conveyance Deed of the land – The title of each Apartment rests with the Apartment owner, who also has a proportionate undivided interest in the land on which the building stands the common areas and facilities of the building.
Share Certificate – A Society issues certain shares to its members as per the Bylaws and the Share Certificate becomes an important title deed, since the allotment of the premises are related thereto.
Share Certificate – This is not so in a Condominium of Apartments/Buildings.
Management Committee – The affairs of the Society are managed by the Managing Committee which is elected by the members of the Society. The Managing Committee elects a Chairman, Secretary, and a Treasurer. Election conducted by State Co-op Election Authority(SCEA)
Management Committee – Similarly, the affairs of a Condominium are managed by the Board of Managers who is elected by the members of the Apartment Owners Association. The Board also elects a President, Vice-President, Secretary and a Treasurer.
Share Charges & Flat Transfer fee – Under the Model Bylaws, a Society can charge only Rs. 500/- as Transfer Fee with a maximum of Rs 25,000/- as a premium.
Share Charges & Flat Transfer fee – The Bylaws can be more flexible and the amount of Transfer Fee can be provided therein.
Renting Out Flats – In a Society, permission of Managing Committee including ‘Police Verification’ & Register L&L is required.
Renting Out Flats – In a Condominium, the owner can give his Apartment on lease or leave and license basis without the approval of the Board of Managers
Voting Rights – Every member has one vote, irrespective of the area of their premises.
Voting Rights – Every Apartment owner has a voting right in proportion to the value of his premises which is generally as per the area of the Apartment owned by him and which is defined while forming the Condominium.
Dispute Resolution – In a Society, disputes are generally referred to the Registrar appointed under the Act or to a Co-operative Court, depending on the nature of the dispute.
Dispute Resolution – The Court having jurisdiction over the area in which the Condominium is located, hears the disputes.
Membership cease & Expel – A Society can expel its member under certain extreme circumstances.
Membership cease & Expel – In case of a Condominium, there is no such provision. However, if an Apartment owner fails to comply with the Bylaws or the Rules and Regulations, either damages or injunctive relief or both can be claimed against him.
Nomination – In a Society, a member can nominate a person in whose favour shares of the Society should be transferred upon the member’s death.
Nomination – No such facility is available in a Condominium. An Apartment can be transferred to a person to whom the Apartment owner bequeaths the same by his will or to the legal representative of the Apartment owner’s estate.
Bye Laws of society – 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
Bye Laws of society – 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.
Redevelopment – 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.
Redevelopment – 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.

By admin|October 24th, 2019|COMPARISON BETWEEN A CONDOMINIUM AND A SOCIETY|Comments Off

DIFFERENCE BETWEEN CONVEYANCE AND DEEMED CONVEYANCE

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

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

By admin|October 24th, 2019|DIFFERENCE BETWEEN CONVEYANCE AND DEEMED CONVEYANCE|Comments Off

Laws Applicable to Co-Operative Society

The Cooperative Societies Act, 1912 expanded the sphere of cooperation between its members and provided for supervision by central organization. A cooperative society, which has its object the promotion of the economic interests of its members in accordance with the co-operative principles, may be registered with limited or unlimited liability by filing application to the registering authority with requisite documents to be submitted by them
A Co-operative Society has to conduct itself as per the following listed below:
1. Co-operative Societies Act under which the same is registered whether it be under state Act or Central Act.
2. Co-operative Societies rules made there under whether it be central or state rules
3. Bye-laws approved by the registrar at the time of registration and amendments made from time to time and approved by the registrar, these bye-laws have to be formed by the concerned members themselves and present it to the registration authority for its approval.
4. Notification and Orders by the concerned Government
The following steps have to be followed while forming a Co-operative society, they are
Step 1: Ten Individuals together who are desirous of forming a Society
To form a society, law mandates that 10 members minimum must show intention to be part of the society having same aim and objective to be achieved through the society for their mutual benefit and thereby be desirous to be part of it.
Step 2: Provisional Committee to select Chief Promoter
Once a group of individuals have a desire to form a society the next step should be there must be a provisional committee of which everyone is part of and all of them should by mutual consent or by majority whichever their prefer must choose a person who will be a chief promoter of the society which is going to be formed by them.

Step 3: A Name for the Society has to be selected
Thereafter once a chief promoter is selected by set of individuals among them, they have to select a name for the co-operative society which they wish to form
Step 4: Application has to be made to the Registration Authority
Once the name of the society is selected by the members then they have to make a application to the registration authority stating that they have a intention to form a society and the name of the society has to be given to the authority for its approval and registering authority has to confirm that name is in conformity with laws and issue a confirmation certificate to the members. Then when the members get their name approval from the authority it is valid for 3 months from the date of approval.
Step 5: entrance fees and share capital
Thereafter once name approval comes from the concerned authority, the entrance fee and the share capital must be collected from the concerned prospective members to meet the statutory requirements under law and it can be prescribed by the members themselves or society act mandates certain fees to be paid by them.
Step 6: Bank Account
Thereafter once the prescribed fee and share capital is collect from the prospective members, then as per the directions of the registering authority promoter has to open a bank account in the name of the society and deposit the said fees and share capital in that account and a certificate has to be obtained from the bank to that effect
Step 7: Application for registration
Once the bank formalities are completed then the promoter has to apply for the society formation to the registration authority and it has to be accompanied with set of documents, they are
Form No. A in quadruplicate signed by 90% of the promoter members
1. List of promoter members
2. Bank Certificate
3. Detailed explanation of working of the society.
4. Four copies of proposed bye-laws of the society.
5. Proof of payment of registration charges.
6. Other documents such as affidavits, indemnity bonds, any documents specified by the Registrar also have to be submitted.
All these documents have to be submitted at the time of applying for registration of the society to the registering authority and the authority after it is satisfied with the documents submitted to it has to apply its mind to whether or not to register the said society.
Step 8: Registrar has to acknowledge
After the submission of the said documents has mentioned in step 7, the registrar of that municipal ward has to enter the particulars in the book called the “register of Application” which is generally specified in form B and give it a serial number to the application. Thereafter the registrar has to issue a receipt to that effect and give it to prospective members to know the status of the application when it is pending.
Then the registrar after perusal of the records submitted to him/her has to make a decision whether has to issue a certificate of registration or not and if there are any discrepancies noticed then he/she has to inform the members of the same and get it rectified if any.
Step 9: Registration
Last step is that the registering authority after being satisfied with the documents meeting the legal requirements will notify the registration of the society in the official gazette mentioned by the state or central government and should issue the registration certificate of the society and give it to the members of the society.
Conclusion
In India, Co-operative Societies were regarded as ideal instruments to motivate the people to come together and help themselves in the process of eliminating the unscrupulous middlemen making a huge profit at the expense of the society.
The main guiding factor if an individual or group of individuals want to form a society must be whether all the concerned members have common goal to achieve or not, it is important factor because only when they share common desire or intention then only society is desirable otherwise the whole purpose of forming a society will be defeated.
Societies like any other business structure come with certain advantages and disadvantages, they are:
Advantages
• Cooperative stores supply quality goods unlike other shops wherein adulterated foods maybe given to its consumers and thus saved them from adulteration and other malpractices.
• As consumers or members of the society are the owners and managers of such stores, genuine requirements of the majority of consumers can be met. In other words, goods required by a majority of the customers or members of the society are always dealt by such stores.
• Cooperative societies are an important form of democratic business enterprise because ownership is not vested in one person completely so as a result, no single group can secure control over the organization.
Disadvantages
• It only caters to the needs of small and medium-income groups so when there are large group with higher economic interest then it is preferable to choose another business model.
• There is much dependence on the honesty, integrity and loyalty of members and workers and once there are trust issues between the members it is hard to transact business thereafter.
• It is limited to certain objectives hence profits are minimal.
• Management of society usually rests in the hands of people with less managerial experience due to which society will suffer and many do not invest in hiring professionals to handle the society due to lack of funds or interest so henceforth growth of the society maybe put to stake by its own members.

By admin|October 22nd, 2019|Laws Applicable to Co-Operative Society|Comments Off

REGISTRATION OF CO-OP. HOUSING 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.

By admin|October 22nd, 2019|REGISTRATION OF A NEW HOUSING SOCIETY IN PUNE|Comments Off

Registration of Deemed Conveyance

On receipt of the Deemed Conveyance Order, the Deemed Conveyance Deed between the Competent Authority & the Society is prepared. The Competent Authority appears in the Deed on behalf of the defaulting Land Owners & Property Developers.
The Deemed Conveyance Deed is submitted to the Office of Competent Authority for Approval & their Signature with Authority Stamp & Seal.
The Special General Body of the Society is called to approve the Deemed Conveyance Deed & to nominate 3 Members of the Society to sign the Deed.
The Deemed Conveyance Deed is executed by the signature of the Competent Authority & the signatures of the 3 nominated Members of the Society.
On execution of the Deemed Conveyance Deed, it is forwarded to the District Stamp Office for Adjudication. If all the Members of the Society have paid the Stamp Duty on their respective Flat/ Shop Agreements & there is no balance FSI, the Deemed Conveyance Deed attracts only Rs. 100/- Stamp Duty. The Stamp Office issues the Adjudication Certificate.
On receipt of the Adjudication Certificate, the Society pays the required Stamp Duty & gets the Deemed Conveyance Deed Franked from local Bank.
After Franking of the Deemed Conveyance Deed, the same is submitted to the Registration Office for Registration. The Registration Office issues a notice to the Land Owners & Property Developers to verify whether they have received any Stay Order from Proper Court against the Deemed Conveyance Order.
The Proper Court for issuing the Stay Order against the Deemed Conveyance Order is High Court. It is very difficult for the Land Owners & Property Developers to obtain the Stay Order from High Court against the Deemed Conveyance Order.
If there is no Stay Order received, the Registration Office Registers the Deemed Conveyance Deed. The Competent Authority is exempted from appearing for the Registration & hence the 3 Members nominated by the Society only appear for Registration.
After Registration of the Deemed Conveyance Deed, the Registration Office issues the Scanned Document & Index II typically within 15 days.
The complete Procedure of Registration of Deemed Conveyance Deed is typically completed within 3- 4 Months.
On receipt of the Index II, the Registration Process of the Deemed Conveyance Deed is successfully completed & the Society becomes the owner of the Land & Structure.

By admin|October 22nd, 2019|Registration of Deemed Conveyance|Comments Off

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