August 2020 - Page 3 of 7

COMPLETE GUIDE TO DEEMED CONVEYANCE

Most of the flat-owners of the newly constructed Societies/apartments do not have their sale deeds or conveyance deeds. Mostly in the newly constructed buildings, the builders provide for forming a housing co-operative society to which they shall transfer their interest in the property. Then the builders form the society but do not transfer the title of the property (read ownership) to the flat-owners or the society till he has transferred all the rights in the building/Societies/apartments. Thus the builders/promoters are benefiting from the buyers lack of awareness and information.
To curb this practice, amendments were carried out in the Maharashtra Ownership Flats Act, 1963, in 2008 to appoint a Competent Authority (Registrar of Co-operative Housing Societies) to hear the grievances of such Societies/apartments owners and to safeguard their interest by executing deemed conveyance of such societies u/s 11(3) of Maharashtra Ownership Flats Act, 1963.
Ved Legal is having enough experience to deal with these kinds of Deemed Conveyance of Co-operative Housing Societies, in and around Mumbai, Pune. Any aggrieved society or apartment holder can get resolution from us in regards of the same.
CONVEYANCE AND ITS SIGNIFICANCE
Conveyance is transfer the title of land and building by promoter/land owner in favour of housing society by execution of Conveyance Deed. As per the provision contemplated in Section 11 of Maharashtra Ownership Flat Act 1963, Conveyance is the right of Co-operative Housing Society and the Duty of the property Developer/Promoter to be executed within 4 months from date of Registration of Co-Operative Society.
After land and Building is conveyed in favour of Co-Operative Society and the title of property is fully and finally recorded in the property card and other revenue records then only the property becomes completely free and marketable.
As per Housing Society Bye-laws the main objective of formation of the society is to obtain conveyance and if conveyance is executed within 4 months from date of registration of society case can be filed against the promoter /landowner of the land to obtain the conveyance as per section 13 of MOFA 1963 failure to give conveyance is an offence and the promoter/landowner of land can be imprisoned upto 3 years or fine or both.
MEANING OF DEEMED CONVEYANCE:
Deemed Conveyance occurs when the builder/land owner or the legal heir refuse to co-operate in handing over conveyance to the Co-operative Society under the Section 11(3) of Maharashtra Ownership Flats Act, 1963. In such case, the housing society has to appear before the District Deputy Registrar, who will hear the case of both parties i.e. the housing society and the builder and would pass the required order of Conveyance. It is a remedial measure obtained by the society against the builder/landowner who does not wish to convey the property since he/she sees a commercial gain out of the property in future. This could include usage of potential FSI for their personal gain.

Deemed Conveyance is final conveyance and the same can be registered. Once the designated Competent Authority has passed the order, there cannot be an appeal against it.

NEED FOR DEEMED CONVEYANCE:
In a situation when a promoter or owner of residential premises/ buildings does not transfer/convey the ownership of the flats to the housing society or association of persons (AOP), the society or AOP can make an application to Registrar of Co-operative Housing Societies, to transfer the ownership of the said flats to them. This process is carried on through Deemed Conveyance of the title of the buildings and land in favour of the Society or AOP without the need of the builder to do so.

IMPORTANCE & PROVISIONS OF LAW ON CONVEYANCE:
As per the Housing Society bye-laws, the main objective of formation of the Society is to obtain the Conveyance; and if Conveyance is not given by the Builder within four months from the date of registration of the Society, Case of Deemed Conveyance can be filed against the Builder to obtain the Conveyance before the District Deputy Registrar. As per Section 13 of Maharashtra Ownership Flats Act, 1963, failure to give Conveyance in favour of cooperative housing society is an offence and the Builder can be imprisoned up to 3 years or fined or both.

ADVANTAGES OF CONVEYANCE:
1. Getting a proper and legal title in the name of the Society.
2. Retaining the additional FSI as per the Government announcements.
3. Property will be free and marketable.
4. Society can raise the loans for repairs and reconstruction by mortgage.
5. Permission from planning authorities is possible if the building has to be reconstructed at a later date due to dilapidation of the structure due to age or by earthquake.
6. Society can take the benefit of TDR.
7. Members can receive compensation from Builder on redevelopment of the building.
DISADVANTAGES OF NOT HAVING CONVEYANCE DEED
Even though you have purchased ownership flat, you are not the owner of the land and building. 2. In the event of a building collapse or damage to the building, you cannot reconstruct the building without the permission of the Builder / Land owner.
1. The Builder/Developer may mortgage the property purchased by you as he is the legal owner and holding the Title Deeds of the Property.
2. The Builder/Developer may tap the benefits in case the building is later taken up for redevelopment or if the plot has some unutilized floor space index.
3. The Builder may make profit by sale of open spaces, gardens, terrace, parking space belonging to the Society.
4. The Builder may demand a huge amount from the Society, if Conveyance is sought by the Society after a lapse of many years.
5. The Builder may sell the entire Development Rights and the Legal Rights on the land to third party and create a third party interest in the Property and the Society will have to incur a huge amount to clear the same.
CONDITIONS PRECEDENT FOR GETTING A DEEMED CONVEYANCE:
There are certain important conditions which need to be fulfilled to go ahead for deemed conveyance, some of them are:

1. At least 60% of the flats in that scheme should be sold.
2. A Co-operative Society or Association of Persons should have been formed of the flat-owners and at least 3-4 months should have been passed since then.
3. There should be communication between the builder and the society or AOP regarding Deemed Conveyance wherein the builder should have made a promise of completion of conveyance or refused to do the same.
4 . A Resolution must be passed

PROCEDURE FOR FILING AN APPLICATION FOR DEEMED CONVEYANCE:
After the above mentioned conditions are fulfilled, the following steps shall be taken:
Write a letter /email to builder/ promoter requesting him to provide a draft of the SALE DEED/ CONVEYANCE DEED or providing the draft to him and requesting him to sign the same.
• If the Builder rejects or postpones the same, send him a legal notice through an advocate requesting for the same.
• Even then if the builder refuses, File an application with the Registrar of Co-operative Societies together with all the relevant documents and 2,000 Rs. Court stamp fees.
• Self-attestation all the copies enclosed (by the society)
• The Competent Authority will assess the application and if any documents are missing he will ask the applicant to correct the mistake within fifteen days.
• Thereafter, notice would be sent to the promoter and the land owners.
• After receipt of the notice by the land owners and the promoters, the authority will hear both parties in the first hearing and ask both parties to produce further evidences in next hearing.
• Thereafter, second hearing would be held and if the builder or landowners do not attend both first and second hearing then the authority will pass an exparte order.
• Thereafter, the third and final hearing would be held and the authority would be held and order would be passed unless a legal question is raised.
• Normally the whole process is completed within a period of 6 months.

DOCUMENTS REQUIRED:
Further, the application required to be made with the Registrar shall be accompanied by copies of certain 20 odd documents which the society shall have to prepare or get prepared.

The papers required for doing Deemed Conveyance are as follows:
o Application Form 7 to the District Deputy Registrar, Co-operative Societies, affixing a court fee stamp of Rs. 2,000 on the application
o Affidavit made before the Notary or Executive Magistrate True copy of the Society Registration Certificate
o Stamp duty paid and registered agreement copy of 1 individual flats/ shops with Builder/Developer
o List of members in prescribed format
o Index-II for each member as issued by the Sub-Registrar of Assurance
o Copy of the Development Agreement between land owner and builder
o Copy of the Power of Attorney between land owner and builder
o Copy of the legal notice issued to the original owner or developer for doing conveyance
o Details of corresponding address telephone number etc. of the original owner or developer
o Draft conveyance deed/ Declaration proposed to be executed in favour of the applicant

Documents to be obtained from City Survey Office, for submission:
o City (CTS) Survey Plan
o Property Registration Card or
o 7/12 extract of the Land
o Village form 6 (Mutation entries from Revenue Office)

Documents to be obtained from the Collector’s Office, for submission:
o Copy of the Non-Agricultural Order
o Certificate of the exclusion from Land Ceiling Act (ULC) Certificate

Documents to be obtained from the concerned Municipal Authority Office, for submission:
o Copy of the approved plan
o IOD
o Commencement Certificate
o Building Completion Certificate
o Occupation Certificate (not compulsory)
o Property taxes paid
o Location plan of the building

Documents to be obtained from other professionals, for submission:
o Search Report of the land issued by the Solicitor/Advocate
o Title Certificate of the Property issued by the Solicitor/Advocate (Search by minimum for last 30 years)
o Land Measurement Map/ Architect’s Certificate (layout plan of the plot)
o Certified copy from Panel Architect about the utilization of full FSI or FSI if any left in respect of the said property /Plot.
After, the Application is heard by the Registrar he may grant an order for deemed conveyance which shall then be produced before a court for execution and hence the conveyance may be done by a court order.
PROCEDURE:
Stage 1- Preparation for Deemed Conveyance
During this stage the Managing Committee prepares the Members of the Co- Operative Housing Society for Deemed Conveyance.
Stage 2- Documentation for Deemed Conveyance
During this stage the Documents Required for Deemed Conveyance are collected/ organized & the Case is prepared.
Stage 3- Legal Case for Deemed Conveyance
During this stage the case is filed before the Competent Authority & after contesting the same the Order & Certificate upholding the right of Deemed Conveyance of the Society is obtained.
Stage 4- Registration of Deemed Conveyance
During this stage the Deemed Conveyance Deed is Adjudicated, properly Stamped & Registered.
Stage 5- Transfer of Property after Deemed Conveyance
During this stage the Society Name is incorporated in the Land Revenue Records.
1. Preparation for Deemed Conveyance:
This is a very important stage where the Managing Committee prepares the Members of Co- Operative Housing Society for the Deemed Conveyance.
The Managing Committee convenes a Special General Meeting (SGM) of the Society by giving suitable notice highlighting the agenda.
The Managing Committee places before the SGM the difficulties faced for obtaining the Conveyance from the Land Owners/ Property Developers. The Managing Committee explains the effects of non- availability of Conveyance to the Members. The Managing Committee explains the Procedure & Benefits of Deemed Conveyance to the Members.
During this SGM the following Resolutions are typically passed.
1. Resolution for going ahead with Deemed Conveyance
2. Resolution for Appointment of Authorized Representative
3. Resolution for Appointment of Legal Consultant for Deemed Conveyance
4. Resolution for Per Member Contributions
2. Documentation for Deemed Conveyance:
This is the most crucial step in obtaining deemed conveyance. It is a very meticulous job and make sure all the documents are lined up within the right format. You would require land revenue records, municipal corporation records, society records, property development records and professional certificates.
All these documents can be obtained from various departments such as Land revenue records from City Survey Office, Tahasildar/Talathi Office & District Collector Office, municipal corporation records from Building Proposal Department of the Municipal Corporation. Society records and certificates can be obtained from society offices and professionals.
Once all the documents are lined up, society needs to fill in Deemed Conveyance Application- Form VII and attached all the related documents. In case of deemed conveyance, a legal notice is sent to the developer for their consent. In regular conveyance procedures, since the developers or promoters are willingly providing the rights lot of documents can be easily recovered from them.
Once the form is filled up and all documents are annexed it is submitted to the Competent Authority- the District Deputy Registrar of Co- Operative Societies of the particular District.
3. Legal Case for deemed conveyance:
Once the application is submitted to the authorities they issue Deemed Conveyance Scrutiny Report- Form VIII within 1 month. Once the compliance is provided the authorities issues Summons & Newspaper Notices to the Land Owners & Property Developers for appearing for the hearing.
During the hearing process authorities take into consideration the arguments of the both parties. The process takes place within 3-4 months. Once all the arguments are documented the office issues a Deemed Conveyance order within 1 month. The whole process is completed within 6 months as this is a time bound activity.
4. Registration of deemed conveyance:
A deemed conveyance deed is created during this phase and is signed by both societies and developers. If developers do not appear for hearing in the prior stage (Which is the case in deemed conveyance), authorities have the power to sign the deed on behalf of developers.
The society needs to conduct a meeting and appoint 3 members to sign the deed. Post that the deed is submitted to district stamp office for adjudication. If all the members have paid their stamp duty and if there is no balance FSI, the office issues adjudication certificate. (Note – Deed only requires Rs 100 stamp duty). The adjudication certificate needs to be then franked from local bank and resubmitted to registration office.
The registration office then issues notice to land owner/developer to verify if there is any stay order against the deed of conveyance. (Note – The developer can get the stay order only from high court). If there is no stay order the deed of deemed conveyance is registered and then the office issues scanned documents and Index II. This mark end of registration process and the society becomes the owner of the land and structure.
5. Transfer of property:
In this phase a new application is submitted to various departments to make mutation entries in their records. This would make the process complete.

By admin|August 18th, 2020|COMPLETE GUIDE TO 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 Rs2,000. 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|August 17th, 2020|DEEMED CONVEYANCE PROCEDURE FOR SOCIETY 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.

By admin|August 14th, 2020|How to register the society and which documents required for it?|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|August 14th, 2020|Laws Applicable to Co-Operative Society|Comments Off

COMPARISON BETWEEN A CONDOMINIUM AND A CO-OPERATIVE SOCIETY

Though the condominium is more than a forty year old ownership concept for buildings in Mumbai, it is the cooperative society model which has been the most popular so far. However, in recent times, the concept of a condominium is slowly gaining momentum. Buyers who purchase premises on an ‘ownership’ basis require to come together to manage the building and for that purpose, one of the ways is to form a cooperative society, which is governed by the Maharashtra Cooperative Societies Act, 1960.

An alternative to a cooperative society was introduced by the Maharashtra Apartment Ownership Act, 1970, which provides for the formation of a condominium. The buyers of premises in a condominium are called apartment owners who form an association known as an ‘association of apartment owners’, in case of both, residential as well as non-residential premises.

Although the basic purpose of both the models is similar, there are many differences between a society and condominium, some of which are:

FORMATION: To form a society, generally 10 persons, each from a different family who reside in the area of operation of the society (within the same city) and who have taken premises in the building, would be required. However, even one person who owns the entire building can form a condominium provided there are at least five apartments in the building.
OWNERSHIP: In the case of a society, the title of the land and the building is conveyed to the society, which becomes the owner thereof. Persons who have purchased premises are made members of the society and are allotted the particular premises. In the case of a condominium, 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.
BY-LAWS: A society adopts the model bylaws in which little can be changed. While adopting the bylaws in a condominium, suitable changes can be made, so long as the provisions of the Act are not contravened.
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. This is not so in a condominium.
MANAGEMENT: 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. Similarly, the affairs of a condominium are managed by the board of managers, who are elected by the members of the apartment owners association. The board also elects a president, vice-president, secretary and a treasurer.
TRANSFER FEES: Under the model bylaws, a society can charge only Rs 500 as transfer fees and a maximum of Rs 25,000 as a premium. In case of a condominium, the bylaws can be more flexible and the amount of transfer fees can be provided therein.
PERMISSION TO LET: In a condominium, the owner can give his apartment on lease or leave and license basis without the approval of the board of managers, while in a society, permission is required.
VOTING RIGHTS: In a society, every member has one vote, irrespective of the area of his premises. In a condominium, 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.
DISPUTES: In a society, disputes are generally referred to the registrar appointed under the Act or to a cooperative court, depending on the nature of the dispute. In the case of a condominium, the court having jurisdiction over the area in which the condominium is located, hears the disputes.
EXPULSION: A society can expel its member under certain extreme circumstances. 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. 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

By admin|August 14th, 2020|COMPARISON BETWEEN A CONDOMINIUM AND A CO-OPERATIVE SOCIETY|Comments Off

Builder/ Promoter is not co-operating in registering the 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.

By admin|August 14th, 2020|Builder/ Promoter is not co-operating in registering the Co-operative Housing Society|Comments Off

BUILDER’S HANDOVER PROCESS OF CO-OPERATIVE SOCIETY

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

By admin|August 14th, 2020|BUILDER’S HANDOVER PROCESS OF CO-OPERATIVE SOCIETY|Comments Off

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: CommonFloor 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’.

By admin|August 14th, 2020|CHECKLIST FOR HANDOVER OF SOCIETY FROM BUILDER|Comments Off

REGISTRATION OF CO-OPERATIVE HOUSING SOCIETIES IN THANE

According to the Law, every Builder / Developer has to form a Housing Co-operative Society with limited options available in this regard to managing the affairs of the building i.e.
(a) Condominium
(b) Private Limited Company and
(c) Co-operative Society, (excluding the unrealistic rental housing),
It wouldn’t be an exaggeration to state that in at least 90% the Promoters and / or the Builders have formed a Housing Co-operative Society.
The basic requirements for a Co-operative Housing Society Registration normally are unknown to the flat/unit purchasers. It is the statutory obligation cast upon the builder, where the builder acts as a friend, philosopher, and guide of the promoters and helps them in forming a Co- operative Housing Society.
There are four types of Housing Co-operative Societies
(a) Open Plot type Societies [Tenant ownership]
(b) Flat Owners Societies [Tenant Co-partnership]
(c) Tenant Societies
(d) Housing Board Societies.
The procedure for Co-operative Housing Society Registration begins with electing a Chief Promoter in a meeting of the Promoters. The builder under the Flat Owners type of co-operative society has the first right to act as the chief promoter. The developer / flat purchasers should call for a meeting of the Promoters by issuing the notice under Agenda of the meeting given at least 14 days notice to the Promoters. In this meeting, a Chief Promoter is elected who can exercise such powers and carry out such functions as are mentioned in the minutes of the Promoters of the proposed Co-operative Society. After electing the Chief Promoter, the proposed name of the society has to be decided by the Promoters. Normally, the name reservation proposal should be accompanied by the signature of at least 10 Promoters who have attended the meeting. It is a common belief that the Society should consist of at least 10 members. If the number is less than 10 then special permission from Government has to be taken. In such cases, the garages/car parking may be allotted to other relatives of the promoter to reach a number of 10.
It would be of interest to note that the model bye-laws define flat as a Flat means a separate set and self-contained set of premises used or intended to be used or intended to be used for residence, or office or showroom, or shop, or godown and includes a garage, or dispensary, or consulting room, or clinic, or flour mill, the premises forming part of a building and includes an apartment. On allotment of name and permission to open a bank account by the Registrar, the Chief Promoter has to collect Share Capital, Entrance Fees from promoters and deposit the same in the branch of the bank permitted by the Registrar. It should be noted that the amount cannot be withdrawn from the Bank till the Society is Registered or its Registration is refused, except with prior written permission of the Registrar. The Chief Promoter should submit Registration Proposal to the Registering Authority within a period of 3 months from the date of issue of Letter of Reservation in the name of the proposed Society.
The documents that need to be submitted to the Registering Authorities for Housing Co-operative Society Registration are as under:
1. Application for registration of Housing Co-operative Society in Form A along with Statement A. Enclosure to application for Registration as per Rule 4(1) of Maharashtra Co-operative Societies Rules, 1961.
2. Information about proposed Housing Co-operative Society in Statement ‘B’ (vide Govt. Circular dated 2-5-1980).
3. Information about promoter members of the proposed Housing Co-operative Society in Statement ‘C’ (vide Govt. Circular dt. 2-5-1980).
4. A Statement of Accounts as per Form D.
5. Model Bye-laws.
6. Bank Balance Certificate.
7. S.B.I. / Treasury Challan for payment of Registration Fee of Rs. 2500
8. Title Clearance Certificate from an Advocate
9. A true copy of the approved Building Plan.
10. Letter of Authority Granting permission to commence construction work/Completion Certificate (if applicable).
11. Affidavit on Rs. 100/- Stamp Paper from at least 10 promoter members to the effect that they are residing in the area of operation of the Society (Proposed), made before a Competent Authority.
12. An affidavit from the Chief Promoter on Stamp Paper of Rs. 100/- executed before the Competent Authority in form ‘Y’.
13. Certified True Copy of an agreement made on Stamp paper and registered between the builder, promoter and purchasers of flat.
14. Where the promoter members are firms/ companies, a letter of authority from such firms/companies authorizing the promoter to sign on behalf of firm / company.
15. In the case of such proposed societies, names of 60% of the flat holders of the total number of flats constructed or proposed to be constructed as per the plan approved, must be included in Statement ‘A’ to be attached to the Registration Proposal. It is the duty of the Registrar to register the society and on registration of the society; it becomes a separate legal entity. Thereafter, the management of the affairs of the society is carried out by the managing committee which is elected by the general body meeting of the society. It may be of interest to note that in a co-operative society the principle is one member one vote. In a co-operative society, the right to be exercised in the general body meeting is a personal right. This is one of the reasons why even a person holding a power of attorney cannot attend the general body meeting of the society. The quantum of the capital being introduced by the member is not of much importance. Preference should be given to the formation of a private limited company if one member proposes to acquire the majority of flats in the building.

By admin|August 14th, 2020|REGISTRATION OF CO-OPERATIVE HOUSING SOCIETIES IN THANE|Comments Off

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.

By admin|August 14th, 2020|WHY A CO-OPERATIVE HOUSING SOCIETY IS BETTER THAN APARTMENT OWNERS ASSOCIATION|Comments Off

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