Amalgamation of Housing Societies

 Some housing societies who may be struggling with efficiency in management or financial losses may choose to amalgamate with another society, divide into smaller segments or transfer its shares and liabilities to another society. Such decisions are taken strategically to benefit the original society as well as the society it wishes to amalgamate with. But proper checks and balances are put in place by the government in such scenarios. Let’s delve deeper in the procedure of amalgamation.

Cooperative housing societies are allowed to do the following:-

• Amalgamate with another society
• Transfer its assets and liabilities, in whole or in part, to any other society
• Divide itself into two or more societies
• Convert itself into another class of society (e.g convert from an individual society to a multi-cooperative or federal society).

Society’s co-operative acts, Muti-cooperative act and Society Registration Acts all have provisions and guidelines for amalgamation of housing societies. For the purpose of this article, we will use the terminology from two of the most well-defined state co-operative acts which are Maharashtra and Delhi.