Registration
General Meetings
Committee
Funds
Membership
Recovery of dues
Amalgamation/ Amendment/ division
Income Tax/ Stamp Duty
Repairs
General
REGISTRATION
·60% of the flat purchasers/ promoters are required to join the registration proposal if building is constructed by builder/developer.
· 90% promoters are required to join the registration proposal for society of open plot type category.
60% of the promoters who have joined the registration proposal are required to sign it.
Cooperative Housing Society having less than 10 units can be registered subject to the following conditions:
· The built up area of each unit should not be more than 700 sq. ft.
· There should not be balance F.S.I
Chief Promoter of the proposed society shall submit a registration proposal of the co-operative housing society to the concerned Registrar under the category of non- co-operation of builder.
Registrar may consider such a proposal for Registration on merit.
Conditions for registration of CHS in Private building
- Registering authority can register CHS on merit if 90% of the tenants join the registration proposal.
- Registering authority can register CHS on merit and with previous approval of State Government if 75% to 90% of the tenants join the registration proposal.
- Proposal for registration will not be entertained if percentage of tenants is below 75%
- The Tenant promoter joining the proposed CHS shall have to agree to contribute to the cost of flats of non joining tenants.
- In case tenants have created sub tenancy in terms of Rent Act, sub tenants and not the tenants be allowed to join the proposed CHS.
The Chief Promoter has got no power to withdraw such money.
Before registration of the Cooperative Housing Society, money can be withdrawn with the permission of the Registrar.
Failure to dispose of the registration proposal of a housing society within a period of two months, the Registrar has to submit the said registration proposal to the next higher authority within a period of 15 days from the date of expiry of two months.
On failure of such higher authority to dispose of the said registration proposal within two months from the date of receipt of the proposal to his office, the registration proposal shall be deemed to be registered under the provision of the Maharashtra Co-operative Societies Act 1960.
On failure of such higher authority to dispose of the said registration proposal within two months from the date of receipt of the proposal to his office, the registration proposal shall be deemed to be registered under the provision of the Maharashtra Co-operative Societies Act 1960.
Such rejection order can be challenged by filing appeal under section 152 of the M.C.S. Act 1960 before the Divisional Joint Registrar C.S. of the concerned Division.
- If the society is registered.
- On the misrepresentation made by the applicants, or
- The work of the society is completed or exhausted, or,
- The purpose for which the society has been registered is not served.
Rules 10 of the Maharashtra Co-operative Societies Rules, 1961 provides the following classification of the CHS
- Tenants’ ownership Co-operative Housing Society.
- Land is held on lease hold or free hold basis
- Houses are owned or are to be owned by member.
- Tenants Co-partnership Cooperative Housing Society.
- Both land and houses owned by society.
- Houses are allotted to members.
- Other Co-operative Housing Society.
- Houses mortgages societies
- Houses construction society.
It will amount to an offense u/s 146 of MCS Act 1960.
Such person can be prosecuted in the court of law with provision approval of DJR of concerned Division u/s 148.
Such person can be prosecuted in the court of law with provision approval of DJR of concerned Division u/s 148.
GENERAL MEETING
The first General Meeting can be convened within a period of three months from the date of registration of CHS.
Chief Promoter of the CHS can convene the first General Meeting of the members.
Cooperative Housing Society having less than 10 units can be registered subject to the following conditions:
· The built up area of each unit should not be more than 700 sq. ft.
· There should not be balance F.S.I
Following business shall be transacted in the first General Meeting
- Election of a president
- Admission of new members, if applications are received.
- Receiving a statement of accounts and report stating all transaction entered in by Chief Promoter upto 14 days before the meeting.
- Constitution of provisional committee for a period of one year.
Rules 60 of the M.C.S. Rules 1961 provides that the secretary of the CHS is responsible to convene the AGM
Bye law No 139 (16) provides that the committee of the CHS should ensure the holding of AGM within the prescribed period.
What is the business to be transacted in AGM?
- To receive a report of the committee together with statement of accounts for the preceding cooperative year/years.
- To consider audit report received from the Statutory Auditor for the previous Cooperative year/years.
- To declare the result of election if held prior to AGM
- To consider the appointment of Statutory Auditor.
If the business on the agenda of the general meeting of the CHS is partly transacted then the said meeting shall be postponed to any other suitable date, not later than 30 days from the date of the meeting as may be decided by the members present at the meeting.
AGM can be adjourned for want of quorum :
- To the time as may be specified in the notice on the same day or
- To a subsequent date, not earlier than seven days.
- Holding of adjourned meeting will not required quorum.
Following business cannot be transacted in AGM without due notice :
- Expulsion of members of the CHS,
- Amendment of bye laws,
- Bifurcation, amalgamation, division of the CHS,
- Transfer of Property of the CHS.
14 clear days notice is required to be given for calling the AGM.
COMMITTEE
The period of provisional committee is of one year from the date of which it has been first constituted.
Subsequent committee is constituted after election to the committee as per approved Election Rules.
Election committee is required to be constituted as per the provision of Section 73 of M.C.S. Act 1960.
Election of Committee or its member can be challenged by filing dispute under Section 91 of M.C.S. Act 1960. Before the Cooperative court.
Bye laws No. 118 provides one of the following disqualifications to remain on Committee :
- Convicted of the offense,,/
- Defaults the payment of dues to the society within three months from the date of service of notice in writing,
- Held responsible under section 79 ,85 or 88 of the MCS Act 1960,
- Sublets flat without prior permission of the CHS,
- Remains absent for three consecutive meeting of the committee.
Ex managing Committee member can contest the election, if they are otherwise qualified.
An appeal under section 152A of M.C.S. Act 1960 may be filed within a period of three days before the concerned Registrar from the date of rejection of nomination.
If the member pays his dues before the time of scrutiny of nominations, he becomes eligible to contest the election of committee.
Member held responsible under 79 or 88 or 85 is eligible to be re-nominated, re-co-opted, re-elected as a member of committee, after expiry of five years from the date of which he has ceased to be a member of the committee.
A Committee member who defaults the payment of dues of CHS incur disqualification to remain on committee.
Remedy is to approach registering authority for removal of such committee member u/s 78.
Default of payment of dues incurs disqualification to remain on committee :
- On the date of default such member ceases to continue on the committee and his seat shall be deemed to be vacant.
- Subsequent payment of dues wipes out default but not disqualification.
- Such member is eligible for re election or co option on vacant seat on payment of dues.
Committee has no authority to remove the members from its committee.
FUNDS
Funds to be raised by CHS are :
- The repair and maintenance funds at the rate fixed by G.B subject to the minimum of 0.75 % per annum of construction cost of each flat.
- Major repairs funds as and when required and decided by GB at the rate fixed on area basis.
- The sinking funds at the rate fixed by G. B subject to the minimum of 0.25% per annum of construction cost of each flat.
- Reserve funds as provided u/s 66 of the M.C.S Act 1960.
Repairs and maintenance funds is utilized for meeting the expenditure on maintenance and normal repairs of the building of CHS by committee.
Major repairs fund is utilized with prior approval of G.B. for major repairs such as plastering, Colour of buildings etc.
Sinking funds are to be utilized on recommendations of architect and with prior approval of G.B for meeting the expenditure on structural additions or alterations to the building /buildings of CHS.
MNMBERSHIP
- A persons who is competent to contact under the Indian Contract Act 1872, or
- A firm company or any other body corporate constituted under any law for the time being in force, or a society registered under the societies Registration Act 1860, or
- A society registered or deemed to be registered under MCS Act 1960, or
- A State Government or the Central Government, or
- A Local Authority, or
- A public trust registered or to be registered.
Procedure for becoming member.
- An application in the prescribed form giving complete details shall be submitted to CHS
- Shall pay the value of ten shares of Rs 50/- each along with payment of Rs 100/- towards entrance fee.
- Undertaking as prescribed in the bye law are to be submitted.
- A copy of stamped and registered purchased agreement.
A person whose membership application is not accepted by CHS may apply to the Registrar u/s 23 (1A) in the prescribed H-1 form.
On failure of CHS to dispose of the membership of a person within a period of three months m he may apply to the Registrar u/s 22 (2).
A person whose application for membership is rejected, may apply to the Registrar u/s 23 (2) of the M.C.S. Act 1960.
Upto 60% of the total membership is allowed to firm, company and body corporate members.
RECOVERY OF DUES
Bye law no. 38 provides that the CHS may collect amount of premium at the rate to be fixed by the General Body meeting but within the limits as prescribed under the circular issued by the Department of Co-operation, Government of Maharashtra from time to time and therefore the general body's resolution contradicting the Government circular shall not be acted upon.
Bye law No. 38 bars the CHS for collecting transfer premium for mutual exchange of flat amongst the member in the CHS.
Bye law No 38 bars the CHS for collecting transfer premium for transfer of flat to family members.
Section 29 (2) provides that member cannot transfer any share held by him or his interest in the capital or property unless and until he has held such share or interest for a period of one year.
Non occupancy charges can be collected by CHS only when member has rented out his flat or given on leave and license basis.
Non occupancy charges can be collected to the extent as decided by the General body meeting but not more than 10% of the service charges as has been stated in the circular dated 1st of August 2001 issued by State Government.
Service charges are to be charged equally irrespective of the size of the flat as provided in bye law no 69 of the model bye laws.
Bye law no 69 provides that water charges can be charged on the basis of total number and size of inlets provided in each flat. Therefore, water charges shall be levied from those unit holders who have supplied water connections only.
AMALGAMATION / AMENDMENT / DIVISION
In the interest of members of the Society Registrar may impose amendment of bye-laws u/s 14 of M.C.S. Act 1960.
CHS can be divided under the following circumstances
- There shall be two or more different buildings.
- Each building shall have separate water tanks and water connections.
- There shall be a separate assessment by the local authority..
Committee may apply to the Registrar :
- Committee shall convene SGM by giving 15 days clear notice to the members and creditors.
- Resolutions for division shall passed by 2/3rd of the members present and voting in such a meeting.
- Such resolution shall contain the details of scheme of division of the society.
- After the meeting of the SGM notice in "G" form shall be given to all the members and creditors. Exhibit the notice on the notice board of the society as well as in the office of the Registrar and publish the same in at least one local newspaper inviting objections with in a period of one month.
- If objections are not received within a period of one month from the date of notice, it will be presumed that the member/creditor have no objection for such divisions.
- Thereafter the committee shall submit the report giving details and registration proposal for the registration of new society to the registrar.
In the interest of the member, Registrar may enforce division of the CHS.
NCOME TAX/ STAMP DUTY
Yes, CHS is required to pay income tax.
Yes, transfer premium and donation received by CHS are taxable.
Yes, Sale proceeds of F.S.I. are taxable.
As per the provisions of I.T. Law Taxable income of CHS is:
- Transfer premium,
- Income gained from installation of dish antenna,
- Income gained from renting out premises of CHS,
- Interest earned from default in payment s by members,
- Interest earned on deposits,
- Income earned from sell of F.S.I.
Rates of I.T leviable to CHS:
- For income between Rs. 10 to Rs. 10,000/- :-- 10% of income + Addl. Surcharge @ 3 % of I.T.,
- For income between Rs 10,001/- to 20,000/- :-- 20% of income + Addl. Surcharge @ 3 % of I.T.,
- For income above Rs 20,000/- :-- 3o% of income + Addl. Surcharge @ 3 % of I.T.
Yes, CHS is liable to deduct I.T. At source for its payments to contractor.
Such excess collection from members over expenditure is not treated as income for the purpose of levying IT.
C.H.S. is required to file return in Form No. 2.
REPAIRS
Member may file dispute u/s 91 of the MCS Act 1960 before Cooperative Court.
Such type of repairs cannot be carried from funds of the CHS. The remedy available is to file dispute u/s 91 of MCS Act 1960 before Cooperative Court.
Bye laws No 160 provides that repairs of such type of leakages cannot be done from the funds of CHS.
Remedy available is to file dispute u/s 91 of the MCS Act 1960 before cooperative Court.
Such type of repairs can be carried out from funds of the CHS.
Yes, the same can be repaired by CHS from its funds.
For compensations of the repairs carried out by member of behalf of the CHS, he may file dispute in the Cooperative Court u/s 91 of MCS Act 1960 if CHS refuse to give him required credit.
GENERAL
CHS can take donation but not from transferor or transferee.
CHS may follow the procedure u/s 35 of MCS Act, 1960.
If the expulsion is approved by the Registrar CHS may take possession of the flat.
CHS may file eviction suit in Co-operative Court.
Parking space approved by Competent Authority and purchased by member can be sold out to the other eligible member of the CHS.
Provision of Section 59 to 61 of Indian Contract Act 1872 is applicable where a debtor owes several distinct debts to one person and voluntarily makes payments.
Hon. Supreme Court of India has laid down the ratio in Civil Appeal No. 16902 of 1996 decided on Feb.10, 1999 that principal and interest are constructed as a single debt and therefore provisions of section 59 to 61 of the Indian Contract Act 1872 are not applicable in such case.
Hon. Supreme Court of India has laid down the ratio in Civil Appeal No. 16902 of 1996 decided on Feb.10, 1999 that principal and interest are constructed as a single debt and therefore provisions of section 59 to 61 of the Indian Contract Act 1872 are not applicable in such case.