By Mallika Joshi (Jr. Associate, Lex Services)
INTRODUCTION
A Cooperative Housing Society (CHS) is a membership based legal entity which provides housing space and common amenities to its residents. A person can become a member by purchasing shares of the CHS and in turn leading to ownership of the housing space.
In India, every State has their respective Co-operative Societies Act and Rules to govern the activities of co-operative Societies. The Maharashtra Societies Act, 1960 (the Act) governs the State of Maharashtra and this article covers information only w.r.t. the State of Maharashtra.
TYPES OF CHS
The kinds of Housing Societies are:
- Tenant Ownership Housing Society:
The land is owned by the society and the superstructure (building) on it is owned by the members of the society. The land is held on a freehold or leasehold basis.
- Tenant Co-partnership Housing Society:
The land is owned by the society as is the superstructure on it. Only portion of the construction (for example, a flat in a building) is owned by the members. Thus, the members hold a right of occupancy, which is transferrable.
- Other Housing Society:
These are house mortgage societies and house construction societies. House mortgage has the object of advancing loans to the members and to the societies on the security of land and houses. House construction deals in purchase and sale of constructed houses or dwellings to members or other societies.
FORMATION AND REGISTRATION OF A CHS
A minimum of 10 members is required to form and register a CHS, if less members are there, permission of the Authority is required under the Act. Also, if the society is being formed under SRA/SRD or MHADA, there are special prerequisites under the Act.
The documents required for the formation and registration of the CHS are as follows:
- 7/12 Extract/Property Card and Title Search Report.
- N.A. Order if applicable, Sanad in case of grant of land or NOC from Charity Commission in case of Trust
- Approved Layout and Floor Plans
- C.C., B.C.C., OC and Architect’s certificate regarding the construction
- DA and POA in the event of the where the land is subjected to redevelopment
- 2 copies of Model Bye Laws
- List of Members and all registered title documents of the flat with necessary stamp duty paid
- Form A, B, C and D under the Act to be duly filled along with application for reserving name.
- Separate Notarized Guarantee letter by the Chief Promoter of the Society and Builder/Promoter of the society on the stamp Paper of Rs. 100/-
- Proof of the bank balance of the promoter member
- Treasury Challan for payment of Registration Fee of Rs. 2500
The following documents are to be submitted to the Registering Authority of Co-operative Societies.
DISPUTE RESOLUTION
The Act provides for the institution of Cooperative Courts that are in essence, Tribunals, to deal with any disputes that may arise under the Act. The Tribunal deals with disputes that arise between members and the society.
CONCLUSION
Cooperative housing societies are entirely member controlled, so their formation is very advantageous. They engage the members at various levels of the management of the society and focus on the qualitative and quantitative aspect of housing. A cooperative housing society can also undertake many activities in itself. Thus, they make for an ideal long-term arrangement for its members.
REFERENCES
- – The Maharashtra Societies Act, 1960
DISCLAIMER
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