Management of Co-operatives

INTRODUCTION
The problem of housing is becoming more and more critical due to increasing population

One can satisfy these needs of shelter by forming housing societies in minimum cost and investment.

These are legally established association of persons and are democratically controlled by the members

HISTORY OF COOPERATIVE HOUSING SOCIETY

The co-op housing is of recent origin. The first housing society was registered in Bombay in 1915. In madras though the society was registered in 1914 it became active only in 1923 when government started financing it. Economic depression of the thirties and 2nd world war had a great effect on the growth of the housing movement. Due to acute shortage of building materials and labour and policy of restriction followed by government in financing these societies was not much progress. The housing co-op movement made a progress during the 1st two five year plans although the progress has not been uniform in all states.

DEFINITION OF CO-OPERATIVE HOUSING SOCIETY

According to Maharashtra co-operatives Societies act 1960,a housing society is defined as ,A society ,the object of which is to provide its members with open plots for housing, dwelling houses or flats or if open plots, the dwelling houses or flats are already acquired to provide its members common amenities and services.

TYPES OF CO-OPERATIVE HOUSING SOCIETY

TENANT OWNERSHIP SOCIETIES TENANT CO-PARTNERSHIP HOUSING SOCIETIES BUILDERS SOCIETIES FLAT OWNERSHIP COOPERATIVE

CASE STUDY MAY-2006

Sai krupa housing society is located at Mahim Road, PALGHAR DISTRICT, THANE. The society comprises of seven buildings and has a registered co-operating housing society. There are certain irregularities in the payment of maintenance charges and N.O.C. the members of the society has called for an emergency meeting to sort out the problem and difficulties. The secretary in the meantime calls for an emergency meeting. The members of the society put forth the following problems before the managing committee:

CASE STUDY MAY-2006

Society levies 100 per cent of monthly outgoing as non-occupation charges. The plea of members that non-occupational charges cannot exceed 10 per cent of service charges has been ignored. Mr. RAKESH KUMAR, a member, of our society has not paid his maintenance for a long time and his arrears have ballooned into a huge amount. What to do?

Case facts
Sai krupa housing society is located at Mahim road, which is a registered co-op housing society. It consists of 7 building. The managing committee consists of chairman, secretary, treasurer and 7 other members. Due to inefficient management the society is facing various problems such as non occupational charges and overdue maintenance.

Case facts
Mr. Kumar member of society has not paid his maintenance for a long time and his arrears have ballooned into a huge amount. Under section 70 A of Maharashtra cooperative societies act, 1960 o society can charge N.O.C at a rate higher than 10% of service charges (excluding Municipal Corporation/Municipality charges) but Sai krupa society levies 100% of monthly out goings as N.O.C. In spite of several complaints from the members managing committee regarding excess N.O.C., the managing committee is not responding regarding this issue. In order to solve the above problem EGM is conducted by managing committee.

Assumptions
It is assumed that Sai Krupa housing society is well established housing cooperative. It is also assumed that it is a builder cooperative. It is assumed that EGM is conducted in order to take immediate actions to solve the problems which the society is currently facing.

Assumptions
It is assumed that a committee member has lack of knowledge regarding laws and regulations of Maharashtra co-operative housing. There is lack of co-operation among the members. There is a possibility that the members of society by charging them with extra non-occupation charges

SWOT ANALYSIS

STRENGTH
Sai Krupa society is a

registered cooperative housing society. It consists of 59 members. All the members are honest and loyal to the society as they attend all meetings of the society. There is cooperation among the members of the society.

WEAKNESS
Committee members have lack of knowledge regarding laws and regulations of co-operative society. Managing committee face to recover the dues from the members of the society which leads to financial problem.

OPPURTUNITIES
If the society succeeds in collecting the maintenance charges from its members then the society wont face a financial problem and the available fund can be utilized for the benefits of its members.

THREATS

Irresponsibility of management about non occupational charges. Carelessness of members regarding payment of maintenance charges.

QUESTIONS
1. The society maintains that it has sent a letter to

the registrar, co-operative societies and is awaiting a reply. In the mean while it sends inflated bills and even charges interest. What are members to do?

Solutions
In the view of the government notification dated August 1, 2002, no society can charge N.O.C. at a rate higher than 10 per cent of service charges (excluding Municipal Corporation/ Municipality Charges). It is illegal for any society to charge in excess of ten per cent, A Government notification issued under section 70 A of the Maharashtra cooperative societies act 1960 has the force of law and has to be obeyed. The members of the society can approach to the registrar to confirm whether the society has filed a complain regarding N.O.C .The notification is as much binding on the registrar any of us and of he takes a contrary stand, such a stand sill have to be stuck down as being illegal, then the members has a right to file a case against the society in a court of law.

Contd
No member of the society is under any obligation to comply with an illegal demand. Thus you can safely ignore the inflated bills raised by the society and can refuse to pay the excess N.O.C. levied and any interest on such excess. If any amount has already been paid over and above what is legally payable, a member has the right to adopt appropriate proceedings to recover it from the society.

2. Can the society withdraw the water connection of Mr. Rakesh Kumar till he pays his dues? Give your opinion.

Section 12 A of the Maharashtra ownership flats (regulation of the promotion of construction, sale, management and transfer) Act, 1963 (MOFA for short) states that no person who is a promoter, manager, member of the managing committee, director, secretary, or otherwise of a block or building of flats shall, without just and sufficient cause, cut off, withhold, or in any manner curtail or reduce an y essential supply or service enjoyed by the person who has taken a flat.

Solutions

Contd
Withholding an essential supply includes acts or omissions on the part of those managing the blocks of flats. An essential supply or services includes water, electricity, lights in passages and on staircases, lifts and conservancy or sanitary services. An affected flat purchaser has the right to approach the small causes court for an order to have the water supply resorted. Persons responsible for withholding any essential supply or services without sufficient or just case are also liable for criminal prosecution. It is thus clear that no