Prahladrai Dalmia Lions College of Commerce & Economics

Subject: Cooperatives & Rural Markets Project on: Housing Co-operative Societies By: Dishank han!el"al #$: S%&%BMS '() Roll *o%: +, Sub-itte! to: Miss Shakuntala

INDEX
SR. NO.
01 02 03 04 05 06 07 0 0!

CONTENTS
CO-OPERATIVE SOCIETIES INTRODUCTION OF HOUSING COOPERATIVES STRUCTURE OF HOUSING CO-OPERATIVES PROCEDURE FOR REGISTRATION OF HOUSING CO-OPERATIVE SOCIETIES CLASSIFICATION OF HOUSING COOPERATIVES MANAGEMENT OF CO-OPERATIVE SOCIETIES PROBLEMS OF HOUSING SOCIETY REMEDIAL MEASURES TO SOLVE THE PROBLEMS BIBLIOGRAPHY

D"#$%&%'()*
I, D(+,%*- .,%*/"$0%$ of S.Y.BMS 1A2, P&%,%$%/&%( D%$3(% L()*+ C)$$"4" )5 C)33"&#" 6 E#)*)3(#+, hereby declare that I have completed the project titled H)7+(*4 C)-)8"&%'(9" S)#("'("+ in the academic year 2010-11. The information submitted by me is true and original to the best of my knowledge.

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C"&'(5(#%'" )5 P&):"#' C)38$"'()*

Certified that the project report titled CONSUMER COOPERATIVES has been completed satisfactorily in partial fulfillment of BM course of the !niversity of Mumbai, Mumbai for the academic year 2010-2011 by U3"+, .)',%&(; a student of "rahladrai #almia $ions College of Commerce % &conomics.

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S""* B=<I*'"&*%$ E>%3(*"&< S(4*%'7&"< D%'"< E>'"&*%$ E>%3(*"&< S(4*%'7&"< D%'"<

AC.NO?LEDGEMENT
'irst of all I would like to thank the almighty for his blessing that helped me to achieve everything I had wished for till now. I e(press my deepest gratitude to M&+. S,%-7*'%$% whose invaluable guidance and supervision in the project infused in me great inspiration and confidence in making this project in right earnest. This masterly guidance from time to time made the study interesting and meaningful. he was always there for our help and doing away all the difficulties and confusions that arises during the project period. he also helped me to understand what was actually re)uired from the project and what was needed to be done. *t last I would like to thank our respondents for their kind response and their precious time. Many other who have been associated with work directly or indirectly, all have my sincerely thanks. The greatest achievements of the facts, that +ONE ?HO PREACHES THE GOAL ?INS THE GAME,

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 CO-OPERATIVE SOCIETIES
*n autonomous open and voluntary association of persons of the weaker section of the society, to meet their common socio-economic and cultural needs and aspiration through a jointly owned and democratic control enterprise in accordance with the cooperative values and principles.

OR
* Cooperative ociety is an *ssociation of a minimum of ./ persons untitled voluntarily to meet their common economic, social and cultural needs and aspirations, through a jointly owned and democratically controlled enterprise, registered under the Cooperative ocieties *ct.

C$%++(5(#%'()* )5 C)-)8"&%'(9" S)#("'("+

*s per subject to the provisions of sub-section 012 of section 3, a co-operative society formed with the object of facilitating the operation of any one of the classes or sub-classes here in after given shall be classified as a co-operative society of that class or sub-class namely412 P&)/7#"&+@ +)#("'=< - 5bjective is producing and disposing of goods as the collective property of its members. 22 C)*+73"&+@ S)#("'=< - 5bjective is obtaining and distributing goods to or of performing services for its member, as well as to other consumers within the area of operation specified in the bye-laws. 32 H)7+(*4 S)#("'=<- 5bject of providing its members with dwelling houses subject to the provisions of these rules and on the conditions to be determined by the $t. 6overnor from time to time2 and may be of any of the following types4%. A. #. d. T"*%*' O0*"&+,(8. T"*%*' C)-8%&'*"&+,(8. B7($/"& C)-)8"&%'(9". O0*"&+,(8 #))8"&%'(9".

42 P&)#"++(*4 S)#("'=< - 5bjective is the processing of goods by mechanical or manual process.

52 M%&-"'(*4 +)#("'=< - Its main purpose is of marketing agricultural or other produce and includes amongst its objects, the supply of the re)uisites of such production. 62 B)(*' F%&3(*4 S)#("'=< - 5bjective is increasing agricultural production, employment, income and better utili7ation of resources8 land held by members is pooled together and is jointly cultivated by the members on behalf of the co-operative society. 72 C)$$"#'(9" F%&3(*4 S)#("'=<-The object is increasing agricultural production land is ac)uired from outside in the name of cooperative society and is collectively and jointly cultivated by the members themselves on behalf of the cooperative society. 2 C)-)8"&%'(9" U*()*< - "rincipal objective is the undertaking of Cooperative &ducation, "ropaganda and Training. !2 A8"> C)-)8"&%'(9" S)#("'=< - Their principle object is the promotion of the principal objects and provisions of facilities for the operation of other co-operative societies affiliated to it.

INTRODUCTION OF HOUSING COOPERATIVES

The prime necessities of human beings are food, clothing and shelter and housing cooperative is an essential for human e(istence as much food and clothing. 9ousing is a significant subject having a concern with a common man. 5ne of the important problems faced by India is the housing problem. The reasons are varied, like tremendous growth in population, migration from rural to urban areas. 9ighly speculative trend in the cost of land, weakening of joint family system thus creating a re)uirement of a separate house for each family unit etc. Housing is an important sector, with a direct connection to human welfare and economic linkages to the construction industry. The National Housing & Habitat Policy has been formulated to address the issues of sustainable development, infrastructure and strong public-private partnerships for shelter delivery. The ob ective of the policy is to facilitate the construction of two million dwelling units each year. !t is envisaged that "overnment would provide fiscal concessions, carry out legal and regulatory reforms and create an enabling environment. The private sector would undertake actual construction activities.
Policies in the area of housing finance have been a key vehicle through which home ownership has been promoted. !ncome ta# e#emptions have been given to households building or purchasing homes$ financial institutions and builders have been given fiscal incentives to build housing for low-income groups, and investors in housing finance companies have been given ta# breaks.

9!#C5 09ousing urban #evelopment Co-operative2 plays a major role in the implementation of government policies on housing. It has been entrusted with the implementation of the following programmes4 $ow Cost anitation. :ight helter for 'ootpath #wellers. Building Centres. helter !pgradation under :ehru ;o7gar <ojana 0:;<2 and =almiki *mbedkar *was <ojna 0=*MB*<2. 9!#C5 has been allocating // per cent of its housing loans for &conomically >eaker ections 0&> 2 and $ower Income 6roup 0$I62. 5ver ?. per cent of the dwelling units sanctioned by 9!#C5 are meant for &> and $I6. 5ut of a target of construction of .@ lakh additional houses, A lakh houses would be constructed in urban areas and 1B lakh in rural areas. 9!#C5 is e(pected to meet more than // per cent of the urban housing target, i.e., 3 lakh units. The cooperative housing sector plays an important role. *ll the .C tate- level *pe( Cooperative 9ousing 'ederations are members of the :ational Cooperative 9ousing 'ederation 0:C9'2. *t the grassroot level, B@,31@ primary housing cooperatives are affiliated to tate-level federations. These federations obtain loans from various financial institutions for on-lending to their member housing cooperatives as well as individual members for constructionDac)uisition of dwelling units. These federations have borrowed a sum of ;s.C.EE. crores from $IC, 9!#C5. :ational 9ousing Bank, cooperative banks, etc. and disbursed loans of

;s.A,BA1 crores to primary housing cooperatives and individual members, thereby assisting in the construction of about .. lakhs. Co-operative housing emerged as a strong, well organi7ed and significant in order to. olve the housing problem of common man. These are legally established association of persons and are democratically controlled by the members. The working group on housing co-operatives has therefore said that, +co-operative activity is the best means of providing decent houses at reasonable costs to persons, particularly of low and middle income groups.FF Mumbai is the Brd largest density populated city in the world and the prices of the land and construction is becoming unaffordable to the common man. They also say that man is a social animal and is incomplete without a social fabric. * personFs lifestyle, his culture, his social status all are determined on where he stays.

D"5(*('()* )5 H)7+(*4 C)-)8"&%'(9"+

CC)-)8"&%'(9" ,)7+(*4 +)#("'=C 3"%*+ % +)#("'= )5 8"&+)*+1%2 which is formed for all or any of the objects referred to in section five of the act 1?/E8 1A2 which has under its rules a share capital divided into e)ual shares of one or more classes and not being preferential shares8 and 1#2 which under its rules is to terminate on a specified date or when a specified object is attained or a specified event occurs- but does not include a tarr-Bowkett society, that is to say, a society in which the order of advances to members is determined either solely or partly by the drawing of lots.

OR
* housing Co-operative is also defined as +an association run along with co-operative principles 0=oluntary membership, democratic member control, member economic participation, autonomy and independence, education, training and information, co-operation among co-operators and concern for community.2,. It is owned and managed by the members of the co-operative. Most housing co-operatives are fully mutual and further reference to housing cooperatives in this document refer to this type, where only tenants or prospective tenants may be members, and only members may hold a tenancy. This means that decisions are made by the people who are affected by those decisions. 9ousing co-operatives provide a way for people to share in the ownership of property and live in it at affordable rent levels, as opposed to rent levels designed to generate profit for an individual or company. They are an alternative to home ownership in the traditional sense or renting in the private sector.

OA:"#'(9"+ )5 C)-)8"&%'(9" S)#("'=

* co-operative housing society may be formed for all or any of the following objectsT) "*%A$" "%#, )5 ('+ 3"3A"&+ to purchase land and to erect a dwelling-house thereon8 or to erect a dwelling-house on land already owned by him8 or to erect a dwelling-house on Crown land leased by him for a term of not less than /@ years being Crown land within an area approved by the 6overnor in Council for the purposes of this *ct8 subject to section thirty-four of this *ct to purchase land upon which is situated a dwelling-house8 or to maintain and keep in proper repair his dwelling-house8 or where the approval of the 6overnor in Council given after consideration of a report by the registrar is first obtained-to discharge a mortgage held by another society upon any land8 or to discharge a mortgage or any other charge or security over or affecting any land which mortgage charge or security was granted or e(ecuted by the member in )uestion in anticipation of the societyGs making an advance to him and with the approval of the registrar to the making of the advance.

 STRUCTURE OF HOUSING COOPERATIVES

D F(&+' $"9"$<
N%'()*%$ #))8"&%'(9"< - *t the ape( of the structure is the :ational cooperative 9ousing societyFs federation 0:C9'2 which was established in 1?C? and has head)uarters :ew #elhi. T," )A:"#'(9"+ )5 ',(+ (*+'('7'()* %&"<12 6ive publicity of cooperation housing movements by publishing books and brochures. .2 To establish financial institutions at state level 0Maharashtra 9ousing 'inance Corporation2 B2 To help the primary housing cooperative to get loans for building houses and flats at very nominal interest rate. 32 To undertake research for new building material so to reduce the construction cost.

D S"#)*/ $"9"$<
S'%'" $"9"$ ,)7+(*4 #))8"&%'(9"< - Their main objective is to guide primary housing cooperatives regarding legal and statutory matters so as to get that registered. They also help in negotiating with institution like M9*#* for allotment of plots.

H T,(&/ $"9"$<
P&(3%&= ,)7+(*4 #))8"&%'(9"<- The objectives are found in rural, semi urban and urban areas and can get themselves registered if they have ten or more members who have a fi( source of income and who come together to build a housing cooperatives and solve the housing problems and prevent e(ploitation of $and lords. They provide a systematic and organi7ed way of maintaining the building and property of housing cooperatives.

T," A%+(# 47(/"$(*"+ 5)& '," 5)&3%'()* )5 C)-)8"&%'(9" +)#("'= (* M%,%&%+,'&% S'%'" %&" %+ 5)$$)0+< There should be at least ten persons or more as the ;egistrar may determine from time to time. These persons should be from different families. These persons should be competent to enter into a contract under the Indian contracts *ct 1EA.. 9e should reside in the area of operation of the ociety. 9e should be eligible as per the bye-laws of the proposed ociety. *ny individual, firm, company or any other body corporate can become member of the ociety. *ny ociety registered under this *ct or 1EC@ ocieties registration *ct

tate % Central 6overnment, "ublic Trust, local authority. The object of the ociety should be promotion of economic interests or general welfare of the members or the public, in accordance with the co-operative principles.

B="-$%0+ )5 '," C)-)8"&%'(9"+

Co-operation is an activity of the people. It is a self-generated, voluntary and self-sufficient activity. 9ence little governmental interference is desirable. 9owever considering the economic parameters of this movement and interests of several persons involved there is a possibility of misuse of personal power by any of the group-members. The governments therefore had to pass legislation to monitor the activities of the co-operatives mainly with the purpose of safeguarding the interests of all the members. 6reat Britain for e(ample had passed legislation as early as 1E/.. imilar intervention of legislature can be seen in 6ermany and 'rance 01ECA2 and Italy 01EEB2. In Maharashtra the Co-operatives are governed by the Maharashtra Co-operative ocieties *ct 1?C@ and supported by Maharashtra Cooperative ocieties ;ules, 1?C1. The legal system in the co-operatives registered in Maharashtra tate is elaborate. Moreover each co-operative should have its own Bye-$aws which are the guiding principles of the cooperative. These Bye-laws have to be approved through a resolution of the ociety. These bye-laws can be amended in the 6eneral body Meeting of the co-operative. The only condition on the bye-laws is that they should not be contrary to the Maharashtra Co-operative ocieties *ct, and have to be approved by the ;egistrar.

R"E7(&"3"*'+ 5)& 5)&3(*4 % #))8"&%'(9" +)#("'=

Minimum number of persons ./. The societyGs object should be promotion of the economic interests of its members. The proposed society should be capable of being run on economically sound lines. The registration of the proposed society should not have an adverse effect on the cooperative movement. The prospective members should contribute a minimum amount of share capital prescribed by the ;egistrar of Cooperative ocieties for the particular type of society to be started.

 PROCEDURE FOR REGISTRATION OF HOUSING CO-OPERATIVE SOCIETIES

5n receiving such applications the *sst. ;egistrar through his subordinate will conduct an in)uiry to find out the feasibility and economic viability of the proposed Cooperative ociety and whether itFs proposed bye laws conforms to the Meghalaya Coop. *cts and ;ules. In case a proposed Cooperative ociety is either a, 'ishery, D #airyD, "oultryD, "iggeryDor 9andloom etc., views and comments from concerned department has to be obtained before registration of such society. *fter in)uiry report with views and comments from concerned #epartment are found favorable, "ermission is given to complete the necessary formalities for ;egistration. * date will be fi(ed for holding the inaugural general meeting of the promoter in which members will finally decide on adoption of the Bye$aws and matters concerning with day-to-day functioning of the ociety including constitution of Managing Committee, operation of Bank *ccount etc. In the inaugural 6eneral Meeting, one of the "romoters presided over the meeting. *n officer from the #epartment is deputed to attend the meeting and help the promoters in organi7ational matters. In this meeting they will decide what type of a ociety they want to form, how many persons would join as members of the ociety ,l elect the office bearers of the society and decide the authori7ed share capital and the share capital to be contributed by each members. *ll the papers duly signed by the "romoters are to be submitted to *sst. ;egistrar of Coop. ocieties who after satisfying himself on all points register the society and its Bye-laws. The certificate of ;egistration in the form set forth and the schedule is issued by *sst. ;egistrar of Coop. ocieties after registration of the society. * copy of registration with Byelaws is sent to the applicant and also to concerned #epartments.

R"4(+'&%'()* )5 C)-)8"&%'(9" +)#("'("+

* co-operative society can be registered in Maharashtra tate with the ;egistrar of Co-operative ocieties. *ny person competent to contract, as per the Indian contract *ct, 1EA. can join in the formation of a co-operative. * group of ten persons, who reside in the area of operation of the proposed society and are from different families, can join in application for registration of a society. * society with the objects of promoting the economic interests or the general welfare of the members only can be registered. :o society which is contrary to the policy directives of the tate can be registered. ;egistration can be obtained from the registrar on filling up the application form with the necessary fees and the bye-laws. #ivisionD*malgamationDTransfer and conversion of a co-operative is allowed. * Co-operative ociety can enter into collaboration with any 6overnment !ndertaking or any other undertaking with the prior permission of the tate 6overnment for business. It can also enter into a partnership with other co-operatives.

C"&'(5(#%'" )5 (*#)&8)&%'()* %+ %* "9(/"*#"

* certificate of incorporation under this *ct shall be conclusive evidence that all the re)uirements of this *ct in respect of registration and matters precedent or incidental thereto have been complied with4 "rovided that nothing in this section shall affect any provision of this *ct relating to the winding up or dissolution of the society or the cancellation of its registration.

 CLASSIFICATION OF HOUSING COOPERATIVES

1%2 T"*%*' O0*"&+,(8< In the case where the land is owned by the

ociety and the structure on the plot is owned by the members. Individual members are allotted plots by the co-operative to construct their houses. The society creates infrastructure and may also arrange the finance for the members.
1A2 T"*%*' C)-8%&'*"&+,(8< The land and the constructed structure is

owned by the society and the members who are allotted the flats have the easement rights.
1#2 B7($/"& C)-)8"&%'(9"< where the builder floats a housing scheme

and sells the flats. The buyers of the flats then organi7e into a housing society. uch societies are merely service societies or maintenance societies.
1/2 O0*"&+,(8 #))8"&%'(9"< - In this case, people working in an

organi7ation come together and form them into a housing cooperative society. They get their society register, apply ') MAHADA. 1MAHARASHTRA HOUSING AND DEVELOPMENT AUTHORITY2 and get a plot allotted to them in $I6, MI6, and 9I6 i.e.4 low income group, middle income group, high income group. 5nce the plot is sanctioned they approach a construction company and depending on their budget build up housing society. &.g.4 6ulmohar cooperative housing society situated at Ceissor road, *ndheri 0west2 is the housing comple( of the ICICI officers.

T"&3+ %*/ C)*/('()*+ ') A" #)38$("/ 5)& %/3(++()* ') 3"3A"&+,(8
1. :o person shall be admitted as member of a co-operative society unless 9e has applied in writing in the form laid down by the co-operative society or in the form specified by the ;egistrar, if any, for membership along with a declaration .on oath that he is-net ? member of any other co-operative society having similar objects8 9is application is approved by the committee of the co-operative society in pursuance of the powers conferred on it in that behalf and subject to such resolution as the general body may in pursuance of the powers conferred on it in that behalf from time to time pass, and in the case of nominal, associate, or sympathi7er member by an officer of the society authorised in that behalf by the committee. 9e has fulfilled all other conditions laid down in the *ct, the ;ules and the Bye-laws8 In case of a firm, company or body corporate, society registered under the societies ;egistration *ct, 1EC@, a public trust registered under any law for the time being in force relating to registration of public trust or a local authority, the application for membership is accompanied by a resolution authori7ing it to apply for such membership, and the sanction of the $t. 6overnor has been accorded. In case of a Cooperative 9ousing ociety, he has been a resident of the :ational Capital Territory of #elhi-for a minimum period of three years at the time of applying for a membership in such society. .. In case of vacancy in a housing society including group housing society where layout and building plans have been approved by the competent authority, the same shall be filled by the committee by notifying It in leading daily newspaper of #elhi in 9indi and &nglish. In case the number of applications is more than the notified vacancies the membership shall be finali7ed through draw of lot in the presence of authori7ed representative of the ;egistrar.

MANAGEMENT OF CO-OPERATIVE SOCIETIES

*s per the Bye-law, there will be a Committee of Management, initially nominated by the ;egistrar of Cooperative ocieties for a period not e(ceeding B years and subse)uently elected by the 6eneral Body once every B years. *mong the members of the Committee of Management there shall be office-bearers like "resident, =ice-"resident, ecretary, Treasurer etc. It will be the responsibility of this Committee of Management to carry on the e(ecutive management of the society in accordance with the provisions of the *ct, ;ules and Bye-laws and as per the annual budget and programme of action approved by the 6eneral Body each year. The final authority of the ociety vests in the 6eneral Body of the ociety comprising of all the members. &very ociety shall call *nnual 6eneral Meeting within a period of three months after the date fi(ed for completing or drawing up of its accounts for the year. *t every *nnual 6eneral meeting, the Managing Committee shall lay a statement of loans given to the members of the Managing Committee and their family members, Income and &(penditure *ccount, Balance heet, a ;eport by the Managing Committee regarding the ocietyFs affairs. 'ailure to do so may attract the /(+E7%$(5(#%'()* )5 '," 3"3A"&+ of the Managing Committee and other penalties. * pecial 6eneral Meeting can be called by the Chairman of the Cooperative or by majority of the members of the Managing Committee. Members too can re)uisition for such a meeting if 1D/ th of the total members of the ociety endorse this re)uisition. The ;egistrar also has the powers to call for a pecial 6eneral meeting. o can the committee of the 'ederal ociety do soI 'ailure to call for this meeting may attract 8"*%$'= 5)& '," M%*%4(*4 C)33(''"". It is the duty of every Managing Committee to arrange for holding of elections of its members before the e(piry of its term.

E$"#'()* ') % S8"#(5("/ S)#("'= shall be conducted by the Collector and that of a :otified ociety by the ;egistrar.

 Management of the ociety vests in a duly constituted Managing Committee. ;eservation for the weaker section, women and scheduled castesDtribes has been provided in the Managing Committee. :o committee is duly constituted unless the ;egistrar publishes the names of the members of the Managing Committee along with their addresses. If a Managing Committee of a ociety is not duly constituted, an *dministrator may be appointed by the ;egistrar. *n *dministrator can also be appointed 0for a period of si( months2 by the ;egistrar if the Managing Committee is removed for negligent performance as per the provisions of Co-operative $aw. A 3"3A"& of the Managing committee can also be removed by the R"4(+'&%& 5)& *"4$(4"*' 8"&5)&3%*#". The Managing committee can appeal against its removal D dismissal. 5ffice bearers of a ociety can be removed by the way of :o confidence motion. uch a no confidence motion has to be supported by at least one-third of the members of the managing Committee. ;emoval from office is effected only after the resolution is passed by a simple majority in the Managing Committee.

M"3A"&+ )5 +)#("'("+
1.2 The members of a society which is formed under this *ct shall be the

persons who sign the application for membership on the formation of the society, and any other persons who are admitted to membership in accordance with this *ct and the rules of the society.
..2 :o rights of membership shall be e(ercised by any member until he has

made such payment to the society in respect of membership or ac)uired such share or interest as is provided in the rules of the society in that behalf.
B.2 * person shall cease to be a member in any of the following

circumstances, that is to say0a2 >here his shares are transferred to another person in accordance with the rules of the society, and the transferee is registered as holder in his place8 0b2 >here his shares are forfeited in accordance with the rules of the society8 0c2 >here any power of sale 0whether e(pressed or implied2 in any mortgage given by the member to the society is e(ercised by the society8 0d2 >here he becomes bankrupt or insolvent under any law relating to bankruptcy or insolvency and the official receiver or assignee disclaims in accordance with the provisions of such law8 0e2 5n death4 "rovided that the estate of the deceased person shall remain liable and his e(ecutor or administrator shall be and may be registered as the holder of the shares as such e(ecutor or administrator 0whether eligible to be a member of the society or not2 until some eligible person is registered as the holder of the shares by transfer from the e(ecutor or administrator or until the shares are withdrawn or discharged in accordance with this *ct and the rules of the society, and while any such e(ecutor or administrator is so registered he shall be deemed to be and shall have the rights and obligations of a member of the society for all purposes other than voting at meetings of the society and becoming a director thereof8 0f2>here the contract of membership is rescinded on the ground of misrepresentation or mistake8

0g2 >here he ceases to be a member in accordance with the rules of the society8 0h2 >here the value of his shares is repaid or a refund in respect of his subscriptions is made to him in accordance with the rules of the society.
3.2 >here shares are held by the e(ecutor or administrator of a deceased

member, the Board may in its discretion by notice in writing to the e(ecutor or administrator call upon him to transfer the shares to an eligible person or to withdraw or discharge the shares within si( months after receipt of the notice or within such further time as the Board may in any particular case allow, and unless the shares are so transferred withdrawn or discharged they may at the discretion of the society be forfeited and dealt with as forfeited shares in accordance with this *ct and the rules of the society.
/.2 >here a person becomes the trustee within the meaning of the

Commonwealth *ct known as the Bankruptcy *ct 1?CC as amended from time to time of the estate of a member or deceased member the trustee may be registered as the holder of the shares of the member as such trustee 0whether eligible to be a member of the society or not2 until some eligible person is registered as the holder of the shares by transfer from the trustee or until the shares are withdrawn or discharged in accordance with the provisions of this *ct and the rules of the society and while the trustee is so registered he shall be deemed to be and shall have the rights and obligations of a member of the society for all purposes other than voting at meetings of the society and becoming a director thereof.

R(4,'+ %*/ D7'("+ )5 '," M"3A"&+ )5 S)#("'=

R(4,'+<1. R(4,' ') 4"' #"&'(5(#%'" )5 %$$)'3"*'<&very member of a co-operative housing society, whether registered before or after the commencement of this *ct, to whom plots of land or dwelling units have been allotted, shall be issued certificate of allotment by the cooperative housing society under its seal and signature in such form as may be prescribed. 2. R(4,' ') ,)$/ %##)&/(*4 ') '"&3+ )5 %$$)'3"*'<Irrespective of the provisions of the Transfer of "roperty *ct, or the ;egistration act, any allotment or re-allotment of a plot of land or dwelling unit in a building of a co-operative housing society to its member as per terms of allotment shall entitle such member to hold such plot of land or dwelling unit with such title or interest. 3. R(4,' ') '&%*+5"& F (*,"&(' '," 8&)8"&'=<The right, title and interest in a plot of land or dwelling unit in a building of the co-operative housing society 0including the undivided interest in common areas and facilities2 shall constitute a heritable and transferable immovable property. 9owever, such land or building shall not be partitioned for any purpose whatsoever. 4. R(4,' ') 7*/(9(/"/ (*'"&"+' (* #)33)* %&"%<&very member of a co-operative housing society shall be entitled to an undivided interest in the common areas and facilities pertaining to the plot of land or dwelling unit allotted to him. 5. R(4,' ') 7+" '," #)33)* %&"%<&very member of a co-operative housing society to whom a plot of land or a dwelling unit has been allotted shall have the right to use the common areas and facilities as prescribed by the co-operative housing society. In case of any violation or misuse by a member, the management committee is empowered to recover damages.

6. R(4,' ') %''"*/ 3""'(*4 %*/ 9)'"<* member has right to attend all the meetings of the society and vote thereat. 7. R(4,' ') #)*'"+' "$"#'()*<* member has right to stand for the election of the management committee. . R(4,' ') +""- (*5)&3%'()* 5&)3 '," +)#("'=<* member can seek information relating to any transaction of the cooperative housing society and the society is re)uired to furnish such information within B@ days from the receipt of re)uest. The society may fi( the application fee for this purpose.

D7'("+<The rights of members underline the duties of the housing society. The society should not discriminate between members and should not place unlawful restrictions on them. Besides this, the society should be prompt in attending to the complaints and grievances of the members as to provision of services.

L(%A($('("+ )5 M"3A"&+ )5 C)-)8"&%'(9" S)#("'=

1.2 * member shall be liable to the society for the amount, if any, unpaid

on the shares held by him, together with any charges and other moneys payable by him to the society as prescribed by this *ct or the rules of the society.
..2 >here, under or in relation to any contract or policy of life insurance or

similar contract in a form approved by the registrar after consideration of a report thereon from the 6overnment tatist, or by virtue of any legal or e)uitable assignment of or trust created in respect of any such contract or policy, or pursuant to any scheme relating to life insurance approved by the registrar after consideration of such a report, provision is made whereby, in the event of the death of a member of a society to whom the contract policy or scheme applies or in the event of the death of a memberGs spouse or domestic partner to whom the contract policy or scheme applies, moneys will be available for or towards the discharge of the memberGs liability to the society, then the society shall be empowered0a2 To receive from any such member, at such times as are agreed

upon by the member and the society, the amount of each periodical premium or contribution payable by him in respect of the contract or policy or pursuant to the scheme8 and 0b2 If the member defaults in payment of any such amount at the agreed time To make payment thereof pursuant to the contract policy or scheme on his behalf or to take such other action as the contract policy or scheme re)uires or allows8 and To recover from the member any amount in respect of which the member has made default as aforesaid-and any amount so recoverable shall until paid be a debt due to the society by the member and the provisions of this *ct shall apply in relation thereto accordingly. The society may make either by itself or in conjunction with any other society or societies any contract or arrangement relating to or connected with the carrying into effect of this sub-section and may carry out any such contract or arrangement.
B.2 >here, under or in relation to any contract or policy of accident or

sickness insurance or similar contract in a form approved by the registrar after consideration of a report thereon from the 6overnment tatist, or by virtue of any legal or e)uitable assignment of or trust

created in respect of any such contract or policy or pursuant to any scheme relating to accident or sickness insurance approved by the registrar after consideration of such a report, provision is made whereby in the event of any accident to or sickness of a member of a society to whom the contract policy or scheme applies or in the event of any accident to or sickness of a memberGs spouse or domestic partner to whom the contract policy or scheme applies moneys will be available for or towards the discharge of the memberGs liability to the society.

R"+8)*+(A($('= )5 3"3A"&+ %*/ C)-)8"&%'(9"+

The relationship between tenant and co-operative is not a simple one. The co-op supplies the tenant with a service 0housing2 according to a contract 0tenancy agreementDlicense2. The tenant pays rent in return for the housing they occupy according to the contract. 9owever, the co-operative is run by its members. The tenant is a member and as such is responsible for ensuring that the co-op delivers the service. * co-operator can simultaneously e(pect to receive a service whilst being responsible for its delivery. T," 3"3A"& (+ &"+8)*+(A$"< *s a member, to participate in the smooth operation and democracy of the co-operative. To attend general meetings. To participate in setting policy. *s a tenant, to pay rent. To behave responsibly towards other tenants and other duties as laid out in the tenancy agreementDlicense. *s a director, to ensure that the co-operative is run in a fit % proper manner. *ll directors are responsible for ensuring that tasks are carried out. &ven when tasks have been delegated, all directors are e)ually responsible for monitoring them. To make management decisions. T," #)-)8"&%'(9" (+ &"+8)*+(A$"< To provide tenants with suitable housing, and other duties as laid out in The tenancy agreementDlicense. To conduct business in a fit % proper manner. To keep accurate records % accounts of the business of the cooperative. In practice many of the co-operatives tasks are delegated to individuals. 9owever, all directors are e)ually responsible for ensuring they are carried out and making checks.

P&(9($"4"+ %*/ D7'("+ )5 S)#("'=

* ociety is a Body Corporate by the name with perpetual succession and common eal. It can ac)uire, hold and dispose off property in its name. It can enter in a contract. Institute and defend suits and other legal proceedings. It is e(empted from compulsory registration of Instruments relating to shares and debentures of ociety under the Indian ;egistration *ct 1?@E The society has claim only ne(t to the 6overnment, on the property and interest of the borrowing members. The society has claim over the sale price of agricultural produce of the borrowing member. It is mandatory on the part of the employer to deduct from the salary of the employee, dues of the ociety, if agreed upon by the member. The ociety can receive deposits and loans from the members and other persons within the area of operation of the ociety and Dor on conditions imposed by the ;egistrar $oans can be advanced to the members only. >ith the prior permission of the ;egistrar, loans can be advanced to other ocieties. The ociety has to keep and maintain updated records in prescribed format. There are restrictions on the transactions with the non-members.

P&)8"&'= %*/ F7*/+ )5 C)-)8"&%'(9" S)#("'=

:o funds shall be divided among its members, other than the net profits earned by the ociety. The societyFs funds cannot be utili7ed to defend any proceedings filed by or against any office bearer of the ociety, in his personal capacity under sections AE, ?C or 133-T of the Maharashtra Co-operative ocieties *ct, 1?C@. ;emuneration can be paid to the Managing Committee members for services provided by them to the ociety. :et "rofit earned by the ociety can be appropriated by the members with the approval of the *nnual 6eneral Meeting. ;eserve fund shall be maintained by the ociety.

 Investments of 'unds shall be made as per the guidelines prescribed in the Maharashtra Co-operative societies *ct, 1?C@. *udit, In)uiry Inspection and upervision of ocieties. The ;egistrar of Co-operative ocieties makes it compulsory for every 6overnment -aided Co-operative ociety to audit its accounts at least once in a co-operative year 0i.e. *pril - March2. *ll the other ocieties also have to get their accounts audited by a Certified *uditor once in every co-operative year. * ;egistrar has powers to order the ociety to be re-audited. This is however done by him suo-moto or in the case where 1DBrd members of the ociety apply to him for re-audit. The ;egistrar can inspect the working of the ociety on his own or on application of its creditors. The ;egistrar can commission an in)uiry into the affairs of the ociety on the basis of the audit report or an inspection report. 9e can appoint an In)uiry 5fficer and conduct an in)uiry through him. imilarly he can also conduct inspection of a ociety just to ascertain that all the Books of *ccounts are being maintained properly and that the affairs of the ociety are being conducted reasonably by the Managing Committee. The ;egistrar can order for compensation, if it is found that any person has misapplied or retained any property, or money of the ociety, or has caused breach of trust.

PROBLEMS OF HOUSING SOCIETY

1%2 S#%&#('= )5 $%*/< In *sia, the rate of urban growth has led to an increase in the construction activities and real estate which is as high as 3.J of 6#" as compared to1.J in *ustralia. *s of #ecember .@@., there were appro(imately A1@ million homeless people in India. *nd at the end of E th / year plan there will be a housing shortage or B./ crores houses. This is also because of tremendous growth in population and contribution of joint family making re)uirement of separate houses for each nuclear family. 1A2 I*%/"E7%'" 5(*%*#"< In the measure metros, housing finance cooperatives are offering loans at very competitive rates. 9owever in semi urban and rural areas, there is no institutional finance available for building houses. The housing urban developmental cooperative 09!#C52 has launched retail finance for rural and semi urban areas and under them :I>* scheme sanctioned over 1/@@ crores and build over 1 million houses as on dec .@@3. 1#2 M%$8&%#'(#"+ )5 A7($/"&+< The allotment of land is subject to bureaucratic delays, competition and political influence. 'urther the cost of the land especially in a city like M!MB*I is highly speculative and is on this increased cost to the members making the real estate a distant dream for a common man. They also use substandard products like steel and cement and the )uality of construction also suffers. 1/2 D(+(*'"&"+'"/ 3"3A"&+< In the busy city like Mumbai, both husband and wife is working having a very hectic work schedule. They are already under pressure of managing there households and careers. They do not have time to sociali7e and neither contributes proactively for the development of housing cooperative. 1"2 T," )55(#" A"%&"&+ %&" 8))&$= 8%(/< Most of the staff of housing cooperative is either retired people or people who have taken =; and are compensated very poorly for services they offer. The young blood is missing in management of cooperative as they do not pay handsome salaries.

REMEDIAL MEASURES TO SOLVE THE PROBLEMS

'ollowing remedies are suggested for solving the problems of co-operative housing societies4 1.2 S788$=(*4 3%'"&(%$+ )* 8&()&('= A%+(+< The building material should be provided on priority basis. There should be a )uota of this material to ape( co-operative housing society. The registrar of the society should have control on the )uota allotted to cooperative housing society. 2.2 A$$)#%'" $%*/ )* 8&()&('=< 6overnment should give preference to co-operative housing societies while allocating land as to start the work by the societies or otherwise whose e(istence is only on paper. 3.2 B="-$%0+<There are no systematic bye-laws of co-operative housing societies in the country. *ll co-operative housing societies should adopt model bye-laws suggested by the committee appointed under the president-ship of .T. ;aja. Thereby, the registrar of societies can have control over the working of their societies. 4.2 F(*%*#(%$ %++(+'%*#"<*gencies like $IC, 9!#C5 etc. should provide housing loans at concessional rates. 6overnment should try to make housing societies more strong. 6overnment should establish central housing finance institute to provide finance to ape( housing societies. 5.2 T%> #)*#"++()*+<The houses build by co-operative housing societies should get concession in ta(es and certain incentives should be given.

B.B/.#0R(PH&
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- ;omeo . Mascarenhas 0=ipul "rakashan2

T," M%,%&%+,'&% C)-)8"&%'(9" S)#("'("+ R7$"+; 1!61 000.4))4$".#)3