Prahladrai Dalmia

Lions College of
Commerce &
Economics
Subject: -
Cooperatives & Rural Markets
Project on: -
Housing Co-operative
Societies
By: -
Dishank han!el"al
#$: -
S%&%BMS '()
Roll *o%: -
+,
Sub-itte! to: -
Miss Shakuntala
.*D/0
SR.
NO.
CONTENTS
01 CO-OPERATIVE SOCIETIES
02
INTRODUCTION OF HOUSING CO-
OPERATIVES
03 STRUCTURE OF HOUSING CO-OPERATIVES
04
PROCEDURE FOR REGISTRATION OF
HOUSING CO-OPERATIVE SOCIETIES
05
CLASSIFICATION OF HOUSING CO-
OPERATIVES
06
MANAGEMENT OF CO-OPERATIVE
SOCIETIES
07 PROBLEMS OF HOUSING SOCIETY
0
REMEDIAL MEASURES TO SOLVE THE
PROBLEMS
0! BIBLIOGRAPHY
D"#$%&%'()*
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.
S(4*%'7&" )5 '," +'7/"*'
1D(+,%*- .,%*/"$0%$2
C"&'(5(#%'" )5 P&):"#'
C)38$"'()*

Certified that the project report titled CONSUMER CO-
OPERATIVES 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 $ions
College of Commerce % &conomics.
P$%#"<
D%'"<
S(4*%'7&" )5 P&(*#(8%$
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,
D(+,%*- .,%*/"$0%$
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 namely4-

12 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 $t. 6overnor from time to time2
and may be of any of the following types4-
%. T"*%*' O0*"&+,(8.
A. T"*%*' C)-8%&'*"&+,(8.
#. B7($/"& C)-)8"&%'(9".
d. 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
Co-operative &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 CO-
OPERATIVES
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 :ational
9ousing % 9abitat "olicy has been formulated to address the issues of
sustainable development, infrastructure and strong public-private
partnerships for shelter delivery. The objective of the policy is to facilitate
the construction of two million dwelling units each year. It is envisaged
that 6overnment would provide fiscal concessions, carry out legal and
regulatory reforms and create an enabling environment. The private
sector would undertake actual construction activities.
"olicies in the area of housing finance have been a key vehicle
through which home ownership has been promoted. Income ta(
e(emptions have been given to households building or purchasing homes8
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 B
rd
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
1A2which 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
co-operatives 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 objects-
T) "*%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 CO-
OPERATIVES
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 ocieties registration *ct
1EC@
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="-$%0+ )5 '," C)-)8"&%'(9"+
Co-operation is an activity of the people. It is a self-generated,
voluntary and self-sufficient activity. 9ence little governmental
interference is desirable. 9owever considering the economic parameters
of this movement and interests of several persons involved there is a
possibility of misuse of personal power by any of the group-members.
The governments therefore had to pass legislation to monitor the
activities of the co-operatives mainly with the purpose of safeguarding
the interests of all the members.
6reat Britain for e(ample had passed legislation as early as 1E/..
imilar intervention of legislature can be seen in 6ermany and 'rance
01ECA2 and Italy 01EEB2.
In Maharashtra the Co-operatives are governed by the Maharashtra
Co-operative ocieties *ct 1?C@ and supported by Maharashtra Co-
operative ocieties ;ules, 1?C1. The legal system in the co-operatives
registered in Maharashtra tate is elaborate. Moreover each co-operative
should have its own Bye-$aws which are the guiding principles of the co-
operative. 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 Bye-laws 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 CO-
OPERATIVES
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
Co-operative 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 say-
0a2 >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 %$$)'3"*'<-
&very member of a co-operative housing society, whether registered
before or after the commencement of this *ct, to whom plots of land or
dwelling units have been allotted, shall be issued certificate of allotment
by the co-operative housing society under its seal and signature in such
form as may be prescribed.
2. R(4,' ') ,)$/ %##)&/(*4 ') '"&3+ )5 %$$)'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,' ') #)*'"+' "$"#'()*<-
* member has right to stand for the election of the management
committee.
. R(4,' ') +""- (*5)&3%'()* 5&)3 '," +)#("'=<-
* member can seek information relating to any transaction of the co-
operative housing society and the society is re)uired to furnish such
information within B@ days from the receipt of re)uest. The society may
fi( the application fee for this purpose.
D7'("+<-
The rights of members underline the duties of the housing society. The
society should not discriminate between members and should not place
unlawful restrictions on them. Besides this, the society should be prompt
in attending to the complaints and grievances of the members as to
provision of services.
L(%A($('("+ )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 empowered-
0a2 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$"<
To provide tenants with suitable housing, and other duties as laid out
in
The tenancy agreementDlicense.
To conduct business in a fit % proper manner.
To keep accurate records % accounts of the business of the co-
operative.
In practice many of the co-operatives tasks are delegated to individuals.
9owever, all directors are e)ually responsible for ensuring they are
carried out and making checks.
P&(9($"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.
1A2I*%/"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.
1/2D(+(*'"&"+'"/ 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 co-
operative 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 $IC, 9!#C5 etc. should provide housing loans at
concessional rates. 6overnment should try to make housing societies
more strong. 6overnment should establish central housing finance
institute to provide finance to ape( housing societies.
5.2 T%> #)*#"++()*+<-
The houses build by co-operative housing societies should get concession
in ta(es and certain incentives should be given.
B.B1.#2R(PH&
M%*%4"3"*' )5 C)-)8"&%'(9"+
- ;omeo . Mascarenhas
0=ipul "rakashan2
T," M%,%&%+,'&% C)-)8"&%'(9"
S)#("'("+ R7$"+; 1!61
000.4))4$".#)3