Prahladrai Dalmia Lions College of Commerce & Economics

Subject: Cooperatives & Rural Markets Project on: Housing Co-operative Societies By: Dishank Khandelwal Of: S.Y.BMS (A) Roll No.: 56 Submitted to: Miss Shakuntala

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I, Dishank Khandelwal of S.Y.BMS (A), Prahaladrai Dalmia Lions College of Commerce & Economics, hereby declare that I have completed the project titled Housing Co-operative Societies in the academic year 2010-11. The information submitted by me is true and original to the best of my knowledge.

Signature of the student (Dishank Khandelwal)

Mumbai for the academic year 2010-2011 by Umesh Kothari.Certificate of Project Completion Certified that the project report titled CONSUMER COOPERATIVES has been completed satisfactorily in partial fulfillment of BMS course of the University of Mumbai. a student of Prahladrai Dalmia Lions College of Commerce & Economics. Place: Date: Signature of Principal Seen By:Internal Examiner: Signature: Date: External Examiner: Signature: Date: .

that “ONE WHO PREACHES THE GOAL WINS THE GAME” Dishank Khandelwal . Shakuntala whose invaluable guidance and supervision in the project infused in me great inspiration and confidence in making this project in right earnest. Many other who have been associated with work directly or indirectly. The greatest achievements of the facts. all have my sincerely thanks. She also helped me to understand what was actually required from the project and what was needed to be done. I express my deepest gratitude to Mrs.ACKNOWLEDGEMENT First of all I would like to thank the almighty for his blessing that helped me to achieve everything I had wished for till now. She was always there for our help and doing away all the difficulties and confusions that arises during the project period. This masterly guidance from time to time made the study interesting and meaningful. At last I would like to thank our respondents for their kind response and their precious time.

Ownership cooperative. Tenant Co-partnership. 2) Consumers' Society: . through a jointly owned and democratically controlled enterprise. 3) Housing Society:. Governor from time to time) and may be of any of the following types:a. 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 namely:1) Producers' society: . as well as to other consumers within the area of operation specified in the bye-laws. Tenant Ownership. registered under the Cooperative Societies Act.Objective is obtaining and distributing goods to or of performing services for its member. c. b. CO-OPERATIVE SOCIETIES An autonomous open and voluntary association of persons of the weaker section of the society. OR A Cooperative Society is an Association of a minimum of 25 persons untitled voluntarily to meet their common economic. Classification of Co-operative Societies As per subject to the provisions of sub-section (1) of section 4.Objective is the processing of goods by mechanical or manual process. d. Builder Co-operative. 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.Object of providing its members with dwelling houses subject to the provisions of these rules and on the conditions to be determined by the Lt. . 4) Processing Society: .Objective is producing and disposing of goods as the collective property of its members. social and cultural needs and aspirations.

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. 9) Apex Co-operative Society: . the supply of the requisites of such production.Its main purpose is of marketing agricultural or other produce and includes amongst its objects.Principal objective is the undertaking of Co- operative Education. income and better utilization of resources. employment.Objective is increasing agricultural production. 7) Collective Farming Society:-The object is increasing agricultural production land is acquired from outside in the name of cooperative society and is collectively and jointly cultivated by the members themselves on behalf of the cooperative society. land held by members is pooled together and is jointly cultivated by the members on behalf of the co-operative society.5) Marketing society: . 8) Co-operative Union: . . 6) Joint Farming Society: . Propaganda and Training.

Policies in the area of housing finance have been a key vehicle through which home ownership has been promoted. The private sector would undertake actual construction activities. HUDCO has been allocating 55 per cent of its housing loans for Economically Weaker Sections (EWS) and Lower Income Group (LIG). 4 lakh units. Out of a target of construction of 20 lakh additional houses. INTRODUCTION OF HOUSING COOPERATIVES The prime necessities of human beings are food. HUDCO (Housing urban Development Co-operative) plays a major role in the implementation of government policies on housing. Highly speculative trend in the cost of land.e. migration from rural to urban areas. Housing is an important sector. Over 92 per cent of the dwelling units sanctioned by HUDCO are meant for EWS and LIG. . The National Housing & Habitat Policy has been formulated to address the issues of sustainable development. The objective of the policy is to facilitate the construction of two million dwelling units each year. i. It is envisaged that Government would provide fiscal concessions. clothing and shelter and housing cooperative is an essential for human existence as much food and clothing. At the grassroot level. weakening of joint family system thus creating a requirement of a separate house for each family unit etc. financial institutions and builders have been given fiscal incentives to build housing for low-income groups. carry out legal and regulatory reforms and create an enabling environment.level Apex Cooperative Housing Federations are members of the National Cooperative Housing Federation (NCHF). The cooperative housing sector plays an important role. 7 lakh houses would be constructed in urban areas and 13 lakh in rural areas. Shelter Upgradation under Nehru Rozgar Yojana (NRY) and Valmiki Ambedkar Awas Yojna (VAMBAY). infrastructure and strong public-private partnerships for shelter delivery.. Income tax exemptions have been given to households building or purchasing homes. and investors in housing finance companies have been given tax breaks. The reasons are varied. One of the important problems faced by India is the housing problem. It has been entrusted with the implementation of the following programmes: Low Cost Sanitation. Housing is a significant subject having a concern with a common man. Night Shelter for Footpath Dwellers. All the 26 State. like tremendous growth in population. with a direct connection to human welfare and economic linkages to the construction industry. Building Centres. HUDCO is expected to meet more than 55 per cent of the urban housing target.

The working group on housing co-operatives has therefore said that.410 primary housing cooperatives are affiliated to State-level federations. and disbursed loans of Rs. etc. well organized and significant in order to. Solve the housing problem of common man. Co-operative housing emerged as a strong. National Housing Bank.6. .882 crores from LIC. HUDCO. cooperative banks. “co-operative activity is the best means of providing decent houses at reasonable costs to persons. These federations obtain loans from various financial institutions for on-lending to their member housing cooperatives as well as individual members for construction/acquisition of dwelling units.371 crores to primary housing cooperatives and individual members. his social status all are determined on where he stays.’’ Mumbai is the 3rd largest density populated city in the world and the prices of the land and construction is becoming unaffordable to the common man. thereby assisting in the construction of about 22 lakhs. These are legally established association of persons and are democratically controlled by the members. his culture.30. A person’s lifestyle.7. These federations have borrowed a sum of Rs. They also say that man is a social animal and is incomplete without a social fabric. particularly of low and middle income groups.

It is owned and managed by the members of the co-operative. co-operation among co-operators and concern for community. democratic member control. member economic participation. a society in which the order of advances to members is determined either solely or partly by the drawing of lots. They are an alternative to home ownership in the traditional sense or renting in the private sector. and (c) 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 Starr-Bowkett society.Definition of Housing Co-operatives "Co-operative housing society" means a society of persons(a) which is formed for all or any of the objects referred to in section five of the act 1958. and only members may hold a tenancy. autonomy and independence. (b) which has under its rules a share capital divided into equal shares of one or more classes and not being preferential shares. This means that decisions are made by the people who are affected by those decisions. OR A housing Co-operative is also defined as “an association run along with co-operative principles (Voluntary membership. where only tenants or prospective tenants may be members. . as opposed to rent levels designed to generate profit for an individual or company. training and information. Housing co-operatives provide a way for people to share in the ownership of property and live in it at affordable rent levels. Most housing co-operatives are fully mutual and further reference to housing cooperatives in this document refer to this type.)”. that is to say. education.

or  to erect a dwelling-house on land already owned by him. or  where the approval of the Governor in Council given after consideration of a report by the registrar is first obtained-to discharge a mortgage held by another society upon any land.Objectives of Co-operative Society A co-operative housing society may be formed for all or any of the following objectsTo enable each of its members to purchase land and to erect a dwelling-house thereon. . or  to erect a dwelling-house on Crown land leased by him for a term of not less than 50 years being Crown land within an area approved by the Governor in Council for the purposes of this Act. or  to maintain and keep in proper repair his dwelling-house. or  to discharge a mortgage or any other charge or security over or affecting any land which mortgage charge or security was granted or executed by the member in question in anticipation of the society's making an advance to him and with the approval of the registrar to the making of the advance.  subject to section thirty-four of this Act to purchase land upon which is situated a dwelling-house.

# Third level: Primary housing cooperative:. # Second level: State level housing cooperative: . 4) To undertake research for new building material so to reduce the construction cost. They provide a systematic and organized way of maintaining the building and property of housing cooperatives. semi urban and urban areas and can get themselves registered if they have ten or more members who have a fix source of income and who come together to build a housing cooperatives and solve the housing problems and prevent exploitation of Land lords. .At the apex of the structure is the National cooperative Housing society’s federation (NCHF) which was established in 1969 and has headquarters New Delhi. 2) To establish financial institutions at state level (Maharashtra Housing Finance Corporation) 3) To help the primary housing cooperative to get loans for building houses and flats at very nominal interest rate. They also help in negotiating with institution like MHADA for allotment of plots. The objectives of this institution are:1) Give publicity of cooperation housing movements by publishing books and brochures.Their main objective is to guide primary housing cooperatives regarding legal and statutory matters so as to get that registered. STRUCTURE OF HOUSING COOPERATIVES # First level: National cooperative: .The objectives are found in rural.

⇒ The object of the Society should be promotion of economic interests or general welfare of the members or the public. local authority. ⇒ Any Society registered under this Act or Societies registration Act 1860 ⇒ State & Central Government. ⇒ These persons should be from different families. . ⇒ He should be eligible as per the bye-laws of the proposed Society. in accordance with the co-operative principles. ⇒ He should reside in the area of operation of the Society.The basic guidelines for the formation of Co-operative society in Maharashtra State are as follows:⇒ There should be at least ten persons or more as the Registrar may determine from time to time. firm. ⇒ These persons should be competent to enter into a contract under the Indian contracts Act 1872. Public Trust. ⇒ Any individual. company or any other body corporate can become member of the Society.

⇒ The society's object should be promotion of the economic interests of its 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. The only condition on the bye-laws is that they should not be contrary to the Maharashtra Co-operative Societies Act. These bye-laws can be amended in the General body Meeting of the co-operative. However 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 prospective members should contribute a minimum amount of share capital prescribed by the Registrar of Cooperative Societies for the particular type of society to be started. Great Britain for example had passed legislation as early as 1852.Bye-laws of the Co-operatives Co-operation is an activity of the people. Similar intervention of legislature can be seen in Germany and France (1867) and Italy (1883). The legal system in the co-operatives registered in Maharashtra State is elaborate. voluntary and self-sufficient activity. Hence little governmental interference is desirable. These Bye-laws have to be approved through a resolution of the Society. Moreover each co-operative should have its own Bye-Laws which are the guiding principles of the cooperative. . and have to be approved by the Registrar. Requirements for forming a cooperative society ⇒ Minimum number of persons 25. In Maharashtra the Co-operatives are governed by the Maharashtra Co-operative Societies Act 1960 and supported by Maharashtra Cooperative Societies Rules. It is a self-generated. 1961. ⇒ 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.

Societies who after satisfying himself on all points register the society and its Bye-laws. Poultry/. views and comments from concerned department has to be obtained before registration of such society. An officer from the Department is deputed to attend the meeting and help the promoters in organizational matters. Acts and Rules. In the inaugural General Meeting. one of the Promoters presided over the meeting. In case a proposed Cooperative Society is either a. / Dairy/. A date will be fixed for holding the inaugural general meeting of the promoter in which members will finally decide on adoption of the ByeLaws and matters concerning with day-to-day functioning of the Society including constitution of Managing Committee. A copy of registration with Byelaws is sent to the applicant and also to concerned Departments. Fishery.. Societies after registration of the society. Registrar of Coop.l elect the office bearers of the society and decide the authorized share capital and the share capital to be contributed by each members. After inquiry report with views and comments from concerned Department are found favorable. PROCEDURE FOR REGISTRATION OF HOUSING CO-OPERATIVE SOCIETIES On receiving such applications the Asst. The certificate of Registration in the form set forth and the schedule is issued by Asst. . All the papers duly signed by the Promoters are to be submitted to Asst. Piggery/or Handloom etc. Registrar through his subordinate will conduct an inquiry to find out the feasibility and economic viability of the proposed Cooperative Society and whether it’s proposed bye laws conforms to the Meghalaya Coop. Registrar of Coop. operation of Bank Account etc. how many persons would join as members of the Society . In this meeting they will decide what type of a Society they want to form. Permission is given to complete the necessary formalities for Registration.

⇒ A Co-operative Society can enter into collaboration with any Government Undertaking or any other undertaking with the prior permission of the State Government for business. 1872 can join in the formation of a co-operative. can join in application for registration of a society. ⇒ It can also enter into a partnership with other co-operatives. as per the Indian contract Act. Certificate of incorporation as an evidence A certificate of incorporation under this Act shall be conclusive evidence that all the requirements of this Act in respect of registration and matters precedent or incidental thereto have been complied with: Provided that nothing in this section shall affect any provision of this Act relating to the winding up or dissolution of the society or the cancellation of its registration. ⇒ No society which is contrary to the policy directives of the State can be registered. who reside in the area of operation of the proposed society and are from different families. ⇒ Division/Amalgamation/Transfer and conversion of a co-operative is allowed. . ⇒ Registration can be obtained from the registrar on filling up the application form with the necessary fees and the bye-laws. ⇒ Any person competent to contract. ⇒ A society with the objects of promoting the economic interests or the general welfare of the members only can be registered.Registration of Co-operative societies ⇒ A co-operative society can be registered in Maharashtra State with the Registrar of Co-operative Societies. ⇒ A group of ten persons.

e. They get their society register. The buyers of the flats then organize into a housing society. (MAHARASHTRA HOUSING AND DEVELOPMENT AUTHORITY) and get a plot allotted to them in LIG. people working in an organization come together and form them into a housing cooperative society.In this case. (d) Ownership cooperative: . middle income group. (b) Tenant Co-partnership: The land and the constructed structure is owned by the society and the members who are allotted the flats have the easement rights. (c) Builder Co-operative: where the builder floats a housing scheme and sells the flats. high income group.: Gulmohar cooperative housing society situated at Ceissor road. MIG.: low income group. apply to MAHADA.g. The society creates infrastructure and may also arrange the finance for the members. Such societies are merely service societies or maintenance societies. . E. Andheri (west) is the housing complex of the ICICI officers. Individual members are allotted plots by the co-operative to construct their houses. Once the plot is sanctioned they approach a construction company and depending on their budget build up housing society. CLASSIFICATION OF HOUSING COOPERATIVES (a) Tenant Ownership: In the case where the land is owned by the Society and the structure on the plot is owned by the members. and HIG i.

on oath that he is-net 9 member of any other co-operative society having similar objects. 2. No person shall be admitted as member of a co-operative society unless⇒ He has applied in writing in the form laid down by the co-operative society or in the form specified by the Registrar. 1860. the application for membership is accompanied by a resolution authorizing it to apply for such membership. . ⇒ He has fulfilled all other conditions laid down in the Act. In case the number of applications is more than the notified vacancies the membership shall be finalized through draw of lot in the presence of authorized representative of the Registrar. a public trust registered under any law for the time being in force relating to registration of public trust or a local authority. or sympathizer member by an officer of the society authorised in that behalf by the committee.Terms and Conditions to be complied for admission to membership 1. and in the case of nominal. the Rules and the Bye-laws. society registered under the societies Registration Act. he has been a resident of the National Capital Territory of Delhi-for a minimum period of three years at the time of applying for a membership in such society. if any. for membership along with a declaration . ⇒ In case of a firm. associate. company or body corporate. Governor has been accorded. In case of vacancy in a housing society including group housing society where layout and building plans have been approved by the competent authority. ⇒ In case of a Cooperative Housing Society. and the sanction of the Lt. ⇒ His 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. the same shall be filled by the committee by notifying It in leading daily newspaper of Delhi in Hindi and English.

Rules and Bye-laws and as per the annual budget and programme of action approved by the General Body each year. MANAGEMENT OF CO-OPERATIVE SOCIETIES As per the Bye-law. ⇒ It is the duty of every Managing Committee to arrange for holding of elections of its members before the expiry of its term. ⇒ Every Society shall call Annual General Meeting within a period of three months after the date fixed for completing or drawing up of its accounts for the year. Members too can requisition for such a meeting if 1/5 th of the total members of the Society endorse this requisition. Income and Expenditure Account. . So can the committee of the Federal Society do so? Failure to call for this meeting may attract penalty for the Managing Committee. a Report by the Managing Committee regarding the Society’s affairs. the Managing Committee shall lay a statement of loans given to the members of the Managing Committee and their family members. initially nominated by the Registrar of Cooperative Societies for a period not exceeding 3 years and subsequently elected by the General Body once every 3 years. It will be the responsibility of this Committee of Management to carry on the executive management of the society in accordance with the provisions of the Act. there will be a Committee of Management. The Registrar also has the powers to call for a Special General meeting. Treasurer etc. Secretary. ⇒ The final authority of the Society vests in the General Body of the Society comprising of all the members. ⇒ At every Annual General meeting. ⇒ A Special General Meeting can be called by the Chairman of the Cooperative or by majority of the members of the Managing Committee. Balance Sheet. Election to a Specified Society shall be conducted by the Collector and that of a Notified Society by the Registrar. Failure to do so may attract the disqualification of the members of the Managing Committee and other penalties. Among the members of the Committee of Management there shall be office-bearers like President. Vice-President.

A member of the Managing committee can also be removed by the Registrar for negligent performance. ⇒ Office bearers of a Society can be removed by the way of No confidence motion. women and scheduled castes/tribes has been provided in the Managing Committee. ⇒ If a Managing Committee of a Society is not duly constituted. Such a no confidence motion has to be supported by at least one-third of the members of the managing Committee.⇒ Management of the Society vests in a duly constituted Managing Committee. Removal from office is effected only after the resolution is passed by a simple majority in the Managing Committee. an Administrator may be appointed by the Registrar. ⇒ The Managing committee can appeal against its removal / dismissal. ⇒ An Administrator can also be appointed (for a period of six months) by the Registrar if the Managing Committee is removed for negligent performance as per the provisions of Co-operative Law. . ⇒ No committee is duly constituted unless the Registrar publishes the names of the members of the Managing Committee along with their addresses. ⇒ Reservation for the weaker section.

2.) (b) Where his shares are forfeited in accordance with the rules of the society.) A person shall cease to be a member in any of the following circumstances.Members of societies The members of a society which is formed under this Act shall be the persons who sign the application for membership on the formation of the society. 1. (d) Where 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 law. (f)Where the contract of membership is rescinded on the ground of misrepresentation or mistake. and while any such executor 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 thereof. (c) Where any power of sale (whether expressed or implied) in any mortgage given by the member to the society is exercised by the society. and the transferee is registered as holder in his place. 3. and any other persons who are admitted to membership in accordance with this Act and the rules of the society.) No rights of membership shall be exercised by any member until he has made such payment to the society in respect of membership or acquired such share or interest as is provided in the rules of the society in that behalf. (e) On death: Provided that the estate of the deceased person shall remain liable and his executor or administrator shall be and may be registered as the holder of the shares as such executor or administrator (whether eligible to be a member of the society or not) until some eligible person is registered as the holder of the shares by transfer from the executor or administrator or until the shares are withdrawn or discharged in accordance with this Act and the rules of the society. . that is to say(a) Where his shares are transferred to another person in accordance with the rules of the society.

the Board may in its discretion by notice in writing to the executor or administrator call upon him to transfer the shares to an eligible person or to withdraw or discharge the shares within six 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 Act and the rules of the society. (h) Where 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.) Where a person becomes the trustee within the meaning of the Commonwealth Act known as the Bankruptcy Act 1966 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 (whether eligible to be a member of the society or not) 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 Act 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. 5.) . 4. Where shares are held by the executor or administrator of a deceased member.(g) Where he ceases to be a member in accordance with the rules of the society.

title and interest in a plot of land or dwelling unit in a building of the co-operative housing society (including the undivided interest in common areas and facilities) shall constitute a heritable and transferable immovable property. 4. Right to transfer / inherit the property:The right. In case of any violation or misuse by a member. Right to use the common area:Every 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. the management committee is empowered to recover damages. . shall be issued certificate of allotment by the cooperative housing society under its seal and signature in such form as may be prescribed. or the Registration act. such land or building shall not be partitioned for any purpose whatsoever. 3. to whom plots of land or dwelling units have been allotted.Rights and Duties of the Members of Society Rights:1. However. Right to get certificate of allotment:Every member of a co-operative housing society. Right to undivided interest in common area:Every 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. 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. whether registered before or after the commencement of this Act. 2. Right to hold according to terms of allotment:Irrespective of the provisions of the Transfer of Property Act. 5.

6. The society should not discriminate between members and should not place unlawful restrictions on them. Duties:The rights of members underline the duties of the housing society. Besides this. the society should be prompt in attending to the complaints and grievances of the members as to provision of services. Right to seek information from the society:A member can seek information relating to any transaction of the cooperative housing society and the society is required to furnish such information within 30 days from the receipt of request. 8. The society may fix the application fee for this purpose. Right to attend meeting and vote:A member has right to attend all the meetings of the society and vote thereat. 7. . Right to contest election:A member has right to stand for the election of the management committee.

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 member's spouse or domestic partner to whom the contract policy or scheme applies. or by virtue of any legal or equitable assignment of or trust 3. if any. 1.) . and (b) If the member defaults in payment of any such amount at the agreed time(a) ⇒ 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 requires or allows. 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 Government Statist. then the society shall be empowered2. unpaid on the shares held by him. the amount of each periodical premium or contribution payable by him in respect of the contract or policy or pursuant to the scheme.) Where. 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 Government Statist. at such times as are agreed upon by the member and the society. 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 Act shall apply in relation thereto accordingly.) To receive from any such member.Liabilities of Members of Co-operative Society A member shall be liable to the society for the amount. or by virtue of any legal or equitable 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. 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. moneys will be available for or towards the discharge of the member's liability to the society. together with any charges and other moneys payable by him to the society as prescribed by this Act or the rules of the society. provision is made whereby. Where.

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 member's spouse or domestic partner to whom the contract policy or scheme applies moneys will be available for or towards the discharge of the member's liability to the society.

As a tenant. The tenant pays rent in return for the housing they occupy according to the contract.Responsibility of members and Co-operatives The relationship between tenant and co-operative is not a simple one. To make management decisions. To participate in setting policy. To conduct business in a fit & proper manner. To behave responsibly towards other tenants and other duties as laid out in the tenancy agreement/license. all directors are equally responsible for ensuring they are carried out and making checks. and other duties as laid out in The tenancy agreement/license. all directors are equally responsible for monitoring them. The tenant is a member and as such is responsible for ensuring that the co-op delivers the service. A co-operator can simultaneously expect to receive a service whilst being responsible for its delivery. The co-op supplies the tenant with a service (housing) according to a contract (tenancy agreement/license). In practice many of the co-operatives tasks are delegated to individuals. However. The co-operative is responsible: To provide tenants with suitable housing. To attend general meetings. to pay rent. the co-operative is run by its members. ⇒ To keep accurate records & accounts of the business of the cooperative. ⇒ ⇒ ⇒ . However. to participate in the smooth operation and democracy of the co-operative. Even when tasks have been delegated. The member is responsible: ⇒ ⇒ As a member. to ensure that the co-operative is run in a fit & proper manner. ⇒ As a director. All directors are responsible for ensuring that tasks are carried out.

⇒ There are restrictions on the transactions with the non-members.Privileges and Duties of Society ⇒ A Society is a Body Corporate by the name with perpetual succession and common Seal. . ⇒ The society’s funds cannot be utilized to defend any proceedings filed by or against any office bearer of the Society. 96 or 144-T of the Maharashtra Co-operative Societies Act. ⇒ The Society has to keep and maintain updated records in prescribed format. if agreed upon by the member. in his personal capacity under sections 78. Property and Funds of Co-operative Society ⇒ No funds shall be divided among its members. ⇒ It can acquire. 1960. ⇒ It can enter in a contract. ⇒ Net Profit earned by the Society can be appropriated by the members with the approval of the Annual General Meeting. ⇒ The Society can receive deposits and loans from the members and other persons within the area of operation of the Society and /or on conditions imposed by the Registrar ⇒ Loans can be advanced to the members only. ⇒ Remuneration can be paid to the Managing Committee members for services provided by them to the Society. ⇒ Institute and defend suits and other legal proceedings. on the property and interest of the borrowing members. ⇒ The society has claim over the sale price of agricultural produce of the borrowing member. ⇒ Reserve fund shall be maintained by the Society. other than the net profits earned by the Society. hold and dispose off property in its name. loans can be advanced to other Societies. ⇒ It is exempted from compulsory registration of Instruments relating to shares and debentures of Society under the Indian Registration Act 1908 ⇒ The society has claim only next to the Government. With the prior permission of the Registrar. dues of the Society. ⇒ It is mandatory on the part of the employer to deduct from the salary of the employee.

⇒ A Registrar has powers to order the Society to be re-audited. ⇒ The Registrar of Co-operative Societies makes it compulsory for every Government -aided Co-operative Society to audit its accounts at least once in a co-operative year (i. He can appoint an Inquiry Officer and conduct an inquiry through him. ⇒ Audit. or has caused breach of trust. This is however done by him suo-moto or in the case where 1/3rd members of the Society apply to him for re-audit. .⇒ Investments of Funds shall be made as per the guidelines prescribed in the Maharashtra Co-operative societies Act. if it is found that any person has misapplied or retained any property. ⇒ The Registrar can order for compensation. or money of the Society. 1960.March). ⇒ The Registrar can inspect the working of the Society on his own or on application of its creditors. ⇒ All the other Societies also have to get their accounts audited by a Certified Auditor once in every co-operative year. Inquiry Inspection and Supervision of Societies. April . ⇒ Similarly he can also conduct inspection of a Society just to ascertain that all the Books of Accounts are being maintained properly and that the affairs of the Society are being conducted reasonably by the Managing Committee.e. ⇒ The Registrar can commission an inquiry into the affairs of the Society on the basis of the audit report or an inspection report.

. This is also because of tremendous growth in population and contribution of joint family making requirement of separate houses for each nuclear family. there is no institutional finance available for building houses. the rate of urban growth has led to an increase in the construction activities and real estate which is as high as 42% of GDP as compared to12% in Australia. They are already under pressure of managing there households and careers.5 crores houses. The young blood is missing in management of cooperative as they do not pay handsome salaries. there were approximately 710 million homeless people in India. housing finance cooperatives are offering loans at very competitive rates. both husband and wife is working having a very hectic work schedule. (c) Malpractices of builders: The allotment of land is subject to bureaucratic delays. The housing urban developmental cooperative (HUDCO) has launched retail finance for rural and semi urban areas and under them NIWAS scheme sanctioned over 1500 crores and build over 1 million houses as on dec 2004. (d) Disinterested members: In the busy city like Mumbai. competition and political influence. (b) Inadequate finance: In the measure metros. (e) The office bearers are poorly paid: Most of the staff of housing cooperative is either retired people or people who have taken VRS and are compensated very poorly for services they offer. They also use substandard products like steel and cement and the quality of construction also suffers. And at the end of 8th 5 year plan there will be a housing shortage or 3. They do not have time to socialize and neither contributes proactively for the development of housing cooperative. PROBLEMS OF HOUSING SOCIETY (a) Scarcity of land: In Asia. However in semi urban and rural areas. As of December 2002. Further the cost of the land especially in a city like MUMBAI is highly speculative and is on this increased cost to the members making the real estate a distant dream for a common man.

Raja. Financial assistance:Agencies like LIC. The registrar of the society should have control on the quota allotted to cooperative housing society. Allocate land on priority: Government should give preference to co-operative housing societies while allocating land as to start the work by the societies or otherwise whose existence is only on paper. should provide housing loans at concessional rates. REMEDIAL MEASURES TO SOLVE THE PROBLEMS Following remedies are suggested for solving the problems of co-operative housing societies: Supplying materials on priority basis: The building material should be provided on priority basis.T. There should be a quota of this material to apex co-operative housing society. . Government should try to make housing societies more strong. the registrar of societies can have control over the working of their societies. HUDCO etc. Bye-laws:There are no systematic bye-laws of co-operative housing societies in the country. All co-operative housing societies should adopt model bye-laws suggested by the committee appointed under the president-ship of S. Tax concessions:The houses build by co-operative housing societies should get concession in taxes and certain incentives should be given. Government should establish central housing finance institute to provide finance to apex housing societies. Thereby.

BIBLIOGRAPHY  Management of Co-operatives . Mascarenhas (Vipul Prakashan)  The Maharashtra Co-operative Societies Rules.Romeo  . 1961

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