CO-OPERATIVE HOUSING SOCIETY

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BCCA INSTITUE OF MANAGEMENT STUDIES MAZAGAON, MUMBAI-400 010 SEMESTER: IV (FOURTH) THE GROUP NUMBER: CLASS: S.Y.B.M.S DIV: B

SUBJECT: CO-OPERATIVE AND RURAL MARKETING

TOPIC: HOUSING CO-OPERATIVE SOCIETY

NAME OF THE PROFESSOR: PROF.KHADIJA RONAK

SIGNITURE OF PRFESSOR

MARKS OBTAIN

MARKS OUT OF

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“ALL PROGRESS IS BORN OF INQUIRY”
------ HUDSON MAXIMA

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PREPARED BY: NAME  SIDIQUE FARIDI  NATHIA MOHOMAD ALI  ANSARI IRSHAN  ATHANIA MOHOMAD YUNUS  SHIEKH ALTAMASH  ANSARI SALMAN  ANSARI TEHSIN  VEHVARIA FARAZ  SHIEKH MISBAH  NEHA KONDKARY ROLL NO 65 79 84 85 86 87 88 98 100 101 SIGNATURE

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PREFACE

It is essential to learn about co-operative society for management students to know how to deal with the society when you are dealing in business with the people living in society to make our business success full we need to know about every area in which the business operate. Our thanks to respected Teacher Prof. KHADIJA RONAK the Lecturer of COOPERATIVE AND RURAL MARKETING at BCCA's Institute of Management Studies, who provided us an opportunity to study the depth of this procedure and registration of cooperative society by giving it for project work. We tried to cover all the areas of the subject by visiting to a co-operative housing society. Also we have taken care to condense the text with basics and essentialities in a simple and lucid form to make the readers comfortable in grasping the fact and figures. We wish to profoundly thank our teacher Prof. KHADIA RONAK whose precious teachings made it possible to prepare such type of project.

WARM REGARDS, AUTHORS

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CONTENTS

1) Executive summary 2) Definition 3) Introduction to housing cooperative 4) Housing situation in India 5) Housing shortage a real problem 6) Structure of housing cooperative 7) Bye laws of cooperative 8) Approach to housing development 9) Housing and urban development 10) Type of cooperative housing society 11) National housing and habitat policy1998 12) Future prospective of national housing policy 13) Problem of housing policy 14) Procedure of registration 15) Right and duties of members 16) Property and fund of cooperative 17) Procedure of issue of winding of cooperative 18) Interview of Chairman 19) Case study 11) Bibliography

6 7 8-10 11-13 14-15 16-17 18 19-20 21-22 23 24-26 27-29 30-31 32-38 39-43 44-48 49-55 56 57 58-59

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EXECUTIVE SUMMERY

A housing cooperative is a legal entity usually a corporation that owns real estate, consisting of one or more residential buildings. Each shareholder in the legal entity is granted the right to occupy one housing unit, sometimes subject to an occupancy agreement, which is similar to a lease. The occupancy agreement specifies the co operative‘s rules. Cooperative is also used to describe a non-share capital co-op model in which fee-paying members obtain the right to occupy a bedroom and share the communal resources of a house that is owned by a cooperative organization. Housing cooperatives in India Co-ops are more commonly known as "flats" in India. This type of housing is very common in big cities like Mumbai (Bombay) but not very popular in rural India. Actually, they are registered as "co-operative housing society" rather than condominiums in that the owners actually have a share of the co-op and not the actual real estate itself. Owners can sell the "share" in the open market, but they have to get the approval of the co-op to complete the transaction. It is owned and managed by the members of the co-operative. Most housing cooperatives 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.

Housing 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.

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DEFINATION

THE DEFINATION OF CO-OPEARATION:
According to Ho Calvert Co-operation mean: “Cooperation is a form of organization in which persons voluntarily associate together as human beings on the basis of equality for the promotion of economic interest of themselves”.

THE DEFINATION OF CO-OPEARATIVE:
Co-operative society is defined as: ―A union of persons established according to the principles of equality, the purpose is to improve the financial position of its members by joint performance, provided that all profits made, aims to distribute among members and not in proportionate to investment‖

THE DEFINATION OF CO-OPEARATIVE HOUSING SOCIETY:

According to Maharashtra Act of Housing Society Act 1960, a housing society is defined as “A society, the object of which is to provide its members with open plots, dwelling houses or flats and to provide common amenities and services”

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INTRODUCTION TO CO-OPERATIVE HOUSING SOCIETY

The prime necessities of human beings are food, clothing and shelter and housing cooperative is an essential for human existence as much food and clothing. Housing is a significant subject having a concern with a common man. One 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. Highly speculative trend in the cost of land, weakening of joint family system thus creating a requirement of a separate house for each family unit etc. Co-operative housing emerged as a strong, well organized and significant in order to. Solve 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, ―cooperative activity is the best means of providing decent houses at reasonable costs to persons, particularly of low and middle income groups.‘‘ 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. They also

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say that man is a social animal and is incomplete without a social fabric. A person‘s lifestyle, his culture, his social status all are determined on where he stays. There is a acute shortage of cheap & good houses. Growth in urban area is 4.2% as against is 1.5 to 1.6% in Europe. Also in Bombay around 62% people live in slums or without shelter. The rate of construction of new houses is around 1 house per 1000 people, while the Ideal is 10 houses. Therefore there is a chronic shortage of houses in India. Therefore ―co-operative activity is the best means of providing decent houses at reasonable cost to persons, particularly of low & middle income groups. LEGAL STATUS: As a legal entity, co-operatives can contract with other companies or hire individuals to provide it with services, such as a maintenance contractor or a building manager. It can also hire employees, such as a manager or a caretaker, to deal with specific things that volunteers may prefer not to do or may not be good at doing, such as electrical maintenance. However, as many housing cooperatives strive to run selfsufficiently, as much work as possible is completed by its members. A shareholder in a co-op does not own real estate, but a share of the legal entity that does own real estate. Co-operative ownership is quite distinct from condominiums where people "own" individual units and have little say in who moves into the other units Because of this, most jurisdictions have developed separate legislation, similar to laws that regulate companies, to regulate how co-ops are operated and the rights and obligations of shareholders. OWNERSHIP: Each resident or resident household has membership in the co-operative association. Members have occupancy rights to a specific suite within the housing co-operative as outlined in their "occupancy agreement" or "proprietary lease" which is essentially a lease. In some cases, the co-op follows Rochdale Principles where each shareholder has only one vote. Most cooperatives are incorporated as limited stock companies where the number of votes an owner has is tied to the number of shares owned by the person. Whichever form of voting is employed it is necessary to conduct an election among shareholders to determine who will represent them on the board of directors (if one exists), the governing body of the co-operative. The board of directors is generally responsible for the business decisions including the financial requirements and sustainability of the co-operative. Although politics vary from co-op to co-op and depend largely on the wishes of its members, it is a general rule that a majority vote of the board is necessary to make business decisions. MANAGEMENT: In larger co-ops, members of a co-op typically elect a board of directors from amongst the shareholders at a general meeting, usually the annual general meeting. In smaller co-ops, all members sit on the board.

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The board typically elects its own officers, such as a president, vice-president and so on. Usually, the directors are volunteers, or are paid an honorarium. The board may then establish standing committees from among the shareholders, who usually also volunteer their time, to either handle the business affairs of the co-op or make recommendations to the full board on such issues as its finance, membership and maintenance of its housing units. FINANCE: A housing cooperative is normally de facto ―non-profit”, since usually most of its income comes from the rents paid by its residents, who are invariably its members. There is no point in creating a deliberate surplus except for operational requirements such as setting aside funds for replacement of assets since that simply means that the rents paid by members are set higher than the expenses. (Note, however, that it's quite possible for a housing co-op to own other revenue-generating assets, such as a subsidiary business which could produce surplus income to offset the cost of the housing, but in those cases the housing rents are usually reduced to compensate for the additional revenue.) It is relatively difficult to start a housing co-op because if the idea is, for instance, to build a building or group of buildings to house the members, this usually takes a significant mortgage loan for which a financial institution will want assurances of responsibility. It may also take a year or more for the members to organize the design and construction, as well as time and foresight to establish even basic organizational policies. It is rare that these kinds of skills of organization are available in a random group of people who often have pressures on their existing housing. It may be somewhat easier to organize a group of closely related housing units. This opportunity may arise, for example, if an existing apartment building's owner is thinking about selling it. MARKET-RATE AND LIMITED-EQUITY CO-OPS: There are two main types of housing co-operative financing methods, market rate and limited equity. With market rate, the share price is allowed to rise on the open market and shareholders may sell at whatever price the market will bear when they want to move out. In many ways market rate is thus similar financially to owning a condominium, with the difference being that often the co-op may carry a mortgage, resulting in a much higher monthly fee paid to the co-op than would be so in a condominium. The purchase price of a comparable unit in the co-op is typically much lower, however. With limited equity, the co-op has rules regarding pricing of shares when sold. The idea behind limited equity is to maintain affordable housing. A sub-set of the limited equity model is the no-equity model, which looks very much like renting, with a very low purchase price (comparable to a rental security deposit) and a monthly fee in lieu of rent. When selling, all that is re-coped is that very low purchase price.

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Housing Situation in India

According to the last census conducted in India in 1991, the country had a population of 846.3 million out of which 217.6 million lived in cities and towns. The total number of households was estimated at 153.2 million for the same year. As against this figure, the housing stock in the country was of the order of 148 million – 39.3 million units in urban areas (26.6%) and 108.7 million in rural areas (73.4%). During the period 1971-1991, while the number of households increased by 58%, the number of housing units went up by about 59%. Although India has been facing the problem of housing shortage for a long time, the increase in housing stock in recent decades has been more than that in the number of households. Table 1 portrays some salient data regarding the housing situation in India at the 1991 Census. Approximately 40% of households in 1991 were in single room tenaments; about 30% lived in two-room units. Only about 15% of households had four or more rooms. Table 2 shows the percentage break-up of households by the number of rooms occupied.
Housing Situation in India: 1971, 1981 & 1991 1971 Population & Households: Total Population (Million) Rural Population (Million) Urban Population (Million) Slum Population (Million) Total Households (Million) Rural Households (Million) Urban Households (Million) Household Size: Total Household Size: Rural Household Size: Urban Households per Dwelling Persons per Dwelling Housing Units (Million): Housing Stock: Total Housing Stock: Rural Housing Stock Urban Housing Shortage: Total Housing Shortage: Rural Housing Shortage: Urban 548.20 439.10 109.10 97.10 78.00 19.10 5.65 5.63 5.71 1.04 5.89 93.00 74.50 18.50 14.60 11.60 3.00 1981 683.30 523.80 159.50 27.91 123.40 94.10 29.30 5.54 5.57 5.44 1.06 5.86 116.70 88.70 28.00 23.30 16.30 7.00 1991 846.30 628.70 217.60 46.73 153.20 112.50 40.70 5.52 5.59 5.35 1.03 5.72 148.00 108.70 39.30 23.90 14.67 8.23

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Distribution of Households by Number of Rooms Occupied (Percent)

One Room: Rural Urban Two Rooms: 28.5 28.9 30.6 Rural 27.0 27.8 30.4 Urban Three Rooms: 12.1 12.3 13.5 Rural 11.4 12.2 14.8 Urban Four or More Rooms: 12.0 12.1 14.0 Rural 11.4 12.1 14.7 Urban No Exclusive Room and Unspecified Rooms Rural 0.1 2.4 1.1 Urban 0.2 2.1 0.5 Source: Government of India – National Buildings Organization, Ministry of Urban Affairs & Employment: Prominent Facts on Housing 1997.

1971 47.3 50.0

1981 44.3 45.8

1991 40.8 39.6

At the 1991 Census, more than 95% of the households living in rural areas had buildings of their own whereas the figure for urban areas was much lower – at 63.1%. However, over the period 1971-91 though the percentage of households owning buildings rose in both rural and urban areas, the rise in case of the latter was impressive – the figure going up from 47.1% in 1971 to 63.1% in 1991. In addition to improvement in ownership status, there has also been a steady upward trend in the quality of housing units in the country. During the decade 1981-91, the number of pucca (permanent) housing units increased by 64.64%, which is much higher than the growth of 53.39% occurring during the decade 1971-81. Over the period 198191, the number of semi-pucca houses declined by about 8% (from 6.80 million in 1981 to 6.23 million in 1991), while the number of kutcha (thatched, huts, etc.) houses showed only a marginal increase of about 6% (from 3.1 million in 1981 to 3.2 million in 1991). Table 3 provides some important information regarding the housing conditions in the country. Insofar as the provision of civic amenities is concerned, there have been considerable improvements in the access of people to such amenities over the years although shortages in housing and infrastructure do continue. Table 4 shows the percentage of households in the country as a whole having access to safe drinking water, toilet facilities and supply of electricity during the decade 1981-1991.

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Housing Conditions in India: 1971, 1981 & 1991 1971 Tenure Status of Households Owned: Rural Urban Rented: Rural Urban Type of Structure (%) Pucca: Rural Urban Semi Pucca: Rural Urban Kutcha: (Serviceable): Rural Urban Kutcha: (Unserviceable): Rural Urban 93.8 47.1 6.2 52.9 1981 93.0 53.5 7.0 46.5 1991 94.5 63.1 5.5 36.9

19.0 63.8 37.0 23.5 32.0 12.7

21.1 64.6 37.6 24.3 29.0 11.1

33.0 75.8 34.2 15.8 22.8 8.4

12.0 -

12.3 -

10.0 -

Access of Households to Basic Amenities: 1981-1991

1981 Households having Safe Drinking Water Households having Toilet Facility 74.14%

1991 81.59%

57.4%

63.58%

Households with Electricity

61.6%

75.93%

Source: Government of India – National Buildings Organization, Ministry of Urban Affairs & Employment: Prominent Facts on Housing 1997

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HOUSING SHORTAGE THE REAL PROBLEM
Housing shortage is estimated in terms of excess households over houses including houseless households, congestion (number of married couples requiring separate room/house), replacement/up gradation of kutcha/unserviceable kutcha houses and obsolescence/replacement of old houses. Table 5 shows the components of housing shortage in the country at the beginning of 1991. Table 6 shows the estimates of housing shortage in urban areas based on the Report of the Ninth Plan Working Group of the Government of India, Ministry of Urban Affairs & Employment
Components of Housing Shortage: 1991 (Million Units) TOTAL

RURAL

Urban

Excess of Households over Houses including Houseless Households Congestion (No. of Married couples requiring separate Room/House) Replacement/Up gradation of Kutcha/Unserviceable Kutcha Houses Obsolescence/Replaceme nt of Old Houses Total

5.16

3.76

1.40

1.91

-

1.91

14.20

10.91

3.29

1.63 22.90

14.67

1.63 8.63

Source: Government of India – National Buildings Organization, Ministry of Urban Affairs & Employment: Prominent Facts on Housing 1997

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PROJECTED HOUSING SHORTAGE IN INDIA’S URBAN AREAS, 1997-2001 Million Units Item PUCCA Semi-pucca Kutcha Households (No.) Housing Shortage 1997 40.08 6.65 3.35 50.09 1998 42.13 6.73 3.38 51.85 1999 44.29 6.81 3.40 53.68 2000 46.56 6.88 3.43 55.56 2001 48.94 6.97 3.45 57.52

7.57

7.36

7.18

6.93

Note: The housing shortage estimates also account for congestion and obsolescence of existing units Source: Ministry of Urban Affairs & Employment 1996. Report of the Working Group on Urban Housing for the Ninth Five-year Plan. Government of India, Delhi. India‘s National Report for Habitat II Conference in Istanbul estimates that by 2021, the country would face a housing shortage of 44.9 million units and that the investment required for tackling this shortage over a period of 25 years at 1991 prices would be of the order of Rs.6580 billion. The Ninth Plan Working Group of the Government of India, Ministry of Urban Affairs & Employment estimated the new
th

housing/old housing up gradation requirement at 16.76 million units for the 9 plan period (1997-2002). About 70% of the units are estimated to be required for the urban poor/economically weaker sections of society while about 20% is for lowincome groups. About 10% of the urban requirement is for addressing the middle and higher income group segments. It is estimated that for urban housing alone, the total requirement of investment would be of the order of Rs.1213.7 billion for 19972002 to address the housing shortage of 7.57 million, up gradation of 0.32 million semi-pucca Economically Weaker Sections (EWS) units and the additional construction of 8.67 million units. The total requirement of funds for urban and rural housing put together for 1997-2002 was estimated to be of the order of Rs.1500 billion (see Table 7). Against this amount, about Rs.520 billion is likely to be available if the past trends of housing finance are assumed to continue.
Investment Requirement for Housing: Ninth Five Year Plan (1997-2002) Segment No of Units to be Constructed (Million) 162.5 176.6 330.1 Fund Requirement (Rs. Billion) 290 1,214 1,504 Likely Availability

Rural Urban Total

180 340 520

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Structure of housing cooperative

# First level:

National cooperative At the apex of the structure is the National cooperative housing society‘s federation (NCHF) which was established in 1969 and has headquarters in New Delhi. The objectives of this institution are:-

1) Give publicity of cooperation housing movements by publishing books and brochures. 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. 4) To undertake research for new building material so to reduce the construction cost. # Second level: State level housing cooperative 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 MHADA for allotment of plots. # Third level: Primary housing cooperative 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 fix source of income and who come together to build a housing cooperatives and solve the housing problems and prevent exploitation of Land lords. They provide a systematic and organized way of maintaining the building and property of housing cooperatives.

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.

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 These persons should be from different families.  These persons should be competent to enter into a contract under the Indian
contracts Act 1872.

 He should reside in the area of operation of the Society.  He should be eligible as per the bye-laws of the proposed Society.  Any individual, firm, company or any other body corporate can become member
of the Society.

 Any Society registered under this Act or Societies registration Act 1860  State & Central Government, Public Trust, local authority.  The object of the Society should be promotion of economic interests or general
welfare of the members or the public, in accordance with the co-operative principles.

 It should be economically sound, its registration should not affect adversely on
the development of the co-operative movement.

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Bye-laws of the Co-operatives
Co-operation is an activity of the people. It is a self-generated, voluntary and self-sufficient activity. Hence little governmental interference is desirable. 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 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. Great Britain for example had passed legislation as early as 1852. Similar intervention of legislature can be seen in Germany and France (1867) and Italy (1883). In Maharashtra the Co-operatives are governed by the Maharashtra Cooperative Societies Act 1960 and supported by Maharashtra Co-operative Societies Rules, 1961. The legal system in the co-operatives registered in Maharashtra State is elaborate. Moreover each co-operative should have its own Bye-Laws which are the guiding principles of the co-operative. These Bye-laws have to be approved through a resolution of the Society. These bye-laws can be amended in the General 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 Societies Act, and have to be approved by the Registrar.

Requirements for forming a cooperative society
 Minimum number of persons 25.  The society's 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.

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APPROACH TO HOUSING DEVELOPMENT
After independence, housing was accorded a relatively low priority in the national development programme in India, presumably with the objective of keeping it basically a private sector activity. The low budgetary support given to the housing sector is evident from the fact that the First Five Year Plan of India allocated 7.4% of the total plan resources for housing; the share of housing in the subsequent plan resources ranged between 1.2% and 4.9%. The governmental agencies, however, played a strong supporting role for the provision of housing for the poorer sections of society, including allocation of land. Over the years there has been a gradual shift in the role of the Government from a ‗provider‘ to a ‗facilitator‘, ensuring access to developed land, basic services, building materials, technology, construction skills and finance so that housing can be undertaken as a people's programme. The facilitating approach aims at fostering strong public-private partnerships with the provision of appropriate incentives to the private sector, promotion of housing finance institutions, propagation of alternate building materials and technologies and extension of support to NGOs, CBOs, co-operatives and the private sector.

The Government of India and State Governments have adopted a two-pronged approach to housing development for the poor in the past, i. e., sites and services and permanent housing. Under sites and services, basic infrastructure facilities like drinking water, internal roads, approach roads, drainage, community toilet, etc., were provided to develop layouts. The beneficiaries were also given construction assistance for erecting a small shelter. The permanent housing programme, which has replaced sites and services, was initially confined to those beneficiaries who could avail loan facility. Later, several modifications have come up in the programme to address the housing needs of different target groups. The broad elements of the approach of the Government of India to tackle the problem of housing the poor are: special programmes/targeted subsidy to the poor and vulnerable groups, loan assistance to governmental agencies/beneficiaries at below-market interest rate for housing and at normal rate for infrastructure through the Housing and Urban Development Corporation (HUDCO), creation of housing assets as part of employment and income generation programmes, promotion of cost-effective and eco-friendly building materials and technologies and creation of an enabling environment for private sector initiative. Indira Awas Yojana (IAY) is an example of housing for targeted groups in rural areas through employment creation.

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Indira Awaas Yojana (IAY): Indira Awas Yojana (IAY) intends to assist certain vulnerable target groups in housing activities. The programme applies to categories such as Scheduled Caste (SC)/Scheduled Tribe (ST) households who are victims of social atrocities, SC/ST households headed by widows and unmarried women, SC/ST households affected by flood, fire accident, earthquake, cyclone and similar natural calamities, freed bonded labourers, families/widows of personnel from defence services/para-military forces killed in action, ex-servicemen and retired members of para-military forces, persons displaced on account of developmental projects, nomadic, semi-nomadic and de-notified tribals and families with disabled members, subject to the conditions that these households belong to below poverty line category. As per the Government of India guidelines, IAY houses are being allotted in the name of the female member of family or alternatively in the joint name of both wife and husband. The programme is fully subsidised by the Government of India.

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HOUSING AND URBAN DEVELOPMENT CORPORATION
The Housing and Urban Development Corporation (HUDCO) was established as a fully-owned enterprise of the Government of India in 1970 with an equity base of Rs.20 million to function as a national techno-financial institution to promote housing and urban development. The objectives of HUDCO include the following:  To finance and undertake housing and urban development programmes in urban and rural areas;  To finance and undertake either wholly or partly, the setting up of new towns or satellite towns covering infrastructure needs in urban and rural areas;  To finance and undertake the setting up of building material industries;  To provide consultancy services for projects of housing and urban development within the country and abroad. At present HUDCO has an authorized capital base of Rs.12.50 billion ($297 million), paid-up equity of Rs.8.98 billion ($213 million), reserve of Rs.5.75 billion ($136 million) and net worth of Rs.14.83 billion ($349 million). The total borrowings by HUDCO stand at Rs.121.68 billion ($2897 million). Thus the debt-equity ratio of HUDCO works out to 7.77. The key activities of HUDCO include:
 Lending for housing programmes through various schemes such as urban housing, rural housing, staff rental housing, cooperative housing, working women's housing, housing schemes through NGOs and CBOs and housing through private builders;  Lending for urban infrastructure, including land acquisition for projects, integrated land acquisition and development, city level infrastructure - water supply (rehabilitation, augmentation, new source development/transmission projects), sanitation (rehabilitation, augmentation, new sewerage and drainage projects, conversion of dry latrines, construction of individual and community toilets), solid waste management (collection, conveyance, treatment and disposal, energy recovery), transportation (roads, bridges, rail and road transport terminals, airports, ports), etc., social infrastructure (health, education, parks, playgrounds), commercial infrastructure (shopping centres, commercial complexes, office complexes), and integrated area development/new township projects, etc.;  Consultancy services in the field of housing, township development and infrastructure development;  Promotion of Building Centers for technology transfer and support to building material industries; and  Training in human settlements and technical assistance to borrowing agencies.

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THE BORROWERS OF HUDCO ARE: State Urban Infrastructure Finance and Development Corporations, Water Supply and Sewerage Boards, Urban Development Authorities, State Housing Boards, National Capital Region Planning Board (NCRPB), New Town Development Agencies like City and Industrial Development Corporation (CIDCO), Mumbai, Municipal Corporations/Municipalities, Improvement Trusts, and private companies and agencies. Since its inception, HUDCO has so far sanctioned 14821 projects with a project cost of Rs.48.51 billion ($11.54 billion). The amount of loan sanctioned is Rs.31.66 billion ($7.53 billion) against which Rs.17.82 billion ($4.24 billion) is already released. Housing loans approved amount to Rs.19.42 billion ($4.6 billion) against which Rs.12.30 billion ($2.9 billion) has been disbursed. HUDCO has so far contributed to the development of 10.14 million dwelling units and 4.7 million low-cost sanitation units. HUDCO‘s infrastructure financing portfolio is growing at a phenomenal rate. During the last 10 years HUDCO has sanctioned Rs.12.24 billion ($2.9 billion) for infrastructure projects covering water supply, sewerage, drainage, solid waste management, low cost sanitation, etc. HUDCO‘s operations extend over 1,760 towns and thousands of villages in the country.

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Types of Co-operative Housing Society

 Tenant Ownership:
Tenant ownership is a kind of ownership in which the land is owned by the society, flats or owned by the members, subletting or transfer of flats are not allowed. Any renovation which takes place in the house need not required permission from the society reason is the ownership of the house is in the hand of the tenant the society has no option to take any action against the tenant

 Tenant co-partnership:
Land & flats are owned by the society and members pay rent. In such a case the society has a right to take any action against the tenant reason so that this property ownership lie in the hand of the society and any changes done in it required permission. If the permission is not granted then the person cannot do any changes if the rule are broken the tenant is liable for the action against him by the society

 Flat Ownership co-ops:
Flat owners jointly own the land this is the case where the flat ownership lie in hand jointly between the society and the owner there all the action are done as per the regulation under the co operative act. And the deed which is prepared at the registration of co-operative any change have to be reported in the letter form to the co operative register office any delay or not sending of such intimation can deal with the action against the person liable for or the society.

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NATIONAL HOUSING AND HABITAT POLICY 1998
In 1994, India adopted the National Housing Policy (NHP), which recognizes the key role of the Government as facilitator rather than provider of housing services. The National Housing & Habitat Policy-1988 (NH&HP) is a continuation of the NHP. It calls for a housing revolution in the country and focuses on the changed roles of various stakeholders in the housing development process in the new economic environment of liberalization and globalization. The policy emphasizes the need to persuade the private and cooperative sectors to take greater initiatives in the promotion and development of housing through fiscal concessions and other incentives. Though the move towards disassociation of governmental agencies from direct construction is being witnessed since the early 70s, the NH&HP calls for a continued positive role by the Government in housing of the poor. Rapid growth of population and increased urbanization on one hand and escalating land prices on the other are responsible for widening the gap between demand for and supply of housing units. These factors squeeze the poor off land and marginalize them in urban housing markets. Recognizing this, the NH&HP suggests a number of areas of intervention for governmental agencies to promote affordable housing for the poor, including availability of sites, housing loans at below-market rates, low-cost building materials and civic services. The broad aims of the National Habitat and Housing Policy-1998 (NH&HP) are:  Creation of surpluses in housing stock either on rental or ownership basis;  Providing quality and cost-effective housing and shelter options to the citizens, especially the vulnerable groups and the poor;  Guiding urban and rural settlements to ensure planned and balanced growth and a healthy environment; Making urban transport as an integral part of the urban Master Plan;  Using the housing sector to generate more employment and to achieve skill up gradation in housing and building activities;  Promoting accessibility of dwelling units to basic facilities like sanitation and drinking water;  Removing legal, financial and administrative barriers for accessing land, finance and technology for housing;  Forging strong partnerships between private, public and co-operative sectors in housing and habitat projects.

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The NH&HP envisages a key role for the Government of India in promoting policy and legal reforms, facilitating flow of resources to housing and infrastructure through measures such as fiscal concessions to investors and promoting the creation of a secondary mortgage market. The State Governments are expected to gradually withdraw from direct construction of houses, liberalize legal and regulatory regime to give a boost to housing and support infrastructure, promote private sector and cooperatives, and facilitate access of the poor to land, finance, low-cost and locallysuited engineering solutions and participatory designs. Two Million Housing Programme: The National Agenda for Governance–the election manifesto of the present Government recognizes Housing for All as a national priority. It has set a target for the construction of 2 million additional houses every year – 0.7 million in urban areas and 1.3 million in rural areas. A programme of this magnitude is expected to result in an investment of about Rs.80 billion in housing construction activity. This would also facilitate cement, steel and other building materials industries in addition to creating substantial employment in this sector. Every million of rupees spent by the construction industry generates about 75 man-years of employment. RECENT BUDGETARY INITIATIVES In recent years, housing and construction have emerged as ‗top priority‘ sectors for policy-makers. Faced with recession and slow-down of economic activities, the Government of India has realized the key role that construction Industry can play in jump-starting the economy and provide gainful employment to people. Housing construction has many forward and backward linkages and about 280 industries are directly or indirectly linked to housing activities. Moreover, construction is the second largest employment-generating sector in the country, next only to agriculture. Considering these, the Union Budgets of 1998-99 and 1999-2000 have laid a great deal of emphasis on creating an enabling environment for housing activities in the country through the private sector. The measures initiated by the Union Budgets to boost up housing activities include:  Additional equity support to HUDCO to the tune of Rs.1.92 billion in the 199899 budget and Rs.2.71 billion in the 1999-2000 budget of the Ministry of Urban Affairs and Employment and Rs.0.5 billion in the1998-99 budget of the Ministry of Rural Affairs and Employment. These measures augmented the equity base of HUDCO by Rs.5.13 billion in a period of just two years as against the infusion of Rs.3.85 billion by the Government of India over a period of 27 years from the creation of HUDCO. The addition of Rs.5.13 billion of equity would enable HUDCO to leverage about Rs.42 billion from the market for housing and urban infrastructure activities. HUDCO would be in a position to support the creation of 1.5 million houses each year out of which 1 million will be towards achieving the target under the Two Million Housing Programme;

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 Extension of tax holidays for approved housing projects allowing a deduction of 100% of the profits for the first five assessment years and 30% deduction for another five years. This was made applicable to housing units upto 1500 sq. ft. in the budget of 1999-2000. The facility will promote private sector participation in housing activities;   Increase in deduction against income from house property for repairs and
th th

collection charges from 1/5 to 1/4 and increase in the deduction for interest on borrowed capital in the case of self-occupied property from Rs.15,000 to Rs.30,000 in 1998-99 budget. The latter figure was revised drastically to Rs.75,000 in the budget of 1999-2000. This will promote better maintenance of constructed housing stock in addition to promoting larger individual investments in housing;  Enhancement in the percentage of incremental deposits into housing activities from the banking sector from 1.5% to 3% to enable inflow of Rs.3.8 billion for low-cost housing;  Inclusion of micro-credit and tiny sector as part of priority sector lending of banks to give a fillip to weaker section/low-income housing;  Extension of depreciation benefits in corporate employees housing from 20% to 40% to encourage corporate houses to take up housing for their employees;  Repeal of the Urban Land Ceiling and Regulation Act in 1998 to free the supply of land for housing in urban areas, especially metropolitan cities.

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FUTURE PROSPECTIVE OF NATIONAL HOUSING POLICY
Although the National Housing and Habitat Policy emphasizes the facilitating role of the Government in housing, the public sector agencies are not absolved of the responsibility of providing housing to those segments of the people who cannot be served by the market. However, a new approach is called for issues such as beneficiary consultations on the location, design and cost aspects of shelter, affordable shelter options for the very poor, integration of income generation and housing, eligibility criteria for availing housing finance and providing a collateral for the same, easier availability of plots and houses from public and private providers, assistance for house construction, speedy approvals for construction of infrastructural services, simplification of documentation and procedures, etc. Housing subsidies often benefit the salaried employees of the organized sector including the Government and the recipients of tax concessions for housing investment. Implicit subsidies to beneficiaries of social housing schemes arise from loan waivers, low cost recovery rate, concessional interest and inefficiencies absorbed by the agencies. The schemes involving a combination of concessional loan and subsidy affect the extension of viable finance on non-subsidized terms, based on rigorously enforced cost recovery. These issues need to be re-examined. Part of the resources needed for the shelter of the urban poor could be diverted from current outlays by an objective review of all subsidies and mis-applied resources, and by channeling institutional finance. Additional resource mobilization could be by a combination of measures to activate beneficiary savings and channeling loans on viable terms by financial institutions. These measures could be catalyzed and leveraged by budget provisions for land and services, equity for housing agencies and support to open market lending on credit-rated terms. Steps are needed for avoiding the dispensation of ex-post and implicit subsidies, to provide for transparent and well-targeted subsidies, and to prevent the leakages of subsidies under government programmes and unwarranted fiscal concessions to better-off sections. Subsidies may perhaps be administered in the form of subventions through credible NGOs for group shelter activity and savings effort. The State governments need to adopt a state-wide policy on the regularization of tenure and conferment of leasehold or occupancy rights to slum-dwellers at least in areas not needed by public agencies. The National Housing and Habitat Policy emphasize the grant of occupancy rights to slum-dwellers and providing support for progressive slum redevelopment and up gradation schemes. The slums and squatter settlements could be categorized as those needing urgent relocation, those that can be considered for conferment of occupancy rights/title and up gradation or redevelopment in situ, and those which can be provided with basic services without conferment of title. This categorization process should be dovetailed with the process of Master Plan revision and formulation of flexible development planning norms. It would enable the relocation of slum-dwellers and change in land use plans to incorporate the regularized slums into the plan-scope of the city. Also, physical and social planning should be on city-wide basis so as to integrate the informal sector in the city's economy and social life. The State and city agencies need to be shelter up gradation and extension including toilets, renewal of congested inner city

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crawls, serviced sites for the poor, in situ redevelopment of slums with assistance of the private sector and co-operative involvement, night-shelter and sanitation facilities for the new migrant landless persons, relocation of families from sites urgently required for public purposes, and financial and technical assistance on a group or individual basis for incremental construction. In order to facilitate greater private and co-operative sector participation in housing activity, as well as public-private partnership, there is the need to: first, undertake legal reforms; second, to undertake land policy reform to provide easier access to developed land; third, provide suitable fiscal measures and incentives to encourage investment of household savings in home ownership and to induce the corporate sector to invest in employee housing; fourth, carefully assign property rights and make them legally enforceable; fifth, create enabling institutions for providing an enabling environment by restructuring existing institutions and by creating new ones, if required; and sixth, widen the existing database for strategic planning to cover aspects relating to ownership of land and property, housing starts and completions, etc. With the Union Budgets for 1998-1999 and 1999-2000 according a new thrust to housing in the National Agenda for Governance, the Central and State Governments have initiated a reform agenda for housing sector reforms. The reform areas include the following:  Public-Private Partnerships to ensure a fair return on investment to the private land owners/developers through guided development and availability of serviced sites for allotment to low income families at affordable prices. Fiscal incentives and provision of infrastructure can induce private sector entrepreneurs to housing including that for the poor;  Measures to control the continuing spiral of land prices, speculation, shortage of developed land, and increasing pace of unregulated and environmentally damaging land development;  Increased availability of developed land through measures such as reservation of 5% of the land in larger layouts as land bank for economically weaker sections and low-income groups, land pooling, land readjustment, etc., steep vacant land tax, etc.;  Restructuring of Housing Finance Institutions (HFIs) to meet the housing finance needs of the formal sector as well as the poor and the informal sector. A revision of current eligibility norms that inhibit the flow of a significant proportion of funds from the formal sector to the poorer sections of the population is called for;  Establishment of linkage with informal credit systems along with grant of security of tenure to slum-dwellers and reforms related to land title, building regulations, etc., with a view to assisting the poor with access to institutional finance for housing; Community resource mobilization through schemes such as Insurance-Linked Savings-cum-Loan-cum-Subsidy scheme for shelter for the poor engaged in

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encouraged to formulate city plans for developing varied shelter options for the urban poor, such as the provision of essential services,  informal sector activities. Under the scheme for a nominal one-time premium of Rs.150 per house, the houses are insured for Rs.25,000 against damages due to fire, lightning, flood, storms, tempests, cyclones, etc.;  Increased involvement of NGOs/CBOs/Cooperatives to promote self-help, mutual-help, thrift and credit, self-management, community empowerment, etc. There is a need for shifting to community-based non-subsidised loan mechanism, as Adopted by Self Employed Women‘s Association (SEWA) in Gujarat State, targeted at poor and sustained by beneficiary savings for shelter and group guarantee;  Promotion of high density housing in selected areas in cities through appropriate amendments to zoning and land use regulations to obviate the necessity of costly land acquisition and to avoid high infrastructure costs;  Adoption of small lot zoning in parts of large lot layouts making it mandatory on the part of developers to divide part of the lands being developed into small plots to make them available to poor beneficiaries;  Promotion of rental housing through the balancing of landowner and tenant interest so that supply of rental housing at affordable rents is ensured and there is an incentive for people to build houses for themselves and for others;  Propagation of cost-effective and eco-friendly building materials and technologies and up-scaling of innovative products to make them marketable and amenable for mass application;  Municipalisation of programmes of poverty alleviation and slum-up gradation in urban areas to make elected Municipalities responsible for these functions and mobilize local support and effort.

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PROBLEMS OF HOUSING SOCIETY

(a) Scarcity of land:
In Asia, 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. As of December 2002, there were approximately 710 million homeless people in India. And at the end of 8 th 5 year plan there will be a housing shortage or 3.5 crores houses. This is also because of tremendous growth in population and contribution of joint family making requirement of separate houses for each nuclear family.

(b) Inadequate finance:
In the measure metros, housing finance cooperatives are offering loans at very competitive rates. However in semi urban and rural areas, there is no institutional finance available for building houses. 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.

(c) Malpractices of builders:
The allotment of land is subject to bureaucratic delays, competition and political influence. 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. They also use substandard products like steel and cement and the quality of construction also suffers.

(d) Disinterested members :
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 socialize and neither contributes proactively for the development of housing cooperative.

(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

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offer. The young blood is missing in management of cooperative as they do not pay handsome salaries.

Remedial measures to solve the problems Following remedies are suggested for solving the problems of co-operative housing societies:

1.) Supplying materials on priority basis:
The building material should be provided on priority basis. There should be a quota of this material to apex co-operative housing society. The registrar of the society should have control on the quota allotted to co-operative housing society.

2.) 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.

3.) Bye-laws:There are no systematic bye-laws of co-operative housing societies in the country. All co-operative housing societies should adopt model byelaws suggested by the committee appointed under the president-ship of S.T. Raja. Thereby, the registrar of societies can have control over the working of their societies.

4.) Financial assistance:Agencies like LIC, HUDCO etc. should provide housing loans at concessional rates. Government should try to make housing societies more strong. Government should establish central housing finance institute to provide finance to apex housing societies.

5.) Tax concessions:The houses build by co-operative housing societies should get concession in taxes and certain incentives should be given.

6.) Membership to houseless people:The membership of the housing society should be given only to the people who have no house.

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Procedure for Registration of cooperative Society

On receiving such applications the Asst. Registrar through his subordinate will conduct an inquiry to find out the feasibility and economic viability of the proposed Cooperative Society and whether its proposed bye laws conforms to the Meghalaya Coop. Acts and Rules. In case a proposed Cooperative Society is either a, Fishery, / Dairy/, Poultry/, Piggery/or Handloom etc., views and comments from concerned department has to be obtained before registration of such society.

After inquiry report with views and comments from concerned Department are found favorable, Permission is given to complete the necessary formalities for Registration.

A date will be fixed for holding the inaugural general meeting of the promoter in which members will finally decide on adoption of the Bye-Laws and matters concerning with day-to-day functioning of the Society including constitution of Managing Committee, operation of Bank Account etc.

In the inaugural General Meeting, one of the Promoters presided over the meeting. An officer from the Department is deputed to attend the meeting and help the promoters in organizational matters. In this meeting they will decide what type of a Society they want to form, how many persons would join as members of the Society ,l elect the office bearers of the society and decide the authorized share capital and the share capital to be contributed by each members.

All the papers duly signed by the Promoters are to be submitted to Asstt. Registrar of Coop. Societies who after satisfying himself on all points, register the society and its Bye-laws.

The certificate of Registration in the form set forth and the schedule is issued by Asstt. Registrar of Coop. Societies after registration of the society. A copy of

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registration with Bye-laws is sent to the applicant and also to concerned Departments.

1) Registration of Co-operative societies

 A co-operative society can be registered in Maharashtra State with the Registrar        
of Co-operative Societies. Any person competent to contract, as per the Indian contract Act, 1872 can join in the formation of a co-operative. A 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. A society with the objects of promoting the economic interests or the general welfare of the members only can be registered. No society which is contrary to the policy directives of the State can be registered. Registration can be obtained from the registrar on filling up the application form with the necessary fees and the bye-laws. Division/Amalgamation/Transfer and conversion of a co-operative is allowed. 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. It can also enter into a partnership with other co-operatives. 2) Certificate of incorporation as 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.

3) Classification of Housing Co-operatives

(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. 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.

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(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. The buyers of the flats then organize into a housing society. Such societies are merely service societies or maintenance societies.

(d) Ownership cooperative: - In this case, people working in an organization
come together and form them into a housing cooperative society. They get their society register, apply to MAHADA. (MAHARASHTRA HOUSING AND DEVELOPMENT AUTHORITY) and get a plot allotted to them in LIG, MIG, and HIG i.e.: low income group, middle income group, high income group. Once the plot is sanctioned they approach a construction company and depending on their budget build up housing society. E.g.: Gulmohar cooperative housing society situated at Ceissor road, Andheri (west) is the housing complex of the ICICI officers. 4) Terms and Conditions to be complied with for admission to membership

1. 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, if any, for membership along with a declaration .on oath that he is-net 9 member of any other co-operative society having similar objects;

 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, and in the case of nominal, associate, or sympathizer member by an officer of the society authorised in that behalf by the committee.

 he has fulfilled all other conditions laid down in the Act, the Rules and the
Bye-laws;

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 in case of a firm, company or body corporate, society registered under the
societies Registration Act, 1860, 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 authorizing it to apply for such membership, and the sanction of the Lt. Governor has been accorded.

 in case of a Cooperative Housing Society, 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. 2. 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 Delhi in Hindi and English. 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 authorised representative of the Registrar.

5) Management of a cooperative society

As per the Bye-law, there will be a Committee of Management, 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. Among the members of the Committee of Management there shall be office-bearers like President, Vice-President, Secretary, Treasurer etc. 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, Rules and Bye-laws and as per the annual budget and programme of action approved by the General Body each year.

 The final authority of the Society vests in the General Body of the Society
comprising of all the members.  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.  At every Annual General meeting, the Managing Committee shall lay a statement of loans given to the members of the Managing Committee and their family members, Income and Expenditure Account, Balance Sheet, a Report by the Managing Committee regarding the Society‘s affairs. Failure to do so may attract the disqualification of the members of the Managing Committee and other penalties.

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 A Special General Meeting can be called by the Chairman of the Co-operative
or by majority of the members of the Managing Committee. Members too can requisition for such a meeting if 1/5 th of the total members of the Society endorse this requisition.. The Registrar also has the powers to call for a Special General meeting. So can the committee of the Federal Society do so. Failure to call for this meeting may attract penalty for the Managing Committee.

 It is the duty of every Managing Committee to arrange for holding of elections
of its members before the expiry of its term. Election to a Specified Society shall be conducted by the Collector and that of a Notified Society by the Registrar.

 Management of the Society vests in a duly constituted Managing Committee.  Reservation for the weaker section, women and scheduled castes/tribes has
been provided in the Managing Committee.  No committee is duly constituted unless the Registrar publishes the names of the members of the Managing Committee along with their addresses.  If a Managing Committee of a Society is not duly constituted, an Administrator may be appointed by the Registrar.  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.

A member of the Managing committee can also be removed by the Registrar for negligent performance.

 The Managing committee can appeal against its removal / dismissal.  Office bearers of a Society can be removed by the way of No confidence
motion. Such a no confidence motion has to be supported by at least onethird of the members of the managing Committee. Removal from office is effected only after the resolution is passed by a simple majority in the Managing Committee. 6) Members of societies

1.) 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, and any other persons who are admitted to membership in accordance with this Act and the rules of the society.

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2.) 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.

3.) A person shall cease to be a member in any of the following circumstances, that
is to say(a) where his shares are transferred to another person in accordance with the rules of the society, and the transferee is registered as holder in his place;

(b) where his shares are forfeited in accordance with the rules of the society;

(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;

(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;

(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, 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;

(f) where the contract of membership is rescinded on the ground of misrepresentation or mistake;

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(g) where he ceases to be a member in accordance with 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.

4.) Where shares are held by the executor or administrator of a deceased member,
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.

5.) 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.

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Rights and Duties of Members of Society

Rights:-

1. Right to get certificate of allotment:Every member of a co-operative housing society, whether registered before or after the commencement of this Act, 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. Right to hold according to terms of allotment:Irrespective of the provisions of the Transfer of Property Act, or the Registration 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. Right to transfer / inherit the property:The right, 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. However, such land or building shall not be partitioned for any purpose whatsoever.

4. 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.

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5. 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. In case of any violation or misuse by a member, the management committee is empowered to recover damages.

6. 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.

8. 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. The society may fix the application fee for this purpose.

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Duties:-

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.

Liabilities of Members of Co-operative Society

1.) A 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 Act or the rules of the society.

2.) 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, 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, 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 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, then the society shall be empowered-

(a) 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 scheme; and (b) to pay or otherwise deal with each such amount in such manner as the contract policy or scheme requires or allows; and (c) 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 requires or allows; 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
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member and the provisions of this Act 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 subsection and may carry out any such contract or arrangement.

3.) Where, 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, 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 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. Responsibility of members and Co-operatives

The relationship between tenant and co-operative is not a simple one. The coop supplies the tenant with a service (housing) according to a contract (tenancy agreement/license). The tenant pays rent in return for the housing they occupy according to the contract.

However, 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. A co-operator can simultaneously expect to receive a service whilst being responsible for its delivery.

The member is responsible:

 as a member, to participate in the smooth operation and democracy of
the co-operative. To attend general meetings. To participate in setting policy.

 as a tenant, to pay rent. To behave responsibly towards other tenants
and other duties as laid out in the tenancy agreement/license.

 as a director, to ensure that the co-operative is run in a fit & proper manner.
All directors are responsible for ensuring that tasks are carried out. Even
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when tasks have been delegated, all directors are equally responsible for monitoring them. To make management decisions. The co-operative is responsible:

 to provide tenants with suitable housing, and other duties as laid out in  the tenancy agreement/license.  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. However, all directors are equally responsible for ensuring they are carried out and making checks. Privileges and Duties of Society

 A Society is a Body Corporate by the name with perpetual succession and           
common Seal. It can acquire, hold and dispose off property in its name. It can enter in a contract. Institute and defend suits and other legal proceedings. 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, 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 Society, if agreed upon by the member. 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. With the prior permission of the Registrar, loans can be advanced to other Societies. The Society has to keep and maintain updated records in prescribed format. There are restrictions on the transactions with the non-members.

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Property and Funds of Co-operative Society
 No funds shall be divided among its members, other than the net
profits earned by the Society.

 The society‘s funds cannot be utilized to defend any proceedings
filed by or against any office bearer of the Society, in his personal capacity under sections 78, 96 or 144-T of the Maharashtra Co-operative Societies Act, 1960.

 Remuneration can be paid to the Managing Committee members for
services provided by them to the Society.

 Net Profit earned by the Society can be appropriated by the
members with the approval of the Annual General Meeting.

 Reserve fund shall be maintained by the Society.

 Investments of Funds shall be made as per the guidelines prescribed
in the Maharashtra Co-operative societies Act, 1960.

 Audit, Inquiry Inspection and Supervision of Societies.

 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.e. April - March).

 All the other Societies also have to get their accounts audited by a
Certified Auditor once in every co-operative year.

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 A Registrar has powers to order the Society to be re-audited. 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.

 The Registrar can inspect the working of the Society on his own or
on application of its creditors.

 The Registrar can commission an inquiry into the affairs of the
Society on the basis of the audit report or an inspection report. He can appoint an Inquiry Officer and conduct an inquiry through him.

 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.

 The Registrar can order for compensation, if it is found That any
person has misapplied or retained any property, or money of the Society, or has caused breach of trust.

Change in Name of Society

1. The name of a co-operative society may be changed under section 14 so however that it does not refer to any caste or religious or regional denomination and is not inconsistent with the objects of the cooperative society.

2. Every change in the name of a co-operative society shall be made by amendment 6f its bye-taws and shall be notified in the official Gazette.

3. After the change in the name is approved by the Registrar the Cooperative Society shall send the original registration certificate for

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amendment to the Registrar, who shall return the same to the cooperative society duly amended.

Change in Liability

1.) The change of liability of a co-operative society from unlimited to limited and
vice-versa or in terms of multiple of share capital, shall be secured by passing a resolution in that behalf at a general meeting of the co-operative society indicating in clear terms the manner of changing the liability. The co-operative society shall give 30 days notice in writing of such meeting to all its members and creditors and shall furnish them with copies of the resolution proposed to be moved at the meeting. After the resolution is duly moved and passed, a copy thereof shall be send to the Registrar within three months of its passing.

2.) Every notice to be given by the co-operative society under sub-sec. (2) of
section 14 shall be sent by post under certificate of posting or other wise to the address of each of its members and creditors gs recorded in the book of the co-operative society. A copy of such notice shall be exhibited on the notice board of the co-operative society and a copy shall also be sent to the Registrar for exhibition on the notice board in his office; and thereupon, notice of the resolution to change the form or extent of its liability shall be deemed to have been duly given to all its members and creditors, notice not being send to their correct address or notice not being received by them, notwithstanding.

3.) For the purpose of determining the claims of a member under clause (b) of
sub-sec. (4) of sec. 14 the value of a share of a member in a co-operative shall be ascertained as follows:-

(a) In the case of a co-operative society with unlimited liability, the value of the
share shall be the actual amount received by the co-operative society in respect of such share.

(b) In the case of the co-operative society with limited liability, the value of the
share shall be the amount arrived at by a valuation based on the financial position of the -co-operative society as shown in the last audited balance sheet, provided that it shall not exceed the amount actually received by the co-operative society in respect of such share. Explanation - For purposes of this rule, form of liability refers to limited or unlimited while 'extent' of friability means (a) face value of share (b) the multiple of the value of

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shares subscribed, and (c) value limited as to particular amount (such as guarantee liability) etc.

4.) Any member or creditor desiring to exercise his opinion under
sub-sec. (2) of sec. 14 shall inform the co-operative society accordingly in writing and where he does not propose to withdraw his entire shares or deposits, the members or creditor shall clearly indicate in writing the extent of his withdrawal. The option once exercised shall be final and shall not be revoked. The co-operative society shall examine and draw up a scheme for orderly payment of all the claims in an equitable manner including shares, the value to which shall be ascertained in accordance with the provisions of sub-rule (3), the scheme may also provide for settlement of claims by mutual agreement. Where Registrar does not approve the scheme on the ground of impracticability or undesirability, the resolution passed by the society under sub-rule (1) shall be ineffective,

5.) After the Registrar approves the scheme, the cooperative
society shall make payments to members and creditors as provided in clause (b) of sub-sec. (4) of sec. 14 and make a report to that effect to the Registrar and furnish the Registrar with a proposal to amend the bye-laws of the co-operative society duly passed in the behalf. On receipt of the proposal, the Registrar shall register the amendment in accordance with the provisions of section 11.

Reconstruction of a Society

1.) Where in the case of defunct societies or a co-operative society which
is being wound up, a proposal for compromise or arrangement-

(a) between a co-operative society and its creditors; (b) between the co-operative society and its members, is received, the registrar
may on the application of the co-operative society or any member or of any

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creditor of the co-operative society or of the liquidator, order reconstruction of the co-operative society in the manner hereinafter given.

2.) An application for reconstruction of 'a co-operative society under subrule (1) may be made in Form 9. On receipt of such application, the Registrar may taking into consideration the compromise or arrangement for reconstruction of the co-operative society, if he thinks fit, prepare a draft order indicating –

(a) the manner in which the amounts payable by the co-operative society
to its creditors should be paid and the amounts recoverable from its debtors and members should be recovered:

(b) the manner in which the share capital, if any, of such member should
be reduced;

(c) the manner in which the scheme of reconstruction should be
implemented: and

(d) the manner in which the bye-law of the co-operative society will stand
amended in cruder to given effect to the scheme of reconstruction.

A copy of the draft order shall be exhibited on the notice board of the co-operative society and a copy thereof shall be exhibited on the notice board of the office of the Registrar inviting objections and suggestions from, all those interested within a specified time, which shall not exceed one month.

3.) After taking into consideration the objections and suggestion (if any)
received, the Registrar may issue an order approving such reconstruction or staying further proceedings in respect of such reconstruction. On issue of an order approving the reconstruction, the co-operative society shall stand reconstructed and the bye-laws of the co-operative society shall be modified to that effect and to the extent.

4.) After the order referred to in sub-rule (3) has been made by the
Registrar the order of the liquidation already passed shall be deemed to have been withdrawn with effect from the date of the order under sub-rule (3).
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Procedure for issue of Winding up of the society

a. Before passing the order under section 63, the Registrar shall give an
opportunity to the society to show cause against the proposed order. The show cause notice shall be sent to the President of the Society as its registered address under registered post. The service of this notice will be complete after 48 hours of the posting of the letter properly addressed and pre-paid, containing the notice. The notice shall state the grounds on which the order under section63 is proposed to be made.

b. After considering the reply from the Society which shall be supported by the
resolution its committee, or if no reply is received by the Registrar within fifteen days of the service of the notice under sub-rule (1), he Shall proceed to pass the order under section 63.

c. The order passed under section 63 and sub-section (1) of section 66 shall be
communicated to the President of the society in the manner specified under subsection (4) of section 63, at the registered address of the Society. The communication will be complete as soon as the letter containing the order is so posted.

d. The order referred to in sub-rule (3) shall also be published in the official Gazette. e. The order referred to in sub-rule (3) shall take effect from the date of order
notwithstanding whether or not it is published in the official Gazette and shall operate in favour of all creditors, contributories, debtors and any other persons, having custody, possession and control over any asset or record of the society.

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FORM’E’

Notice under Rule 13(1) By Registered Post A.D. To, The Chairman, ………………… ……………………………Co-operative Society, ……………………………………

Sir, It appears to me that amendment/amendments of the bye-laws of your society as indicated in the attached statement is/are necessary and that it/those is/are desirable in the interest of your society.

I am to request you to consider this/these amendment/amendments in the interest of your society and to call upon you by this notice under Rule 13(1) of the Maharashtra Co-operative Rules, 1961, to take necessary steps to make he amendments to the bye-laws of your society within,……………days from the date of receipt of this notice, failing which action will be taken as provided under section 14(2) of the Maharashtra Co-operatives Societies Act, 1960.

Yours faithfully, Registrar of Co-operative Societies. No. ……………………….

Date ………………………. [Seal of the officer]

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Sr.No.

The extract wording of existing bye-laws

Bye-laws as it would read after amendment

Exact wording Reasons why of bye-law, if it amendment is is a new one considered necessary

Registrar of Co-operative Societies.

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FORM’A’ Application foe Registration Society Place: ____________ Date: _____________ To, The Additional/Joint Deputy Addistant Registrar, Co-operative Societies. 1. We submit herewith a proposal for registration of the following society enclosures as indicated below. along with

2. We also declare that the information given herewith, including that in the enclosures is correct to the best of our knowledge.

(a) Name of the proposed society:+ (b) Address to be registered: (c) Whether liability is limited or unlimited: (d) Area of operation: (e) Objectives of the society: (f) The amount of preliminary expenditure incurred by the promoters till
the date of application, and estimate of expenditure likely to be incurred by them thereafter with a view to getting the society registered. (g) Language in which the books and accounts of the society will be kept. 3. We are sending four copies of the proposed bye-laws signed by the applicant (not less than 10). Sr.No. (1) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Full Name (2) Chief Promoter Whether individual/ corporate body(3) Age (4) Nation (5) Profession (6)

*.Strike of whichever is not applicable. +.The name of the society should not have any reference to caste or religious denomination.

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Sr.No . (1)

Full Name (2)

Place of residence, village and taluka (7)

Amount subscribed to share capital (8)

Whether any other signatory of the application is a member of his family (9)

In the case of representative of society, whether he is a member of the committee of that society (10)

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Chief Promoter

Name and address of the person to whom correspondence regarding registration or otherwise should be addressed.

Signature1. Chef Promoter _______________ 2. _______________ 3. _______________ 4. _______________ 5. _______________ 6. _______________ 7. _______________ 8. _______________ 9. _______________ 10. _______________

N.B.-(1) in the case of a representative of society, a copy of the resolution of the committee of the society authorizing him to sign on its behalf, this application and bye-laws should be enclosed with this application.

(2) In the case of a corporate body, representative status of the signatory on behalf of the corporate body should be indicated.

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(3) the expression ―Member of family‖ means a wife, husband, father, mother, grand-father, grand—mother, step-father, step-mother, son-daughter, step-son, stepdaughter, grand-son, grand-daughter, brother, sister half brother, half sister, and wife or brother or half brother.

Enclosures1. Bank balance certificate. 2. List of persons who have contributed to the share capital together with the amount contributed by each of them and the entrance fee to be paid by them. 3. The scheme showing the details as to how the working of the society will be economically sound, and where the scheme envisages the holding of immovable property by the society, giving description of immovable property proposed to be purchased, acquired or transferred to the society. 4. a copy of the resolution authorizing a member of the committee of the registered society to sign the application on behalf of the society. 5. a copy of the document authorizing any person to sign the application on its behalf issued by a firm, company or other corporate body, a society registered under the Societies Registration Act, 1860 or public trust registered under any law for the time being in force relating to registration of public trusts. Sent by registered post……………/Delivered by hand by ………..to/in the office of the Assistant Registrar/Deputy Registrar/Joint Registrar/Additional registrar/Registrar. ………………..(Chief Promoter) Received by registered post/hand delivery on by in the office of the Assistant Registrar/ Deputy Registrar/Joint Registrar/Additional registrar/Registrar. Entered in the register of registration proposals at Serial No. ………………………………………. (Signature of the officer receiving this application).

ACKNOWLEDGEMENT Received Registration proposal no. …………… on ………………… for the registration of ………………………….. Society from the chief promoter Shri

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………………………………………. (Assistant Registrar/ Deputy Registrar/Joint Registrar/Additional registrar/Registrar.) Place: Date:

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INTERVIEW

Q1. what is your role/position in co-operative housing society? A. As a Chairman Q2. What is the procedure of the registration of co-operative society? A. All the information is available on the internet and for the further detail you can refer to books Q3. What is your organizational structure? A. Our organizational structure flow in the following way

CHAIRMAN

SECRETARY

C.MEMBER

C.MEMBER

C.MEMBER

Q4. What is your process to solve a problem when any problem comes in society office? A. If any problem arise the member of society who represent the society come together and plan the solution to a problem.

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CASE STUDY

MEMONWADA COOPARTIVE HOUSING SOCIETY
Case held in Mumbai at Memonwada co-operative housing dispute between the member and the developer of co-operative society. Each member of society having a car and previously the developer has shown in the plan about the car parking slot to be allotted to each member but as the work was complete they feel that they have been cheated and after that. They file a suit against the developer and member of society come together and plan to convert the ground which was kept as playing ground to car parking slots and demanded developer to develop the ground into car parking slot. The developer was not ready to do so as the case was filed in court and the case was in favour of cooperative society. And the developer was held by the court to complete the project as shown in the plan.

Jasmine co-operative housing society
Case held in Mumbai at jasmine Co-operative housing society dispute between the members regarding the maintenance of the building one of the member MR.Rajesh Shukla residing
on the 10th floor of a building having a flat of 1BHK & paying Rs2000 of maintenance. Some of the members including the secretary having 5BHK flat paying maintenance of Rs2500/- only. Repeatedly Complain lounge by MR.Rajesh shukla to increase the maintenance of 5BHK & to reduce the maintenance of 1BHK but no action taken by them. Lastly the matter goes to court & MR.Rajesh shukla won the case. Result is that MR.Rajesh shukla now paying Rs1800 instead of 2000 for 1BHK & other members residing in 5BHK now paying Rs5200/- instead of 5000/-

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BIBLIOGRAPHY Personal visit
Personal visit to the co-operative housing society at Jasmine co-operative housing society, Memonwada housing co-operative society and faima co-operative housing society. WEBSITE: www.google.com www.indianlawboard.com www.magagementparadise.com www.bmscampus.com OTHER REFERANCE’S: 1) Stubbs, Jeffry and Giles Clarke, eds. 1996. Megacity Management in the Asian and Pacific Region, Vol 1. Manila: Asian Development Bank. 2) Government of India. Annual Reports of Various Ministries for 1993-95. 3) Ministry of Urban Affairs and Employment, Government of India. 1996. IndiaNational Report: Second United Nations Conference on Human Settlements: HABITAT-II. 4) Ministry of Urban Affairs and Employment, Government of India. 1993. The Constitution (Seventy-fourth) Amendment Act, 1992 on Municipalities. 5) Ministry of Urban Affairs and Employment, Government of India. 1993. Power to the People: The Nagarpalika Act. 6) Ministry of Urban Affairs and Employment, Government of India. 1998. Report of the National Commission on Urbanisation. 7) Ministry of Urban Affairs and Employment, Government of India. 1996. Report of the Ninth Plan Working Group on Housing. 8) Ministry of Urban Affairs and Employment, Government of India. 1996. Report of the Ninth Plan Working Group on Urban Development including Urban Transport.

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9) Mohan, Rakesh. 1996. Urbanisation in India: Patterns and Emerging Policy Issues. Mimeo.

10) Mohanty, P. K. 1995. "Reforming Municipal Finances: Some suggestions in the context of India's Decentralisation Initiative." Urban India. National Institute of Urban Affairs, January-June, 1995. 11) Mohanty, P. K. 1996. "Urban Development Planning in India." Jeffry Stubbs and Giles Clarke, eds., Megacity Management in the Asian and Pacific Region, Vol 1. Manila: Asian Development Bank. 12) Mohanty, P. K. 1999. ―Decentralization Reforms and Innovations in Municipal Management in India.‖ Naved Hamid and Mildred R. Villareal, eds., Asian
st

Cities in the 21 Century: Contemporary Approaches to Municipal Management; Vol. 2—Municipal Management Issues in South Asia. Manila: Asian Development Bank. 13) Mohanty, P. K. 2000. "Some Initiatives in Urban Environmental Management in India.‖ Paper prepared for the Asian Development Bank Ministerial Conference 2000: Sustainable Development Agenda in Asia. 14) National Council of Applied Economic Research. 1996. The India Infrastructure Report: Policy Imperative for Growth and Welfare (Rakesh Mohan Committee Report). 15) National Institute of Urban Affairs. 1997. India‘s Urban Sector Profile, Research Study Series No. 61. New Delhi. 16) Tewari, V. K. 1997. ―Urbanisation in India: Patterns and Perspectives.‖ Paper presented at the National Seminar on Future Cities–Urban Vision: 2021, New Delhi, October 6-7, 1997. 17) Venkateswarlu, U. 1997. ―India's Urban Vision 2021-An Agenda for Shaping the Urban Future.‖ Paper presented at the National Seminar on Future CitiesUrban Vision: 2021, New Delhi, October 6-7, 1997.

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