As a general principle, cooperative housing societies restrict members from holding more than one flat in the same society. This restriction is intended to prevent concentration of ownership and ensure fair availability of housing to members. However, this is not an absolute prohibition.
The Model Bye-laws clearly provide specific exceptions under which a member is legally permitted to own more than one flat in the same society.
Provision Under Bye-law 60: Key Exception
Bye-law 60 expressly allows an individual member to hold more than one flat in the same society, subject to compliance with the prescribed procedure.
Under this bye-law, a member may purchase and hold another flat:
• in his or her own name, or
• in the name of a family member, with the approval of the managing committee.
Therefore, purchasing an additional flat is legally permissible, provided the society’s procedural requirements are followed.
Meaning of ‘Family’ Under the Bye-laws
For the purpose of holding more than one flat, the term “family” has a specific and limited meaning under the bye-laws. It includes:
• wife or husband
• father
• mother
• son
• unmarried daughter
Accordingly:
• purchasing a flat in your wife’s name is allowed,
• purchasing a flat in your son’s name is also allowed, and
• such purchases are treated as compliant with Bye-law 60.
Is Prior Permission of the Society Required?
Yes, while ownership of more than one flat is permitted, prior approval of the managing committee is mandatory.
The member is required to submit a formal application to the society seeking permission to hold more than one flat. The society cannot arbitrarily refuse such permission if the conditions under the bye-laws are satisfied.
Application Format: Appendix 27
Appendix 27 to the Model Bye-laws prescribes the standard format for applying to the managing committee for permission to hold more than one flat in the same society.
The application generally includes:
• details of the existing flat,
• details of the proposed flat to be purchased,
• declaration regarding compliance with bye-laws, and
• relationship with the family member, if applicable.
Once the managing committee grants approval, the transaction can proceed lawfully.
Society’s Role and Limitations
The managing committee’s role is limited to verifying compliance with Bye-law 60. It cannot impose additional conditions beyond the bye-laws, nor can it deny permission merely on the ground that a member already owns one flat.
Any unreasonable refusal or delay by the committee can be challenged under the cooperative laws.
Conclusion
It is not mandatory to seek permission to purchase a flat elsewhere, but if the purchase is within the same society, prior approval of the managing committee is required. Bye-law 60 clearly allows a member to own more than one flat in the same society, either in their own name or in the name of specified family members such as a wife or son, subject to compliance with Appendix 27. Proper application and documentation ensure a smooth and legally valid transaction.
