FAQs on Society Registration in Maharashtra

By Legal Bureau

Q 1. What is the minimum number of promoters required to join the registration proposal?

A. 60% of the flat purchasers/ promoters are required to join the registration proposal if building is constructed by builder/developer.
· 90% promoters are required to join the registration proposal for society of open plot type category.

Q 2. What is the minimum number of promoters required to sign the registration proposal?

A. 60% of the promoters who have joined the registration proposal are required to sign it.

Q 3. Whether Co-operative Housing Society having less than 10 units can be registered?

A. Cooperative Housing Society having less than 10 units can be registered subject to the following conditions:

· The built up area of each unit should not be more than 700 sq. ft.
· There should not be balance F.S.I
Q 4. What is the remedy available, if the builder does not register a Co-operative Housing Society?

A. Chief Promoter of the proposed society shall submit a registration proposal of the co-operative housing society to the concerned Registrar under the category of non- co-operation of builder.

Registrar may consider such a proposal for Registration on merit.

Q 5. What are the conditions for registration of Cooperative Housing Society in private building?

A. Conditions for registration of CHS in Private building

· Registering authority can register CHS on merit if 90% of the tenants join the registration proposal.
· Registering authority can register CHS on merit and with previous approval of State Government if 75% to 90% of the tenants join the registration proposal.
· Proposal for registration will not be entertained if percentage of tenants is below 75%
· The Tenant promoter joining the proposed CHS shall have to agree to contribute to the cost of flats of non joining tenants.
· In case tenants have created sub tenancy in terms of Rent Act, sub tenants and not the tenants be allowed to join the proposed CHS.
Q 6. Whether the Chief Promoters has got authority to withdraw the money deposited in the bank in the name of proposed CHS?

A. The Chief Promoter has got no power to withdraw such money.

Before registration of the Cooperative Housing Society, money can be withdrawn with the permission of the Registrar.

Q 7. What is the remedy available if the Registrar does not take any decision on registration proposal within a period of 2 months?

A. Failure to dispose of the registration proposal of a housing society within a period of two months, the Registrar has to submit the said registration proposal to the next higher authority within a period of 15 days from the date of expiry of two months.

On failure of such higher authority to dispose of the said registration proposal within two months from the date of receipt of the proposal to his office, the registration proposal shall be deemed to be registered under the provision of the Maharashtra Co-operative Societies Act 1960.

Q 8. What is the remedy available if the registration proposal is rejected?

A. Such rejection order can be challenged by filing appeal under section 152 of the M.C.S. Act 1960 before the Divisional Joint Registrar C.S. of the concerned Division.

Q 9. What are the circumstances for de-registration of a Cooperative Housing Society? And under which section?

A.· If the society is registered.
· On the misrepresentation made by the applicants, or
· The work of the society is completed or exhausted, or,
· The purpose for which the society has been registered is not served.
Such societies can be de-registered under the provision of Section 21-A of the M.C.S. Act 1960.

Q 10. Under what circumstances registration of the CHS can be canceled?

A. Registrar can cancel the registration of CHS under section 21 of the M.C.S. Act 1960. Under the following circumstances:

· If a CHS transfer the whole of its assets and liabilities to another society or.
· Amalgamates with another society, or
· Divides itself into two or more societies or,
· Liquidation proceedings are terminated under section 109.

Q 11. What are the types of CHS?

A. Rules 10 of the Maharashtra Co-operative Societies Rules, 1961 provides the following classification of the CHS

· Tenants’ ownership Co-operative Housing Society.
· Land is held on lease hold or free hold basis
· Houses are owned or are to be owned by member.
· Tenants Co-partnership Cooperative Housing Society.
· Both land and houses owned by society.
· Houses are allotted to members.
· Other Co-operative Housing Society.
· Houses mortgages societies
· Houses construction society.

Q 12. What fee is to be paid to the Government for registration of a Cooperative Housing Society?

A. Proposed society can made the payment towards government fee as applicable from time to time. The present registration fee is:

Tenant Co-partnership /ownership CHS – Rs. 2,500.00

Other (General ) CHS – Rs. 2,500.00

Q 13. When at least 20% of backward class members are required for registration of a Cooperative Housing society?

A. This condition is applicable for plot purchase type society under the following circumstances.

· When society intends to borrow fund for construction of building from State Government and/ or MHFC Limited.
· If land grant authority insists for such conditions.

Q 14. Whether promoters are required to submit their applications for membership to the Chief Promoter before registration of Cooperative Housing Society?

A. Yes, all the promoters should submit their application for membership to the Chief Promoter before registration so s to enable him to undertake about receipt of application for membership in the prescribed “Y” form to be submitted to the Registering Authority at the time of Registration.

Q 15. What remedy is a available if Chief Promoter does not deposit the share money collected from promoters in the Bank?

A. Failure of Chief Promoter in depositing share money collected from promoters of proposed CHS amounts to an offense u/s 146 of M.C.S. Act 1960.

Chief promoter can be prosecuted in the court of law with previous approval of Divisional Joint Registrar of concerned Division u/s 148.

Q 16. What remedy is available if any person collects share money or any other sum by misrepresentation to the prospective members in the name of the society to be registered?

A. It will amount to an offense u/s 146 of MCS Act 1960.

Such person can be prosecuted in the court of law with provision approval of DJR of concerned Division u/s 148.