The formation and administration of a Cooperative Housing Society (CHS) in Maharashtra are governed by the Maharashtra Cooperative Societies Act, 1960 (MCS Act) and rules made thereunder. With the increasing number of residential projects and frequent redevelopment activities, understanding the minimum members requirement and the process of increasing membership becomes essential for flat purchasers and managing committees.
Minimum Number of Members Required to Form a Society
As per Section 154B-2 of the MCS Act, a cooperative housing society can be formed by:
- A minimum of five individuals,
OR - 51% of the total flat purchasers (intending members) as per the sanctioned building plan,
Whichever is higher.
These individuals must be from different families. The definition of “family” under this provision includes the husband, wife, father, mother, dependent son, and unmarried dependent daughter.
For example, if a residential project has 20 flats, at least 11 purchasers (51%) from different families are required to sign the application to form the society. These signatories must submit their consent and comply with the documentation requirements set by the Registrar of Cooperative Societies.
Unless the above conditions are met, the Registrar cannot proceed with the registration of the housing society.
Role of the Promoter Under RERA
As per the Real Estate (Regulation and Development) Act (RERA), the developer (promoter) is obligated to facilitate the formation of a CHS once 50% of the flats in the project are sold. This provision ensures timely formation and transfer of control to the residents.
Once formed, every flat purchaser is required to become a member of the cooperative society. The society is expected to collect share capital, admission fees, and maintenance contributions as per its bye-laws.
Increase in Membership During Redevelopment
When a cooperative housing society undergoes redevelopment, the number of flats may increase due to additional construction permitted by municipal authorities. As new flats are sold by the developer post-redevelopment, new purchasers are required to become members of the society.
Here’s how the increase in membership is managed:
- The society must amend its bye-laws to increase:
- The total number of members
- The authorised share capital
- Other related provisions like voting rights, maintenance contributions, etc.
- The process must comply with the Government Resolution (GR) dated July 4, 2019, which provides the framework for redevelopment of cooperative housing societies in Maharashtra.
- The newly constructed units must be treated as part of the same society, unless the society is split or amalgamated as per Section 16 of the MCS Act.
This expansion must be done legally and democratically through general body resolutions, approvals from the Registrar, and updates to the Registrar’s records.
Conclusion
The formation of a cooperative housing society requires a specific minimum number of members under the MCS Act, and all members must belong to different families. Once formed, membership becomes mandatory for all flat purchasers. In the case of redevelopment, as the number of flats increases, the membership base of the society also expands accordingly. Proper documentation, amendment of bye-laws, and regulatory compliance are essential to reflect these changes.
