Cooperative Housing Society (CHS): Maharashtra GR Allows Small Societies to Conduct Committee Election Internally

The Maharashtra government has issued a government resolution (GR) to amend Maharashtra Cooperative Societies Act of 1960. One of the main amendments in the GR allows small cooperative housing societies (CHS) to conduct internal election for managing committee. 

 

"In section 73CB of the MCS Act, 1960 to sub-section (11), after the existing proviso, the following proviso shall be inserted, namely :— 'Provided further that, in case of housing society having less than or up to 200 Members, the elections of the Committee shall be conducted by the said housing society in the manner as may be prescribed,” the amendment says.

 

Among all cooperative societies in Maharashtra, cooperative housing societies are largest in number or constitute about 50% of the total societies. While affairs of the co-operative housing societies are distinct and peculiar, they were regulated in the same manner as per the general provisions of the said Act, as applicable for all other co-operative societies, like co-operative sugar factories, district central co-operative banks, and co-operative spinning mills.

 

This has created problems and several provisions in the Act were inadequate to address specific grievances of housing societies in the state. Many cooperative housing societies and CHS federations have raised the issue with the state government, which had promised to look into these issues. 

 

The GR also puts restriction on transfer of share or interest of a Member on a CHS. Accordingly, the Society cannot transfer share or interest of a member or the occupancy right, except tranfer of his heir or nominee, unless dues of the CHS are paid and the transferee applies and become member of the housing society. In this, occupancy rights do not include right of a tenant or licensee on leave and license basis. 

 

Here are salient features of New Housing Chapter in MCS Act 1960...

 

1. Elections to the housing societies for less than 200 members to be conducted internally by the society.

2. Concept of new members like joint and provisional members introduced

3. Concept of Cooperative Housing Association introduced to facilitate the formation of association of less than five societies for conveyance or Deemed conveyance matters.

4. Penalty of Rs25,000 on management committee introduced for not allowing inspections of documents under section 32.

5. Scope of Section 32 in inspection of documents widened.

6. Role of Housing federations widened.

7. Hindu undivided family (HUF) is specially included as person in the definition, which was not included earlier.

8. Defaulter is specifically defined now in the Act itself.

9. Concept of ‘Provisional Member’ introduced.