FAQs regarding SRA Society

 Registration formalities for a SRA Society

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

Ans) 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?

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

Q 3.What is the currency used for all transactions?

Ans) 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?

Ans) 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?

Ans) 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?

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 Before registration of the Cooperative Housing Society, money can be withdrawn with the permission of the Registrar.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

Ans) 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?

Ans) 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?

Ans) Such societies can be de-registered under the provision of Section 21-A of the M.C.S. Act 1960.

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.

Q 10.What are the types of CHS?

Ans) 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 11.What remedy is available

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

Ans) 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.

General Meetings SRA

Q 1.When the first General Meeting can be convened?

Ans) The first General Meeting can be convened within a period of three months from the date of registration of CHS.

Q 2.Who can convene the first General Meeting?

Ans) Chief Promoter of the CHS can convene the first General Meeting of the members.

Q 3.What is the remedy if the first General Meeting is not called by Chief Promoter in time?

Ans) 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 business is to be transacted in the first General meeting?

Ans) Following business shall be transacted in the first General Meeting

 Election of a president

 Admission of new members, if applications are received.

 Receiving a statement of accounts and report stating all transaction entered in by Chief Promoter upto 14 days before the meeting.

 Constitution of provisional committee for a period of one year.

Q 5.Who is responsible to convene the AGM?

Ans) Rules 60 of the M.C.S. Rules 1961 provides that the secretary of the CHS is responsible to convene the AGM

Q 6.Who is responsible to ensure the AGM is convened within the stipulated time?

Ans) Bye-law No 139 (16) provides that the committee of the CHS should ensure the holding of AGM within the prescribed period.

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

Ans) What is the business to be transacted in AGM?

 To receive a report of the committee together with statement of accounts for the preceding cooperative year/years.

 To consider audit report received from the Statutory Auditor for the previous Cooperative year/years.

 To declare the result of election if held prior to AGM

 To consider the appointment of Statutory Auditor.

Q 8.If the business on the agenda is partly transacted then what are the provisions?

If the business on the agenda of the general meeting of the CHS is partly transacted then the said meeting shall be postponed to any other suitable date, not later than 30 days from the date of the meeting as may be decided by the members present at the meeting.

Q 9.Whether the AGM can be adjourned due to want of quorum?

Ans) AGM can be adjourned for want of

 quorum :

To the time as may be specified in the notice on the same day or

To a subsequent date, not earlier than seven days.

Holding of adjourned meeting will not required quorum.

Q 10.What business cannot be transacted in AGM without due notice?

Ans) Following business cannot be transacted in AGM without due notice :

 Expulsion of members of the CHS,

 Amendment of bye-laws,

 Bifurcation, amalgamation, division of the CHS,

 Transfer of Property of the CHS.

Q 11.What is the minimum period of notice of AGM?

Ans) 14 clear days notice is required to be given for calling the AGM.

Type of Committee

Q 1.What is the period of provisional committee?

Ans) The period of provisional committee is of one year from the date of which it has been first constituted.

Q 2.When the subsequent committee is constituted ?

Ans) Subsequent committee is constituted after election to the committee as per approved Election Rules. Election committee is required to be constituted as per the provision of Section 73 of M.C.S. Act 1960.

Q 3.Which is the Competent Authority to challenge the election?

Ans) Election of Committee or its member can be challenged by filing dispute under Section 91 of M.C.S. Act 1960. Before the Cooperative court.

Q 4.What are the disqualifications to elect or to remain on the committee?

Ans) Bye-laws No. 118 provides one of the following disqualifications to remain on Committee :

 Convicted of the offense,

 Defaults the payment of dues to the society within three months from the date of service of notice in writing,

 Held responsible under section 79 ,85 or 88 of the MCS Act 1960,

 Sublets flat without prior permission of the CHS,

 Remains absent for three consecutive meeting of the committee.

Q 5.Whether the member of the ex committee can contest the election?

Ans) Ex managing Committee member can contest the election, if they are otherwise qualified.

Q 6.What is the remedy available if the nomination to the election rejected by the Returning officer?

Ans) An appeal under section 152A of M.C.S. Act 1960 may be filed within a period of three days before the concerned Registrar from the date of rejection of nomination.

Q 7.If the member has paid his dues before the time of scrutiny of nominations, whether he can qualify to contest election?

Ans) If the member pays his dues before the time of scrutiny of nominations, he becomes eligible to contest the election of committee.

Q 8.If the member held responsible under section 79 or 88 or 85 is eligible to contest the election of committee.

Ans) Member held responsible under 79 or 88 or 85 is eligible to be re-nominated, re-co-opted, re-elected as a member of committee, after expiry of five years from the date of which he has ceased to be a member of the committee.

Q 9.What is the remedy available if the committee members default the payments of dues CHS.

Ans) A Committee member who defaults the payment of dues of CHS incur disqualification to remain on committee. Remedy is to approach registering authority for removal of such committee member u/s 78.

Q 10.A member of the committee makes the default in the payment of dues of CHS and pays the same after some period,

Ans) Default of payment of dues incurs disqualification to remain on committee :

 On the date of default such member ceases to continue on the committee and his seat shall be deemed to be vacant.

 Subsequent payment of dues wipes out default but not disqualification.

 Such member is eligible for re election or co option on vacant seat on payment of dues.

Q 11.Whether the member of the committee can be removed by passing resolution in it?

Ans) Committee has no authority to remove the members from its committee.

Funds - SRA

Q 1.How many funds are required to be raised by CHS?

Ans) Funds to be raised by CHS are :

 The repair and maintenance funds at the rate fixed by G.B subject to the minimum of 0.75 % per annum of construction cost of each flat.

 Major repairs funds as and when required and decided by GB at the rate fixed on area basis.

 The sinking funds at the rate fixed by G. B subject to the minimum of 0.25% per annum of construction cost of each flat.

 Reserve funds as provided u/s 66 of the M.C.S Act 1960.

Q 2.What is the difference in utilization of repairs and maintenance fund and major repairs fund?

Ans) Repairs and maintenance funds is utilized for meeting the expenditure on maintenance and normal repairs of the building of CHS by committee. Major repairs fund is utilized with prior approval of G.B. for major repairs such as plastering, Colour of buildings etc.

Q 3.When Sinking Funds are to be utilized?

Ans) Sinking funds are to be utilized on recommendations of architect and with prior approval of G.B for meeting the expenditure on structural additions or alterations to the building /buildings of CHS.

Membership of SRA Society

Q 1.Who can become member of the CHS?

Ans) A persons who is competent to contact under the Indian Contract Act 1872, or

 A firm company or any other body corporate constituted under any law for the time being in force, or a society registered under the societies Registration Act 1860, or

 A society registered or deemed to be registered under MCS Act 1960, or

 A State Government or the Central Government, or

 A Local Authority, or

 A public trust registered or to be registered.

Q 2.What procedure is required to be followed by a person to become a member of a CHS?

Ans) Procedure for becoming member.

An application in the prescribed form giving complete details shall be submitted to CHS

Shall pay the value of ten shares of Rs 50/- each along with payment of Rs 100/- towards entrance fee.

 Undertaking as prescribed in the bye law are to be submitted.

 A copy of stamped and registered purchased agreement.

Q 3.What is a remedy available, if a society refuses a membership of the member?

Ans) A person whose membership application is not accepted by CHS may apply to the Registrar u/s 23 (1A) in the prescribed H-1 form.

Q 4.What remedy is available to a member whose application for membership is not decided by CHS within a period of three months?

Ans) On failure of CHS to dispose of the membership of a person within a period of three months m he may apply to the Registrar u/s 22 (2).

Q 5.What remedy is available whose membership application is rejected by CHS?

Ans) A person whose application for membership is rejected, may apply to the Registrar u/s 23 (2) of the M.C.S. Act 1960.

Q 6.What % of membership of firm , company and body corporate are allow in CHS?

Ans) Upto 60% of the total membership is allowed to firm, company and body corporate members

Recovery of Dues

Q 1.Whether the managing Committee is empowered to collect transfer premium more than Rs 25,000/- if general body passed such resolution?

Ans) Bye law no. 38 provides that the CHS may collect amount of premium at the rate to be fixed by the General Body meeting but within the limits as prescribed under the circular issued by the Department of Co-operation, Government of Maharashtra from time to time and therefore the general body's resolution contradicting the Government circular shall not be acted upon.

Q 2.Whether the managing committee can charge the transfer premium in case of mutual exchange of flat by members?

Ans) Bye-law No. 38 bars the CHS for collecting transfer premium for mutual exchange of flat amongst the member in the CHS.

Q 3.Whether the managing committee of CHS has authority to collect the transfer premium for transfer of flat in family member?

Ans) Bye-law No 38 bars the CHS for collecting transfer premium for transfer of flat to family members.

Q 4.Whether member can transfer share or his interest within a period of one year?

Ans) Section 29 (2) provides that member cannot transfer any share held by him or his interest in the capital or property unless and until he has held such share or interest for a period of one year.

Q 5.When non occupancy charges can be collected by CHS?

Ans) Non-occupancy charges can be collected by CHS only when member has rented out his flat or given on leave and license basis.

Q 6.How much non occupancy charges can be collected by CHS?

Ans) Non-occupancy charges can be collected to the extent as decided by the General body meeting but not more than 10% of the service charges as has been stated in the circular dated 1st of August 2001 issued by State Government.

Q 7.Whether service charges are to be charged according to the area and size of the flat?

Ans) Service charges are to be charged equally irrespective of the size of the flat as provided in bye law no 69 of the model bye laws.

Q 8.Whether water charges are to be levied to the shop /office members?

Ans) Bye-law no 69 provides that water charges can be charged on the basis of total number and size of inlets provided in each flat. Therefore, water charges shall be levied from those unit holders who have supplied water connections only.

Repairs

Q 1.What remedy is available of CHS is not carrying out repairs of the flat?

Ans) Member may file dispute u/s 91 of the MCS Act 1960 before Cooperative Court.

Q 2.is members who reside in upper flat and carries out interior.

This results in damaging the plaster of the 'B’ who lives in the lower flat. Whether repairs to plastering of the ceiling of flat of ‘B’ are to be carried out from the society's funds?

Ans) Such type of repairs cannot be carried from funds of the CHS. The remedy available is to file dispute u/s 91 of MCS Act 1960 before Cooperative Court.

Q 3.is the member who lives in the flat which is above flat

'A' is the member who lives in the flat which is above flat ‘B’ has undertaken repairs. This has resulted in leakages in the flat of ‘B’ which is below flat ’A’. Whether such type of leakages can be repaired from society’s funds?

Ans) Bye-laws No 160 provides that repairs of such type of leakages cannot be done from the funds of CHS. Remedy available is to file dispute u/s 91 of the MCS Act 1960 before cooperative Court.

Q 4.is the member living in the upper flat

"A" is the member living in the upper flat, he does not carry out any alteration/ modification and leakages started in the lower flat due to structural defects. Whether such leakages can be repaired from the funds of the CHS?

Ans) Such type of repairs can be carried out from funds of the CHS.

Q 5.A member "A" is having terrace flat. Plaster of ceiling of flat is damaged whether can be repaired by CHS from its funds?

Ans) Yes, the same can be repaired by CHS from its funds.

Q 6.Whether a member can claim compensation to repairs carried out by him

Whether a member can claim compensation to repairs carried out by him which is supposed to carry out by CHS from its own fund. Which is the proper authority?

Ans) For compensations of the repairs carried out by member of behalf of the CHS, he may file dispute in the Cooperative Court u/s 91 of MCS Act 1960 if CHS refuse to give him required credit.