Special Chapter on Housing Societies in MCS Act
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.
Here is the text of the GR issued by Maharashtra Government on 30 October 2018…
CO-OPERATION, MARKETING AND TEXTILES DEPARTMENT
Mantralaya, Madam Cama Marg, Hutatma Rajguru Chowk,Mumbai 400 032, dated the 30th October 2018.
MAHARASHTRA ORDINANCE No. XXV OF 2018.
AN ORDINANCE further to amend the Maharashtra Co-operative Societies Act, 1960.
WHEREAS both Houses of the State Legislature are not in session;AND WHEREAS the Governor of Maharashtra is satisfied that circumstancesexist which render it necessary for him to take immediate action further to amendthe Maharashtra Co-operative Societies Act, 1960, for the purposes hereinafterappearing;NOW, THEREFORE, in exercise of the powers conferred by clause (
1
) ofarticle 213 of the Constitution of India, the Governor of Maharashtra is herebypleased to promulgate the following Ordinance, namely
:—
1.
(
1
)This Ordinance may be called the Maharashtra Co-operative Societies(Third Amendment) Ordinance, 2018.(
2
) It shall come into force at once.
Mah.XXIV of1961.Short title andcommencement.
¨É½þÉ®úɹ]Å õ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ
+ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö
´É¹ÉÇ 4,+Æ Eòú 73
]
¨ÉÆ Mɳý´ÉÉ®ú, +Éì C]õÉä ¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEä ò 1940
[
{ÉÞ ¹`ä 17, ËEò¨ÉiÉ :¯û{ɪÉä 27.00
+ºÉÉvÉÉ®úhÉ Gò¨ÉÉÆ Eòú 142
|ÉÉÊvÉEÞòiÉ |ÉEòɶÉxÉ
¨É½þÉ®úɹ]Å õ Ê´ÉvÉÉxɨÉÆ b÷³ýÉSÉä +ÊvÉÊxÉªÉ¨É ´É ®úÉVªÉ{ÉɱÉÉÆ xÉÒ |ÉJªÉÉÊ{ÉiÉ Eä ò±Éä ±Éä +vªÉÉnä ù¶É ´É Eä ò±Éä ±Éä Ê´ÉÊxÉªÉ¨É +ÉÊhÉ Ê´ÉÊvÉ ´É xªÉÉªÉ Ê´É¦ÉÉMÉÉEòbÚ ÷÷xÉ +ɱÉä ±ÉÒ Ê´ÉvÉä ªÉEä ò (<Æ OÉVÉÒ +xÉÖ ´ÉÉnù).
In pursuance of clause
(3)
of article 348 of the Constitution of India, the following translation inEnglish of the Maharashtra Co-operative Societies
(Third Amendment)
Ordinance, 2018 (Mah. Ord. XXVof 2018), is hereby published under the authority of the Governor.By order and in the name of the Governor of Maharashtra,RAJENDRA G. BHAGWAT,I/c. Secretary (Legislation) to Government,Law and Judiciary Department.[Translation in English of the Maharashtra Co-operative Society (
Third Amendment
), Ordinance, 2018(Mah. Ord. XXV of 2018), published under the authority of the Governor].
———————
RNI No. MAHENG/2009/35528
¦ÉÉMÉ +É`ö---142--1(1)
2
¨É½þÉ®úɹ]Å õ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +Éì C]õÉä ¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEä ò 1940
2.
In section 73CB of the Maharashtra Co-operative Societies Act, 1960
(hereinafter referred to as “the principal Act”), to sub-section (
11
), after the existingproviso, 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.”.
3.
In section 101 of the principal Act, in sub-section (
1
), the words “by a
co-operative housing society, for the recovery of its dues or for the recovery of its
maintenance and service charges, or” and the
Explanation II
shall be deleted.
4.
In section 146 of the principal Act, after clause (
p-1
), the following clauseshall be inserted, namely
:—“(
p-2
) any officer or past officer or Member or past Member of theCommittee of the housing society fails to supply the copies of the documentsas provided under sub-section (
2
) of section 154B-8; or
”.
5.
In section 147 of the principal Act, after clause (
p-1
), the following clauseshall be inserted, namely
:—“(
p-2
) if it is an offence under clause (
p-2
) of that section, with fine whichmay extend to twenty five thousand rupees
;”.
6.
In section 152 of the principal Act, in sub-section (
1
), after the figures
and words “105 including against an order for paying compensation to society”the words, figures and letters “, and sub-section (
1
) or (
3
) of section 154B-3” shall
be inserted.
7.
After section 154A of the principal Act, the following CHAPTER shall beinserted, namely
:—“CHAPTER XIII-B
C
O
-
OPERATIVEHOUSINGSOCITIES
154B.
(
1
) The following provisions of this Act shall apply
mutatis mutandis
to the housing societies, namely
:—
Section 1, clauses (
5
), (
6
), (
7
), (
8
), (
10
), (
10-ai
), (
10-aii
), (
10-aiii
),(
13
), (
14
), (
16
), (
17
), (
18
), (
20-A
), (
21
), (
24
), (
26
), (
27
), (
28
), (
29
), (
29A
)and (
31
) of section 2, sections 3, 3A, 4, 5, 7, 9, 10, 12, 13, 14, 15, 17,18, 19, 20, 20A, 21, 21A, 22, sub-sections (
1
), (
2
) and (
3
) of section 23,sections 25, 25A, 31, 33, 34, 35, 36, 37, 38, 40, 41, 42, except provisoof sub-section (
1
) of section 43, section 45 and sub-sections (
1
)(
b
), (
2
)and (
3
) of section 47, section 50, sections 64, 65, 66, 67, 68, 69, 70, 71,71A, 72, 73, sub-sections (
2
) to (
7
) of sections 73ID, 73B, 73C, 73CB,73F, 73I, 75, 76, 77, 77A, sub-sections (
1
), (
1A
) and (
1B
) of section 79,sections 79A, 79AA, 80, 81 to 89A, 91 to 100, 102 to 110, 145 to 148A,149 to 154, 154A and 155 to 168.(
2
) The following provisions of this Act shall not apply to the housingsocieties, namely
:—
Clauses (
1
)(
a
) and (
b
), (
2
)(
a
), (
b
) and (
c
), (
4
), (
9
), (
10-aii-1
), (
10A
),(
11
), (
11-A
), (
12
), (
14-A
), (
15
), (
16-A
), (
19-a-1
), (
19-A
),(
22
), (
23
)and (
25
) of section 2, section 6, sections 11, 16, 18A, 18B, 18C,23(
4
), 24A, 26, 27, 28, 29, 30, 32, 32A, 39, 44, 44A, 46, 47(
1
)(
a
),47(
4
), 48, 48A, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61,62(
b
), 69B, 72A, 73B(
4
), 73(
1A
)(
b
), 73A, 73CA, 74, 78, 90, 110Aand sections 111 to 144-1A.
Amendment ofsection 73CBof Mah. XXIVof 1961.Mah.XXIV of1961.Amendment ofsection 101 ofMah. XXIV of1961.Amendment ofsection 146 ofMah. XXIV of1961.Amendment ofsection 147 ofMah. XXIV of1961.Amendment ofsection 152 ofMah. XXIV of1961.Insertion ofCHAPTERXIII-B in Mah.XXIV of 1961.Applicationand non-application ofprovisions ofthis Act to thehousingsocieties.
¨É½þÉ®úɹ]Å õ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +Éì C]õÉä ¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEä ò 1940
3
154B-1.
In this Chapter, unless the context otherwise requires,—
(
1
) “allotee” means a Member of a housing society to whom a plot
of land or a site, or a flat in a building or complex held by it, is allotted bythe co-operative society, or a person who has purchased a flat from thedeveloper or competent authority and joined as a Member of the society;(
2
) “Architect” means a person registered as an architect under the
provisions of the Architects Act, 1972;(
3
) “Auditor”
means a person or an auditing firm who or which hasbeen empanelled on the panel approved by the State Government undersub-section (
1
) of section 81;(
4
) “Builder promoter” means,—
(
i
)a person who constructs or causes to be constructed anindependent building or a building consisting of flats, or converts anexisting building or a part thereof into flats including the re-development of building or buildings, for the purpose of selling all orsome of the flats to other persons and includes his assignees; or(
ii
)a person who develops land into a project, whether or notthe person also constructs structures on any of the plots, for thepurpose of selling to other persons all or some of the plots in thesaid project, whether with or without structures thereon; or(
iii
) any development authority or any other public body in
respect of allottees of,—
(
a
)buildings or flats, as the case may be, constructedby such authority or body on lands owned by it or placed atits disposal by the Government; or(
b
)plots owned by such authority or body or placed atits disposal by the Government, for the purpose of selling allor some of the flats or plots; or(
iv
) an apex State level co-operative housing finance societyand a primary co-operative housing society which constructs flatsor buildings for its Members or in respect of the allottees of suchflats or buildings; or(
v
) any other person who acts himself as a builder, coloniser,contractor, developer, estate developer or by any other name orclaims to be acting as the holder of a power of attorney from theowner of the land on which the building or flat is constructed or plotis developed for sale; or(
vi
) such other person who constructs any building orapartment for sale to the general public;(
5
) “Chief promoter” means a promoter who has been elected so in
the meeting of promoters for registration of a housing or premises society;(
6
) “Corpus fund” means payment received or receivable by the
society from the developer in lieu of surrendering its development rightsof plot by way of registered document or contributed by Members forany purpose as decided in general meeting;(
7
) “Co-operative Housing Association” means association of
housing societies or other legal bodies for the purpose of maintenanceof common amenities or conveyance of land and common amenities inrespect of plot or layout;
Definitions.20 of1972.
¦ÉÉMÉ +É`ö---142--1+
4
¨É½þÉ®úɹ]Å õ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +Éì C]õÉä ¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEä ò 1940
(
8
) “Committee” means the managing Committee or other governing
body of a society to which the direction and control of the managementof the affairs of a society is entrusted to;(
9
) “Committee Member” means a Member of the society who has
been elected or co-opted or nominated in accordance with this Act, rulesand bye-laws of the society;(
10
) “defaulter” means a Member or flat owner or occupier who fails
to pay the dues of the society within three months from the date ofservice of bill or notice or due date of payment, whichever is later;(
11
) “dues” means the amount payable by a Member or flat owner
to the society and demanded by the society by issuing bill or notice inwriting and such demand is based on the provisions of this Act, rulesand bye-laws of the society;(
12
) “Federal society” means a federation of—
(
a
) not less than five registered housing societies, and(
b
) in which the voting rights are so regulated that the Memberswhich are housing societies have not less than four-fifths of the totalnumber of votes in the general meeting of such society;(
13
) “Flat” means block, chamber, dwelling unit, apartment, office,
showroom, shop, godown, premises, suit, tenement, unit or by any othername, means a separate and self-contained part of any immovableproperty, including one or more rooms or enclosed spaces, located onone or more floors or any part thereof, in building or on a plot of land,used or intended to be used for any residential or commercial use suchas residence, office, shop, showroom or godown or for carrying on anybusiness, occupation, profession or trade, or for any other type of useancillary to the purpose specified;(
14
) “General Body” means all the Members of the society
;(
15
) “General Meeting” means meeting of General Body called and
conducted in view of the provisions of this Act, rules and bye-laws;(
16
) “Housing Federation” means the federal body notified by the
Government in the
Official Gazette
to be the representative of theregistered Housing Societies of the specified areas notified by theGovernment, from time to time;(
17
) “housing society” means a society, the object of which is to
provide its Members with open plots for housing, dwelling houses or flats;or if open plots, the dwelling houses or flats are already acquired, toprovide its Members common amenities and services and to demolishexisting buildings and reconstruct or to construct additional tenementsor premises by using potential of the land;(
a
) “tenant ownership housing society” means a society the
object of which is to allot the plots to its Members to construct thedwelling unit or flats thereon or to allot the dwelling units alreadyconstructed and where land is held either on lease hold or free holdbasis by the society and houses are owned or to be owned by theMembers;
¨É½þÉ®úɹ]Å õ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +Éì C]õÉä ¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEä ò 1940
5
(
b
) “tenant co-partnership housing society” means a society
the object of which is to allot the flats already constructed or to beconstructed to its Members and where both land and building orbuildings are held either on free-hold or lease-hold basis by thesociety; and(
c
) “other housing societies” means the house mortgage co-
operative societies, house construction co-operative housingsocieties and premises co-operative societies where all the unitsare offices or commercial
galas
;(
18
) “Member” means a person joining in an application for the
registration of a housing society which is subsequently registered, or aperson duly admitted to Membership of a society after its registration andincludes associate or joint or provisional Member;(
a
) “Associate Member” means a person duly admitted to
Membership of a housing society on written recommendation of aMember to exercise his rights and duties with his written priorconsent and whose name does not stand in the share certificate;(
b
) “Joint Member” means a person joining in an application
for the registration of a housing society jointly, which is subsequentlyregistered or a person who is duly admitted to Membership after itsregistration and who holds share, right, title and interest in the flat jointly but whose name does not stand first in the share certificate;(
c
) “provisional Member” means a person who is duly admitted
as a Member of a society temporarily after death of a Member onthe basis of nomination till the admission of legal heir or heirs asthe Member of the society in place of deceased Member;(
19
) “Officer” means a person elected or appointed by a society to
any office according to its bye-laws; and includes any office bearer suchas a chairperson, vice-chairperson, president, vice-president, secretary, joint secretary, treasurer, joint treasurer, Member of the Committee,manager and any other person, by whatever name called, elected orappointed under this Act, the rules or the bye-laws, to give directions inregard to the business of such society;(
20
) “person” includes,—
(
i
)an individual, who is competent to contract under the IndianContract Act, 1872,(
ii
)the State Government,(
iii
)the Central Government,(
iv
)a Hindu undivided family,(
v
)a company registered under the law for the time being inforce,(
vi
)a firm registered under the Indian Partnership Act, 1932or the Limited Liability Partnership Act, 2008,(
vii
)local authority,(
viii
)an association of persons or body of individuals whetherincorporated or not,(
ix
)a co-operative society registered under any law relatingto co-operatives,(
x
)a public trust or family trust formed in accordance with arelevant provisions of law,(
xi
)any legal body which can hold the immovable property, and(
xii
)any entity as may be notified by the State Government,from time to time;
9 of1872.9 of1932.6 of2009.
6
¨É½þÉ®úɹ]Å õ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +Éì C]õÉä ¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEä ò 1940
(
21
) “Plot” means a piece of land numbered and shown as one plot
in a layout sanctioned or to be sanctioned;(
22
) “Promoter” means a person intending to become a Member of
a proposed society and who becomes the Member on its registration;(
23
) “Proposed society” means the society the proposal of which
is submitted by the builder promoter or by the chief promoter to theRegistrar and which has been granted permission for reservation of nameand opening account in bank in its name.
154B-2.
(
1
) No tenant co-partnership housing society shall beregistered under this Act, unless it consists of at least five persons (each ofsuch persons being a Member of different family) or at least fifty-one per cent.(of total number of flats as per sanctioned plan) flat purchasers or intendingMembers and who are qualified to become Member under this Act, whicheveris higher, joins the registration proposal of housing society to be registered.(
2
) No tenant ownership housing society shall be registered under thisAct, unless it consists of at least five persons (each of such persons being aMember of different family) or at least fifty-one per cent. (of total number ofplots as per proposed or sanctioned lay-out) plot purchasers and who arequalified to become Member under this Act, whichever is higher, joins theregistration proposal of housing society to be registered.(
3
) No federal society shall be registered unless it has at least fivehousing societies as its Members.(
4
) No Co-operative Housing Association shall be registered unless ithas at least two housing societies or other legal bodies as its Members.(
5
) Nothing in this section shall be deemed to affect the registration ofany society made before the commencement of this Act.(
6
) The word “limited” or "unlimited" shall be the last word in the name of
every society with limited or unlimited liability, as the case may be, which isregistered or deemed to be registered under this Act.
Explanation.—
For the purpose of this section, the expression “Memberof a family” means a wife, husband, father, mother, dependent son or unmarried
dependent daughter.
154B-3.
(
1
) For the purpose of granting permission to open an accountin the bank and reservation of name of the proposed tenant co-partnershiphousing society or premises society, an application shall be made to theRegistrar in the prescribed format and shall be accompanied with the copiesof commencement certificate, or the building completion certificate given bythe Architect and the copy of resolution of promoters electing chief promoterand authorizing him to make such application and on receipt of suchapplication, the Registrar shall dispose of it within a period of thirty days fromthe date of its receipt.(
2
) For the purpose of granting permission to open an account in the bankand reservation of name of the proposed tenant ownership housing society anapplication shall be made to the Registrar in the prescribed format and shall beaccompanied with the copy of tentative lay-out plan certified by Architect orsanctioned lay-out plan and copy of resolution of promoters electing chief promoterand authorizing him to make such application and on receipt of such application,the Registrar shall decide it within a period of thirty days from the date of its receipt.
Registration ofco-operativesocieties.Application forreservation ofname andpermission foropening bankaccount.
¨É½þÉ®úɹ]Å õ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +Éì C]õÉä ¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEä ò 1940
7
(
3
)For the purpose of registration of a housing society, an applicationshall be made to the Registrar in the prescribed format and shall beaccompanied with documents as prescribed alongwith such fees as may beprescribed:Provided that, the application shall be signed by the minimum number ofplot or flat purchasers or owners or intending Members as provided underforegoing section:Provided further that, for the registration of a federal society or co-operative housing association, such application shall be signed by minimumnumber of authorized office bearers of different societies or legal bodies, asthe case may be, as provided under foregoing section.
154B-4.
(
1
) Notwithstanding anything contained in section 22, thesociety may admit any person as an associate, joint or provisional Member.(
2
) Right to vote and contest the election shall be subject to theprovisions of sub-sections (
2
), (
3
) and (
4
) of section 154B-11.
154B-5.
A housing society shall not admit to its Membership personsexceeding the number of flats or plots, as the case may be, available forallotment in that co-operative housing society:Provided that, a plot owners co-operative housing society may admit toits Membership an organization (co-operative housing society, company,association, etc.) of flat purchasers, in case the plot owner had constructedand sold flats as per prevailing rules, in place of original plot owner Member.
154B-6.
(
1
) Every society may organise co-operative education andtraining, for its Members, officers and employees through such State federalsocieties or the State Apex Training Institutes, as the State Government may,by notification in the
Official Gazette
, specify. Such education and training
shall,—
(
i
)ensure the effective and active participation of the Members inthe management of the society;(
ii
) groom talented employees for effective management;(
iii
) develop professional skills through co-operative education andtraining.(
2
) Every Member of the Committee, whether elected or co-opted, mayundergo such co-operative education and training.(
3
) Every society shall contribute annually towards the education andtraining fund of the State federal societies or State Apex Training Institutes,notified under sub-section (
1
), at such rates as may be prescribed, anddifferent rates may be prescribed for different societies or classes of societies.
154B-7.
Subject to the provisions of this Act, in case of a housingsociety, no transfer of share or interest of a Member or the occupancy right,
except the transfer of his heir or a nominee, shall be effective unless,–
(
a
) the dues of housing society are paid;(
b
) the transferee applies and acquires Membership of the co-operative housing society in due course of time:Provided that, the transfer of share or interest in respect of leasehold properties shall be governed by the terms of the lease, which arenot inconsistent with lease of land to the co-operative housing societyor with lease by housing society to its Members.
Explanation.—
For the purpose of this section, occupancy right shall notinclude right of a tenant or a licensee on leave and license basis.
Associate,Joint orprovisionalMember.Limit onMembership.Co-operativeeducation andtraining toMembers, etc.Restriction ontransfer ofshare orinterest of aMember.
8
¨É½þÉ®úɹ]Å õ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +Éì C]õÉä ¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEä ò 1940
154B-8.
(
1
)Every Member of a society shall be entitle to inspect free
of cost at the society’s office during office hours or any time fixed for the
purpose by the society, copy of the bye-laws, all the records and books ofaccounts and entire correspondence of society excluding personal informationof other Members and the correspondence between them and society.(
2
) A society shall furnish to a Member, on request in writing and onpayment of such fees at such rate as may be decided by the Registrar, fromtime to time, the copies of any documents mentioned in the foregoing sub-section within one month from the date of payment of such fees.
154B-9.
When any question arises in respect of a Membership of aperson as to whether he has been duly admitted to the Membership of societyor has been admitted in violation of the provisions of this Act, rules and bye-laws, the Registrar
suo motu
or on an application shall decide such questionwithin three months from the date of application and if he is satisfied that theperson has been admitted as Member in violation of provisions of this Act, rulesand bye-laws, pass an order to remove such person from Membership, butno such order adverse to any such Member shall be given without giving himan opportunity of being heard.
154B-10.
(
1
) A Member shall be entitle to exercise such rights asprovided under this Act, rules and bye-laws.(
2
) Every Member of a housing society, whether registered before orafter the commencement of the Maharashtra Co-operative Societies (ThirdAmendment) Ordinance, 2018, to whom plot of land or dwelling units havebeen allotted, shall be issued certificate of allotment by the co-operativehousing society under its seal and signature in such form as may beprescribed.Subject to the provisions of the Transfer of Property Act, 1882 or theRegistration Act, 1908, any allotment (including re-allotment), of a plot of landor dwelling unit in a building of a co-operative housing society to its Memberas per terms of allotment shall entitle such Member to hold such plot of landor dwelling unit with such title, right and interest, as the case may be.(
3
) Except when there is a contract to the contrary, a Member of co-operative housing society shall not be entitle to any title or interest in any plotof land or dwelling unit in a building of a co-operative housing society until hehas made such payment as may be specified by the co-operative housingsociety towards the cost of such plot of land or, construction of such dwellingunit, as the case may be, to the co-operative housing society.(
4
) No Member shall be eligible for being appointed, nominated, elected,co-opted or for being a Member of a Committee, if he is a defaulter of thesociety.(
5
) (
i
)It shall be the duty of the Member of the society to pay the duesof the society within time as decided by society in its general meeting.(
ii
) Member shall vacate the flat when required for redevelopment of thebuilding or buildings of the society as decided in its general meeting.(
iii
) Member shall perform his duties as provided in this Act, rules andbye-laws.
154B-11.
(
1
) No Member of society shall have more than one vote inits affairs:Provided that, every right to vote shall be exercised personally:Provided further that, in the case of an equality of votes, the Chairmanshall have a casting vote in the meeting of a society.
Rights ofMembers toinspect thedocuments.Removal of aMember.Rights andduties ofMember.Mah.Ord.XXV of2018.16 of1908.4 of1882.Voting rightsof Member.
¨É½þÉ®úɹ]Å õ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +Éì C]õÉä ¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEä ò 1940
9
(
2
) The Associate Member shall have right to vote with prior writtenconsent of a Member but shall not have right to contest the election to theCommittee.(
3
) The provisional Member shall have right to vote.(
4
) In case of joint Member the person whose name stands first in theshare certificate, shall have right to vote. In his absence, the person whosename stands second, and in the absence of both, the person whose namestands next and likewise, who is present and who is not a minor, shall haveright to vote.(
5
) In case of federal society, authorised Member of Federal society shallhave right to vote.(
6
) In case of company or firm or any other body corporate or localauthority or any legal body constituted under any law for the time being inforce, the authorised director or person or any one of the partners as appointedby the firm, shall have right to vote.
154B-12.
A Member may transfer his share, right, title and interest ofhis property in the society by way of registered document by following thedue procedure as provided in the rules or bye-laws.
154B-13.
On the death of a Member of a society, the society shalltransfer share, right, title and interest in the property of the deceased Memberin the society to a person or persons on the basis of testamentary documentsor succession certificate or legal heirship certificate or document of familyarrangement executed by the persons, who are entitled to inherit the propertyof the deceased Member or to a person duly nominated in accordance withthe rules:Provided that, society shall admit nominee as a provisional Member afterthe death of a Member till legal heir or heirs or a person who is entitled to theflat and shares in accordance with succession Act or under will or testamentarydocument are admitted as Member in place of such deceased Member:Provided further that, if no person has been so nominated, society shalladmit such person as provisional Member as may appear to the Committeeto be the heir or legal representative of the deceased Member in the manneras may be prescribed.
154B-14.
A society shall have a charge upon share and interest of aMember or past Member or deceased Member to the extent of dues payableby such Member to the society.
154B-15.
Every society shall create such funds as may be prescribedand also such other funds as it may, from time to time, decide.
154B-16.
Every society shall levy the charges as prescribed towardsits such funds created under section 154B-15.
154B-17.
A society shall invest or deposit its funds in one or more ofthe following
:—
(
a
) in a District Central Co-operative Bank, the State Co-operative
Bank, having awarded at least “A” Audit Class in last three consecutive
years, if no such Central Co-operative Bank is available in district, thenany Nationalised Bank;
Transfer ofshare, right,title andinterest.Transfer ofinterest ondeath of aMember.Charge ofsociety inrespect ofshare andinterest ofMember.Creation offunds.Levy ofcharges bythe society.Investment offunds.
¦ÉÉMÉ +É`ö---142--2
10
¨É½þÉ®úɹ]Å õ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +Éì C]õÉä ¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEä ò 1940
(
b
) in any of the securities specified in section 20 of the Indian TrustsAct, 1882;(
c
) in the shares, or security bonds, or debentures, issued by anyother society with limited liability;(
d
) in any other mode permitted by the rules, or by general or specialorder issued in that behalf by the State Government.
154B-18.
Funds mentioned in foregoing sections shall be utilized forthe purpose as may be specified in bye-laws of the society:Provided that, the corpus fund may be utilized for the purpose as maybe decided in the general meeting of the society.
154B-19.
(
1
) Committee shall consist of such number of Members asmay be decided by the State Government by notification or special order, fromtime to time.(
2
) The Committee of the society shall stand constituted on the date ofdeclaration of result of election to the Committee by returning officer wheremore than two third of the Committee Members of the strength as may bedecided by the Registrar, from time to time, have been elected:Provided that, in case two third is a fraction, it shall be rounded off tonext higher number.(
3
) The term of the office of the elected Members of the Committee andits office bearers shall be five years from the date of first meeting of newlyconstituted Committee and the term of the office bearers shall be co-terminuswith the term of the Committee.(
4
) Any casual vacancy in the Committee may be filled by co-option andterm of the co-opted Member shall be co-terminus with the term of theCommittee.
154B-20.
(
1
) Notwithstanding anything contained in this Act or in therules made thereunder or in any bye-laws of any society, on the Committeeof such society or class of societies as the State Government may, by general
or special order, direct, three seats shall be reserved for,—
(
a
) one Member belonging to the Scheduled Castes or ScheduledTribes;(
b
) one Member belonging to the Other Backward Classes; and(
c
) one for the Member belonging to the De-notified Tribes (
Vimukta Jatis
), Nomadic Tribes or Special Backward Classes.(
2
) Any individual Member of the society, or any elected Member of theCommittee or a Member society or any Member of the Committee of theMember society, whether elected, co-opted or appointed under this section,belonging to the Scheduled Castes or Scheduled Tribes, or Other BackwardClasses or De-notified Tribes (
Vimukta Jatis
) or Nomadic Tribes or SpecialBackward Classes, shall be eligible to contest the election to a reserved seatand every person who is entitled to vote at the election to the Committee shallbe entitled to vote at the election to any such reserved seat.
Explanation.—
For the purposes of this section,—
(
a
) a general or special order, if any, issued by the StateGovernment under section 73-B as it existed before the date ofcommencement of the Maharashtra Co-operative Societies (Amendment)Act, 1983, shall be deemed to have been issued under sub-section (
1
)
2 of1882.Utilization offunds.Constitution ofCommittee.Reservation ofcertain seaton Committeeof societiesand electionthereto.Mah.XLV of1983.
¨É½þÉ®úɹ]Å õ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +Éì C]õÉä ¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEä ò 1940
11
of this section and shall continue to be in force until duly repealed oramended;(
b
) the expression “Scheduled Castes” includes “
Nav-Boudhas
”
;(
c
) the expression “Other Backward Classes, De-notified Tribes
(
Vimukta Jatis
) and Nomadic Tribes and Special Backward Classes”
means such classes or parts of or groups within such classes as aredeclared, from time to time, by the State government to be OtherBackward Classes, De-notified Tribes (
Vimukta Jatis
) and NomadicTribes and Special Backward Classes.
154B-21.
(
1
)Notwithstanding anything contained in this Act or in therules made thereunder, or in the by-laws of any society, there shall be twoseats reserved for women on the Committee of each society consisting ofindividuals as Members and having Members from such class or category ofpersons, to represent the women Members.(
2
) Any individual woman Member of the society, or any woman Memberof the Committee of a Member-society, whether elected, co-opted ornominated, shall be eligible to contest the election to the seat reserved undersub-section (
1
).(
3
) Nothing in this section shall apply to a Committee of a societyexclusively of women Members.
154B-22.
Till the time the Members of reserved categories are notavailable or elected to fill the reserved seats as provided in sections 154B-20 and 154B-21, such reserved seats shall not be counted for strength ofmanaging Committee for composition of quorum for conducting its meetings.
154B-23.
(
1
) Without prejudice to the other provisions of this Act or therules made thereunder, in relation to the disqualification of being a Member ofthe Committee, no person shall be eligible to be appointed, nominated, elected,
co-opted for being a Member of Committee,—
(
i
)if he is a defaulter of any society, or(
ii
)if he carries on business of letting, subletting and selling of flatsin the housing society of which he is a Member, or(
iii
)if he has been held responsible under section 154 B-8(
2
) or 88or for payment of cost of enquiry under section 85, or(
iv
)if he has incurred any disqualification under this Act or the rulesmade thereunder, or(
v
)if he incurs any of the disqualification similar to that mentionedin the provisions of clause (
vii
), (
viii
) or (
ix
) of clause (
f
) of sub-section (
1
)of section 73CA shall apply
mutatis mutandis
.(
2
) A Member, who has incurred any disqualification under sub-section (
1
),shall cease to be a Member of Committee and his seat shall thereupon bedeemed to be vacant.(
3
) A Member of a Committee who has ceased to be a Member thereof,on account of having incurred disqualification under clause (
ii
), (
iii
), (
iv
) or (
v
)of sub-section (
1
), shall not be eligible to be re-elected, re-co-opted or re-nominated as a Member of Committee for five years from the date on whichhe or she has so ceased to be a Member of the Committee.(
4
) A Member of a Committee who has ceased to be a Member thereof,on account of having incurred disqualification other than disqualifications,referred to in sub-section (
3
), shall, unless otherwise specifically provided inthis Act, be eligible to be re-elected, re-co-opted or re-nominated as a Memberof Committee as soon as such disqualification ceases to exist.
Reservationfor women.Generalprovisions forstrength of theCommittee forquorum.Disqualificationof Committeeand itsMembers.
¦ÉÉMÉ +É`ö---142--3
12
¨É½þÉ®úɹ]Å õ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +Éì C]õÉä ¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEä ò 1940
154B-24.
(
1
) An officer who holds office by virtue of his election to thatoffice shall cease to be such officer if a motion of no confidence is passed ata meeting of a Committee by not less than two third majority of the CommitteeMembers who are present and entitled to vote at such meeting and his officeshall thereupon be deemed to be vacant.(
2
) The provisions of sub-sections (
2
) to (
7
) of section 73ID shall apply
mutatis mutandis
to such motion.
154B-25.
Management of housing society, housing complex, housingassociation or housing federation shall be carried out in the manner as maybe prescribed.
154B-26.
(
1
) Except when there is a contract to the contrary, allotmentof plots of land, flats, house or other dwelling units shall be made by theCommittee of a housing society to the Members strictly on the basis of drawof lots in respect of such Members whose enrollment as a Member of ahousing society is found proper in accordance with provisions of this Act andrules framed thereunder and the bye-laws of a housing society duly registered.(
2
) Every Member of a housing society, whether registered before orafter the commencement of the Maharashtra Co-operative Societies (ThirdAmendment) Ordinance, 2018, to whom plots, flats, houses or other dwellingunits have been allotted, shall be issued certificate of allotment by the co-operative housing society under its seal and signature in such form, on suchterms and on such conditions as may be prescribed. Such certificate shallbe issued forthwith when all the dues as may be determined and notified bythe housing society are duly paid by the Member.
154B-27.
(
1
) If any society is required to take action for performanceof its obligations, responsibilities and duties as provided in this Act, rules andbye-laws or to execute the orders issued by the State Government or by theRegistrar, from time to time, and such actions are not taken or such ordersare not executed, the Registrar
suo motu
or on an application may issuedirections to take such action or actions or execute such orders.(
2
) Where any society is required to take any action or to execute theorders as provided in the foregoing sub-section and such action is not taken
or orders are not executed,—
(
i
)within the time provided in this Act, rules or the bye-laws or inthe order, as the case may be;(
ii
)where no time is provided, within such time having regard to thenature and extent of the action to be taken as the Registrar may specifyby notice in writing,the Registrar may himself or through a person authorized by him take suchaction or execute such order at the expense of the society and such expensesshall be recoverable from the responsible officer of the society as if it werearrears of land revenue:Provided that, before issuing an order or direction and fixing theresponsibility of payment of expenses an opportunity of being heard shall begiven to the officer of society to whom the Registrar considers to be responsiblefor not taking such action or not executing such orders.
Motion of noconfidenceagainstofficers ofsociety.Managementof housingsociety,housingcomplex,housingassociation orhousingfederation.Allotment ofplots, flats orhousesthrough drawof lots.Obligation ofsociety to takeaction and
Registrar’s
powers toenforce.Mah.Ord.XXV of2018.
¨É½þÉ®úɹ]Å õ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +Éì C]õÉä ¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEä ò 1940
13
(
3
) The Application submitted by a Member to the society for thecertificate or certificates for sale of his flat or mortgaging it for obtaining loanor for any other purpose shall be decided by the society within a period ofthirty days from the date of receipt of such application and decision thereonshall be intimated to him within a period of fifteen days. If society fails to decideand intimate such application within such time or if such application is rejected,the Member may file appeal to the Registrar for appropriate relief within a periodof three months from date of submission of application to the society or withina period of two months from the date of decision of rejection by society,whichever is earlier:Provided that, every such appeal shall be disposed of by the Registrarwithin a period of sixty days from the date of its receipt after giving opportunityof being heard to all the parties.
154B-28.
(
1
) Notwithstanding anything contained in this Act but subjectthe provisions of this section, the State Government may, by notification inthe
Official Gazette
, notify any society as a Housing Federation for the areasspecified in the notification.(
2
) Every society may affiliate to notified Housing Federation of the areawherein society is located.(
3
) Every notified Housing Federation shall create the Education andTraining Fund.(
4
) Every housing society in the areas for which Housing Federation isnotified under sub-section (
1
) shall contribute to the Education and TrainingFund maintained by the notified Housing Federation at the rate as may bedecided by the State Government by special or general order, from time totime.(
5
) Every notified Housing Federation shall utilise Education and Training
Fund for,—
(
i
) arranging seminars on issues related to housing societies;(
ii
) imparting training to the persons to be appointed as managersor special recovery officers and to the Members and officers of housingsocieties;(
iii
) any other purpose as may be notified by the Government fromtime to time.(
6
) (
i
) Every notified Housing Federation shall prepare, declare andmaintain the panel of managers and special recovery officers as per theguidelines issued by the Registrar, from time to time.(
ii
) The Registrar
suo motu
or on an application may remove such person
from the panel maintained by Federation who,—
(
a
)has doubtful integrity, or(
b
)has been convicted, or(
c
) has been declared mentally incapable, or(
d
) has misused his position while rendering his services, or(
e
) failed to discharge his duties:Provided that, such person shall not be removed without giving hima reasonable opportunity of being heard.(
iii
) Required qualifications for the Auditors, Managers and SpecialRecovery Officers shall be decided by the Registrar, from time to time.
HousingFederations,their powersand duties.
¦ÉÉMÉ +É`ö---142--3+
14
¨É½þÉ®úɹ]Å õ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +Éì C]õÉä ¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEä ò 1940
(
iv
) Every notified Housing Federation shall apply to the Registrar fordelegation of necessary powers to the persons so trained as special recoveryofficer for recovery of the dues of the affiliated societies.(
8
)
Every society may,—
(
i
) appoint Special Recovery Officer from such panel for executionof Recovery Certificates or Recovery Orders or decrees; and(
ii
) appoint manager from such panel for maintaining records andbooks of accounts of the society.(
9
) Remuneration of Special Recovery Officers shall be decided by theRegistrar, from time to time.
154B-29.
(
1
) Notwithstanding anything contained in sections 91, 93and 98, on an application made by a housing society for the recovery of itsdues or for the recovery of its repairs and maintenance, construction costand service charges, and on the housing society concerned furnishing astatement of accounts and any other documents as may be prescribed, inrespect of the arrears, the Registrar may, after making such inquiries as hedeems fit, grant a certificate for the recovery of the amount stated therein, tobe due as arrears.
Explanation.—
For the purposes of this sub-section, the expression
“repairs and maintenance and service charges” means such charges as are
so specified in the by-laws of the concerned housing society.(
2
) Where the Registrar is satisfied that the concerned society has failedto take action under the foregoing sub-section in respect of any amount dueas arrears, the Registrar may, on his motion, after making such inquiries ashe deems fit, grant a certificate for the recovery of the amount stated therein,to be due as arrears and such a certificate shall be deemed to have beenissued as if on an application made by the society concerned.(
3
) A certificate granted by the Registrar under sub-section (
1
) or (
2
)shall be final and a conclusive proof of the arrears stated to be due therein,and the same shall be recoverable according to the law for the time being inforce, as arrears of land revenue. A revision shall lie against such order orgrant of certificate, in the manner laid down under section 154 and suchcertificate shall not be liable to be questioned in any court.(
4
) It shall be lawful for the Collector and the Registrar to takeprecautionary measures in accordance with the provisions of the MaharashtraLand Revenue Code, 1966 or any law or provisions corresponding theretofor the time being in force, until the arrears due to the concerned society,together with interest and any incidental charges incurred in the recovery ofsuch arrears, are paid, or security for payment of such arrears is furnishedto the satisfaction of the Registrar.
154B-30.
In case of a house building society where all plots have beenallotted to its Members and basic civic service have been transferred to thelocal civic body, the Registrar shall, after giving sixty days notice to theCommittee, initiate winding up proceedings and such co-operative housebuilding society shall be wound up:Provided that, in the case of a co-operative house building society whereland has been allotted on perpetual lease, before passing winding up ordersthe prior consent of the lessor shall be obtained:Provided further that, where a house building co-operative society hasbeen provided land to run a club, school, community center, dispensary orcommunity facility, etc., by the lessor, the above provision shall not apply tosuch co-operative house building society, if the general body decides to runthese activities for the benefit of the Members and the residence.
Recovery ofcertain sumsand arrearsdue tohousingsocieties asarrears ofland revenue.House buildingco-operativesocietieswhich haveachieved their objective.
154-B - 31.
(
1
)The rules, orders, by-laws, circulars or instrumentshaving the force of law and existing on the date of commencement of theMaharashtra Co-operative Societies (Third Amendment) Ordinance, 2018,which are applicable to the societies governed by this Chapter on the date ofsuch commencement, shall L, until expressly repealed, modified or amended,continue to apply to the said societies.(
2
)Every proceedings by or against the society and pending before anyCourt, tribunal or authority on the said date of commencement shall becontinued and decided as if the provisions of this Chapter are not made
applicable in respect of such societies.”.
8.
(
1
)If any difficulty arises in giving effect to the provisions of the principalAct, as amended by this Ordinance, the State Government may, as occasionarises, by an order published in the
Official Gazette
, do anything not inconsistentwith the provisions of the principal Act, as amended by this Ordinance whichappears to it to be necessary or expedient for the purpose of removing the difficulty.(
2
)Every order made under sub-section (
1
) shall be laid, as soon as maybe, after it is made, before each house of the State Legislature.
Power toremovedifficulty.Saving as toexisting rules,orders,by-laws, etc.Mah.Ord.XXV of2018.
16
¨É½þÉ®úɹ]Å õ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +Éì C]õÉä ¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEä ò 1940
STATEMENTThe Maharashtra Co-operative Societies Act, 1960 (Mah. XXIV of 1961),governs all the co-operative societies having different objects, classifications andsub-classifications. The provisions of the said Act regulates the managementaspect of the co-operative societies and protects the interest of its members.Among all co-operative societies governed by the provisions of the said Act,the co-operative housing societies are largest in number being around 50% of thetotal societies in the State. At present, even though the affairs of the co-operativehousing societies are distinct and peculiar, they are regulated in the same manneras per the general provisions of the said Act, as applicable for all other co-operativesocieties, such as Co-operative Sugar Factories, District Central Co-operativeBanks, Co-operative Spinning Mills, etc.The uniform application of the provisions of the said Act, despite of theuniqueness of the co-operative housing societies, is creating problems and isinadequate to address all the affairs of the co-operative housing societies. Thisleads to large number of disputes and litigation and thus creates hurdles in smoothfunctioning of the co-operative housing societies. In this view of the scenario, anurgent need is felt to provide a separate Chapter to cater to the specificrequirements of the co-operative housing societies. Therefore a separate Chapterproviding for regulation of co-operative housing societies, is being proposed to beinserted in the said Act.The proposed Chapter, among other things, would cater primarily to the issuesof the co-operative housing societies
viz.
members and their rights, managementof societies, audit, enquiry and inspection, settlement of disputes, liquidation,elections of societies, recovery of claims, etc.2.In the present dispensation, considerable delay is caused in approval andappointment of Returning Officer and Assistant Returning Officer for conductingelections of co-operative housing societies. To avoid this delay and to ensure timelyelections, it is proposed to amend sub-section (
11
) of section 73CB of the saidAct, suitably, by taking the power to the State Government to prescribe by rulesthe procedure for speedy holding of such elections.3.The provisions related to recovery of dues or arrears from members areproposed to be deleted from the general provisions meant for all societies insub-section (
1
) of section 101 so as to provide relevant provisions in this regardin the proposed Chapter XIIIB.4.The section 152 is proposed to be amended suitably, for providing appealsagainst the orders passed under sub-sections (
1
) and (
3
) of section 154B of theproposed Chapter.The incorporation of the above-mentioned provisions alongwith other proposedprovisions, would help the members of the societies in the understanding of theirrights and liabilities, thereby enabling a more congenial governance environmentwithin the co-operative housing societies. The clarity in the various proposedprovisions would minimize the disputes and result in enhancing the efficiency ofthe authorities dealing with the affairs of the co-operative housing societies. Similarly,the simplified mechanism proposed for elections would drastically reduce the election related disputes in the co-operative society.
As Houses of State Legislature are not in session and the Governor of Maharashtra is satisfied that circumstances exist which render it necessary for him to take immediate action further to amend the Maharashtra co-operative Societies Act, 1960 (Mah. XXIV of 1961), for the purposes aforesaid,this Ordinance is promulgated.Mumbai,
CH, VIDYASAGAR RAO, Dated the 29th October 2018.
Governor of Maharashtra.
By order and in the name of the Governor of Maharashtra,
ABHA SHUKLA,Principal Secretary to Government.
ON BEHALF OF GOVERNMENT
Comments
Post a Comment