Mandatory Training

NAVI MUMBAI CO-OPERATIVE HOUSING FEDERATION LTD.

(Reg. No. NBOM/CIDCO/GNL(O)/1609/JTR/1999-2000)

No.303, ‘Big Splash’, Sector No.17,

Vashi, Navi Mumbai – 400 703.

e-mail : nmchf2019@gmail.com          

Tel : 022 2789 7301

Web site :www.nmchf.org.in

Training for Members, Managing Committee Members & Staff of

Co-operative Housing Societies and Premises Co-operative Societies

Function of Co-operative Societies in Maharashtra is governed under the Maharashtra                          Co-operative Societies (MCS) Act, 1960. The process of modification continued right from its inception to achieve some of the most important benefits for housing co-operatives. However, the 97th amendment of the Constitution of India has mixed reactions.

While on one hand formation of co-operative society has come under the fundamental rights with an autonomous status, on the other hand, it created State Co-operative Election Authority to monitor the election of co-operative societies and authorised the Government to supervise over the functioning of the societies. 

The Registrar of Co-operative Societies, in consonance with the amendment of MCS Act, has formulated Syllabus for providing Education and Training by every society through its Federal Societies (Federation) to the tune of at least 20% of all members and employees every year and to report compliance (through their annual report) to the registering authority to avoid any penal action.

The following subjects are to be covered in the Training Course –

  •       The 97th Constitutional Amendments, Maharashtra Co-operative Societies (Amendment) Act, 2013, Maharashtra Co-operative Societies (Amendment) Rules, 2014 and changes in Model Bye-laws applicable to Co-operative Housing Societies. Adoption Procedure.
  •      Redressal of complaints  of member of CHS and the society before the Registrar, Civil Court, Co-operative Court, Police Station, Municipal Corporation, General Body, Managing Committee, Federation and other Competent Authority.
  •     Management of Co-operative Housing Societies, Maintenance of various books, registers, files, account books, Election of Managing Committee Members, holding of AGM, SGM, Managing Committee Meeting, Role of the Committee and roll and responsibilities of members, computer software for management of CHS.
  •     Title transfer by executing the conveyance deed, payment of Stamp Duty, Registration, Transfer of Flats, Transfer by nomination, legal heirs etc.
  • Leakage, levy of charges, contribution towards major repairs, Annual Maintenance Contract, Structural Audit, carrying out major repairs and redevelopment as per directions issued under Section 79A of the MCS Act, 1960. 

Consequently, this Federation, in the interest of its member societies, has been conducting such Education and Training Programme, even on online during COVID-19 Pandemic.

The 97th Constitutional Amendments –

The President of India bestowed assent to the 97th Constitutional Amendment on 12th January, 2012 and they came into force from 15th February, 2012. A new Article 43B  is inserted in the Constitution under the title “The Co-operative Societies” to make certain vital aspects like democratic, autonomous and professional functioning.

The Maharashtra State Govt. could amend the MCS Act of 1960 to make it effective from 16th February, 2013. it was further amended to add a separate Chapter XIII-B for Housing Societies by repealing some of the provisions of the Act for Housing Societies and inserting additional Sections from 154B-1 to 154B-31, salient provisions of which are:

  1. Strength of Managing Committee limited to twenty-one members including five reserved seats (Women -2, SC/ST -1, OBC -1, Tribals-1).
  2. Managing Committee may be kept under suspension for maximum six months.
  3. Annual Reports of activities and accounts
  4. Rationalised offences & corresponding penalties.
  5. Own election by Society having up to 250 Members
  6. Associate Member only from family members with voting power
  7. “Proposed Society” after reservation of name
  8. Registration of a Co-operative Housing Society with five members;
  9. Compulsory co-operative education and training for every society.
  10. No transfer without application from Transferee for membership;

The Maharashtra Co-operative Societies Act, 1960, deals with –

Right from its classification, registration along with their Byelaws, to the winding-up. the Registrar of Co-operative Societies and its subordinate Officers are vested with full authority to ensure orderly development and functioning of societies including settlement of disputes..

Registered Bye-laws of the Society

Bye-laws do not have the force of law but all its provisions are lawful and binding to both the Management of the Society as contractual obligation. Final authority has been vested on the General Body and the management is vested on the Managing Committee.

Byelaws guides to constitute Managing Committee, Democratic functioning, Strength, of Managing Committee, Creation of Funds, Utilization of Funds, Rights & Duties of Members, Types of members and their rights and liabilities including resignation  and expulsion of Members, and Relationship with Members, Society, Federation, Registrar, Dispute Redressal Authorities as per Byelaw No 174(A) to 174 (G).

Procedure for adoption of model Byelaws

  1. Resolution of Managing Committee for approval of General Body;
  2. Resolution of General Body to adopt Byelaws by 2/3rd majority;
  3. Apply to the registering authority within two months for approval;
  4. Such application must accompany
    • Two copies of model byelaws dully filled in and signed at the required places;
    • A certified copy of existing registered Byelaws;
    • All enclosures dully filled in and signed under society Stamp / seal;
    • Applicable adhesive non-judicial stamp affixed on covering letter;
    • Copy of resolution of General Body passed to adopt new bye laws.

Redressal of complaints

All the disputes between members and management in a co-operative housing society are pivoted on two points namely EGO & Lack of Knowledge.

Most of the disputes are clarified by different provisions of Byelaws No. 172, 173 &174

If a member is aggrieved with the decision of the Managing Committee / General Body, he is free to agitate before the competent authority as decided under Bye-law No. 174 corresponding to the nature of grievances namely – The Registrar, Co-operative Court, Civil Court, Municipal Corporation / Local Authority, Police, General Body Meeting, and Federation.

Management of Societies

Co-operative Societies in Maharashtra are governed by the Maharashtra Co-operative Societies (MCS) Act, 1960, which is subordinate to the Constitution of India. For proper implementation of the MCS Act, there are MCS Rules, 1961, Government Regulations / Directions/ Co-operative Manual and Byelaws.

Bye-law No. 141 – MAINTENANCE OF ACCOUNT BOOKS REGISTERS

  1. The Register of Members in “I” Form prescribed under Rule 32 of the MCS Rules, 1961.
  2. The List of Members in ‘J’ Form prescribed under Rule 33 of the MCS Rules, 1961,
  3. The Cash Book,
  4. The Genera! Ledger,
  5. The Personal Ledger,
  6. The Sinking Fund Register,
  7. The Audit Rectification Register in ‘O’ form, prescribed under the MCS Rules, 1961,
  8. The Investment Register,
  9. The Nomination Register,
  10. The Society / Members Loan Register / Mortgage Register,
  11. The Minutes Book for the meetings of the Committee of the Society,
  12. The Minutes Book for the meetings of the General Body of the Society,
  13. The Property Register and furniture, fixtures and office equipment,
  14. The Structural and Fire Audit Register and Lift Inspection Record,
  15. The Register of Nominal Members (Tenant occupant) ,
  16. The Register for Active Members.

Election of the Managing Committee

Housing societies  having members less than 200 are classified as Type  “D”, which has subsequently been made as Type  “E” changing the number of members up to 250; Others as Type “C” who shall be under the control of the State Co-operative Election Authority.“E” Type societies are now allowed to conduct their own election independently as per amended MCS (Election to Committee) (Amendment) Rules 2019.

 

Duties and Responsibilities of the Managing Committee

  1. Installing Notice Board at or near the entrance, containing Society’s Name, full address and Registration No. to display all Notices;
  2. Raising funds and use them as per the provision of the Byelaws;
  3. Obtain approval of the General Body to fix rates of contribution for repairs and maintenance sinking fund, parking charge and education fund;
  4. Internal inspection of the flat and decide for repairs, if required;
  5. Approve membership and nomination;
  6. Acknowledge and decide on the applications including resignation of members;
  7. Deal with the defaulter;
  8. Issue allotment letter for flat & parking space and share certificates;
  9. Determine Agenda and arrange for monthly meeting of the Committee and the General Body and Special General Body Meeting, as and when required;
  10. Arrange for election of the Committee and Office bearers, as and when due;
  11. Arrange for taking over charge   by the Incoming Committee from Out-going Committee;
  12. Fill up casual vacancies;
  13. Secretary is custodian of all the office records including accounts;
  14. Arrange for audit of accounts for financial year ending on 31st March of the current year.
  15. Arrange for Audit Rectification Report in ”O” form;
  16. Make available papers mentioned in Section 154B-8   as per member’s demand;
  17. Supply eligible papers on member’s demand, on due payment;
  18. To take necessary action for keeping the property of the society  in order;
  19. If required take help of police to overcome hindrance in internal inspection created by any member;
  20. Arrange for the amendments in laws, rules, bye-laws suggested by the Government from time to time with the approval of the General Body Meeting.
  21. Accept even less amount paid by the member than the amount shown in the bill;
  22. Co-operate with the Member intending to give the on Leave and License basis;
  23. Arrange for structural audit as per Byelaws and insure the property of the Society.

Duties and responsibilities of member

Membership consists of Members, Joint Members, Associate Members, Provisional Members (Nominee members), Nominal Members and Builder Member, while rights of them differs but all of them are liable to discharge all the liabilities as a member.

Computer software for Management of CHS – Provides services like instant maintenance bill generation, smart notification through mobile apps, pay maintenance bills, Alert reminder on outstanding dues, Instant notices & circulars, fully integrated accounting system with automated trial balance.

Transfer of Shares

It may be effective during the life time or on his demise. A member may transfer his shares without NOC but with intimation to the society through a sale deed duly stamped and registered. Member and the joint member are authorized to make nomination of their respective portion of Shares to any person to hold the same on his demise. In absence of nomination, Managing Committee may create a trustee on the basis of its understanding.   

 Conveyance : Its objective is to become legal owner of an immovable property, which is free and marketable. The document for a plot of land is required to be registered after payment of due Stamp duty.  Construction of any building over it, demands to obtain Commencement Certificate from the Municipality, NOC from all the competent authorities, approval of building plan within admissible FSI. Approval of the General Body authorising Managing Committee to secure Conveyance and approval to the draft Deed of Conveyance specifying the terms and conditions to be executed by the Managing Committee. Ensure that all the flat owners have paid due Stamp duty & registered their respective Sale Agreements; Conveyance could be done on a Stamp Paper of Rupees one hundred only.

Deemed Conveyance: This is an unilateral Conveyance under non-cooperation of the builder, through an application in Form 7 by the society to the Competent Authority 

Leakage – It is the responsibility of the Managing Committee to attend to all leakages immediately after offering the scope to the member concerned within specified time. The sharing of charges to be decided as per Byelaw No. 159 (a) or (b)  

Society Charges (it includes 3 types)

  • (i) Service Charges & AMC  (equal to all, irrespective of area)
  • (ii) Repairs & maintenance, Taxes, Rents, Sinking Fund  , (Area basis)
  • (iii) Exceptions are
    • (a) Water charges – depending on number & size of inlets
    • (b) Property tax – as decided by Municipality
    • (c) Delay in  payment of dues – as per decision of the General Body
    • (d) Parking Charges – as per decision of the General Body
    • (e) Education & Training Fund – Rs. 10/- per unit per month

Structural Audit — The Society shall conduct Structural Audit of the building once in 5 or 3 years depending upon age above 30 years or 15 to 30 years, respectively

Major repairs – As and when required and decided by the General body at the rate fixed on area basis.

Redevelopment –Includes demolition of the existing structure, new construction, shifting of members.

Following process is to be observed –

  1. Special General Body Meeting – if no quorum, adjourned. After giving 7 days notice again meeting will be convened within one month.
  2. Selection of “Redevelopment Committee”
  3. Arrange quotations from minimum three Project Management Consultants
  4. Select one
  5. Members’ inputs 8 days before
  6. PMC for feasibility report  – to be submitted by the PMC within 2 months
  7. approval of  Resolution with Terms and Conditions
  8. approved and draft of the Tender
  9. finalizing in next joint meeting with carpet area or corpus fund
  10. list of the Tenders received
  11. Special Meeting of the Managing Committee
  12. comparative chart by PMC  3 Tenders before the SGM.
  13. selected developers – consent in writing – their approval.
  14. make an Agreement with the Developer

 A K Bhattacharyya = Mobile/WhatsApp  9820449452