Register a new housing society

formation of new co-operative housing societyThe right to form a society is now a fundamental right of the citizen (Article 19 of constitution).

First general body meeting (before registration)

In this meeting under Society’s Model Bye-law 3(iii), the Chief Promoter (could be the builder) is primarily selected by the promoters, who are members co-signing the registration application before the Registering Authority, under Bye-law 3(xii).

The term Builder-Promoter is defined under the Model Bye-law 3(xiii), as a person who constructs the building for the purpose of selling some or all of the flats; and where the land owner gives the development rights of his plot to the builder, the land owner and the builder both will be clubbed under the term Builder-Promoter.

In this meeting, necessary resolutions are passed like opening the account in bank in the name of proposed society and for obtaining permission for reserving the name of the society. It is compulsory for SRA/ MHADA recognized societies, for the first meeting to be video-recorded.

Download the Model Bye-Laws of Co-operative Housing Societies, as per 97th constitutional amendment 2013 (Size: 506 KB).

Application for registration

Normally, the name reservation proposal should be accompanied with the society resolutions and signatures of atleast 10 Promoters who have attended the meeting. On allotment of name and permission to open a bank account by the Registrar, the Chief Promoter has to collect Share Capital, Entrance Fees from promoters and deposit the same in the branch of the bank permitted by the Registrar. It should be noted that the amount cannot be withdrawn from the Bank till the society is registered or its registration is refused, except with prior written permission of the Registrar. The Chief Promoter should submit registration proposal to the registering authority within a period of 3 months from the date of issue of Letter of Reservation in the name of the proposed society.

Co-operative Societies Commissioner & Registrar’s GR No. SAGRUVO/1094/Pra.Kra 277/14C dated 10 March 1995 says “By exercising the powers in section 7 of the Co-operative Societies Act 1960 the government is pleased to exempt the provision of minimum 10 members for registering co-operative Housing society under sub-clause 1 in Section 6 of the said Act subject to the conditions that the plinth area of each flat in the proposed co-operative Housing Society should not be more than 700 sq. ft and FSI should not be balance for utilization in the proposed societies land/ building.”

Documents required for registration of Flat owner’s Housing Society:

  • 7/12 extract of the land or property card.
  • Certificate from the competent authority regarding non-agricultural land
  • The order regarding applicable/non applicable of land ceiling Act
  • Construction layout approved by the competent authority
  • Letter of sanction for starting construction
  • Certificate regarding completion of construction work
  • Development Agreement if the land is taken for development
  • Letter of Power of Attorney of the land
  • Title search report of the land
  • The registered agreement of purchases of the flat with necessary stamp duty paid
  • Architect Certificate regarding construction
  • List of Members
  • Scheme of the Society
  • Application for reserving name
  • At least ten members are necessary for registration of society. However the government has given permission subject to some conditions for the Housing society of less than 10 members by exercising powers under section 7. For registration proposal, signature of sixty per cent promoters, who participated in the registration proposal are necessary.
  • If the land is given by the government or undertaking agency of the government then its guarantee letter
  • No objection certificates from the Charitable Commissioner if the land is of Trust.
  • Certificate of the competent authority regarding non-agricultural plot
  • While registering SRA/SRD and MHADA recognized Co-operative Housing Societies, it is obligatory to fulfill the necessary papers as per instructions given by the authorities by their circulars in addition to above criterion.
  • Application for Registering Society (A form)
  • Table giving information of society (B Form)
  • Table giving details of the members (C Form)
  • Statement of Accounts of the Members (D Form)
  • Notarized Guarantee letter by the Chief Promoter of the society on the stamp Paper of Rs. 100/-
  • Notarized Guarantee letter by the Builder, Promoter on the Stamp Paper of Rs. 100/-
  • Affidavit of Members (Affidavit of Minimum 10 Promoters)
  • Two copies of bye laws of the Society approved by the Commissioner, Co-operation and Registrar, Co-operative Societies and Maharashtra State, Pune
  • Proof of the bank balance of the promoter member (deposit of each share of Rs. 500 and admission fee of Rs. 100), after getting permission for reservation in the District Central Co-operative Bank
  • Challan of Rs. 2500/- deposited in the Government Treasury Registration fee for the Housing Society of Backward class is Rs. 50/-

registration of new co-operative housing societyFor Tenant Ownership Housing Society, in addition to the above mentioned documents, Layout Plan and Zone Certificate from the competent authority regarding in which area the land situated, are required.

If builder/ promoter is not co-operating in registering the Co-operative Housing Society, then in that case, the application for registration of society be submitted in Form 6 (Rule 12) before the District Deputy Registrar, who has been given power under section 10(1) of the Maharashtra Ownership Flats Act 1963. While submitting the said proposal, a Notarized Indemnity Bond of the members who applied for the registration of society on the stamp paper of Rs. 200 is required.

Approval by Registrar

It is the duty of the concerned Registrar to register the Co-operative Housing Society, by scrutinizing the proposal submitted after fulfillment of above mentioned documents, and shall make an arrangement of issuing certificate of registration society under Section 9(1) of the Maharashtra Co-operative Society Act 1960, and copy of the registered bye-law, memorandum regarding registration of society to the chief promoter. The order regarding registration of society should have been sent for publishing in government gazette to the Government Printing Press for appropriate action. It is necessary to take decision on the registration of the society within a period of two months from the date of the proposal of the society submitted to the Registrar.

If proposal of society registration is denied or no decision is taken within two months then it is necessary to send that proposal to the Divisional Joint Registrar, Co-operative Societies under section 152 of the Maharashtra Co. operative societies Act, can be approached.

First General Body Meeting obligatory agenda (after registration):

  • To elect a Chairman for the meeting
  • To admit persons to membership who have applied for membership of the society.
  • To elect a provisional Managing Committee
  • To receive and approve the statement of account as prepared by the Chief Promoter of the society up to 14 days prior to the first general body meeting of the society.
  • To authorize the committee to secure conveyance of right title and interest in the property in the name of the society from the promoter builder
  • To impose restrictions on raising loan amount from outside
  • To appoint internal auditor and to fix his remuneration
  • To authorize one of the members of the provisional committee to call the first meeting of the provisional committee
  • To take decision about taking membership of District Housing Federation and other institutions
  • To give power to one member of provisional management committee to call meeting of the managing committee
  • To consider the matters raised by the member except these matters which are necessary for giving advance notice with the permission of chairman and eleventh hour matter and to make resolution in that regard.

Please don’t use this write-up as a replacement for legal opinion, as it is based on the personal experiences of the author of this website.