Maharashtra Cooperative Societies Act

There are about two lakh cooperative societies in Maharashtra, with over 50 million members. The Maharashtra Cooperative Societies Act, 1960 governs these co-operative societies, which include cooperative housing societies.

1. Maharashtra Cooperative Societies Act

The fundamental facts of the Maharashtra Cooperative Societies Act, 1960, which controls nearly two
lakh cooperative societies in the state, are explained in this article.
There are about two lakh cooperative societies in Maharashtra, with over 50 million members. The
Maharashtra Cooperative Societies Act, 1960 governs these co-operative societies, which include
cooperative housing societies.




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What exactly is the Maharashtra Cooperative Societies Act?
The Maharashtra Cooperative Societies Act, enacted on January 26, 1962, offers a complete framework
for the registration, membership, incorporation of responsibilities and privileges of cooperative societies
across Maharashtra. As directed by the centre, the Maharashtra government adopted an ordinance
modifying the Maharashtra Cooperative Societies Act on February 13, 2013. The changes went into
effect on February 14, 2013.

2. Sections of the Maharashtra Cooperative Societies Act that pertain to housing societies
Section One: Clauses (5), (6), (7), (8), (10), (10-ai), (10-aii), (10-aiii), (13), (14), (16), (17), (18), (20-A), (21)
(31)
Section two
3, 3A, 4, 5, 7, 9, 10, 12, 13, 14, 15, 17, 18, 19, 20, 20A, 21, 21A, 22, 23, 25, 25A, 31, 33, 34, 35, 36, 37, 38,
40, 41, and 42
Section 50
Section 62
Sections 64, 65, 66, 67, 68, 69, 70, 71, 71A, 72, 73, 73ID, 73C, 73CB, 73CC, 73F, 73I, 75, 76, 77, 77A and
78A

 Section 79, 79A and 79AA
 Section 80 to 89A
 Section 91 to 100
 Section 102 to 110
 Section 145 to 148A
 Section 149 to 154
 Section 154A
 Section 155 to 168
What are cooperative housing societies, according to the Maharashtra Cooperative Societies Act?
The purpose of a housing society, according to the Maharashtra Cooperative Societies Act, is to offer its
members with open plots, flats, and apartments, as well as shared facilities and services.

Housing societies classified under the Maharashtra Cooperative Societies Act
Housing society based on tenant ownership
These are housing societies with the goal of allocating plots or flats on a land parcel controlled by the
society on a leasehold or freehold basis, while the dwellings are owned by the members.

Housing cooperative for tenants
These housing societies aim to provide flats to their members while owning either the land or the
building on a freehold or leasehold basis.

3. Other housing cooperatives
These include home mortgage cooperative societies, house building cooperative housing societies, and
premises cooperative societies with all units being offices or commercial establishments.

Maharashtra Cooperative Societies Act: Rules for Cooperative Housing Societies Registration
A housing society cannot be formed under the Maharashtra Cooperative Societies Act unless at least
five people from different families or at least 51 percent of the total number of flats entitled to become
members under this Act join the housing society's registration proposal.

In cooperative housing associations, plots, apartments, or homes are assigned by lot.
The legislation requires that land, flats, houses, or other dwelling units be allotted to members by the
committee of a housing society, strictly by lot, unless there is a contract to the contrary. Every member
of a cooperative housing society who has been given plots, flats, houses, or other dwelling units shall be
granted a certificate of allocation under the cooperative housing society's stamp and signature. When
the member's dues are paid in full, the certificate must be issued.

Membership in housing societies is restricted under the Maharashtra Cooperative Societies Act.
A housing society should not accept more members than the number of apartments or plots available.
However, if the plot owner created and sold flats in accordance with the requirements, the plot owner's
cooperative housing society may admit an organisation of flat purchasers to its membership in lieu of
the original plot owner member.

4. The Maharashtra Cooperative Societies Act states that a share or interest is not subject to
attachment.
A member's share or interest in loan-stock issued by a housing society is not subject to attachment or
sale under any court decision or order for or in respect of any obligation or liability committed by the
member.

Under the Maharashtra Cooperative Housing Society Act, who is a defaulter?
In the context of housing societies, a defaulter is a member who fails to make a payment to the society
within three months after receiving a written notice, delivered by post under a certificate of posting,
requesting payment of dues.

Maharashtra Cooperative Societies Act: Members' Rights and Duties
A member of a CHS has the following rights and obligations under the Maharashtra Cooperative
Societies Act:

 The cooperative housing association must provide him a certificate of assignment.
 If a member is a defaulter, they are ineligible to be appointed, nominated, elected, co-opted, or
become a member of a committee.
 The member of the society is responsible for paying the society's dues on time.
 The member will be asked to quit the unit when the building is being redeveloped.

CHS members' voting rights under the Maharashtra Cooperative Societies Act
 Each society member gets one vote.
 Associate members will be able to vote with the written agreement of a member.
 Provisional members have no voting rights.
 When there are joint members, the individual whose name appears first on the share certificate
has the ability to vote. In his absence, the person whose name comes second will be allowed to
vote.

Transfer of share, right, title, and interest in cooperative housing societies under the Maharashtra
Cooperative Societies Act
Members of Maharashtra cooperative housing societies may transfer their part, right, title, and interest
in the society using registered paperwork.

5. Transfer of interest upon the death of a member under the Maharashtra Cooperative Societies Act
When a member dies, the society transfers the dead member's part, right, title, and interest in property
to a person based on testamentary documents, succession certificates, legal heirship certificates, or
family arrangement agreements. Following the death of a member, the society will admit the nominee
as a provisional member until the legal successor is admitted as a member in lieu of the dead member.



Maharashtra Cooperative Societies Act: Restriction on transfer of a member's share or interest in a
CHS
In the case of a cooperative housing association, no transfer of a member's share or interest or
occupation right, except to his heir or a nominee, can be effective unless:
 The housing society's dues have been paid.
 The transferee applies for and is accepted into the cooperative housing society.
The terms of the lease control the transfer of a portion or interest in leasehold properties.

Under the Maharashtra Cooperative Societies Act, cooperative housing societies in Maharashtra have a
charge on the share and interest of a member, even if he is past or deceased, to the extent of dues
owed by him to the society.

6. Maharashtra Cooperative Societies Act, 1960: Recent Developments

Cooperative societies cannot refuse access to unmarried women, members of specific communities, or
those who consume certain foods: SC

The Supreme Court ruled in November 2021 that cooperative groups cannot exclude access to
unmarried women, persons from specific areas, or those who eat certain types of cuisine. The Supreme
Court made this statement while issuing a decision on a different subject related to the application of
the Maharashtra Co-Operative Societies Act.

"Are you aware of what societies are doing to exercise this Fundamental Right?" They are not allowing
single women to live in apartments! Members of a certain community are not permitted! They are
depriving those who eat certain foods! This is the truth! This is not permitted! "We cannot accept this
mentality from societies," the Supreme Court stated.

According to the Apartment Act, maintenance fees will be based on the size of the apartment.

The Maharashtra Apartment Owners Act imposes maintenance fees based on the size of a unit. The
same requirement, however, does not apply to housing society apartments registered under the
Maharashtra Cooperative Societies Act, according to the deputy registrar of cooperative societies for the
Pune metropolitan zone.

This is because, in the case of cooperative housing societies, the society owns the land and the building,
and the maintenance fees are split equally among all members, regardless of the size of their
apartments.

The Cabinet has approved an amendment to the Maharashtra Cooperative Societies Act 1960.
May 6, 2021: The Maharashtra government has accepted a proposal to alter the Maharashtra
Cooperative Societies Act, 1960, to ensure that cooperative society members retain their voting rights in
the next elections. A member is required by law to attend at least one cooperative society meeting
every five years or he would be declared 'inactive' and lose his voting privileges. The second wave of the
COVID-19 epidemic has now disrupted the functioning of a number of cooperative organisations around
the state.

7. Members of a cooperative housing society are jointly and severally liable for all MC decisions.

January 2021: The Maharashtra government announced in January 2021 that all elected members of the
managing committee (MC) of cooperative housing societies established under the Maharashtra Co-
operative Societies Act, 1960, must execute a bond that holds them 'jointly and severally' responsible
for all decisions made by the committee. A new form, M-20, has been incorporated into the MCS
(Amendment) Rules, 2002, requiring elected members of the managing committee to declare that they
are jointly and severally accountable for all acts and omissions harmful to the interests of the society.

The Registrar cannot order housing societies to grant NOCs to their members: Bombay High Court
July 2019: In July 2019, the Bombay High Court declared that a deputy registrar of cooperative societies
does not have the authority to order a cooperative housing society to grant no-objection certificates
(NOC) to one of its members for the upgrading and change of use of his premises. Acting on a member's
complaint, the deputy registrar authorised a Mumbai housing society, Shree Raghunandan Cooperative
Housing Society, to provide the appropriate NOCs to the member for merging four tenements and
altering the premises' use from residential to commercial on July 9, 2019. "It is definitely a disagreement
between a member and the society that would necessitate adjudication before some other venue," says
the judge.




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