For apartments sold by builders in Nagpur, we want to register a society under major class “Housing” with Sub-class “Tenant Co-partnership Housing Society”. What should we specify so far as “Area of Operation” is concerned in application for registration of society under Maharashtra Co-operative Societies Act 1960. If we specify Survey No / Plot No / Ward No of our apartment, I believe that this will confine area of operation of society. As a result, person not residing in Nagpur cannot become member of the society during its registration or subsequent to registration. Similarly person residing in Nagpur but not residing in Survey No / Ward of our apartments cannot become member of society during its registration or subsequent to registration.
Am I correct in my understanding? Request your views / guidance for specifying area of operation of society.
I C Naik
RESPONSE
In bye-laws Model 2014 at Bye Law No 4 there are two categories of locations in the whole of Maharastra are specified. Your housing societywill belong to area (b) i.e. Other than “ Bruhan Mumbai” You are supposed to state area of operation as may be applicable from 4 categories namely (i) Corporation or (ii) Municipal limits or (iii) Town or (iv) Village. Nagpur has a Municipal Corporation So the Area of Operation will be Nagpur Municipal Limits.
Relevance of Area of Operations of Cooperative Society:
Bye-laws are to be approved by the flat purchasers (the Co-promoters) at a meeting a Chief Promoter is expected to convene. Four copies the Proposed Bye-Laws are to be submitted to the Registering Authority along with the Application for registration of the Society. Application form is provided as Annexure A to the the MCR 1961.
One of the conditions of registration of a Cooperative Society as laid-down under Section 6(1) of the MCS Act 1960 is that at least 10 unrelated individuals all residing in the proposed area of operation of the Society must apply for its registration. Rule 8(1) (b) requires that the proposed bye-laws of the Society submitted along with application for registration must show area of operation. Application for registration [Format given at Annexure A to the MCR 1961] of the Cooperative Society also requires Area of Operation to be mentioned therein. If there is any misstatement in the application the registration can be cancelled any time. So one has to be careful.
Ten individuals belonging to ten separate families, competent to enter in to contract and residing with in Municipal limits of Nagpur must sign the Application and the proposed bye-laws. Upon the Registering Authority registering the housing society, these ten members become its main members.
As per Rule 19(1) “No person shall be admitted as a member of a society unless,—
(i) he has applied in writing in the form laid down by the society or in the form specified by the Registrar, if any, for membership;” So Every signatory to Application form A has to make an application to the Chief Promoter in APPENDIX-2 The Form of application for Primary membership of the Society by an individual .
Bye Law No 19(a) requires every individual wanting to join the Society to make the application for membership in Appendix 2. Condition (iii) of this bye-law reads : “applicant has submitted the application as prescribed, of the particulars in regard to any house, plot or flat owned by him or any of the Members of his family, anywhere in the area of operation of the Society” This information is to be furnished in the Membership Application Appendix 2.
Whether a new member admitted after society is registered must also belong to Nagpur?
Bye Law No 38 lays down conditions and procedures for transfer of (flat) member’s shares and interest in the capital/property of the Society and has prescribed form at Appendics 23 wherein the proposed transferee is required to furnish the particulars of the plot / flat / house owned by me / any of the members of my family / the person dependent on me, in the area of operation of the society. Further in the proposed transferee is also required to make a statement as under:
“I enclose herewith the undertaking in the prescribed form that the plot / flat / house owned by me / any of the members of my family / the person dependent on me, the details of which are given in this application about the disposal of the said flat / plot / house.”
No form is prescribed for this undertaking.
It seems such new members can be from outside Nagpur also as the Act and bye-laws are silent about it.