Cooperative housing societies often face disputes related to membership rights, use of common spaces and financial transactions. With evolving laws and amendments to the Maharashtra Cooperative Societies (MCS) Act, it is essential for residents to stay informed about their rights and responsibilities in a cooperative housing society (CHS/the Society).
This week, we address three common concerns raised by the Society members: Can an associate member contest elections without being named on the share certificate? Does placing a shoe rack in a common lobby amount to encroachment and can it be equated with shifting an entrance door? Lastly, is a CHS entitled to demand transfer fees before the property is conveyed and what can members do, if proper receipts are not issued?
Clarity on Associate Membership & Election Rules
Question: Can an associate member become a committee member without his/her name mentioned on the share certificate? Form 10A states that the associate member's name must be listed as second on the share certificate. So, without their name on the share certificate, can any family member contest the election?
As per Section 56A, only the first member can become an office-bearer in a housing society. Does this mean no associate member or second or third holder in the share certificate can become an office-bearer? Please clarify.
Answer: As per Section 24, read with Section 154B(1) of the MCS Act, 1960, a Society may admit any person (husband, wife, father, mother, brother, sister, son, daughter, son-in-law, daughter-in-law, nephew and niece of the original member) as an associate member after obtaining and submitting written recommendation to exercise the original member's rights and duties with written prior consent and no-objection certificate (NOC). The right to contest elections is subject to the provisions of sub-sections (2), (3), and (4) of Section 154B-11 of the MCS Act, as amended by Maharashtra Act No. 19 of 2024, dated 18-03-2024.
An associate member can contest elections without her/his name being on the share certificate due to the amendments introduced in the MCS Act of 2019 which override the Society's earlier bye-laws. However, this is allowed only if the original member does not want to contest the election and gives his written consent or no-objection letter for the associate member to become a candidate in the Society election.
Regarding Section 56A, you have referred to a provision that was deleted by a government notification in 2014. It is advisable for you to follow the latest provisions of the Act and refer to the new model byelaws framed under the amended MCS Act.
Encroachment in the Common Lobby of our Society
Question: I have extended my entrance door into the common lobby of my Society. Now that a managing committee has been formed, they are asking me to restore the door to its original position. Additionally, many flat-owners have installed fixed, non-moveable shoe-racks in the common lobby, either attached to the walls or the floor. The Society committee has stated that while shoe-racks are acceptable, entrance doors must remain in their original position.
I have taken the stand that I will move my door back only if all other flat-owners remove their shoe-racks from the common lobby, as this also amounts to encroachment. Am I correct in demanding this?
Answer: Your stand is incorrect. By shifting your entrance door, you have encroached on common space beyond your allotted area. You must first restore the door to its original position before raising concerns about other encroachments.
Clarity on Transfer Fee Charges
Question: My housing society is demanding payment of flat transfer charges even though the property has not been conveyed to the Society. Additionally, they are either not issuing proper receipts for payments received or providing receipts with incomplete details. What can I do in this situation?
Answer: You are required to pay the transfer fee regardless of whether the property has been conveyed to the Society. However, regarding the issue of receipts, you should first address a letter to the Secretary, clearly stating your concerns and requesting clarification within a specified time frame. If the response is unsatisfactory, you can escalate the matter to the deputy registrar of cooperative societies (DRCS) for intervention.
NOTE
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Disclaimer: The guidance provided in these columns and on our Legal Helpline is on the sole basis of the facts provided by the reader/questioner and does not amount to formal legal advice in any form whatsoever.
(Shirish Shanbhag has an MSc in Organic Chemistry, a Diploma in Higher Education, and a Diploma in French and has completed his LL.B. in first class in 2021. Before his retirement, he was a junior college teacher at Patkar College from July 1980 to May 2012, teaching theoretical and practical chemistry. Post-retirement in 2012, he started providing guidance and counselling to people on several issues, specifically focusing on cooperative housing society-related matters. He has over 30 years of hands-on experience in all matters about housing societies and can provide out-of-box solutions for any practical issue.)
