Housing Society Problems and Solutions: Imposing Restrictions on Tenants and Landlords
Shirish Shanbhag 19 September 2024
While some cooperative housing societies (CHS/Society) may have the general opinion that tenants, especially bachelors or students, can disrupt the peace and harmony of a Society, legally they have no right to impose restrictions on such tenants. Discrimination, based on one's religion, gender, marital status, occupation or even food choices, is legally untenable and CHSs cannot enforce rules that promote such discrimination. 
 
This week, I will address one such query and we will also look at the proper way for sharing expenses amongst members during redevelopment and the process of addressing harassment from managing committee members. 
 
Imposing Restrictions on Tenants in a Housing Society
Question:  I am a managing committee member in a CHS with 56 flats, of which around 22 are rented out. Some flat-owners have rented their flats to bachelors or groups of forced bachelors which, I believe, is inappropriate for a residential building. These owners do this to earn higher rents, often accommodating four to six people in each flat, creating an unpleasant environment.
 
One flat-owner filed a complaint against the Society for stopping him from renting his flat to bachelors. Although he later rented the flat to students, he has a pending case in the consumer court, claiming Rs24 lakh in losses for not being able to rent out his flat during the COVID period. The case is still undecided.
 
Could you please provide guidance on how to handle this? The Society's bye-laws are unclear, but we passed a resolution at an annual general meeting (AGM) to prohibit renting to bachelors. Despite this, the resolution is not being followed. How can the managing committee resolve this issue?
 
Answer:  In a CHS, owners cannot be legally prevented from renting their flats, provided the tenants do not disturb the peaceful living environment of other residents. The resolution passed in the AGM to prohibit renting flats to bachelors or students is not legally enforceable. The Society cannot impose such restrictions.
 
Fair Cost Sharing for Redevelopment 
Question:  My Society has 84 flats of different sizes (398 sqft, 560 sqft, 701 sqft, and 801 sq ft) along with about 30 covered garages. My flat is the smallest, at 398 sqft. During the last AGM, the Society's managing committee proposed preparing for redevelopment by obtaining a property card in the Society's name. They estimated the cost at around Rs5 lakh and proposed splitting this amount equally among all 84 flats which was approved by the members at the AGM.
 
I raised an objection, citing your article "Sharing Legal Expenses for Deemed Conveyance" (dated 30 June 2023), arguing that the expense should be distributed based on flat size and should include garages. However, the managing committee ignored my objection, stating the AGM quorum approved the equal split, excluding garages. My concerns are:
 
1. How should the property card-related expenses be fairly distributed among flats and garages, based on the correct bye-laws?
2. Can the AGM override the bye-laws, and should the managing committee allow this?
3. What recourse do I have, given that I am the only one with a small flat (398 sqft) affected, as others with smaller flats either own larger flats or are not residents?
I would appreciate your guidance on the relevant bye-laws and what actions I can take.
 
Answer:  For obtaining the Society's deemed conveyance, a conveyance deed needs to be registered with the sub-registrar of assurances. Once done, the Society can apply to the city survey office for the transfer of the property card in the Society's name. The city survey office will survey the Society's land and provide a building map, which is required for redevelopment.
 
As for the cost-sharing of obtaining the property card, the expense should be distributed proportionally based on the size of each flat and shop, as per their area. This is in accordance with Bye-law No. 174(B)(x). The AGM cannot supersede this requirement, and the managing committee should not allow decisions that violate the bye-laws.
 
Since the managing committee has ignored your objection, you should consider hiring a good advocate and filing a complaint with the cooperative court. You can challenge the decision of equal cost-sharing and request that it be reallocated according to flat sizes and garage ownership.
 
Harassment by a Secretary Who Is a Politician
Question: The secretary of my Society is a politician with a personal agenda against me. He sent me a Facebook friend request and shared political messages which I ignored. Since then, he has been harassing me, even removing me from the WhatsApp group, which provides updates on the AGM. I haven't received a physical copy of the AGM updates either. They haven't given me anything in writing and have avoided communication from the start. How can I protect my rights and my home?
 
Answer:  You can file a formal complaint against the managing committee (MC) with the deputy registrar of cooperative societies in your area, citing Bye-law No. 174(A)(xxii). In your complaint, list all instances of harassment and lack of communication from the MC. The deputy registrar will take appropriate action against the Society based on your complaint.
 
Office-bearer Eligibility in Cooperative Housing Societies
Question: Can an office-bearer of one CHS hold an important post, such as chairman, secretary, or treasurer, in another Society where he/she do not reside?
 
Answer:  No, a person who does not reside in their flat within a cooperative housing society cannot hold an office-bearer position in that Society. If you encounter such a situation, you can file a complaint with the deputy registrar of cooperative societies, citing Bye-law No. 174(A)(xxii).
 
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.)
 
NOTE
We will not be answering queries posted in the comments. Only questions sent through the Moneylife Foundation's Legal Helpline will be answered. If you want to seek guidance or ask questions to Mr Shanbhag, kindly send it through Moneylife Foundation's Free Legal Helpline. Here is the link: https://www.moneylife.in/lrc.html#ask-question
 
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