Questions of ownership, rights and responsibilities are never far away in a cooperative housing society (CHS/the Society). Members often disagree on who controls common spaces, who qualifies to serve on the managing committee, or what formalities must be completed after redevelopment. Without clear guidance, these issues can quickly escalate into disputes.
This column aims to cut through the confusion by explaining what the bye-laws and regulations actually say, so that Societies can function smoothly and members know where they stand.
Membership Formalities after Redevelopment
Question: Our CHS was redeveloped recently and the occupation certificate (OC) has been obtained. Now we want to issue shares and admit new residents as members of the Society. After the said allotment, the paid-up capital will still be within the authorised capital of the Society. Kindly advise on the steps to be taken for these and the formalities to be completed with the registrar of cooperative societies.
Answer: After redevelopment, in the new building, old members will get their new, larger flats along with the newly constructed saleable flats. If old members have their share certificates with five shares, the Society should take back the old share certificates. After collecting Rs250 towards additional share capital, the Society should issue a new share certificate of 10 shares in the member’s name.
All flat-owners should fill out the Appendix-2 form (available in the model bye-laws) to become members. If a new flat is purchased by two or more buyers, the joint owners should be admitted as co-members. Since there is no form for co-members in the bye-laws book, the form for associate member (Appendix-5) should be used instead, and the term ‘associate member’ should be replaced with ‘co-member’.
Old members and purchasers of saleable flats should fill out the Appendix-3 form on Rs500 non-judicial stamp paper purchased in the name of the flat-owner (in case of joint ownership, the stamp paper should be purchased in the name of the first-named joint owner). Joint buyers should fill the form jointly, not separately. The Appendix-3 form should be signed by the old members and the buyers (or all joint owners).
If the first-named joint owner has no source of income, then any other joint owner with an income source should sign the Appendix-4 form. If joint owners do not have an income source, then any relative of the joint buyers should fill the Appendix-4 form. This form should also be on Rs500 non-judicial stamp paper purchased in the name of the signatory.
All flat-owners should also submit the Appendix-25(2) form on Rs500 non-judicial stamp paper. Joint owners should submit this form jointly on the same stamp paper, purchased in the name of the first-named joint owner or sole owner of the flat.
Each joint owner must make a nomination for his/her share in the flat using the Appendix-14 form. This form must be submitted in three copies, each witnessed by two witnesses, otherwise it will be invalid. For example, if a flat has three joint owners, then each of them must fill the Appendix-14 form in three copies.
All original flat-owners should submit their permanent alternate accommodation agreement (PAAA) and its Index-2, while purchasers of saleable flats must submit their sale deed along with the above documents.
If you have any further questions, you may take an appointment for guidance by calling Moneylife Foundation’s office – (022) 35131664 during business hours. The Foundation hosts free guidance sessions on most Wednesdays between 3pm-6pm.
Are Open Terraces Common Property of the Society?
Question: The building has open-to-sky terraces that appear to be used and locked by the top-floor residents for their private use. Are such terraces the property of the Society and should they be accessible to all members as per law?
Answer: Open-to-sky terraces do not consume the building’s FSI and, therefore, cannot be sold as independent premises. They are not saleable items and are deemed common areas belonging to the Society. No individual member can claim exclusive rights over them. If the builder has sold or allotted such terraces to flat-buyers, or if members are wrongfully locking them for private use, a complaint can be filed in the competent civil court through a qualified lawyer.
Can Defaulters Contest Managing Committee Elections?
Question: This is regarding the election to the managing committee. There are two defaulters in the Society with huge outstanding dues. Can they contest the election to the managing committee?
Answer: As per bye-law no. 118, if a member is in arrears of any dues of the Society for more than 90 days on the date of scrutiny of nomination papers, he or she cannot contest the election. However, if the proposer or seconder of a candidate is in arrears of dues, they can still propose or second any candidature.
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
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.)
