Living in a cooperative housing society (CSH/the Society) comes with its share of challenges, from understanding legal obligations to dealing with management disputes. Many residents find themselves navigating issues related to society rules, elections, maintenance charges and property modifications. In a CHS, knowing your rights and responsibilities as a member is essential to ensuring fair treatment and avoiding unnecessary conflicts.
Whether it is disputes over the Society charges, delays in membership approvals, or concerns about unauthorised alterations, clarity on legal provisions can help residents take the right course of action. While Societies have the authority to enforce rules, their decisions must align with established laws and regulations. When faced with delays or unfair practices, members have legal recourse through the appropriate authorities.
Understanding these aspects can help members safeguard their interests while ensuring smooth operations of the CHS.
Premium Charges in CHS Transfer – Can They Be Decided Later?
Question: After obtaining a no-objection certificate (NOC) from the Society, a sale deed was executed for the sale of a flat. The transfer was approved through a resolution passed at the annual general meeting (AGM) which mentioned various charges and a premium but did not specify the premium amount. Meanwhile, the transferee has already become a member of the Society. The quantum of the premium is yet to be decided in an AGM. If the AGM does not specify an amount, does it mean the premium is waived or considered zero?
If this omission later comes to the Society's attention, can the CHS determine the premium amount in a subsequent AGM? Alternatively, can the Society decide the amount in an upcoming management committee meeting?
Answer: You are liable to pay the premium and other charges, as the Society, being a legal entity, has the right to rectify such oversights. Usually, the Society issues NOC after receiving the transfer premium which is capped at Rs25,000 for a municipal corporation area.
In this case, you may bring the matter to the Society's attention and request that no premium be charged but, ultimately, the decision rests with the Society.
Illegal Appointments of Committee Members, without Elections
Question: Our Society consists of 10 members. However, elections, as required under bye-law no. 115 were not conducted. Instead, the general body directly appointed office-bearers bypassing even the managing committee. Given this situation, I seek your legal guidance on the following:
1. Are decisions made by such office-bearers or the managing committee legally binding on all members? For example, can they impose additional maintenance charges beyond the usual charges?
2. If these office-bearers or the managing committee file a maintenance recovery suit before the deputy registrar of cooperative societies (DRCS) and fraudulently obtain a recovery certificate, can this certificate be enforced in a cooperative court, or can it be declared null and void?
Answer: Assuming that your Society has adopted the 2015 bye-laws, duly amended up to December 2019, you should have raised a preliminary objection regarding the election of office-bearers during the recovery proceedings. If the DRCS did not pass an order on this objection, you must file a revision (not an appeal), clearly stating the full details and requesting relief, including declaring the elections invalid and nullifying the actions of the office-bearers. The outcome depends on the specific pleadings you submitted before the DRCS.
Delay in Completion of Membership Process
Question: I recently bought a resale flat from MHADA-owned property and legally transferred it to my name. The transaction took place during the Society election period. However, the newly-elected Society members have been delaying my membership process for the past six months, despite the fact that I have paid the required stamp duty for the transfer letter from MHADA. What action can I take and whom should I approach regarding this delay?
Answer: Since the Society has delayed the membership process beyond a reasonable period, you can approach the DRCS after three months and request to be declared a deemed member.
Flat Modifications without Municipality's Permission
Question: I purchased a resale flat that originally had a small balcony attached to the hall. After buying the flat, I extended the hall into the balcony area and installed a small grill as part of the window.
Now, my flat looks slightly different from others in the building since no one else has made similar changes. The Society has recently raised concerns, stating that this modification could lead to issues if noticed by the municipal corporation or CIDCO.
I did not obtain any permissions before making this change. The construction was completed almost a year ago and the Society has only now pointed it out. What should I do?
Answer: Given the circumstances, you must obtain permission or have the modification regularised by CIDCO or the local planning authority as applicable, regardless of whether the Society has raised objections. It is advisable to address this matter as soon as possible to avoid potential consequences.
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.)
