Managing a cooperative housing society (CHS/the Society) comes with its fair share of challenges, ranging from urgent infrastructure repairs to procedural hurdles in membership transfers. This week, I will address three critical issues that impact society members—ensuring uninterrupted water supply, clarifying responsibilities in a redevelopment project and understanding the documentation required for property transfers.
When an essential service, like water supply, is at stake, should society bye-laws dictate the pace of action, or can urgent measures be taken without waiting for bureaucratic formalities? Another common concern arises when purchasing a flat in a redevelopment society—who is responsible for securing membership in the housing society, the builder or the buyer? Lastly, when transferring property through a gift deed, what are the necessary steps and documents required to ensure a smooth transition?
Here is what you need to know.
Replacement of Borewell in Housing Society
Question: Our Society urgently needs to replace the borewell as the existing one has stopped working. The managing committee is trying to obtain three quotations but has only managed to get one or two. Since this is an urgent matter affecting water supply, can the committee proceed with the available quotations if approved by the members, or must they wait until a third quotation is obtained? Do the bye-laws specify a time limit for obtaining multiple quotations? Can essential needs like water supply be prioritised over a bye-law requirement?
Answer: Given the urgency of the situation, the committee should document its findings and the necessity of immediate action. A special general body meeting (SGBM) should be convened to obtain approval to proceed with the available quotations. Simultaneously, the committee should inform the deputy registrar of cooperative societies (DRCS) and the affiliated housing federation to establish a defence mechanism in case of any future objections. Once the SGBM approves the decision, the Society can execute the plan without unnecessary delays.
Delay in Acceptance of Resignation by Managing Committee
Question: If I buy a flat in a redevelopment society from the builder, is it the builder's responsibility to make me a member of the existing CHS? Who bears the cost of the membership?
Answer: This depends entirely on the terms outlined in the registered agreement. Generally, as per the development agreement (DA), a purchaser can become a member of the Society by paying a nominal fee of Rs500 towards share capital. It is advisable to check your agreement for any specific clauses regarding Society membership and associated costs.
Documents and Forms for Transfer of Shop in a Gift Deed
Question: My parents, both joint owners of a shop, have executed a gift deed in my sister's name. What forms and documents need to be submitted to the CHS? Are there any charges to be paid? The building is in the final stages of redevelopment, the builder has been appointed and the stamp duty has been paid, but the DA is yet to be signed.
Answer: Since the shop has been transferred via a gift deed, the first step is to confirm whether the gift deed has been registered. Additionally, it is important to verify whether the Society is a general, commercial or housing society, although you have referred to it as a housing society.
For the transfer to be recorded, both the outgoing and incoming members must pay the applicable transfer fees as decided by the Society. The following documents should be submitted:
1. A request application from the outgoing member for the transfer.
2. An application for membership from the incoming member.
3. An attested copy of the registered gift deed.
4. The original share certificate.
5. Proof of payment of the latest outgoing bill.
6. An undertaking to clear any unpaid or future dues within the stipulated time-frame.
7. A crossed cheque for the transfer fees.
8. Any other forms specified by the Society.
It is also advisable to check with the Society for any additional requirements specific to their regulations.
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.)
