A PROJECT REPORT

ON

“STUDY OF COOPERTIVE SOCITY”

Submitted by

NACHIKET MILIND SHILOTRI

Roll NO: 28

In partial fulfillment for award of the degree

Of
MASTER OF COMMERCE
In
ADVANCED ACCOUNTANCY
SEMESTER III
(2017-18)

Under guidance of
PROF.DEVAKI SHETTY

SREE NARAYANA GURU

COLLEGE OF COMMERCE

Re-accredited by NAAC – Grade “B” (CGPA: 2.73)

P.L Lokhande Marg , Chembur, Mumbai-40008

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 CERTIFICATE

This is to certify that Shri. NACHIKET MILIND SHILOTRI of Masters in

Commerce in Advanced Accountancy Semester III (2017-2018) have successfully
completed the project on “STUDY OF CO-OPERTIVE SOCIETYIES” under
the guidance of PROF. DEVAKI SHETTY.

_____________________
__________________

Course Co-ordinator Principal

Name & Signature Name & Signature

___________________ _________________

Project guide External Examiner

Name & Signature Name & Signature

_________________

College Seal
Name& signature

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 DECLARATION

I NACHIKET MILIND SHILOTRI the student of Masters in Commerce in

Advanced Accountancy Semester III (2017-2018) here by declares that I have
completed the project on “STUDY ON CO-OERATIVE SOCITIES”.

The information submitted is true and original to the best of my knowledge.

Signature of Student

“NCHIKET MILIND SHILOTRI”

DATE:

PLACE: MUMBAI

ACKNOWLEDGEMENT

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The project on “STUDY ON CO-OPERATIVE SOCITIES” is a result of co-
operation, hard work and good wishes of many people. I student of SREE
NARAYANA GURU COLLEGE OF COMMERCE, would like to thank the
project guide: Professor “DEVAKI SHETTY” for her involvement in my project
work and timely assessment that provided me inspiration and valued guidance
throughout my project.

I also take this opportunity to express my sincere gratitude to the library staff that
provided me with the required information and Society which allowed me to visit
the vicinity and collect data for the project.

I express my deep gratitude to all my college friends and my family members

whose efforts and creativity has helped me in giving the final structure to the
project.

I am also thankful to all those seen and unseen hands and heads which have been
of help in the completion of this project.

Signature of student

(NACHIKET MILIND SHIOTRI)

DATE :

PLACE : Mumbai

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 CONTENTS

SR PAGE NO.
NO.
PARTICULARS
1. CO-OPERATIVE SOCIETY
2. CLASSIFICATION OF CO-OP SOCIETIES
3. INTRODUCTION TO HOUSING SOCIETIES
4. DEFINATION OF CO-OPERATIVES
5. OBJECTIVES OF CO-OPERATIVE SOCIETIES
6. REVIEW OF LITRATURE
7. STRUCTURE OF HOUSING CO-OPERTIVES
8. GUIDELINES FOR FORMTION OF SOCIETY

9. BYE-LAWS OF THE CO-OPERTIVES

10. REQUIREMENTS FOR FORMING SOCIETY

11. PROCEDURE FOR REGISTRATION OF SOCIETY

12. MANAGEMENT OF CO-OPERATIVE SOCIETY

13. MEMBERS OF SOCIETY

14. RIGHT&DUTIES OF MEMBERS

15. LIABLITIES OF MEMBERS OF SOCIETY
16. RESPONSIBILITIES OF MEMBERS
17. PRIVILEGES AND DUTIES OF SOCIETY

18. PROPERTY AND FUNDS OF SOCIETY

19. CHANGE IN NAME OF SOCIETY

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 20. CHANGE IN LIABLITY
21. RE-CONSTRUCTION OF SOCIETY

22. PROBLEMS OF HOUSING SOCIETY

23. MEASURES TO SOLVE THE PROBLEM

24. PROCEDURE FOR WINDING UP OF SOCIETY

25. CONCLUSION
26. BIBLIOGRPHY

CO-OPERATIVE SOCIETY

An autonomous open and voluntary association of persons of the weaker

section of the society, to meet their common socio-economic and cultural needs
and aspiration through a jointly owned and democratic control enterprise in
accordance with the cooperative values and principles.
OR
A Cooperative Society is an Association of a minimum of 25 persons
untitled voluntarily to meet their common economic, social and cultural needs and

6
aspirations, through a jointly owned and democratically controlled
enterprise, registered under the Cooperative Societies Act.

Co-operatives works for the sustainable development of the overall economy

through various policies. Co-operative societies serve their members most
effectively and strengthen the co-operative movement by working together through
local, regional, national and international structure. The place of co-operatives in
Indian economy and its role in social and economic affairs has developed a new
dimension with the beginning of the planning. India emphasized the process of
planning stemmed partly from the urge of backwardness and partly from line
which gave an force to achieve social justice, equality and a decent livelihood for
all citizens, the promotion of co-operative thought of not merely as an extension of
state action but as a step towards the realization of the best of the co- operative
widespread prosperity. India adopted a socialistic pattern and pursued the policy of
a mixed economy with features of both capitalist and socialism. The Planning
Commission which was established in 1950 set the social and economical targets
based on equity and justice. With the objective of self-sufficiency public sector
recognized key of development under the direct control of the State. The second
sector of the economy i.e. private sector came under the regulatory mechanism of
the State. The third sector of the Indian economy which would act as a balancing
factor for the limitations of the public and private sector was the co-operative
sector. Co-operative institutions recognized as an important agents of rural
development, social justice and equity. The co-operative movement must be
financially strong, organically integrated, professionally managed and forward
looking. New economic policy since 1991 brought into focus the important issues
related to the organizational and business restructuring, adoption of modern
technology, new ways of mobilization of resources and measures to upgrade the
standards of productivity. Co- operation is able to survive competition form private
sector and public sector rivals, particularly in areas of marketing, technological
innovations, and mobilization of resource and development. Strength and
flexibility of the co-operative movement tackle the various issues effectively which
opened up with globalization in matters of trade, agriculture production and
financial services.

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 CLASSIFICATION OF CO-OPERATIVE SOCIETIES

As per subject to the provisions of sub-section (1) of section 4, a co-

operative society formed with the object of facilitating the operation of any one of
the classes or sub-classes here in after given shall be classified as a co-operative
society of that class or sub-class namely:-

1.) Producers' society.

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 (Objective is producing and disposing of goods as
the collective property of its members.)

2.) Consumers' Society.

(Objective is obtaining and distributing goods to or
of performing services for its member, as well as
to other consumers within the area of operation
specified in the bye-laws.)

3.) Housing Society.

(Object of providing its members with dwelling
houses subject to the provisions of these rules and
on the conditions to be determined by the Lt.
Governor from time to time) and may be of any of
the following types:-

 Tenant Ownership.
 Tenant Co-partnership.
 Builder Co-operative.
 Ownership cooperative.

4.) Processing Society.

(Objective is the processing of goods by
mechanical or manual process.)

5.) Marketing society.

(Its main purpose is of marketing agricultural or
other produce and includes amongst its objects, the
supply of the requisites of such production.)

6.) Joint Farming Society.

(Objective is increasing agricultural
production, employment, income and better
utilization of resources; land held by
members is pooled together and is jointly
cultivated by the members on behalf of the
co-operative society.)

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 7.) Collective Farming Society.
(The object is increasing agricultural
production land is acquired from outside in
the name of cooperative society and is
collectively and jointly cultivated by the
members themselves on behalf of the
cooperative society.)

8.) Co-operative Union.

(Principal objective is the undertaking of
Co-operative Education, Propaganda and
Training.)

9.) Apex Co-operative Society.

(Their principle object is the promotion of
the principal objects and provisions of
facilities for the operation of other co-
operative societies affiliated to it.)

The project is going to provide focus the information on “Housing Co-

operatives” Housing is an important sector, with a direct connection to human
welfare and economic linkages to the construction industry. The National Housing
& Habitat Policy has been formulated to address the issues of sustainable
development, infrastructure and strong public-private partnerships for shelter
delivery. The objective of the policy is to facilitate the construction of two million
dwelling units each year. It is envisaged that Government would provide fiscal

10
concessions, carry out legal and regulatory reforms and create an enabling
environment. The private sector would undertake actual construction activities.

Policies in the area of housing finance have been a key vehicle through
which home ownership has been promoted. Income tax exemptions have been
given to households building or purchasing homes; financial institutions and
builders have been given fiscal incentives to build housing for low-income groups,
and investors in housing finance companies have been given tax breaks.

HUDCO (Housing urban Development Co-operative) plays a major role in

the implementation of government policies on housing. It has been entrusted with
the implementation of the following programmes: Low Cost Sanitation. Night
Shelter for Footpath Dwellers. Building Centres. Shelter Upgradation under Nehru
Rozgar Yojana (NRY) and Valmiki Ambedkar Awas Yojna (VAMBAY). HUDCO
has been allocating 55 per cent of its housing loans for Economically Weaker
Sections (EWS) and Lower Income Group (LIG). Over 92 per cent of the dwelling
units sanctioned by HUDCO are meant for EWS and LIG. Out of a target of
construction of 20 lakh additional houses, 7 lakh houses would be constructed in
urban areas and 13 lakh in rural areas. HUDCO is expected to meet more than 55
per cent of the urban housing target, i.e., 4 lakh units.

The cooperative housing sector plays an important role. All the 26 State-
level Apex Cooperative Housing Federations are members of the National
Cooperative Housing Federation (NCHF). At the grassroot level, 30,410 primary
housing cooperatives are affiliated to State-level federations. These federations
obtain loans from various financial institutions for on-lending to their member
housing cooperatives as well as individual members for construction/acquisition of
dwelling units. These federations have borrowed a sum of Rs.6.882 crores from
LIC, HUDCO. National Housing Bank, cooperative banks, etc. and disbursed loans
of Rs.7,371 crores to primary housing cooperatives and individual members,
thereby assisting in the construction of about 22 lakh dwelling units in the country.

INTRODUCTION OF HOUSING CO-OPERATIVES

The prime necessities of human beings are food, clothing and shelter and
housing cooperative is an essential for human existence as much food and clothing.
Housing is a significant subject having a concern with a common man. One of the
important problems faced by India is the housing problem. The reasons are varied,
like tremendous growth in population, migration from rural to urban areas. Highly

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speculative trend in the cost of land, weakening of joint family system thus
creating a requirement of a separate house for each family unit etc.

Co-operative housing emerged as a strong, well organized and significant in

order to. Solve the housing problem of common man. These are legally
established association of persons and are democratically controlled by the
members.

The working group on housing co-operatives has therefore said that, “co-
operative activity is the best means of providing decent houses at reasonable costs
to persons, particularly of low and middle income groups.’’

Mumbai is the 3rd largest density populated city in the world and the prices
of the land and construction is becoming unaffordable to the common man. They
also say that man is a social animal and is incomplete without a social fabric. A
person’s lifestyle, his culture, his social status all are determined on where he stays.

DEFINITION OF HOUSING CO-OPERATIVES

"Co-operative housing society" means a society of persons-

(a) which is formed for all or any of the objects referred to in section five of
the act 1958;
(b) which has under its rules a share capital divided into equal shares of one or
more classes and not being preferential shares; and

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 (c) which under its rules is to terminate on a specified date or when a specified
object is attained or a specified event occurs- but does not include a Starr-
Bowkett society, that is to say, a society in which the order of advances to
members is determined either solely or partly by the drawing of lots;
OR

A housing Co-operative is also defined as “an association run along with

co-operative principles (Voluntary membership, democratic member control,
member economic participation, autonomy and independence, education,
training and information, co-operation among co-operators and concern for
community.)”.

It is owned and managed by the members of the co-operative. Most housing

co-operatives are fully mutual and further reference to housing co-operatives in
this document refer to this type, where only tenants or prospective tenants may be
members, and only members may hold a tenancy. This means that decisions are
made by the people who are affected by those decisions.

Housing co-operatives provide a way for people to share in the ownership of

property and live in it at affordable rent levels, as opposed to rent levels designed
to generate profit for an individual or company. They are an alternative to home
ownership in the traditional sense or renting in the private sector.

OBJECTIVES OF CO-OPERATIVE SOCIETY

A co-operative housing society may be formed for all or any of the following
objects-

(a) to enable each of its members-

 to purchase land and to erect a dwelling-house thereon; or

 to erect a dwelling-house on land already owned by him; or

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  to erect a dwelling-house on Crown land leased by him for a term of not
less than 50 years being Crown land within an area approved by the
Governor in Council for the purposes of this Act;
 subject to section thirty-four of this Act to purchase land upon which is
situated a dwelling-house; or
 to maintain and keep in proper repair his dwelling-house; or
 where the approval of the Governor in Council given after consideration of
a report by the registrar is first obtained-to discharge a mortgage held by
another society upon any land; or
 to discharge a mortgage or any other charge or security over or affecting
any land which mortgage charge or security was granted or executed by the
member in question in anticipation of the society's making an advance to
him and with the approval of the registrar to the making of the advance;
and

(b) for all or any of those purposes to make advances to its members upon the
security of freehold property or a lease for a term of not less than 50 years of
Crown land within an area approved by the Governor in Council for the
purposes of this Act.

REVIEW OF LITRATURE

Man is a social animal imbued with desires and aspirations and which can be
fulfilled within society. Co-operation is basic to the development of human beings
and ultimately to the progress and prosperity of society at large. Human body
system is a good example of perfect co-ordination among the different organs.
Similarly, human beings have to co-operate for the happier and healthier life.1
Basically the concept of co-operation is derived from a Latin word „co-operari‟,

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means working together with another or others for a common purpose or an
association of persons who unite to do some work together in order to achieve
some purpose. Generally speaking „Co-operation‟ means, „living, thinking and
working together‟. Co-operation is a joint or collective action of people directed
towards some specific goal in which there is common interest or hope of getting
some reward. Such co- operation may be voluntary or involuntary, direct or
indirect, formal and informal but there always is a combination of efforts towards a
specific end in which all the participants have a stake, real or imagined.2 From the
most primitive to the most sophisticated community throughout the world we come
across some or the other form of co-operation among the people living in a
particular area or region be it for some agricultural operations or of social,
economic or political activity. Co-operation has rightly been regarded as one of the
least noticed economic miracles of the last century.3 Co-operation is as old as
humanity and co-operation is older than the co-operative movement. The co-
operative movement is only one example of human co-operation among others.
The meaning of co-operation varied from thinker to thinker and from one sphere of
human activity to another. To the sociologists, it is a social economic movement,
for the socialists, it is a social order in which man is free form class struggle,
economists believe that, it is a form of business organization in which there is no
scope of being exploited by middlemen. The lawyers take it to be an organization
in whose membership one enjoys the special privileges and concessions conferred
by law.4
1. Dr.S.B.Mathur, “Co-operation in India”, Pub. By Sahitya Bhawan, Agra, 1990,
P. 01. 2. International Encyclopedia of Social Sciences Vol.03, 1972, P. 384. 3.
Smith, Louis P.F., The Evolution of Agricultural Co-operation, Oxford, Basil
Blackwell, 1961,p.XI. 4. K.R.Kulkarni, “Theory and Practice of Co-operation in
India and Abroad”, Vol.I, 1960, p.11.)
Nourse E.G. observed, “that the co-operative movement grew out of the
circumstance of the industrial revolution, capitalism and the attendant irrational
equality and was a reaction against early abuses or at least rigors of the capitalistic
industrial system”.1 Arnold Boner wrote in “British Co-operation”, „that a new
moral world based on principles of co-operation and human fellowship which
according to Boner was to supersede the old immoral world of ruthless competition
and merciless exploitation and usher in a millennium of universal benevolence and
content”.2 Although the idea of co-operation is basically the same all over the
world, its form and content varies from country to country. Co-operation emerged
in different countries among people with different economic interests and for
performing different economic functions. Everywhere, however, it originated as a
defensive bulwark against exploitation of the weak by those in a stronger economic
position. Co-operation has rightly been regarded as one of the least noticed

15
economic miracles of the last century.3 Co-operation implies that a well
differentiated and specialized society with diversified human needs and activities
may be so organized that „Each may work for all and all for each‟. Co-operation
involves all aspects of human behavior- political, religious, economic and cultural.
Co-operation is the very life and it is the foundation of all human conducts and is
the mortar which cements various parts of the body that is called society. It is
difficult to convey the correct meaning of co-operation in its technical sense
because the term co-operation has assumed different shapes in different countries,
according to the circumstances obtaining there which gave birth to co-operation.
Even then, some of the familiar definitions of co-operation are given below- “Co-
operation is a form of organization, wherein persons voluntarily associate together
as human being on the basis of equality, for the promotion of economic interests of
themselves”.-H.Calvert.4
1. Nourse Edwin G., “The Economic Principles of Co-operation in Agricultural
Co-operation”, edited by Martin Abraham and Claude Scruggs. P.161. 2.
Arnold Boner, “British Co-operation”, 1961, Manchester, PP.23-24) 3. Dr.Smith;
Quoted by Dr.B.B.Mathur, “Co-operatives in India”, Shivala Agrawal & Co.,
Agra,1987,P.5. 4. Calvert H., “Law and Practice of Co-operation”, 1915.
“A co-operative society is an association for the purpose of joint trading,
originating among the weak and conducted always in and unselfish spirit, on such
terms that all, who are prepared who assume the duties of membership, may share
in its rewards, in proportion to the degree in which they make use of their
association.”1 “Co-operation occurs when, by emitting activities to one another, or
by emitting activities in concert to the environment, at least two men achieve a
greater total reward than either could have achieved by working alone.”2
“Cooperation is a way of life whereby people unite democratically in the spirit of
mutual aid to get the largest possible access to things and services they need”.3
“Co-operation is a joint or collaborative behavior that is directed towards some
goal in which there is common interest or hope of reward.”4 “A co-operative
society is an enterprise formed and directed by an association of users, applying
within itself the rules of democracy and directly intended to serve both, its own
member and the community as a whole.”5 “Co-operation is a special form of
economic organization in which people work together for definite business purpose
under certain definite business rules.”6 Mr. W. P. Watkins, a former director of the
International Co-operative Alliance, defined co-operation as a “system of social
organization based on the principles of unity, economy, democracy, equality and
liberty”.7 The International Labor Organization defines co-operative society as “an
association of persons usually of limited means who voluntarily joined together to
achieve a common economic end and through the formation of a democratically

16
controlled organization making equitable contribution of the capital required of
accepting a fair share of rights and benefits of the undertakings”.8
1. Fay C.R., “Co-operation at Home and Abroad, Vol. I, 1908, P.39. 2. Homans
G.C., “Social Behaviour: Its Elementory Forms”, Brace & World, Harcourt, New
York, 1961, P.384. 3. Warebasse J.B., “The Co-operative”, 1946. 4. Nisbet R., “Co-
operation”, International Encyclopedia of the Social Sciences. Vol.3, Macmillan &
The Free Press, New York, 1968, P.384. 5. Lambert Paul, “The Social
Philosophy of Co-operation” 1963. 6. Gorden and O‟Brien, “Co-operation in
Many Lands”. 7. Quoted by Dr.B.B.Mathur, Co-operation in India, Sahitya
Bhawan, 1990, P.8. 8. www.ica.coop/coop/principles.htlm. Assessed on 2008.
International Co-operative Alliance, Geneva (1995) - has defined that- “A co-
operation is an autonomous association of persons united voluntarily to meet their
common economic, social and cultural needs and aspiration through a jointly
owned and democratically controlled enterprise. Co-operatives are expected to
function based on the value of self-help, self-responsibility, democracy, equality,
equity and solidarity. In the tradition of their founders, co-operative members
believe in the ethical values of honesty, openness, social responsibility and caring
others”. Thus, co-operatives are better than private and public enterprises to serve
the common goal due to their commitments to the values and principles in handling
their business. After all, effective functioning of these co-operatives depends on the
effective utilization of their resources. From the above definition it can be
concluded that- A] Co-operative is a voluntary and organized association of a
number of individuals, dominated by a common need for the purpose of carrying
collectively and independently an economic function which will provide specific
economic benefits. B] It is enterprise and not a charitable association. C] The co-
operative organization functions on the basis of equality. D] It is for self-help as
well as mutual help. E] It is an association of persons and not of capital.

PRINCIPLES OF CO-OPERATION –

There is no doubt that there is something in the „co-operative movement‟ that

makes a universal appeal. When inaugurating an International Seminar on Co-
operative Leadership in Nov.1960 at New Delhi, Pandit Nehru stated that- „The co-
operative principles are not something which is a way of credit or marketing. It is a
way of life. If you make it a way of life, you not only attempt to solve the
country‟s problems, but also help in the solution of International problems‟.

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According to Prof. Karve D.G., “A co-operative principle is a way of organizing
and conducting the cooperative activity which is an inherent and indispensable
corollary of the ideal or the objective to the co-operative movement”.1
1. Karve D.G., “Co-operation Principles and Sunstance”, 1968. P.24.
The base of co-operatives is the “co-operative values” and “co-operative
principles”. They are the main features that differentiate co-operatives from other
forms of business organizations. At the 1995 Manchester Congress of the
International Co- operative Alliance, the Congress adopted an Identity Statement
on Co-operatives, which with authority stated the co-operative values and co-
operative principles. The co- operative values are self-help; self-responsibility;
democracy; equality; equity and solidarity. It is the claim of the co-operative
movement that it can be the principle means of bringing about in a peaceful
manner a social change of a fundamental nature, ushering a social order non-
exploitive, equalitarian, tolerant that harmonizes the dignity of the individual with
the well being of the community.1 The principles of co-operation have changed
from time to time to cover the changing environment and conditions so that the co-
operative movement may become more meaningful and purposeful. However, the
modern formal co-operative movement dates back to Rochdale principle, a set of
rules which they adopted even today effectively guide the philosophy and conduct
of co-operative societies all over the world.

COMMITTEE REPORTS AND CO-OPERATIVE MOVEMENT -

Researcher has made an attempt to review the literature in respect of different
committees like review committee, reports of the working groups, study teams on
co- operatives etc. for detail study of the research work. Various expert
committees were appointed to study the development of co- operatives and to
make the recommendations for the sustainable development of co- operative
movement, from time to time, as and when the Government felt that something
was wrong with the movement. At the time of independence two major
committee‟s were established namely- Agricultural Finance Sub-Committee under

18
the Chairmanship of Prof. D.R.Gadgil, and Co-operative Planning Committee
under the Chairmanship of R.G.Saraiya in 1945.
Agricultural Finance Sub-Committee (1945) - Under the Chairmanship of Prof.
D.R.Gadgil, observed that, “the spread of co-operation would provide the best and
the
1. Mehta V.L., “India Co-operative Review”, July 1965, P.495.
more lasting solution for problems of rural economy in general and that of
agricultural credit in particular.”1 However, it was considered that it might not
possible for the co- operative movement to supply the entire credit needs of
agriculturists. Therefore, it was recommended that state aid should be given in
much larger measure that was provided in the past so that the co-operatives might
be enabled to supply better credit facilities.
Co-operative Planning Committee (1945) - Under the Chairmanship of
R.G.Saraiya in 1945, recommended that primary societies be converted into multi-
purpose societies and that efforts should be made to bring 30 per cent of the rural
population and 50 per cent of villages within the ambit of the reorganized societies
within a period of 10 years, 25 percent of the total marketable surplus or
agricultural produce should come under co-operatives. Committee also
recommended that Reserve Bank of India should provide greater assistance to co-
operatives.2
All India Rural Credit Survey or Gorwala Committee (1954)3 - Committee was
appointed by the Reserve Bank of India in 1951, to supervise a survey regarding
facilities available in rural areas for providing agricultural loans to the
agriculturists and to make necessary recommendations. The Committee submitted
its report in 1954. After analyzing the various causes for unsatisfactory working of
the movement, the committee concluded that “Co-operation has failed but it must
succeed”. The committee recommended- A) an „Integrated Scheme of Rural
Credit‟ involving three fundamental principles, namely- i) State participation at
different levels, ii) Co-ordination of credit with other economic activities
especially processing and marketing in the co-operative sector, and iii)
Administration through trained and efficient personnel responsible to the needs of
the rural population. B) Suitable amendments were suggested in RBI Act and the
establishment of a National Co-operative Development and Ware Housing Board at
all India level. C) The establishment of three special funds under the RBI was
suggested- i.e. i) The National Agricultural Credit (long-term operations) Fund, ii)
The National Agricultural (stabilization) Fund, iii) National Agricultural Credit
(Relief and Guarantee) 1. Report of the Agricultural Finance Sub-Committee,
1945, P. 47. 2. Report of the Co-operative Planning Committee, 1946, pp. 218 &
227. 3. All India Rural Credit Survey Committee Report, Vol. II, 1954.

19
Fund. D) A crop loan system was to be evolved. E) The economic viability of the
co- operatives at the village level was essential. Each village society should be
revitalized and reorganized and be made really effective. These recommendations
were generally approved and were made the basis for the future plans for
development.
Law Committee (1956)1 – Law Committee was set up by Government of India,
under the Chairmanship of S.T.Raja. The committee submitted its report in 1957
and prepared a draft bill, which was forwarded to all State Governments for
simplifying and liberalizing the provisions of co-operative laws and procedures,
with suitable modifications to their local conditions. The law related to co-
operatives, their responsibility of enactment and administration rested in the State
Governments. After the committee report, many State Governments passed their
new Acts.
Policy Resolution of (1958)2 - National Development Council (NDC) discussed in
detail and recommended radical reforms in the pattern of organization of societies
at village level in its policy resolution of 1958 about co-operative movement. As
per their recommendations in 1959 Government of India pointed out to the State
Governments the broad outlines of the policy to follow in respect of co-operative
development. According to the resolution, the policy of organizing large-sized
societies was given up and the scheme of service co-operatives, organized on the
basis of village community as a primary unit with the object of helping the
members increase their agriculture production was introduced. Policy emphasized
on linking credit with marketing for strengthening the co-operative movement.
Policy suggested coverage of all villages and all rural families within a short period
as possible up to the end of third plan. Every agriculturist and rural worker should
get advantage of co-operatives through the credit facilities.
Mehta Committee (1959)3 - Committee on Co-operative Credit gave its report in
October 1960, with many important recommendations, to determine the question
of viability, providing adequate finance and state participation at the primary level.
The
1. GoI, Law Committee, 1956. 2. National Development Council, Policy
Resolution of 9th Novermber 1958. 3. GoI, Committee on Co-operative Credit,
1959. (Mehta Committee, 1959).
Committee suggested suggestions to expand credit facilities for agricultural
production as well as credit structure for strengthening co-operative movement.
Organized service co- operatives on the basis of the village community as the
primary unit and if villages are too small the number of villages to be covered by a
society may be increased in the interest of viability, to encourage members to
subscribe sufficient share capital in the society as well as Government also
contribute to share capital to service co-operatives. The committee also stressed on

20
the co-operative societies to enlarge their internal resources, sound management,
not only encourage the credit worthy people as member but also the marginal and
sub-marginal cultivators, landless tenants etc. and provide them adequate credit on
the basis of their production requirement and paying capacity. The RBI liberalized
its credit limits for the Central Co-operative Banks. The pattern of organization of
primary societies, which formed the base of the co- operative credit structure, was
settled on the basis of the recommendations of the Mehta Committee on credit.
Committee on Consumers Co-operatives (1961)1 - Set up by National Co-
operative Development and Warehousing Board to examine the promotional and
organizational aspects of the consumer‟s co-operative movement for ensuring
sustainable development. Its main recommendations were- organizing primary
consumer‟s stores, Government assistance for construction of godowns and
contribution in share capital, cash credit from co-operative banks and
establishment of National Federation of Consumer‟s Stores etc.
Working Group on Industrial Co-operatives (1962)2 - In 1962, the Ministry of
Commerce and Industry appointed the second working group on Industrial Co-
operatives, called as Working Group on Industrial Co-operatives, to review the
present condition and to suggest targets during Third Plan. The report submitted in
May 1963 with the recommendations that the setting up of new and revitalizing the
existing industrial co- operatives strengthening weavers and handicrafts co-
operatives and extension of credit
1. National Co-operative Development and Warehousing Board, Committee on
Consumers Co-operatives, 1961. 2. Ministry of Commerce and Industry, Working
Group on Industrial Co-operatives, 1962.
facilities of Industrial co-operatives by co-operative banks and the formation of
federations of industrial co-operatives. Special orientation of 2 to 3 weeks should
be given to the officer‟s in charge of providing technical, financial and other
facilities to the industrial societies. The group estimated that 15,000 new societies
could be set up with a membership of 15 lacks during the third plan. It
recommended utilization of 25% of small scale industries provision in the plan for
the development of industrial co- operatives. Committee on Taccavi Loans (1962)1
- The Ministry of Community Development and Co-operation, GOI, appointed the
Committee on Taccavi Loans in July 1961, under the Chairmanship of Shri.
B.P.Patel, to examine the existing arrangements for the supply of taccavi loans to
farmers and suggested measures as will ensure effective implementation of the
policy of routing taccavi loans through co-operatives. Committee submitted its
report in August 1962. As per National Development Councils recommendation in
November 1958, was that takavi loans and other facilities make available to
agriculturists through co-operatives and make advantage to every agriculturists and
worker to find it to join the village co-operative. Government of India therefore

21
requested to the State Governments to route takavi loans through co-operatives.
The progress of implementation of this policy was not satisfactory as there were
many organizational and administrative difficulties that stood in the way of its
implementation. Patel Committee studied the problem and made recommendations.
The Committee submitted its reports in September 1962. It recommended that co-
operatives should keep their rate of interest within limits, i.e. about seven and half
to eight per cent, depending upon the stage of development of the co-operative
movement in the area concerned. It is also reported that there was very limited
scope for the expansion of taccavi credit. Moreover, co-operative method of
advancing loans was advantageous as it could command the local services and
savings and allow opportunities for direct participation by beneficiaries. On the
recommendation of the committee, Government of India decided to channel
taccavi loans through the co-operatives. In the year 1960-61 the co-operative
advanced about Rs.202 crore of short and medium term credit whereas the
government advanced only about Rs.41 crore as taccavi.
1. GoI, Ministry of Community Development and Co-operation, Committee on
Taccavi Loans, 1962.
On the basis of the recommendations of the Committee, the Government of India,
in September 1963, presented a future policy to the state governments that- to
accept co- operatives as the ultimate sole institutional agency for provision of
agricultural credit, to implement the policy of routing taccavi loans through co-
operatives in a phased manner, and to strengthen the co-operatives in areas where
they are weak so that they may ultimately take over the entire responsibility for
provision of agricultural credit.
Study Group on Transport Co-operatives (1962)1 - In September 1962, under the
Chairmanship of S.N.Bilgrami, the Minister of Transport, GOI, a study group was
to examine the scope for transport co-operatives, draw up a pattern of organization
for such co-operatives, assess their financial requirements and suggest pattern of
financial assistance. Study group submitted its report in May 1964 with some
fundamental recommendations that was government participation in the share
capital up to 35% of the total share capital, government guarantee through co-
operative banks, state and national level federation. It is also recommended that the
organization of service co-operatives which may consist of at least ten different bus
owners or fifteen truck owners with 25 vehicles in all, in order to undertake the
work of booking agency, servicing, procurement and supply of spares, settlement
of tax liability, co-operative insurance, training of drivers, attending of litigation of
the members etc.
Study Group on Panchayats and Co-operatives (1962)2 – It was appointed by the
Government of India, under the chairmanship of Misra S.D.W. to study and
suggest measures to achieve maximum co-ordination between the co-operatives

22
and Panchayats. Concern to the State Governments participation in the share of co-
operative societies, working group suggested that it should not be rated through the
Panchayati Raj institution, whether they both have a close ideological link and aim
at democratic decentralization. However, Panchayats should have an important role
in the promotion and development of co-operatives in their areas especially in
respect of service co- operatives i.e. co-operative processing industries, fisheries,
housing, labor, dairy co-
1. GoI, Minister of Transport, Study Group on Transport Co-operatives, 1962. 2.
GoI, Study Group on Panchayats and Co-operatives, 1962.
operatives etc. It was also suggested that the panchayats should deposit their
surplus funds with the service co-operatives having regard to local conditions.
Panchayat should provide accommodation and adequate publicity for education
programme of Co-operative Union. Generally, working group emphasized the
necessity of these two institutions and their mutual relationship. Committee on
Co-operative Administration (1963)1 - was appointed in April 1963, under the
Chairmanship of V.L.Mehta. The committee appointed to review the departmental
set up and to suggest recommendations to make stronger the departmental
administrative staffs at various levels. Committee recommended that the Registrar,
Co- operative Societies, should be an IAS officer along with two years training.
There should be Joint Registrar for audit, credit and banking, marketing and
processing, industrial societies, forming societies and consumer societies. It is also
recommended that suitable training should be given to the departmental as well as
institutional staff and orientation training should be given after every five to seven
years. The pattern of organization of primary societies, which formed the base of
the co-operative credit structure, was settled on the recommendations of the Mehta
Committee on Credit.
M.L.Dantwala Committee (1964)2 - Government of India appointed a committee
on co-operative marketing to review the pattern of organization of co- operative
marketing and give recommendations for ensuring sound and speedy development
of agricultural marketing on co-operative basis. The committee gave its interim
report in 1966 with following major recommendations such as- for the future
pattern of organization two-tire structure of marketing societies, apex societies at
State level and primary societies at mandi level. State Trading Corporation and
Food Corporation of India should purchase their requirements of agricultural
production through it. Committee endorsed the recommendations for Fertilizer
Committee (Sivaraman Committee) that the chemical fertilizers should be
distributed through co-op. marketing society. The State Bank of India should give
priority to meet the requirements of marketing societies.
1. GoI, Committee on Co-operative Administration, 1963. 2. GoI, Report of the
Committee on Co-operative Marketing, 1964.

23
Mirdha R.N. Committee (1964)1 - was appointed by Government of India to
suggest measures for proper development of the co-operative movement by
eliminating non-genuine societies and vested interests. Assessing the size of the
problem of non- genuineness in the co-operative movement, the report came to the
conclusion that the movement was by and large moving in the right direction and
that it would be wrong to magnify a few malpractices and come to a conclusion
that the movement was replete with non-genuine societies. The committee
however, gave certain suggestions to overcome a wrong type of tendencies i.e. co-
operative training and education, regular audit of societies by an agency
independent of Registrar, Government assistance etc. The committee also
examined the factors hitting self-reliance and self regulation in the co- operative
movement. After examined all the issues the committee made many useful
recommendations including setting up of National Co-operative Bank to make the
movement self reliant.
All India Rural Credit Review Committee (1966)2 - Under the chairmanship of B.
Vendatappiah, and the Committee submitted its report in 1969. Which
recommended the entry of commercial banks into the rural credit system stated
clearly that this was being done to „supplement‟ and not „supplant‟ the co-
operative credit structure. According to the committee „a large number of Primary
Agricultural Credit Societies are neither viable nor even potentially viable and
must be regulated as inadequate and unsatisfactory agencies for dispensing
production oriented credit‟. The committee gave emphasis to integrity, efficiency
and the sense of dedication, functioning based on democratic and egalitarian
principles and effective supervision. The All India Rural Credit Review Committee
had said, “The expanding area and scale of co-operative activity and its growing
diversification made it necessary that co-operative banks should build up large
resources by way of deposits”. The committee also prepared the ground for a
multi-agency approach to agricultural finance.
1. GoI, Mirdha Committee on Co-operation, 1964. obtained by “Theory, History &
Practice of Co-operation”, Bedi R.D., Loyal Book Depot, Meerut, 1971. 2. GoI, All
India Rural Credit Review Committee, 1966.
All India Rural Credit Review Committee (1969)1 – Government of India had
appointed the committee under the chairmanship of B.Venkatappiah. Main
objective of the committee was to suggest measures for the reorganization of rural
credit. The Committee found that there is marked increase in the co-operative
credit between 1951- 52 and 1967-68 i.e. from Rs.24 crore to 500 crore. However,
there was a lag in dispersal of co-operative credit in the backward states of Assam,
Bihar, Orissa, West Bengal, Rajasthan and Jammu & Kashmir. In other parts of the
country too, there were weaknesses in co-operative banking system by way of low
deposits, high overdue and general lack of business, management etc. recognizing

24
such weaknesses but the need for increased requirement of finance for agriculture
in the wake of green revolution technology. The Committee suggested the
following points and recommendations- a) The establishment of Agricultural
Credit Board, b) Setting up of a Small Farmers Development Agency, c) Creation
of Electrification Corporation for the benefit of underdeveloped areas, d)
Formulation of a more active and much bigger role for ARDC, e) Adoption of
various measures for ensuring the timely and adequate flow of credit for
agriculture through co-operatives and through commercial banks. As per
recommendations, small farmer‟s development agencies were set up in selected
districts as well as Rural Electrification Corporation was also established in 1969.
Most of the recommendations of the committee were accepted by the government
and included in the Fourth Five Year Plan i.e. SFDA, MFAL, were launched with
active involvement of institutional credit agencies.
P.R.Dubhashi Committee (1972)2 - The issues addressed by the Committee were-
a) Adoption of professional management, b) Extension of deposits and insurance,
c) Quality of working- litigation pending, adjournment, hundred percent audit,
security of loan proposals, documentation, loan recovery plan, grant of
membership, maintenance of records, revision of bye-laws, Registrar‟s power,
court procedures, nature of appeals in the court, a common law for all types of Co-
operative Societies, etc.
1. GoI, All India Rural Credit Review Committee, 1966. 2. GoI, P.R.Dubhashi
Committee, 1972.
M.K.Madhavdas Committee (1978)1 - Reserve Bank of India appointed committee
under the Chairmanship of M.K.Madhavdas, Executive Director of Agricultural
Loan Dept. to examine and give recommendations on the working of Urban Co-
operative Banks and examine as to which types of services they would be able to
provide in future. The committee submitted its report in July 1978 with the
recommendations that- Composition of Model Bye-Laws, providing finance to
small scale industries, managerial aspects and self-employment etc. The committee
also remarked that- to fulfill the requirement of credit in urban and semi-urban
areas urban banks are a good channel. Compared to other banks urban banks are
cheaper as well as working methods are also easier. The Committee observed that
they maintain good relation in local areas, so, the committee recommended
facilities about re-finance on low rate for providing cheaper credit to small scale
industries, self-employment, traders, transport services and other small services.
Marathe Committee (1978)2 – The Committee worked in to the issues of :
Development of Urban Co-operative Banks (UCB) as per their need, regional
imbalance in development and the principle of one district one bank, branch
expansion by the new UCB‟s instead of by the old established UCB‟s,
encouragement of establishment of Women‟s Co-operative Banks, utility of

25
UCB‟s for non-agricultural loans in rural areas as the basis for future branch
expansion, survey at the national level to be taken by the Federation and Co-
operative Dept. of the state to suggest measures to develop UCB movement in
backward areas, measures for developing local leadership and expertise in the non-
bank backward areas, liberalization to open new bank branches in the
underdeveloped areas and licensing, viability and licensing criteria to be
determined on the basis of population served in urban, semi-urban and
metropolitan areas, minimum share capital and membership and the jurisdiction of
UCB‟s rehabilitation of weak UCB‟s and RBI‟s power to issue licenses,
inspection, measures to limit external interference, computerization, consolidation,
mergers and liquidation etc.
1. GoI, RBI, M.K.Madhavdas Committee, 1978. 2. GoI, Marathe Committee,
1978.
Ardhanarishwaran Committee (1987)1 – Pointed out towards the modern and
professional management, financial discipline, human resource development,
composition of Board of Directors, criteria for selection of the staff and General
Manager.
Khusro Committee (1989)2 – The Agricultural Credit Review Committee under the
chairmanship of A.M.Khusro was appointed by the Reserve Bank of India in
August, 1986 to undertake among others a review of the rural financial system and
to assess the credit requirements of the agricultural sector during the next decade.
Khusro Committee submitted its report in August 1989. The committee
recommended ceiling on lending rate of commercial banks on agricultural lending
at 15.5 per cent, whereas in case of Primary Land Development Banks, it was
suggested at 5 per cent and for the RRBs 8.65 per cent. According to the committee
demand for credit was limited and more realistic as it is based on agriculturists‟
desire of borrowing from institutional and non-institutional sources. According
Committee opined that the institutional credit has been extended to a very large
number of borrowers, who are first generation members of the banking system
with shifted loyalties from non-institutional money-lenders. But the money-lenders
and other informal lenders have not yet gone away. The institutional credit system
has still a long way to go. The Agricultural Credit Review Committee visualized
that the direct demand for agricultural credit will rise from Rs.27,557 crore in
1989-90 to Rs.57,316 crore in 1994-95 and further Rs.1,10,873 crore in 1999-2000
(@ 1984-85 price level). The committee also estimated that the deficits which the
credit system will have to find so as to meet the estimated demand will be of the
order of Rs.5487 crore in 1994-95 and Rs.21,426 crore in 1999-2000. It is also
suggested in areas where RRBs are not economically viable may be merged into
sponsoring commercial banks. Committee made projections related to the credit
demand from agriculture and rural sector by the turn of the century. It has

26
visualized that the rural credit system has two borrowing categories to be served,
the larger category of well specified and the low income and socially weaker
sections. Concern to them, the surplus generated in the economy as well as in the
credit
1. GoI, Ardhanarishwaran Committee on Co-operation, 1987. Obtained by
“Theory, History & Practice of Co-operation”, Bedi R.D., Loyal Book Depot,
Meerut, 1971. 2. GoI, The Agricultural Credit Review Committee, RBI, Khusro
Committee, 1989. system from the efficient operation of the larger category should
go to meet some of the cost and if and to the extent necessary, some specific
subsidies for the low income category. It also recommended the creation of
National Co-operative Bank to function as national apex bank for all co-operative
institutions in the country, elimination of control and interference, well paid and
qualified secretaries, business development plan, etc.Pant Committee (1990)1 -
The Ministry of Agriculture set up another Committee in October 1990 under the
chairmanship of Pant J.C. (Additional Secretary, Department of Agriculture and
Co-operation) to consider the implement of the recommendations of the
Agricultural Credit Review Committee (1989) for strengthening the co-operative
Credit delivery system on sound financial lines. To make each primary agricultural
credit society viable the committee suggested some action programme. As the first
step would be to train personnel working in co-operative banks in all aspects of
preparation of business development plans (BDP) for PACS, committee suggested
that the personnel training will develop the total scope of activities necessary for
increasing loan business, deposit mobilization, increase the range of profitable
activities, etc. The committee advised that instead of five years period of the
programme for restoring the viability of primary co-operative credit society to a
minimum business of Rs.10 lack per annum should be phased over a period of ten
years due to heavy financial commitment required to overcome the problem.

27
 STRUCTURE OF HOUSING COOPERATIVE

# First level: National cooperative

At the apex of the structure is the National cooperative housing
society’s federation (NCHF) which was established in 1969 and
has headquarters in New Delhi. The objectives of this institution
are:-

1) Give publicity of cooperation housing movements by publishing books and

brochures.
2) To establish financial institutions at state level (Maharashtra Housing Finance
Corporation)
3) To help the primary housing cooperative to get loans for building houses and
flats at very nominal interest rate.
4) To undertake research for new building material so to reduce the construction
cost.

# Second level: State level housing cooperative

Their main objective is to guide primary housing cooperatives
regarding legal and statutory matters so as to get that registered.
They also help in negotiating with institution like MHADA for
allotment of plots.
# Third level: Primary housing cooperative
The objectives are found in rural, semi urban and urban areas and
can get themselves registered if they have ten or more members
who have a fix source of income and who come together to build a
housing cooperatives and solve the housing problems and prevent
exploitation of Land lords. They provide a systematic and
organized way of maintaining the building and property of housing
cooperatives.

28
The basic guidelines for the formation of Co-operative society in Maharashtra
State are as follows:-

 There should be at least ten persons or more as the Registrar may determine
from time to time.

 These persons should be from different families.

 These persons should be competent to enter into a contract under the Indian
contracts Act 1872.

 He should reside in the area of operation of the Society.

 He should be eligible as per the bye-laws of the proposed Society.

 Any individual, firm, company or any other body corporate can become
member of the Society.

 Any Society registered under this Act or Societies registration Act 1860

 State & Central Government, Public Trust, local authority.

 The object of the Society should be promotion of economic interests or

general welfare of the members or the public, in accordance with the co-
operative principles.

 It should be economically sound, its registration should not affect adversely

on the development of the co-operative movement.

29
 BYE-LAWS OF THE CO-OPERATIVES
Co-operation is an activity of the people. It is a self-generated, voluntary and
self-sufficient activity. Hence little governmental interference is desirable.
However considering the economic parameters of this movement and interests of
several persons involved there is a possibility of misuse of personal power by any
of the group-members. The governments therefore had to pass legislation to
monitor the activities of the co-operatives mainly with the purpose of safeguarding
the interests of all the members.

Great Britain for example had passed legislation as early as 1852. Similar
intervention of legislature can be seen in Germany and France (1867) and Italy
(1883).

In Maharashtra the Co-operatives are governed by the Maharashtra Co-

operative Societies Act 1960 and supported by Maharashtra Co-operative Societies
Rules, 1961. The legal system in the co-operatives registered in Maharashtra State
is elaborate. Moreover each co-operative should have its own Bye-Laws which are
the guiding principles of the co-operative. These Bye-laws have to be approved
through a resolution of the Society. These bye-laws can be amended in the General
body Meeting of the co-operative. The only condition on the bye-laws is that they
should not be contrary to the Maharashtra Co-operative Societies Act, and have to
be approved by the Registrar.

30
REQUIREMENTS FOR FORMING A COOPERATIVE SOCIETY

 Minimum number of persons 25.

 The society's object should be promotion of the economic interests of its
members.
 The proposed society should be capable of being run on economically sound
lines.
 The registration of the proposed society should not have an adverse effect on
the cooperative movement.
 The prospective members should contribute a minimum amount of share
capital prescribed by the Registrar of Cooperative Societies for the particular
type of society to be started.

31
 PROCEDURE FOR REGISTRATION OF COOPERATIVE
SOCIETY

On receiving such applications the Asstt. Registrar through his subordinate

will conduct an inquiry to find out the feasibility and economic viability of the
proposed Cooperative Society and whether its proposed bye laws conforms to the
Meghalaya Coop. Acts and Rules. In case a proposed Cooperative Society is either
a, Fishery, / Dairy/, Poultry/, Piggery/or Handloom etc., views and comments from
concerned department has to be obtained before registration of such society.

After inquiry report with views and comments from concerned Department
are found favorable, Permission is given to complete the necessary formalities for
Registration.

A date will be fixed for holding the inaugural general meeting of the
promoter in which members will finally decide on adoption of the Bye-Laws and
matters concerning with day-to-day functioning of the Society including
constitution of Managing Committee, operation of Bank Account etc.

In the inaugural General Meeting, one of the Promoters presided over the
meeting. An officer from the Department is deputed to attend the meeting and help
the promoters in organizational matters. In this meeting they will decide what type
of a Society they want to form, how many persons would join as members of the
Society ,l elect the office bearers of the society and decide the authorized share
capital and the share capital to be contributed by each members.

All the papers duly signed by the Promoters are to be submitted to Asstt.
Registrar of Coop. Societies who after satisfying himself on all points, register the
society and its Bye-laws.

The certificate of Registration in the form set forth and the schedule is issued
by Asstt. Registrar of Coop. Societies after registration of the society. A copy of
registration with Bye-laws is sent to the applicant and also to concerned
Departments.

32
 REGISTRATION OF CO-OPERATIVE SOCIETIES

 A co-operative society can be registered in Maharashtra State with the Registrar

of Co-operative Societies.
 Any person competent to contract, as per the Indian contract Act, 1872 can join
in the formation of a co-operative.
 A group of ten persons, who reside in the area of operation of the proposed
society and are from different families, can join in application for registration of
a society.
 A society with the objects of promoting the economic interests or the general
welfare of the members only can be registered.
 No society which is contrary to the policy directives of the State can be
registered.
 Registration can be obtained from the registrar on filling up the application
form with the necessary fees and the bye-laws.
 Division/Amalgamation/Transfer and conversion of a co-operative is allowed.
 A Co-operative Society can enter into collaboration with any Government
Undertaking or any other undertaking with the prior permission of the State
Government for business.
 It can also enter into a partnership with other co-operatives.

33
 CERTIFICATE OF INCORPORATION AS EVIDENCE

A certificate of incorporation under this Act shall be conclusive evidence

that all the requirements of this Act in respect of registration and matters precedent
or incidental thereto have been complied with:

Provided that nothing in this section shall affect any provision of this Act relating
to the winding up or dissolution of the society or the cancellation of its registration.

34
 CLASSIFICATION OF HOUSING CO-OPERATIVES

(a) Tenant Ownership: In the case where the land is owned by the Society and
the structure on the plot is owned by the members. Individual members are
allotted plots by the co-operative to construct their houses. The society
creates infrastructure and may also arrange the finance for the members.

(b) Tenant Co-partnership: The land and the constructed structure is owned by
the society and the members who are allotted the flats have the easement
rights.

(c) Builder Co-operative: where the builder floats a housing scheme and sells
the flats. The buyers of the flats then organize into a housing society. Such
societies are merely service societies or maintenance societies.

(d) Ownership cooperative: - In this case, people working in an organization

come together and form them into a housing cooperative society. They get
their society register, apply to MAHADA. (MAHARASHTRA HOUSING
AND DEVELOPMENT AUTHORITY) and get a plot allotted to them in
LIG, MIG, and HIG i.e.: low income group, middle income group, high
income group. Once the plot is sanctioned they approach a construction
company and depending on their budget build up housing society. E.g.:
Gulmohar cooperative housing society situated at Ceissor road, Andheri
(west) is the housing complex of the ICICI officers.

35
 TERMS AND CONDITIONS TO BE COMPLIED WITH FOR
ADMISSION TO MEMBERSHIP

1. No person shall be admitted as member of a co-operative society unless-

 he has applied in writing in the form laid down by the co-operative society
or in the form specified by the Registrar, if any, for membership along with a
declaration .on oath that he is-net 9 member of any other co-operative
society having similar objects;

 his application is approved by the committee of the co-operative society in

pursuance of the powers conferred on it in that behalf and subject to such
resolution as the general body may in pursuance of the powers conferred on
it in that behalf from time to time pass, and in the case of nominal, associate,
or sympathizer member by an officer of the society authorised in that behalf
by the committee.

 he has fulfilled all other conditions laid down in the Act, the Rules and the
Bye-laws;

 in case of a firm, company or body corporate, society registered under the

societies Registration Act, 1860, a public trust registered under any law for
the time being in force relating to registration of public trust or a local
authority, the application for membership is accompanied by a resolution
authorizing it to apply for such membership, and the sanction of the Lt.
Governor has been accorded.

 in case of a Cooperative Housing Society, he has been a resident of the

National Capital Territory of Delhi-for a minimum period of three years at
the time of applying for a membership in such society.

2. In case of vacancy in a housing society including group housing society where

layout and building plans have been approved by the competent authority, the
same shall be filled by the committee by notifying It in leading daily newspaper
of Delhi in Hindi and English. In case the number of applications is more than
the notified vacancies the membership shall be finalized through draw of lot in
the presence of authorised representative of the Registrar.

36
 MANAGEMENT OF A COOPERATIVE SOCIETY

As per the Bye-law, there will be a Committee of Management, initially nominated

by the Registrar of Cooperative Societies for a period not exceeding 3 years and
subsequently elected by the General Body once every 3 years. Among the
members of the Committee of Management there shall be office-bearers like
President, Vice-President, Secretary, Treasurer etc. It will be the responsibility of
this Committee of Management to carry on the executive management of the
society in accordance with the provisions of the Act, Rules and Bye-laws and as
per the annual budget and programme of action approved by the General Body
each year.
 The final authority of the Society vests in the General Body of the Society
comprising of all the members.
 Every Society shall call Annual General Meeting within a period of three
months after the date fixed for completing or drawing up of its accounts for
the year.
 At every Annual General meeting, the Managing Committee shall lay a
statement of loans given to the members of the Managing Committee and
their family members, Income and Expenditure Account, Balance Sheet, a
Report by the Managing Committee regarding the Society’s affairs.

Failure to do so may attract the disqualification of the members of the Managing

Committee and other penalties.

 A Special General Meeting can be called by the Chairman of the Co-

operative or by majority of the members of the Managing Committee.
Members too can requisition for such a meeting if 1/5 th of the total
members of the Society endorse this requisition.. The Registrar also has the
powers to call for a Special General meeting. So can the committee of the
Federal Society do so.

37
Failure to call for this meeting may attract penalty for the Managing Committee.

 It is the duty of every Managing Committee to arrange for holding of

elections of its members before the expiry of its term.

Election to a Specified Society shall be conducted by the Collector and that of a

Notified Society by the Registrar.

 Management of the Society vests in a duly constituted Managing

Committee.
 Reservation for the weaker section, women and scheduled castes/tribes has
been provided in the Managing Committee.
 No committee is duly constituted unless the Registrar publishes the names of
the members of the Managing Committee along with their addresses.
 If a Managing Committee of a Society is not duly constituted, an
Administrator may be appointed by the Registrar.
 An Administrator can also be appointed (for a period of six months) by the
Registrar if the Managing Committee is removed for negligent performance
as per the provisions of Co-operative Law.

A member of the Managing committee can also be removed by the Registrar for
negligent performance.

 The Managing committee can appeal against its removal / dismissal.

 Office bearers of a Society can be removed by the way of No confidence
motion. Such a no confidence motion has to be supported by at least one-
third of the members of the managing Committee. Removal from office is
effected only after the resolution is passed by a simple majority in the
Managing Committee.

38
 MEMBERS OF SOCIETIES

1.) The members of a society which is formed under this Act shall be the persons
who sign the application for membership on the formation of the society, and
any other persons who are admitted to membership in accordance with this Act
and the rules of the society.

2.) No rights of membership shall be exercised by any member until he has made
such payment to the society in respect of membership or acquired such share or
interest as is provided in the rules of the society in that behalf.

3.) A person shall cease to be a member in any of the following circumstances, that
is to say-
(a) where his shares are transferred to another person in accordance
with the rules of the society, and the transferee is registered as
holder in his place;

(b) where his shares are forfeited in accordance with the rules of the society;

(c) where any power of sale (whether expressed or implied) in any mortgage
given by the member to the society is exercised by the society;

(d) where he becomes bankrupt or insolvent under any law relating to

bankruptcy or insolvency and the official receiver or assignee disclaims in
accordance with the provisions of such law;

(e) on death:
Provided that the estate of the deceased person shall remain liable and his
executor or administrator shall be and may be registered as the holder of
the shares as such executor or administrator (whether eligible to be a
member of the society or not) until some eligible person is registered as the
holder of the shares by transfer from the executor or administrator or until
the shares are withdrawn or discharged in accordance with this Act and the
rules of the society, and while any such executor or administrator is so
registered he shall be deemed to be and shall have the rights and
obligations of a member of the society for all purposes other than voting at
meetings of the society and becoming a director thereof;

39
 (f) where the contract of membership is rescinded on the ground of
misrepresentation or mistake;

(g) where he ceases to be a member in accordance with the rules of the

society;

(h) where the value of his shares is repaid or a refund in respect of his
subscriptions is made to him in accordance with the rules of the society.

4.) Where shares are held by the executor or administrator of a deceased member,
the Board may in its discretion by notice in writing to the executor or
administrator call upon him to transfer the shares to an eligible person or to
withdraw or discharge the shares within six months after receipt of the notice or
within such further time as the Board may in any particular case allow, and
unless the shares are so transferred withdrawn or discharged they may at the
discretion of the society be forfeited and dealt with as forfeited shares in
accordance with this Act and the rules of the society.

5.) Where a person becomes the trustee within the meaning of the Commonwealth
Act known as the Bankruptcy Act 1966 as amended from time to time of the
estate of a member or deceased member the trustee may be registered as the
holder of the shares of the member as such trustee (whether eligible to be a
member of the society or not) until some eligible person is registered as the
holder of the shares by transfer from the trustee or until the shares are
withdrawn or discharged in accordance with the provisions of this Act and the
rules of the society and while the trustee is so registered he shall be deemed to
be and shall have the rights and obligations of a member of the society for all
purposes other than voting at meetings of the society and becoming a director
thereof.

40
 RIGHTS AND DUTIES OF MEMBERS OF SOCIETY

Rights:-

1. Right to get certificate of allotment:-

Every member of a co-operative housing society, whether registered

before or after the commencement of this Act, to whom plots of land or dwelling
units have been allotted, shall be issued certificate of allotment by the co-operative
housing society under its seal and signature in such form as may be prescribed.

2. Right to hold according to terms of allotment:-

Irrespective of the provisions of the Transfer of Property Act, or the

Registration act, any allotment or re-allotment of a plot of land or dwelling unit in
a building of a co-operative housing society to its member as per terms of
allotment shall entitle such member to hold such plot of land or dwelling unit with
such title or interest.

3. Right to transfer / inherit the property:-

The right, title and interest in a plot of land or dwelling unit in a

building of the co-operative housing society (including the undivided interest in
common areas and facilities) shall constitute a heritable and transferable
immovable property. However, such land or building shall not be partitioned for
any purpose whatsoever.

4. Right to undivided interest in common area:-

Every member of a co-operative housing society shall be entitled to an

undivided interest in the common areas and facilities pertaining to the plot of land
or dwelling unit allotted to him.

41
5. Right to use the common area:-

Every member of a co-operative housing society to whom a plot of

land or a dwelling unit has been allotted shall have the right to use the common
areas and facilities as prescribed by the co-operative housing society. In case of any
violation or misuse by a member, the management committee is empowered to
recover damages.

6. Right to attend meeting and vote:-

A member has right to attend all the meetings of the society and vote
thereat.

7. Right to contest election:-

A member has right to stand for the election of the management

committee.

8. Right to seek information from the society:-

A member can seek information relating to any transaction of the co-

operative housing society and the society is required to furnish such information
within 30 days from the receipt of request. The society may fix the application fee
for this purpose.

42
DUTIES OF MEMBERS OF SOCIETY:­

The rights of members underline the duties of the housing society. The
society should not discriminate between members and should not place unlawful
restrictions on them. Besides this, the society should be prompt in attending to the
complaints and grievances of the members as to provision of services.

I. MEMBERSHIP

(A)Classes of Members
The membership of the society shall consist of (i) Members, including associate
members and (ii) nominal members.

(B)Eligibility for Membership

(a) No individual shall be admitted as a member of the society except for the
following, that is to say-
(1) Who is competent to contract under the Indian Contract Act, 1872;
(2) a firm, co-operative society company or any other body corporate constituted
under any law for the time being in force, or a society registered under the societies
registration act, 1860;
(3) a society registered, or deemed to be registered, under the MCS Act 1960
(4) the State Government or the Central Government;
(5) a local authority;
(6) a public trust registered under any law for the time being in force for the
registration of such trusts.

(b) A minor or a person of unsound mind, inheriting shares and/or interest of the
deceased member in the capital/property of the society, or if nominated may be
eligible for admission to membership of the Society through his guardian or legal
representative, on an application in the prescribed form, along with undertakings
/declarations, in the prescribed forms, mentioned in the application.

“Notwithstanding anything contained in these bye-laws, admission of a person to

membership of the Society direct or as a result of transfer of shares and interest of
the existing member, in the capital/ property of the Society, shall be subject to the
approval of the concerned competent authorities such as collector of the District, if

43
the society has been given land by Government/CIDCO/MHADA. or any other
authority for constructing houses thereon.
Note (1) “Family” means as defined under Bye-law No. 3 (xxv).
Note (2) Signatories to the application for registration of the Society shall be
deemed to be the members of the Society after its registration.
Note (3) The number of members in the Society shall be limited to the number of
flats constructed in the building. Excess members shall not have right, title or
interest in the society’s property or shall not be eligible for voting. It shall be
binding on the committee to induct the members to the extent of the number of
flats.

A firm registered under the Indian Partnership Act, 1932, a company registered
under the Indian Companies Act,1956, a Society registered under the Societies
Registration Act, 1860 or a Co-operative Society registered under the Maharashtra
Co-operative Societies Act, 1960, a local authority, the State/Central Government,
a public trust or any other body corporate, registered under the law for the time
being in force, as provided under Section 22(i) (b), (c), (e) and (f) of the Act may
be eligible for admission to membership of the society. However, admission of
firms and companies to membership of the society and holding of flats by them
shall be regulated in accordance with the notifications issued by the State
Government from time to time under the second Provision to Section 22 of the
Act.

(C) Conditions for Membership

(A) An individual who is eligible to be the member and who has applied for
membership of the Society in the prescribed form, may be admitted as member by
the committee on complying with the following conditions:
(i) he has fully paid the value of at least ten shares of the society, along with his
application for membership;
(ii) he has paid the entrance fee of Rs.100/-, along with the application for
membership;
(iii) he has given the application in a prescribed form as prescribed the particulars
in regard to any house, plot or flat owned by him or by any of the members of his
family, anywhere in the area of operation of the society;
(iv) he has given an undertaking in the prescribed form to the effect that he shall
use the flat for the purpose for which it was purchased by him;
(v) he has furnished undertaking in the prescribed form, if he has no independent
source of income:
(vi) he has sent, along with the application for membership of the society, a
certified copy of the agreement, duly stamped entered into by him with the

44
Promoter (Builder) or transferor under Section 4 of the Ownership Flats Act, 1963
(viii) he has furnished such other undertakings/declarations, in the prescribed
forms as are required under any law for the time being in force and such other
information as is required under the bye-laws of the society along with the
application for membership.
Note : The conditions at (iii), (iv), (v) and (vii) above shall not be applicable in
respect of the unsold flats.

(B) An individual, a firm, a company or a body corporate, registered under any law
for the time being in force, who/which is eligible to be an associate member and
who/which has made an application in the prescribed form for such membership,
along with the entrance fee of Rs. 100/- may be admitted as such member by the
Committee.

(C) A firm, company or any other body corporate, registered under any law for the
time being in force, which is eligible to be a member of the society and which has
made an application for membership of the society in the prescribed form may be
admitted as a member by the general body meeting of the society on complying
with the following conditions:-
(i) it has sent, along with the application for membership of the Society, a certified
copy of the agreement duly stamped entered into by it, with the Promoter (Builder)
or transferor under Section 4 of the Ownership Flats Act, 1963
(ii) it has paid, along with the application for membership, full value of at least 20
shares and entrance fee of Rs. 100/-
(iii) the firm or the company has complied with the conditions mentioned in the
notifications, issued by the State Government, from time to time, under the Second
provision to Section 22 of the MCS Act, 1960;
(iv) the firm or the company has furnished the undertakings/declarations in the
prescribed forms required under any law for the time being in force along with the
application for membership.

Note: The conditions at (i) and (iii) shall not be applicable to the firm/company of
the Promoter (Builder), applying for membership of the Society in respect of the
unsold flats.
A Sublettee, a licensee or a care-taker, or occupant who/which is eligible to be a
nominal member and who shall apply through original member for such
membership in the prescribed form, applicable to him/it, along with entrance fee of
Rs. 100/- may be admitted as such member by the Committee.
21 The procedure for disposal of application for membership of the Society, as laid
under the bye-law no. 65 (a) to (g) shall be followed by the Secretary and the

45
Committee of the society.

II. RIGHTS OF MEMBERS

(A)Getting Copy of the Bye-Laws

A member shall be entitled to receive a copy of the registered bye-laws of the

society on payment of the price thereof as per clause 172

(B)Inspection of Books and Records

A member shall have right to inspect free of cost books, registers documents etc. as
provided in Section 32 (1) of the MCS Act 1960 and get copies of the documents
as provided under Section 32(2) of the MCS Act 1960, on payment of the fees
prescribed under the bye-law No. 172.

(C) Occupation of Flats

(a) The member, who is deemed to have been allotted the flat under the bye-law
no.76(a) of the Society shall have a right to occupy the flat subject to the terms and
conditions set out in the letter of allotment in the prescribed form under the said
bye-law.
(b) The associate/nominal member may have a right to occupy the flat with the
consent of the member and permission of the Society, subject to the conditions set
out by the Society.

(D)Restrictions on Rights of Associate and Nominal Members

No associate members shall have any rights or privileges of a member except as

provided under Section 27(2) of the MCS Act, 1960 26. A nominal member shall
have no rights as such member.

46
(E)Resignation of Membership

(1)Resignation by a Member

(a) A member may resign his membership after giving three months notice, in the
prescribed form to the Secretary of the Society as provided under Rule 21 (1) of
the MCS Act, 1961.
(b) No resignation of a member of the Society shall be accepted unless such
member has made payment of the charges payable to the society in full.
(c) Where any charges are found payable by the member of the Society, the
Secretary of the society shall intimate the same giving full details and reasons of
dues thereof to the member within 15 days of the receipt of the notice of
resignation, advising him to make payment thereof within 30 days of the date of
the intimation.
(d) Where there are no charges of the society outstanding with the member, the
Committee shall accept the resignation of the member and the Secretary of the
Society shall communicate the same to the member within a period of 3 months
from the date of the receipt of the notice of the resignation. If nothing is
communicated during the said period, then it shall be deemed that resignation is
accepted.
(e) Where any resignation is rejected, the Committee shall record the reasons
therefore and communicate the same to the member concerned within 3 months of
the date of receipt of notice of resignation.

(2)Resignation by an associate member

An Associate Member may resign his membership any time by writing the letter of
resignation to the Secretary of the Society, through the member, with whom he
held the shares of the Society jointly. The Secretary of the society shall place the
letter of the resignation of the Associate member, before the meeting of the
Committee, held next after the receipt of the letter of resignation, duly
recommended by the member for acceptance by the committee. The decision of the
committee, accepting the resignation of the Associate Member shall be
communicated by the Secretary of the Society to the member and his associate
member within 15 days of the decision by the committee. If the resignation is
rejected, the committee shall record the reasons there of in the minutes of its
meeting and the Secretary shall communicate the same to the member and his
associate member within the time specified above. If the resignation is not granted

47
within the said period then the same shall be deemed to be accepted.

(3)Resignation by a Nominal Member, Occupying the flat on behalf of the

Firm, Company or any other Body Corporate

If there is a nominal member, occupying the flat on behalf of a firm, company or

any other body corporate, he/ she may resign his nominal membership, at any time,
by writing the letter of the resignation to the Secretary of the Society through the
firm, the company or any other body corporate, on whose behalf he is occupying
the flat. The Secretary of the Society shall place the letter of resignation, before the
meeting of the committee, held next after the receipt of the letter of the resignation
of the nominal member duly recommended by the firm, the Company or any other
body corporate for acceptance by the Committee. The decision of the committee,
accepting the resignation shall be communicated by the Secretary of the society to
the firm, company or the body corporate and the nominal member, within 15 days
of the decision by the Committee. If the resignation is rejected, the committee shall
record reasons therefor in the minutes of its meeting and the Secretary shall
communicate the same to the firm, company or the body corporate and the nominal
member within the time specified above. if the committee does not take any
decision there of within 3 months, the said registration shall be deemed to be
accepted.

(4)Resignation by a Nominal Member, who is Sub-lettee, Licensee,Caretaker

etc.

A sub-lettee, licensee, caretaker or possessor of a flat or ; part thereof, who has

been admitted as a nominal member of the Society may resign his nominal
membership at any time, by writing the letter of the resignation to the Secretary of
the Society, through the member who has been permitted by the committee to sub-
let, given on leave and licence or caretaker basis the flat or part thereof or part with
its possession in any other manner. The Secretary of the Society shall place the
letter of the resignation before the meeting of the committee, held next after the
receipt of the letter of resignation duly recommended by the member concerned for
acceptance by the committee. The decision of the committee, accepting the
resignation shall be communicated by the Secretary of the Society to the member
concerned and his sub-lettee the licensee, the caretaker, or as the case may be, the
possessor of the flat or part thereof, within 15 days of the decision by the
committee. If the resignation is rejected, the committee shall record reasons
therefor in the minutes of its meeting and the Secretary of the Society shall
communicate the same to the member concerned and his sub-lettee, licensee, or

48
caretaker etc. within the time specified above. If the committee does not take any
decision thereof within 3 months, then it shall be deemed that the resignation is
accepted.
On acceptance of the resignation of the member, under bye-law no. 27, the society
shall acquire the shares and interest of the member in the capital/property of the
Society and pay him the value thereof as provided under the bye-law no.66.

(F) Nomination by Members

A member of the Society may, by writing under his hand, in the prescribed form,
nominate a person or persons, to whom the whole or part of the shares and/or
interest of the member in the capital/property of the Society shall be transferred in
the event of his death. The acknowledgement of the nomination by the Secretary,
shall be deemed to be the acceptance or nomination by the Secretary. No fees shall
be charged for recording the first nomination. A member may revoke or vary his
nomination, at any time, by making an application, in writing, under his hand, to
the Secretary of the Society. The acknowledgement of the variation in
nomination/subsequent nomination by the Secretary shall be deemed to be the
cancellation of the earlier nomination.Every fresh nomination shall be charged a
fee of Rs. 100/-

On receipt of the nomination form, or the letter of revocation of the earlier

nomination, the same shall be placed before the meeting of the Committee, held
next after; the receipt of the nomination form, or the letter of revocation of the
earlier nomination, by the Secretary of the Society for recording the same in the
minutes of the committee. Every such nomination or revocation thereof shall be
entered in the register of nominations by the Secretary of the society within 7 days
of the meeting of the committee, in which it was recorded.

Subject to the provisions of the Section 30 of the M.C.S Act, 1960, bye-laws Nos.
17A or 19, on the Death of a member, the society shall transfer the shares and
interest of the deceased member in the Capital/ Property of the Society to the
Nominee/Nominees and in the proportion with the shares and interest held by the
deceased member, in case property is purchased by member and associate member
jointly. In the event of death of the member, Nominee/Nominees shall submit the
application for membership, within six months from the death of a member. If
there are more than one nominee, on the death of a member, such nominees shall
make Joint application to the Society and indicate the name of the nominee who
should be enrolled as member. The other nominees shall be enrolled as Joint
associate members unless the nominees indicate otherwise. The Nominees shall

49
also file an indemnity bond in the prescribed form indemnifying the society against
any claims made to the shares and the interest of the deceased member in the
Capital/Property of the society by any of them, in case only one nominee is
indicated by the Nominees for membership of the Society.

Where a member of the Society dies without making a nomination, or no nominee

comes forward for transfer, the society shall invite, within one month from the
information of his death, claims or objections to the proposed transfer of shares
and interest of the deceased member in the capital/property of the Society, by a
public notice, in the prescribed form exhibited on the notice board of the society. It
shall also publish such notice in at least two local news papers, having wide
circulation. The entire expenses of publication of the notice shall be recoverable
from the value of share and interest of the deceased member in the capital/
property of the society. After taking in to consideration the claims or objections
received, in response to the said notice, and after making such inquiries as the
committee considers proper, in the circumstances prevailing, the committee shall
decide as to the person, who in its opinions, is the heir or legal representative of the
deceased member. Such a person will be eligible to be a member of the Society
subject to the provisions of the bye-laws Nos.17(a) or 19 provided that he gives an
indemnity bond, along with his application for membership in the prescribed form,
indemnifying the Society against any claims made to the share and interest of the
deceased member in the capital/property of the society, at any time in future by any
person. If there are more claimants than one, they shall be asked to make the
affidavit as to who should become a member of the Society and such person,
named in the affidavit shall furnish the indemnity bond as indicated above along
with application for membership, referred to above. If, however, the committee is
not able to decide as to the person who is the heir/legal representative of the
deceased member or the claimants do not come to the agreement, as to who should
become the member of the Society, the committee shall call upon them to produce
succession certificate from the Competent Court. If, however, there is no claimant,
the shares and interest of the deceased member in the capital/property of the
Society shall vest in the society.

If there is a single nominee and if he demands payment of the value of shares and
interest of the deceased member, in the capital/property of the society, the society
shall acquire the same and pay him the value thereof as provided under the bye-law
no. 66. If, however there are more nominees than one and if they demand payment
of the value of the shares and interest of the deceased member in the capital/
property of the society, the society shall acquire the same and pay them the value
thereof as provided under the bye law referred to above in the proportion

50
mentioned in the nomination form. If no proportion is mentioned in the nomination
form, the payment shall be in equal proportion.

If, in the opinion of the Committee, there is only one heir /legal representative of
the deceased member and if he demands payment of the value of the shares and
interest of the deceased member in the capital/ property of the Society, the Society
may acquire the same and pay him the value thereof as provided under the bye-law
No.66 after obtaining the indemnity bond referred to in the bye-law No.35. If in the
opinion of the Committee, there are more heirs/legal representatives than one and
if they demand payment of the value of shares and interest of the deceased member
in the capital/property of the Society, the Society may acquire the same and pay
them value thereof in equal proportion as provided under the bye law No.66, after
obtaining the indemnity bond referred to in the bye-law no. 35, from all their
heirs/legal representatives jointly.

(G) Transfer of Shares and Interest in the Capital/Property of the Society

(a) A member, desiring to transfer his shares and interest in the capital/property of
the Society shall give 15days notice of his intention to do so to the Secretary of the
Society in the prescribed form, along with the consent of the proposed transferee in
the prescribed form.
(b) On receipt of such notice, the Secretary of the Society shall place the same
before the meeting of the committee, held next after the receipt of the notice,
pointing out whether the member is prima-facie eligible to transfer his shares and
interest in the capital/property of the Society, in view of the provisions of Section
(2) (a) of the MCS Act 1960.
(c) In the event of ineligibility of the member to transfer his shares and interest in
the capital/property of the Society, the committee shall direct the Secretary of the
society to inform the member accordingly within 8 days of the decision of the
committee.
(d) “No Objection Certificate” of the Society is not required to transfer the shares
and interest of the transferor to the transferee. However in case such a certificate is
required by the transferor or transferee, he shall apply to the society and committee
of the Society may consider such a application on merit within one month.
(e) The Transferor/ Transferee shall submit following documents and make the
compliance as under:

(i) application for transfer of his shares and interest in the capital/property of the
Society, in the prescribed form along with the original share certificate;
(ii) application for membership of the proposed transferee in the prescribed form,

51
(iii) resignation of outgoing member in the prescribed form byelaws No.27 (a)
Appendix No. 13
(iv) Registered agreement duly stamped.
(v) valid reasons for the proposed transfer.
(vi) undertaking to discharge the liabilities to the society by the transferor;
(vii) payment of the transfer fee of Rs. 500/-.
(viii) remittance of the entrance fee of Rs. 100/- payable by the proposed
transferee.
(ix) Payment of amount of premium at the rate to the fixed by the general body
meeting but within the limits as prescribed under the circular, issued by the
Department of Co-operation Goverment of Maharashtra from time to time. No
additional amount towards donation or contribution to any other funds or under
any other pretext shall be recovered from tranferor or transferee.
(x) submission of 'No objection' certificate, required under any law for the time
being in force or order or sanction issued by the Government, any financing
agency or any other authority.
(xi) the undertaking/declaration in compliance with the provisions of any law for
the time being in force in such form as is prescribed under these bye-laws.
Note: The condition at Sr. No. (ix) above shall not apply to transfer of shares and
interest of the transferor in the capital/property of the society to the member of his
family or to his nominee or his heir/legal representative after his death and in case
of mutual exchange of flats amongst the members or a registered gift deed
executed by the member.

(a) The procedure for disposal of applications for transfers of shares and/or interest
of members in the capital/ property of the society as laid down under the bye law
No.65 shall be followed by the secretary and the committee of the Society.
(b) A meeting of the committee or the general body, as the case may be, shall not
refuse any application for admission to membership or transfer of shares and
interest in the capital/property of the Society except on the ground of non
compliance of the provisions of the Act, the Rules and the Bye-laws of the Society
or any other law or order issued by the Government in exercise of the statutory
powers vested in it.
(c) If the decision of the Committee/General Body Meeting as the case may be, on
the application for transfer of shares and /or interest in the capital/property of the
society is not communicated to the applicant within 3 months of its receipt, the
transfer application shall be deemed to have been accepted and the transferee shall
be deemed to have been admitted as a member of the society as provided under
Section 22(2) of the Act.
(d) The transfer made in contravention of the Act, Rules or the bye-laws shall be

52
void and not be effective against the society.

The transferee shall be eligible to exercise the rights of membership on receipt of

the letter in the prescribed form from the Society; subject to the provisions of the
MCS Act 1960 & Rules made thereunder.

(H)Exchange of Flats

The members, desiring to exchange their flats, shall make a joint application to the
Secretary of the society, containing the following details:

(1)The names of the members concerned;

(2)The distinctive numbers of their respective flats;
(3)The carpet areas (in sq. meters) of their respective flats;
(4)The building number / numbers and name / names of the building /buildings in
which their respective flats are situated;
(5)The reason for exchange of flats.
(6) Registered Deed of exchange with the necessary stamp-duty having been paid.

The procedure for disposal of applications for exchanges of flats as indicated in the
bye-law no.65 shall be followed the Secretary and the Committee of the Society.

(I)Sub-letting etc. of Flats

(1) A member may, apply to the society , of his intention of sub-letting of his flat
and on receipt of the permission in writing of the Committee, subject or give on
leave and license basis or care-taker basis his flat or part thereof or part with its
possession in any other manner under the following circumstances:
(i) Where the member is required to go out of the area of operation of the Society
for a long duration on account of exigencies of service or business or on account of
the prolonged illness;
(ii) Where the member is unable to occupy the flat owing to absence of facilities
for education of his children or is unable to secure admission to the school in the
locality for them.
(iii) Where the employer, with a view to ensure efficient discharge of duties,
requires him to stay in the accommodation allotted to him by his employer.
(iv) Where a member satisfies the committee about his inability to occupy or
continue to occupy the flat for any other genuine reasons;

(2) No member shall be permitted by the committee to sub-let, give on leave and

53
licence basis or care-taker basis, his flat or any part thereof or part with its
possession in any manner unless:
(i) he has made an application in the prescribed from;
(ii) he has furnished the application for nominal membership of the proposed sub-
lettee, licensee, care-taker in the prescribed form;
(iii) his application contains the undertaking that

(a) he shall, by joining the society as a party to the proceedings initiate necessary
legal proceedings against the sub-lettee, licensee, care-taker, on his failure to get
vacant possession of the flat or part thereof on expiry of the period of sub-letting,
giving on leave and licence or care-taker basis the flat or part thereof or parting
with his possession in any other manner and meet the cost of the legal proceedings
required to be incurred by the Society;
(b) he shall pay the charges of the Society every month during the period of sub-
letting, licence etc.;
he shall pay non-occupancy charges to the Society. Nonoccupancy charges shall be
charged in accordance with the circular issued by the Government of Maharashtra
and the Commissioner for Co-operation from time to time and shall not be levied if
the flat is occupied by the “Family” of the member as defined under these bye-
laws. Provided that while permitting the sub-letting, giving on leave and licence or
care-taker basis the flat or part thereof or permitting parting with its possession in
any other manner, the committee shall restrict the period thereof 11 months or for
more period as desired by the managing committee, which may, on the request of
the member be extended for similar period or part thereof from time to time.

(d) Non-occupancy charges shall not be levied to the flat purchaser who is
intending to become a member and who submits the documentary evidence
thereof. 44. The procedure for disposal of the application for permission for sub-
letting, giving on leave and licence or care-taker basis, flats or part thereof or
parting with their possession in any other manner, as laid down under the bye-law
No. 65 shall be followed by the Secretary and the Committee of the Society. 45.
No member of the Society shall assign, mortgage or create any charge on his
occupancy right in the flat without the previous permission in writing of the
committee. Provided that such permission of the society will not be required for
assigning, mortgaging or creating any charge on the occupancy right in the flat for
the purpose of obtaining loan ,either for purchase of the flat or for liquidating the
liability incurred by him for the said purpose by way of loan or advance from the
employer of the member or from the Life Insurance Corporation of India or from
the Bank or the Society or any other agency approved by the Commissioner for

54
Co-operation and Registrar.

III. RESPONSIBILITIES & LIABILITIES OF MEMBERS

(A) Maintenance of Flats by Members

Every member shall keep his flat clean.

(a) No member shall, without the previous permission of the committee in writing,
make any additions or alterations in his flat.
(b) The member, desirous of making any additions or alterations in his flat, shall
make an application to the Secretary of the Society, giving all the required
particulars. Further action on such application shall be taken by the Secretary and
the Committee of the Society as provided under the bye-law No. 65.

(a) For facilitating discharge of functions mentioned under the bye-law no.156 by
the Committee, every member shall allow the Secretary of the Society,
accompanied by any other member of the Committee, to enter upon his flat with
prior intimation to the Member, to examine its condition for ascertaining the
repairs, if any, necessary. The Secretary of the Society shall make a report to the
Committee, indicating therein the particulars of the repairs to be carried out by the
society at its cost and those by the members at their cost.
(b) On receipt of such report, the Committee shall ascertain the cost involved in the
repairs, which are required to be carried to be carried out by the society at its cost
as provided under the bye-law No.160(a) and cause the notice to be served on the
member for such period as the Committee thinks adequate, of its intention to carry
out the repairs and there-upon the member concerned shall allow the workmen
engaged by the society directly or through its architect, access to his flat for
carrying out the repairs. If the member concerned fails to give access to his flat,
without reasonable and convincing reasons, the Secretary of the society shall have
authority to enter upon the flat and carry out the work under the supervision of the
member of the committee duly authorised by it in that behalf or the architect
appointed by the society.
(c) In respect of the repairs to be carried out by the member at his cost, the
committee shall cause the notice to be served on the member, indicating therein,
the particulars of repairs necessary at his flat and calling upon him to carry out the
repairs to his flat to the satisfaction of the architect approved by the Society, if any,
at his cost, within such period as the Committee may allow. On his failure to
comply with the notice, the Secretary of the society or the architect appointed by
the Society shall have authority to enter upon the flat and cause the repairs to be

55
carried out after giving due notice to the member concerned. The amount spent by
the society on such repairs shall be recoverable from the member concerned.

No member, without the previous permission of the committee, in writing, shall

stock or store any kind of goods or materials, which are combustible, obnoxious or
other goods, for the storing of which requires permit/sanction of the competent
authority under any law relating thereto.

(a) No member, shall do or suffer anything to be done in his flat which may cause
nuisance, annoyance or inconvenience to any of the members of the Society or
carry on practices which may be repugnant to the general decency or morals of the
members of the Society.
(b) It shall be competent for the committee either sou-moto or on receipt of the
complaint from any member to take steps to stop all such practices referred to in
the Bye-law No.50(a) forthwith.

(B)Expulsion of a Member

A member may be expelled from the membership of the society, if such a member:
(i) has persistently failed to pay the charges due to the Society,
(ii) has willfully deceived the society by giving false information,
(iii) has used his flat for immoral purpose or misused it for illegal purpose
habitually,
(iv) Has been in the habit of committing breaches of any of the provisions of the
bye-laws of the Society, which, in the opinion of the Committee, are of serious
nature,
(v) Has furnished false information or omitted to furnish the material information
to the Registering Authority at the time of registration of the Society. 57.

(a) The cases of expulsion from the membership of the Society shall be dealt with
in the manner provided under Section 35 of the Act, read with Rules 28 and 29 of
the MCS Rules 1961.
(b) Expulsion from membership may involve forfeiture of the shares held by the
member. Where the Committee decides that expulsion from membership should
also involve forfeiture of the shares, it shall make necessary reference to the
proposed forfeiture of the shares in the notice to be issued under Rule 29 of the
MCS Rules 1961

The member, duly expelled from membership of the Society, shall cease to be the
member of the society, with effect from the date on which the resolution of

56
expulsion from the membership of the society is approved by the Registering
Authority. The forfeiture of the shares may take effect simultaneously with
expulsion.

The member, who has been duly expelled from the membership of the Society,
shall not be entitled to continue in occupation of his flat and he shall arrange to
hand over peaceful and vacant possession of his flat to the Secretary of the Society
within such period as the committee may allow. On his failure to do so, he shall be
liable to be evicted from his flat.

If the meeting of the general body of the Society has decided not to forfeit the
shares, the interest of the expelled member in the capital/property of the Society
and the value thereof shall be acquired by the Society and the value thereof shall be
paid to the expelled member, within 3 months of his handing over possession of his
flat or his eviction from it, after following the procedure as laid down under the
bye-law no.66 in respect of payment of the value of the shares and interest in the
capital/property of the society acquired by the Society.

No member of the society, who has been expelled from its membership, shall be
eligible for re-admission to membership in the society, until expiry of the period of
one year from the date of his expulsion, provided that on the recommendations of
the meetings of the general body of the Society, the expelled member may be
readmitted to its membership, as a special case, before the expiry of the period of
one year, with the prior permission of the Registering Authority.

(C) Cessation of Membership

The person shall cease to be the member of the Society.

(i) on his resignation from membership of the Society having been accepted by the
Committee.
(ii) on transfer of all his shares and interest in the capital/property of the Society.
(iii) on his death.
(iv) on his expulsion from the membership of the Society.
(v) on being adjudged as an insolvent or legally disabled from continuing as
member.
(vi) If the where abouts of the member are not known for continuous seven years
and if his shares and interest in the property/capital of the Society is not claimed by
anybody else.
(vii) On cessation of right/title and interest as a member in the property of the

57
Society by way of legal attachment or sale. The committee shall take further action
in the matter as indicated in the bye-law No. 61.

The person shall cease to be the associate member of the society when the original
member ceases to be the member of the society or on the death of the associate
member or on the acceptance of the resignation of the associate member by the
committee. The committee shall take further action in the matter as indicated in the
Bye-law No. 61.

If there is a nominal member, occupying the flat on behalf of the firm, company or
any other body corporate he shall cease to be as such member of the Society.
(i) on his death,
(ii) on the acceptance of his resignation by the Committee,
(iii) on cessation of membership of the original member on whose behalf he
occupies the flat in the Society,
(iv) on cessation of his nomination on account of expulsion of the original
member,
(v) on intimation from the original member of termination of the occupant's
nomination, The Committee shall take further action in the matter as indicated in
the bye-law no.61.

The nominal member, who is the sub-lettee, licensee or care taker or possessor in
any other manner of the flat or the part thereof shall cease it be as such member of
the Society:
(i) on his death,
(ii) on his resignation having been accepted by the Committee,
(iii) on the cessation of the membership of the original member,
(iv) on the expiry of the period for which the flat or part thereof was permitted to
be sub-let, given on leave and licence or care-taker basis
The words “original member” used in the by-laws Nos. 57, 58, 59 and 60 mean the
member, with whom the associate member held the shares of the society jointly,
the Firm, the Company or any other Body Corporate, on whose behalf the nominal
member occupies flat in the society's building or the member who has been
permitted to sub-let, give on leave and licence or caretaker basis his flat or part
thereof or part with its possession in any other manner.

The committee shall record the facts of cessation of members membership of the
society under the bye-law no.57 and of associate and nominal members
membership respectively under the bye-laws Nos. 58, 59 and 60, in the minutes of
its meetings and accordingly the Secretary of the Society shall inform the

58
concerned members in writing within seven days of the dates of such decision of
the Committee.

(D)Restriction on Holding more than One Flat

Individual member of the society may hold more than one flat, in the building/s of
the Society in his name or in the name of any of the members of his family, Subject
to the conditions as provided under the provision of Section 6 of the MCS Act
1960

(E)Liabilities of a Member and the Past Member

The liability of a member of the Society shall be limited to his shares holding in
the Society.

The liability of the past member of the society for the debts of the society, as they
stood on the date of the cessation of his membership and the liability of the estate
of the deceased member of the society for the debts of the society as they stood on
the date of his death shall continue for the period of 2 years from the date of his
cessation or death respectively as per the provisions of Section 33(1) of the Act.

(F)Other Matters

(a) All the applications for

(i) admission to membership of the Society, including associate and nominal
membership
(ii) approval to the transfer of Shares and interest in the capital/property of the
Society,
(iii) permission for sub-letting or giving flats or parts thereof on leave and licence
or care-taker basis,
(iv) permission for additions and alterations in flats,
(v) allotment of parking spaces and stilts,
(vi) permission for exchange of flats,
(vii) permission for holding additional flats,
(viii) permission for assigning , mortgaging or creating charge or interest in flats,
(ix) permission for use of terrace, and
(x) for any other purpose provided under the bye-laws but not specifically
mentioned above, shall be addressed to the Secretary of the society. Every
application received by the Secretary shall be acknowledged by him.
(b) On receipt of the applications, the Secretary of the society shall scrutinise them

59
and bring any short comings therein to the notice of the members concerned within
7 days of their receipt for compliance.
(c) The Secretary shall place all the applications, complete in all respects, or
incomplete, before the meeting of the Committee or the general body, as the case
may be held next after receipt of the applications.
(d) The committee or the General Body, as the case may be, shall consider all such
applications at its meetings and take decisions thereon;
(e) The committee shall ensure that all the applications received by the Secretary of
the Society are disposed off within the maximum period of 3 months from the
dates of their receipt ;
(f) If the Committee or the General Body, as the case may be, rejects any
applications, it shall record, in the minutes of its meetings, the reasons for rejection
of the applications.
(g) The Secretary of the society shall communicate the decisions of the Committee
or the General Body, as the case may be, to the applicants concerned within 15
days of the decisions of the committee or the General Body, as the case may be,
with reasons, where the applications are rejected by the Committee or may be, with
reasons, where the applications are rejected by the committee or the General Body,
as the case may be if the society does not communicate the decision to the
applicant within three months from the date of receipt of application for
membership, including nominal or associate membership, the applicant shall be
deemed to have been admitted as a member as provided under Section 22(2) of the
MCS Act 1960

Wherever the question of payment of the value of the shares and the interest of any
member of the Society, in its capital/property, as the result of acquisition of the
same by the society arises, the following procedure shall be followed:
(i) The value of Shares shall be decided in accordance with the provisions of Rule
23 of the MCS Rules 1961
(ii) The shares and interest of the expelled member, in the property/ capital of the
society shall be valued by the Government approved valuer.
(iii) Within one month of the date of demand for payment of the value of the shares
and interest in the capital/ property of the Society, or acquisition of the same by the
Society, the committee shall, by publication of the notice in at least two widely
circulated newspapers and exhibition thereof on the notice board of the Society,
invite offers for price proposed to be paid for acquiring interest in the flat, within
such period as is mentioned in the notice.
(iv) On receipt of the offers, the committee, in its meeting, shall scrutinise the same
and decide to accept the offer which is the highest, which shall not be less than the
approved value as determined in (ii) above.

60
(v) The committee shall then advise the person, offering the highest price, to make
an application for membership of the Society, in the prescribed form, along with a
demand draft for the price offered, value of 10 shares of the Society and the
entrance fee of Rs. 100/-.
(vi) On realisation of the demand draft and within one month of the admission of
the said person to membership of the Society, the committee shall arrange to pay
the value of the interest in the flat realised by the Society
(a) to the member whose resignation has been accepted by the Committee, or
(b) to the nominee/s legal heir/s of the deceased member who demanded payment
of the value of the Shares and the interest in the capital or property of the society,
or
(c) to the expelled member. together with the value of the shares as determined
under (i) above, after deducting the following.

(1) Outstanding amounts, if any, due from such member:

(2) the entire expenses of the publication of the notice:
(3) Expenses incurred for the disposal of the interest of the member in the
property/capital of the Society. The payment shall be made in the manner provided
under the bye-laws Nos. 36, 37 and 55 to the nominee/ nominees or heir/heirs,
respectively.

61
 LIABILITIES OF MEMBERS OF CO-OPERATIVE SOCIETY

1.) A member shall be liable to the society for the amount, if any, unpaid on the
shares held by him, together with any charges and other moneys payable by him
to the society as prescribed by this Act or the rules of the society.

2.) Where, under or in relation to any contract or policy of life insurance or similar
contract in a form approved by the registrar after consideration of a report
thereon from the Government Statist, or by virtue of any legal or equitable
assignment of or trust created in respect of any such contract or policy, or
pursuant to any scheme relating to life insurance approved by the registrar after
consideration of such a report, provision is made whereby, in the event of the
death of a member of a society to whom the contract policy or scheme applies
or in the event of the death of a member's spouse or domestic partner to whom
the contract policy or scheme applies, moneys will be available for or towards
the discharge of the member's liability to the society, then the society shall be
empowered-

(a) to receive from any such member, at such times as are agreed upon by the
member and the society, the amount of each periodical premium or
contribution payable by him in respect of the contract or policy or
pursuant to the scheme; and
(b) to pay or otherwise deal with each such amount in such manner as the
contract policy or scheme requires or allows; and
(c) if the member defaults in payment of any such amount at the agreed
time-

 to make payment thereof pursuant to the contract policy or scheme

on his behalf or to take such other action as the contract policy or
scheme requires or allows; and

62
  to recover from the member any amount in respect of which the
member has made default as aforesaid-and any amount so
recoverable shall until paid be a debt due to the society by the
member and the provisions of this Act shall apply in relation thereto
accordingly. The society may make either by itself or in conjunction
with any other society or societies any contract or arrangement
relating to or connected with the carrying into effect of this sub-
section and may carry out any such contract or arrangement.

3.) Where, under or in relation to any contract or policy of accident or sickness

insurance or similar contract in a form approved by the registrar after
consideration of a report thereon from the Government Statist, or by virtue of
any legal or equitable assignment of or trust created in respect of any such
contract or policy or pursuant to any scheme relating to accident or sickness
insurance approved by the registrar after consideration of such a report,
provision is made whereby in the event of any accident to or sickness of a
member of a society to whom the contract policy or scheme applies or in the
event of any accident to or sickness of a member's spouse or domestic partner to
whom the contract policy or scheme applies moneys will be available for or
towards the discharge of the member's liability to the society.

63
 RESPONSIBILITY OF MEMBERS AND CO-OPERATIVES

The relationship between tenant and co-operative is not a simple one. The
co-op supplies the tenant with a service (housing) according to a contract (tenancy
agreement/license). The tenant pays rent in return for the housing they occupy
according to the contract.

However, the co-operative is run by its members. The tenant is a member

and as such is responsible for ensuring that the co-op delivers the service. A co-
operator can simultaneously expect to receive a service whilst being responsible
for its delivery.

The member is responsible:

 as a member, to participate in the smooth operation and democracy of

the co-operative. To attend general meetings. To participate in setting
policy.
 as a tenant, to pay rent. To behave responsibly towards other tenants
and other duties as laid out in the tenancy agreement/license.
 as a director, to ensure that the co-operative is run in a fit & proper manner.
All directors are responsible for ensuring that tasks are carried out. Even
when tasks have been delegated, all directors are equally responsible for
monitoring them. To make management decisions.

The co-operative is responsible:

 to provide tenants with suitable housing, and other duties as laid out in
 the tenancy agreement/license.
 to conduct business in a fit & proper manner.
 to keep accurate records & accounts of the business of the co-operative.

In practice many of the co-operatives tasks are delegated to individuals. However,

all directors are equally responsible for ensuring they are carried out and making
checks.

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 PRIVILEGES AND DUTIES OF SOCIETY

 A Society is a Body Corporate by the name with perpetual succession and

common Seal.
 It can acquire, hold and dispose off property in its name.
 It can enter in a contract.
 Institute and defend suits and other legal proceedings.
 It is exempted from compulsory registration of Instruments relating to shares
and debentures of Society under the Indian Registration Act 1908
 The society has claim only next to the Government, on the property and interest
of the borrowing members.
 The society has claim over the sale price of agricultural produce of the
borrowing member.
 It is mandatory on the part of the employer to deduct from the salary of the
employee, dues of the Society, if agreed upon by the member.
 The Society can receive deposits and loans from the members and other persons
within the area of operation of the Society and /or on conditions imposed by the
Registrar
 Loans can be advanced to the members only. With the prior permission of the
Registrar, loans can be advanced to other Societies.
 The Society has to keep and maintain updated records in prescribed format.
 There are restrictions on the transactions with the non-members.

65
 PROPERTY AND FUNDS OF CO-OPERATIVE SOCIETY

 No funds shall be divided among its members, other than the net profits earned
by the Society.

 The society’s funds cannot be utilized to defend any proceedings filed by or

against any office bearer of the Society, in his personal capacity under sections
78, 96 or 144-T of the Maharashtra Co-operative Societies Act, 1960.

 Remuneration can be paid to the Managing Committee members for services

provided by them to the Society.

 Net Profit earned by the Society can be appropriated by the members with the
approval of the Annual General Meeting.

 Reserve fund shall be maintained by the Society.

 Investments of Funds shall be made as per the guidelines prescribed in the

Maharashtra Co-operative societies Act, 1960.

 Audit, Inquiry Inspection and Supervision of Societies.

 The Registrar of Co-operative Societies makes it compulsory for every

Government -aided Co-operative Society to audit its accounts at least once in a
co-operative year (i.e. April - March).

 All the other Societies also have to get their accounts audited by a Certified
Auditor once in every co-operative year.

 A Registrar has powers to order the Society to be re-audited. This is however

done by him suo-moto or in the case where 1/3rd members of the Society apply
to him for re-audit.

 The Registrar can inspect the working of the Society on his own or on
application of its creditors.

66
 The Registrar can commission an inquiry into the affairs of the Society on the
basis of the audit report or an inspection report. He can appoint an Inquiry
Officer and conduct an inquiry through him.

 Similarly he can also conduct inspection of a Society just to ascertain that all
the Books of Accounts are being maintained properly and that the affairs of the
Society are being conducted reasonably by the Managing Committee.

 The Registrar can order for compensation, if it is found That any person has
misapplied or retained any property, or money of the Society, or has caused
breach of trust.

67
 CHANGE IN NAME OF SOCIETY

1. The name of a co-operative society may be changed under section 14 so

however that it does not refer to any caste or religious or regional denomination
and is not inconsistent with the objects of the co-operative society.

2. Every change in the name of a co-operative society shall be made by

amendment 6f its bye-taws and shall be notified in the official Gazette.

3. After the change in the name is approved by the Registrar the Co-operative
Society shall send the original registration certificate for amendment to the
Registrar, who shall return the same to the cooperative society duly amended.

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 CHANGE IN LIABILITY

1.) The change of liability of a co-operative society from unlimited to limited and
vice-versa or in terms of multiple of share capital, shall be secured by passing a
resolution in that behalf at a general meeting of the co-operative society
indicating in clear terms the manner of changing the liability. The co-operative
society shall give 30 days notice in writing of such meeting to all its members
and creditors and shall furnish them with copies of the resolution proposed to be
moved at the meeting. After the resolution is duly moved and passed, a copy
thereof shall be send to the Registrar within three months of its passing.

2.) Every notice to be given by the co-operative society under sub-sec. (2) of
section 14 shall be sent by post under certificate of posting or other wise to the
address of each of its members and creditors gs recorded in the book of the co-
operative society. A copy of such notice shall be exhibited on the notice board
of the co-operative society and a copy shall also be sent to the Registrar for
exhibition on the notice board in his office; and thereupon, notice of the
resolution to change the form or extent of its liability shall be deemed to have
been duly given to all its members and creditors, notice not being send to their
correct address or notice not being received by them, notwithstanding.
3.) For the purpose of determining the claims of a member under clause (b) of sub-
sec. (4) of sec. 14 the value of a share of a member in a co-operative shall be
ascertained as follows:-
(a) In the case of a co-operative society with unlimited liability, the value of
the share shall be the actual amount received by the co-operative society
in respect of such share.
(b) In the case of the co-operative society with limited liability, the value of
the share shall be the amount arrived at by a valuation based on the
financial position of the -co-operative society as shown in the last audited
balance sheet, provided that it shall not exceed the amount actually
received by the co-operative society in respect of such share.

69
Explanation - For purposes of this rule, form of liability refers to limited or
unlimited while 'extent' of friability means (a) face value of share (b) the multiple
of the value of shares subscribed, and (c) value limited as to particular amount
(such as guarantee liability) etc.

4.) Any member or creditor desiring to exercise his opinion under sub-sec. (2) of
sec. 14 shall inform the co-operative society accordingly in writing and where
he does not propose to withdraw his entire shares or deposits, the members or
creditor shall clearly indicate in writing the extent of his withdrawal. The option
once exercised shall be final and shall not be revoked. The co-operative society
shall examine and draw up a scheme for orderly payment of all the claims in an
equitable manner including shares, the value to which shall be ascertained in
accordance with the provisions of sub-rule (3), the scheme may also provide for
settlement of claims by mutual agreement. Where Registrar does not approve
the scheme on the ground of impracticability or undesirability, the resolution
passed by the society under sub-rule (1) shall be ineffective,

5.) After the Registrar approves the scheme, the cooperative society shall make
payments to members and creditors as provided in clause (b) of sub-sec. (4) of
sec. 14 and make a report to that effect to the Registrar and furnish the Registrar
with a proposal to amend the bye-laws of the co-operative society duly passed
in the behalf. On receipt of the proposal, the Registrar shall register the
amendment in accordance with the provisions of section 11.

70
 RECONSTRUCTION OF A SOCIETY

1.) Where in the case of defunct societies or a co-operative society which is being
wound up, a proposal for compromise or arrangement-

(a) between a co-operative society and its creditors;

(b) between the co-operative society and its members, is received, the registrar
may on the application of the co-operative society or any member or of any
creditor of the co-operative society or of the liquidator, order reconstruction
of the co-operative society in the manner hereinafter given.

2.) An application for reconstruction of 'a co-operative society under sub-rule (1)
may be made in Form 9. On receipt of such application, the Registrar may
taking into consideration the compromise or arrangement for reconstruction of
the co-operative society, if he thinks fit, prepare a draft order indicating –

(a) the manner in which the amounts payable by the co-operative society to its
creditors should be paid and the amounts recoverable from its debtors and
members should be recovered:
(b) the manner in which the share capital, if any, of such member should be
reduced;
(c) the manner in which the scheme of reconstruction should be implemented:
and
(d) the manner in which the bye-law of the co-operative society will stand
amended in cruder to given effect to the scheme of reconstruction.

A copy of the draft order shall be exhibited on the notice board of the co-operative
society and a copy thereof shall be exhibited on the notice board of the office of the
Registrar inviting objections and suggestions from, all those interested within a
specified time, which shall not exceed one month.

3.) After taking into consideration the objections and suggestion (if any) received,
the Registrar may issue an order approving such reconstruction or staying
further proceedings in respect of such reconstruction. On issue of an order
approving the reconstruction, the co-operative society shall stand reconstructed

71
 and the bye-laws of the co-operative society shall be modified to that effect and
to the extent.

4.) After the order referred to in sub-rule (3) has been made by the Registrar the
order of the liquidation already passed shall be deemed to have been withdrawn
with effect from the date of the order under sub-rule (3).

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 PROBLEMS OF HOUSING SOCIETY

(a) Scarcity of land:

In Asia, the rate of urban growth has led to an increase in the
construction activities and real estate which is as high as 42% of GDP as compared
to12% in Australia. As of December 2002, there were approximately 710 million
homeless people in India. And at the end of 8 th 5 year plan there will be a housing
shortage or 3.5 crores houses. This is also because of tremendous growth in
population and contribution of joint family making requirement of separate houses
for each nuclear family.

(b)Inadequate finance:
In the measure metros, housing finance cooperatives are
offering loans at very competitive rates. However in semi urban and rural areas,
there is no institutional finance available for building houses. The housing urban
developmental cooperative (HUDCO) has launched retail finance for rural and
semi urban areas and under them NIWAS scheme sanctioned over 1500 crores and
build over 1 million houses as on dec 2004.

(c) Malpractices of builders:

The allotment of land is subject to bureaucratic delays,
competition and political influence. Further the cost of the land especially in a city
like MUMBAI is highly speculative and is on this increased cost to the members
making the real estate a distant dream for a common man. They also use
substandard products like steel and cement and the quality of construction also
suffers.

(d)Disinterested members :
In the busy city like Mumbai, both husband and wife is working
having a very hectic work schedule. They are already under pressure of managing
there households and careers. They do not have time to socialize and neither
contributes proactively for the development of housing cooperative.

(e) The office bearers are poorly paid:

Most of the staff of housing cooperative is either retired people
or people who have taken VRS and are compensated very poorly for services they

73
offer. The young blood is missing in management of cooperative as they do not pay
handsome salaries.

RESEARCH DESIGN:

A research design is a basic plan, which guides the researcher in the collection and
analysis of data required for practicing the research. Infect the research design is
the conceptual structure where the research is conducted. It constitutes the ‘Blue
Print’ for the collection, measurement and analysis of the data. The study is carried
out to understand the problems faced by the society in various steps .For this study
the researcher used exploratory research design. This research covers 10 tenants
belonging to various age groups.

SAMPLE DESIGN:

The process of drawing a sample from a large population is called sampling.

Population refers to the total of items about which information is defined. Well-
selected samples may reflect fairly and accurately the characteristics of the
population.
Sampling Unit:
The sample unit of this survey was the tenants residing in a society in mumbai
Sample Size:
The sample size was 10 tenants from a same building/society
Sampling Technique Adopted:
Convenient sampling

SOURCES OF DATA:

After identifying and defining the research problem and determining specific
information required to solve the problem the researcher will look for the type and
sources of data which may yield the desired results, while deciding about the
method of data collection tobe used for the study, there are two types of data.

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Secondary Data:

Secondary data means data that are already available i.e. they refer to the data
which have been collected and analyzed by someone and can save both money and
time of the researcher. Secondary data may be available in the form of company
records, trade publications, libraries etc. Secondary data sources are as follows:

Society Reports
Magazines of Co-Operative societies
Standard Bye-Laws
Various Websites

Primary Data:

Primary data are those, which are collected for the first time. Primary data is
collected by framing questionnaires. The questionnaire contained questions, which
are both open-ended and closed-ended. Open-ended questions are questions
requiring answers in the responder’s own words. Closed-ended questions are those
wherein the respondent has to merely check the appropriate answer from a list of
options available. Any doubts raised by the respondents were clarified to get the
perfect answers from the distributors. Open-ended questions yielded more
insightful information, whereas closed-Ended questions were relatively simple to
tabulate and analyze.

FIELD WORK:

An interview-schedule and well-structured questionnaire is administered to the

target respondents to collect primary data (Copy of questionnaire is attached in the
appendix) Open and close-ended questions are used in the questionnaire. The
orders of the questions are in such a manner that they begin with simple questions
and lead on the questions that needed more involvement from respondents. The
secondary data are collected from periodicals, magazines, journals and Internet.

75
 REMEDIAL MEASURES TO SOLVE THE PROBLEMS

Following remedies are suggested for solving the problems of co-operative

housing societies:

1.) Supplying materials on priority basis:

The building material should be provided on priority basis.
There should be a quota of this material to apex co-operative housing society. The
registrar of the society should have control on the quota allotted to co-operative
housing society.

2.) Allocate land on priority:

Government should give preference to co-operative housing
societies while allocating land as to start the work by the societies or otherwise
whose existence is only on paper.

3.) Bye-laws:-
There are no systematic bye-laws of co-operative housing
societies in the country. All co-operative housing societies should adopt model
bye-laws suggested by the committee appointed under the president-ship of S.T.
Raja. Thereby, the registrar of societies can have control over the working of their
societies.

4.) Financial assistance:-

Agencies like LIC, HUDCO etc. should provide housing loans
at concessional rates. Government should try to make housing societies more
strong. Government should establish central housing finance institute to provide
finance to apex housing societies.
5.) Tax concessions:-
The houses build by co-operative housing societies should get
concession in taxes and certain incentives should be given.

6.) Membership to houseless people:-

The membership of the housing society should be given only to
the people who have no house.

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PROCEDURE FOR ISSUE OF WINDING UP OF THE SOCIETY

a. Before passing the order under section 63, the Registrar shall give an
opportunity to the society to show cause against the proposed order. The show
cause notice shall be sent to the President of the Society as its registered address
under registered post. The service of this notice will be complete after 48 hours
of the posting of the letter properly addressed and pre-paid, containing the
notice. The notice shall state the grounds on which the order under
section63 is proposed to be made.

b. After considering the reply from the Society which shall be supported by the
resolution its committee, or if no reply is received by the Registrar within
fifteen days of the service of the notice under sub-rule (1), he Shall proceed to
pass the order under section 63.
c. The order passed under section 63 and sub-section (1) of section 66 shall be
communicated to the President of the society in the manner specified under sub-
section (4) of section 63, at the registered address of the Society. The
communication will be complete as soon as the letter containing the order is so
posted.

d. The order referred to in sub-rule (3) shall also be published in the official
Gazette.

e. The order referred to in sub-rule (3) shall take effect from the date of order
notwithstanding whether or not it is published in the official Gazette and shall
operate in favour of all creditors, contributories, debtors and any other persons,
having custody, possession and control over any asset or record of the society.

77
 FORM’E’

Notice under Rule 13(1)

By Registered Post A.D.
To,
The Chairman, …………………
……………………………Co-operative Society,
……………………………………

Sir,
It appears to me that amendment/amendments of the bye-laws of your
society as indicated in the attached statement is/are necessary and that it/those
is/are desirable in the interest of your society.

I am to request you to consider this/these amendment/amendments in the

interest of your society and to call upon you by this notice under Rule 13(1) of the
Maharashtra Co-operative Rules, 1961, to take necessary steps to make he
amendments to the bye-laws of your society within,……………days from the date
of receipt of this notice, failing which action will be taken as provided under
section 14(2) of the Maharashtra Co-operatives Societies Act, 1960.

Yours faithfully,
Registrar of Co-operative Societies.
No. ……………………….
Date ……………………….
[Seal of the officer]

Sr.No. The extract wording Bye-laws as Exact Reasons why

of existing bye-laws it would read wording of amendment is
after bye-law, if it considered
amendment is a new one necessary

Registrar of Co-operative Societies.

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 FORM’A’
Application foe Registration Society
Place: ____________
Date: _____________
To,
The Additional/Joint Deputy Addistant Registrar, Co-operative Societies.
1. We submit herewith a proposal for registration of the following society along
with enclosures as indicated below.
2. We also declare that the information given herewith, including that in the
enclosures is correct to the best of our knowledge.
(a) Name of the proposed society:+
(b) Address to be registered:
(c) Whether liability is limited or unlimited:
(d) Area of operation:
(e) Objectives of the society:
(f) The amount of preliminary expenditure incurred by the promoters till
the date of application, and estimate of expenditure likely to be
incurred by them thereafter with a view to getting the society
registered.
(g) Language in which the books and accounts of the society will be kept.

3. We are sending four copies of the proposed bye-laws signed by the applicant
(not less than 10).
Sr.No. Full Name Whether individual/ corporate Age Nation Profession
(1) (2) body(3) (4) (5) (6)
1. Chief Promoter
2.
3.
4.
5.
6.
7.
8.
9.
10.
*.Strike of whichever is not applicable.
+.The name of the society should not have any reference to caste or
religious denomination.

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Sr.No. Full Name Place of Amount Whether any In the case of
(1) (2) residence, village subscribed to other signatory of representative of society,
and taluka share capital the application is whether he is a member
(7) (8) a member of his of the committee of that
family society
(9) (10)
1. Chief
Promoter
2.
3.
4.
5.
6.
7.
8.
9.
10.

Name and address of the person to whom correspondence regarding registration or

otherwise should be addressed.

Signature-
1. Chef Promoter _______________ 6. _______________
2. _______________ 7. _______________
3. _______________ 8. _______________
4. _______________ 9. _______________
5. _______________ 10. _______________

N.B.-(1) in the case of a representative of society, a copy of the resolution of the

committee of the society authorizing him to sign on its behalf, this application and
bye-laws should be enclosed with this application.

(2) In the case of a corporate body, representative status of the signatory on

behalf of the corporate body should be indicated.

(3) the expression “Member of family” means a wife, husband, father,

mother, grand-father, grand—mother, step-father, step-mother, son-daughter, step-
son, step-daughter, grand-son, grand-daughter, brother, sister half brother, half
sister, and wife or brother or half brother.

80
Enclosures-
1. Bank balance certificate.
2. List of persons who have contributed to the share capital together with the
amount contributed by each of them and the entrance fee to be paid by them.
3. The scheme showing the details as to how the working of the society will be
economically sound, and where the scheme envisages the holding of
immovable property by the society, giving description of immovable
property proposed to be purchased, acquired or transferred to the society.
4. a copy of the resolution authorizing a member of the committee of the
registered society to sign the application on behalf of the society.
5. a copy of the document authorizing any person to sign the application on its
behalf issued by a firm, company or other corporate body, a society
registered under the Societies Registration Act, 1860 or public trust
registered under any law for the time being in force relating to registration of
public trusts.

Sent by registered post……………/Delivered by hand by ………..to/in the

office of the Assistant Registrar/Deputy Registrar/Joint Registrar/Additional
registrar/Registrar.
………………..(Chief Promoter)
Received by registered post/hand delivery on by in the office of the Assistant
Registrar/ Deputy Registrar/Joint Registrar/Additional registrar/Registrar.
Entered in the register of registration proposals at Serial No.
……………………………………….
(Signature of the officer receiving this
application).

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 ACKNOWLEDGEMENT
Received Registration proposal no. …………… on ………………… for the
registration of ………………………….. Society from the chief promoter Shri
……………………………………….
(Assistant Registrar/ Deputy Registrar/Joint
Registrar/Additional registrar/Registrar.)
Place:
Date:

82
 CONCLUSION

Malthusian theory suggests the relationship between population growth and food
production (production of food grains in G.P. while population growth is in A.P.).
So this creates disequilibrium between subsistence need and population growth in
developing countries. So in this regard tendency toward primary sector can
minimize this problem with proper co-operation.
Cooperative society is one of the largest sectors that provides nearly 800 million.
India employs more employees than any other country in the world.
Being agriculture based India’s most population is situated in rural areas nearly 2/3
of total. So this gives clear indication of scope of cooperative society also
Employment opportunities in this area.
Much can be done to improve efficiency in cooperative society with proper
management implementation and government policies.
The corporate culture will also bring sustainable efficiency and thereby
cooperatives can complete with strong private players.
Professionalism in the management of the cooperative enterprises will upgrade the
quality of the staff with latest developments and also develop a proper and cordial
relationship between the managers and members of board of directors. There must
be proper and continuous training for both cooperative leaders and profession
executives.
There are a number of agricultural commodities like rice, sugar, fruits, vegetables,
spices etc. that have strong competitive advantage in export markets. Agricultural
cooperatives can take this advantage in foreign market.
The leadership with vision, dedication, commitment and above all innovative
approach can help in preserving cooperative identity in an era of competition.

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QUESTIONAIRE:

1) Please verify the number of shares for this unit: 66

2) Please confirm the monthly maintenance fee:
3) Have there been amendments to the offering plan:
4) How many amendments have there been to the offering plan:
5) What utilities are included in monthly maintenance?
6) Amount and tenure of current assessment, if any:
7) Amount and tenure of upcoming assessments, if any:
8) In which year was the building built: 2004
9) How many floors does the building have: 07
10) How many wings does the building have: 03
11) How many flats are there in the building: 66
12) How much are transfer fees due at prior to closing:
13) Is storage available in the building: YES/NO
14) Is there enough parking for residents: YES/NO
15) How many parking is available in the society: 20
16) Is there a waiting list for parking: YES/NO
17) Is there parking available for two wheelers: YES/NO
18) What are the parking charges paid by each tenant: 500 RS/tenant
19) Does the building get 24 hours water supply: YES/NO
20) If not then what are the timings: 6am-9am, 8pm-10pm
21) Is there a proper house-keeping agency available: YES/NO
22) Is garbage segregated as wet and dry waste: YES/NO
23) What is the method used for disposing/composting wet waste: Mr. Black Waste
management.
24) Is the society following the guidelines of BMC for waste disposal: YES/NO
25) Is there a play area available for children: YES/NO
26) Is there garden available: YES/NO
27) Is seating arrangement available for elderly in garden: YES/NO
28) What are the water charges paid by the society:
29) What are the charges taken by society from members for water:

84
 BIBLIOGRAPHY

Website media:-

1.) <http://www.mah.nic.in/sahakaar/a.html>
2.) < http://rcs.delhigovt.nic.in/regcop/act73/CHAPTER%20II.htm>
3.) < http://www.avoncda.coop/Co-operative%20Social%20Firms.pdf>

Reference books:-

1). The Maharashtra Co-operative Societies Rules, 1961.

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