HOUSING SOCIETY - FREQUENTLY ASKED QUESTIONS
How do I remove a chairman from housing society?
The process of removing a Chairman from a housing society in India is governed by the Maharashtra Cooperative Societies Act, 1960 and the Model Bye-laws of Cooperative Housing Societies. The following steps can be taken for the removal of a Chairman from a housing society:
Call for a Special General Body Meeting: As per the Model Bye-laws, a Special General Body Meeting can be called if 1/5th of the members of the society submit a requisition in writing to the Secretary of the society. The meeting should be called within 15 days of receipt of the requisition.
Pass a No-Confidence Motion: At the Special General Body Meeting, a No-Confidence Motion can be moved against the Chairman. The motion should be supported by at least 2/3rd of the members present and voting in the meeting.
Inform the Registrar of Cooperative Societies: After the No-Confidence Motion is passed, the society should inform the Registrar of Cooperative Societies about the decision within 7 days. The Registrar will then take appropriate action as per the provisions of the Maharashtra Cooperative Societies Act, 1960.
It is important to note that the process of removing a Chairman should be done in accordance with the provisions of the Model Bye-laws and the Maharashtra Cooperative Societies Act, 1960. Any deviation from the prescribed procedure may lead to legal complications. Therefore, it is recommended to seek legal advice before initiating the process of removing a Chairman from a housing society.
What is the cash payment limit for housing society in Maharashtra?
In Maharashtra, the cash payment limit for housing societies is governed by the Maharashtra Cooperative Societies Act, 1960 and the Rules made thereunder.
As per Rule 34 of the Maharashtra Cooperative Societies Rules, 1961, any payment exceeding Rs. 5,000 in a single day made by a member to a society or by a society to a member, shall be made by way of account payee cheque or demand draft or any other mode of payment through banking channels.
Therefore, in Maharashtra, cash payments exceeding Rs. 5,000 are not allowed in housing societies, and any payments above this limit must be made through other modes of payment such as cheques, demand drafts, or online transfers.
Can a member be removed from a society?
Yes, a member of a housing society can be removed under certain circumstances. The removal of a member can be done as per the provisions of the society’s bye-laws and the Maharashtra Cooperative Societies Act, 1960.
The following are some of the circumstances under which a member can be removed from a housing society:
Non-payment of dues: If a member fails to pay his/her dues, such as maintenance charges, share capital, etc., as per the society’s bye-laws, then the society may take action to recover the dues. If the member continues to default, then the society may take steps to remove him/her from the membership.
Breach of bye-laws: If a member breaches any of the society’s bye-laws or engages in any activities that are detrimental to the society’s interests, then the society may take action to remove him/her from the membership.
Fraudulent activities: If a member is found to have engaged in fraudulent activities, misused society funds, or violated any laws, then the society may take action to remove him/her from the membership.
Illegal transfer of membership: If a member transfers his/her membership in violation of the society’s bye-laws, then the society may take action to remove him/her from the membership.
However, before taking any action to remove a member, the society must follow the due process and provide the member with an opportunity to be heard. The member may also appeal against the decision to the Registrar of Cooperative Societies.
A Society may, by Resolution passed [by a majority of not less than three-fourths] of the Members entitled to vote who are present at a General Body Meeting held for the purpose, expel a Member for acts ‘which are detrimental to the interest or proper working of the Society’.
Who is responsible for internal leakage in housing society?
If the leakage is not the fault of the flat owner staying above you, then the expenses to stop/repair the leakage has to be borne equally by you and above the flat owner as per law. The same procedure needs to be followed if the above flat owner is refusing to cooperate and share the cost.
What is the power of chairman in housing society?
The Chairman has the power of overall superintendence and control in respect of the management of the affairs of the Society. He has to keep a watch on the entire functioning of the Society. In case of an emergency, the Honourable Chairman has the power to exercise any power of the Managing Committee.
What are the rights of chairman of society?
He presides over all the meetings of the Committee, determines the quorum and reviews the agenda of every meeting beforehand. He has the power to allow or bar any issue from being included in the meeting agenda but like a democracy, he has to have a reason for doing so
What is the power of Secretary in Society?
In summary, the Secretary is responsible for: Ensuring meetings are effectively organised and minuted. Maintaining effective records and administration. Upholding the legal requirements of governing documents, charity law, company law, etc.
Can Housing Society maintenance be paid in cash?
Can society maintenance be paid in cash? Ans. Society maintenance bills can be paid in cash, but it is especially important to keep a track of the receipts of transactions done, regardless of being online or offline.
How many members can be in a Co-operative Housing Society?
Where it is a condition of the registration of a society that it should consist of at least ten members, the Registrar may, by order in writing, cancel the registration of the society if at any time it is proved to his satisfaction that the number of the members has been reduced to less than ten.
What is the power of managing committee?
The Managing Committee shall have the following powers and duties:- a To set up committees and sub-committees to achieve the aims and objectives of the Association. b To prepare the Annual Budget of the Association and implement it, as approved by the General Body.
Who is the supreme authority of a society?
The Supreme authority of a registered co-operative society shall be vested in the General Assembly: Provided that during the pendency of any loan or service from the State Government or any other credit secured at the instance of the State Government , the supreme authority with respect to any matter adversely
What happens if I don’t pay society maintenance?
The society may send reminders and notices to the defaulter for the payment of the dues but if the dues are still not paid by the defaulter, then the society may file a case against the defaulter, then the society may file a case against the defaulter at the office of the deputy registrar U/s 101
How do I remove a committee member from housing society?
The chairman, treasurer and secretary of a Co-operative Housing Society may be removed by the passing of a no-confidence motion against them. Other members of the managing committee, presided by the area authority (Registrar, in the case of Maharashtra) conduct a meeting in which such a no-confidence motion has to be passed.
What is the minimum number of persons required to form a society?
The consent of at least 10 adult persons is required to form a cooperative society. Any ten adults can voluntarily form an association and get it registered with the Registrar of Co-operative Societies.
What is a female chairman called?
The noun chairman can refer to this person, whether male or female, though sometimes a woman is called a chairwoman.
Chairperson is a gender-neutral term that’s used to refer to a person who presides over any meeting/organisation/board. It is used as a Noun.
What is 79 a process in redevelopment?
During the period of redevelopment, the Developer shall furnish alternative accommodation to the members as far as possible in the same area pending completion of project or shall make arrangements to pay monthly rent and deposit as is agreeable to the members or shall make available such transit camps
What are the objectives of housing society?
A housing society exists to support the members, and build a community, where everyone can live as a family and thrive. Some of the main objectives of these housing cooperatives are: The housing societies provide basic facilities like electricity and water supply. Maintenance of the housing society is ensured
What is difference between apartment and housing society?
A cooperative society member can nominate a person to transfer his or her share certificate, thereby vesting the property rights in such a flat. But in the case of an apartment owner, the owner bequeaths the property upon the beneficiary by will or legal heir or representative in case of intestate disposition.
What is meant by housing society?
A housing society is an alternative form of ownership of property and homes, where ownership lies with an entity or an organisation, and then sold as shares to the residents. The entity owns the property, and the housing society develops it, constructs buildings, and then allots them to the members.
Essentially, a co-operative housing society is a membership-based legal entity made of one or more residential buildings. You become a member by buying shares in the housing co-operative. In return, as a member, you get the right to occupy a housing unit in the society, be it an apartment or a house.
What is the importance of housing society?
Its objective is to work for its members, like purchasing lands to construct the residential buildings for their members. The activities of these institutions are managed by each state’s individual Cooperative societies’ acts and rules. Minimum ten numbers of members with common objectives can form this society.
who can become a member of a housing society?
The rules for membership in a housing society may vary depending on the specific laws and regulations in the country or region where the society is located. However, in general, most housing societies have the following eligibility criteria for membership:
Age: The member must be at least 18 years of age or the age specified by the society’s by-laws.
Citizenship or residency: In some cases, the member must be a citizen or permanent resident of the country where the society is located.
Ownership or tenancy: The member must either own or be a tenant of a property located within the society’s jurisdiction.
Payment of membership fees: The member must pay the membership fee or share capital required by the society.
Good character: The member should have a good reputation and be of good character. Some societies may conduct background checks on potential members to ensure that they meet this requirement.
No criminal record: The member should not have a criminal record or any pending criminal cases.
Compliance with society rules: The member must agree to abide by the rules and regulations of the society, as outlined in its by-laws.
It’s important to note that these criteria may differ slightly depending on the specific laws and regulations governing housing societies in the country or region where the society is located. It’s always best to consult the society’s by-laws and/or seek advice from legal professionals to fully understand the requirements for becoming a member of a housing society.
If you are more than 18 years of age, not an insolvent/bankrupt, and of sound mind, you can apply to be a member of any housing society.
Do all members of the housing society have equal say in it?
Yes, all members of the housing society have equal rights and privileges. They have the right to openly express their opinions.
Must each housing society be registered?
Yes, all housing cooperative societies are required to be registered under the Cooperative Society Act of 1912. They are governed by the national/regional state laws regarding housing societies.
housing society which charges collect from members ?
Housing Society charges its members for the maintenance of the building. These charges are to be split between the members.
or example, this is how the charges are to be split:
- Property charges: As fixed by the local authority, according to the area of the flat.
- Water charges: According to the number and size of inlets provided.
- Parking charges: As fixed by society.
- Lift maintenance: Divided equally, regardless of whether a person uses it or not.
- Interest on delayed payment: As fixed by the society, up to 21% per annum.
- Service charges: Split equally, includes common electricity charges, payment of salaries, auditor’s fees, etc.
- Non-occupancy charges: Not above 10% of service charges.
- Expenses on repairs: At a rate fixed by the general body, but cannot exceed 0.75% of the cost of construction of your flat.
- Sinking charges: To be decided by the general body, but not beyond 0.25% of construction cost. This fund is for the reconstruction or structural repairs of a society building. The use of these funds can be made only with the approval of the general body.
- Insurance charges: According to the built-up area of the flat. If the cost of insurance has increased because of any specific goods stored in a house, that member shall pay charges at a higher rate. The surplus at the end of the year is to be divided between funds. In Mumbai, for example, at least a quarter of the surplus is to be carried into the reserve fund (for general repairs and maintenance of property), according to Section 66 of the Maharashtra Co-operative Society Registration Act 1960.
What Permissions Are Needed From the Housing Society Secretary?
- Admission to membership of the society
- To transfer shares or capital in the property
- To sub-let the property or give on leave and licence or appoint a caretaker
- To make any structural changes to the property
- To mortgage or create a charge on the property
- To use the terrace or any other common area of the property
- For allotment of parking space
- To exchange flats with another resident
- NOC for changes name on Property Card, Adhar Card, Gas Connection etc.
What is Sinking Fund?
A sinking fund is a fund set up by a housing society for the purpose of accumulating money over time to pay for major repair or replacement expenses that may arise in the future. The purpose of the sinking fund is to ensure that the society has adequate funds to cover these expenses without having to levy a large, one-time assessment on its members.
Typically, the society will contribute a fixed amount to the sinking fund each year, and this amount may be calculated as a percentage of the annual maintenance charges. The funds accumulated in the sinking fund are invested in safe and secure investments such as fixed deposits or government bonds to generate returns over time.
Examples of expenses that may be paid from the sinking fund include repairs to the building’s structure, replacement of elevators or other major equipment, and major renovations to common areas or amenities.
Having a sinking fund is important for the long-term financial stability of a housing society, as it allows the society to plan for and manage major expenses more effectively. It also helps to spread the cost of these expenses over time, making them more manageable for individual members of the society.
How does a housing society use its sinking fund?
A housing society uses its sinking fund to pay for major repair or replacement expenses that may arise in the future. The purpose of the sinking fund is to ensure that the society has adequate funds to cover these expenses without having to levy a large, one-time assessment on its members.
The society’s governing body, typically the managing committee, decides how the sinking fund is used based on the specific needs of the society. Some of the common expenses that may be paid from the sinking fund include:
- Major repairs to the building’s structure, such as fixing cracks in the walls or repairing the roof.
- Replacement of major equipment, such as elevators, water pumps, or generators.
- Renovations to common areas or amenities, such as the clubhouse or swimming pool.
- Upgrades to security systems or other safety measures.
When an expense arises that requires funding from the sinking fund, the managing committee will assess the cost of the expense and determine whether the sinking fund has adequate funds to cover it. If the funds are sufficient, the expense will be paid from the sinking fund. If the funds are not sufficient, the managing committee may decide to levy an additional charge on members to cover the shortfall.
It is important for the managing committee to manage the sinking fund carefully and ensure that it is invested appropriately to generate returns and maintain its value over time. By doing so, the society can ensure that it has adequate funds to cover major expenses as they arise and avoid having to levy large assessments on its members.
How does a housing society generate a sinking fund?
A housing society generates a sinking fund by setting aside a fixed amount of money each year from the maintenance charges paid by its members. This amount is typically calculated as a percentage of the annual maintenance charges and is based on the specific needs of the society.
The society’s governing body, typically the managing committee, decides the percentage of the annual maintenance charges that will be set aside for the sinking fund. The amount set aside will depend on the age and condition of the building, the expected lifespan of major equipment and amenities, and any other anticipated repair or replacement expenses.
Once the sinking fund is established, the funds are invested in safe and secure investments such as fixed deposits or government bonds to generate returns over time. The interest or returns generated by the sinking fund are added to the fund, which helps to increase its value over time.
It is important for the managing committee to manage the sinking fund carefully and ensure that it is invested appropriately to generate returns and maintain its value over time. The committee should also monitor the fund’s balance regularly to ensure that it has adequate funds to cover major expenses as they arise.
In addition to setting aside funds from maintenance charges, a housing society may also generate additional funds for the sinking fund by levying special assessments on its members. These assessments may be used to cover unexpected expenses or to increase the sinking fund’s balance if it is determined that the current balance is insufficient to cover anticipated expenses.
In Maharashtra, a housing society can invest its sinking fund in various safe and secure investment options, such as:
Fixed Deposits: Fixed deposits are a low-risk investment option that provide a fixed rate of return over a predetermined period of time. They are considered to be one of the safest investment options and are generally offered by banks and financial institutions.
Government Bonds: Government bonds are issued by governments and are considered to be one of the safest investment options. They offer relatively low returns, but are backed by the government, which makes them a low-risk investment option.
Corporate Bonds: Corporate bonds are issued by companies and offer a fixed rate of return over a predetermined period of time. They carry a higher risk than government bonds, but may offer higher returns.
Mutual Funds: Mutual funds are professionally managed investment portfolios that pool money from multiple investors to invest in a diversified range of stocks, bonds, and other securities. There are various types of mutual funds available, each with their own risk profiles and potential returns.
Exchange-Traded Funds (ETFs): ETFs are similar to mutual funds, but are traded on stock exchanges like individual stocks. They offer a diversified range of investments and can be a good option for investors who want to invest in multiple assets without having to purchase individual securities.
The choice of investment option will depend on factors such as the size of the sinking fund, the desired rate of return, and the risk tolerance of the society. The managing committee of the society is responsible for managing the sinking fund and selecting the appropriate investment options.
It is important for the managing committee to carefully consider these factors and choose investment options that are appropriate for the society’s specific needs and goals. The committee should also monitor the performance of the investments regularly and make adjustments as needed to ensure that the sinking fund is generating adequate returns and maintaining its value over time.
In Maharashtra, the calculation of sinking fund for a housing society is based on the provisions of the Maharashtra Co-operative Societies Act, 1960 and the Maharashtra Co-operative Societies Rules, 1961.
As per the rules, a housing society must transfer a minimum of 25% of its total maintenance charges for the year to the sinking fund. The calculation is based on the total maintenance charges for the year, which includes expenses such as repairs and maintenance of the society’s building, common areas, and amenities, salaries and wages of employees, property tax, insurance, and other expenses.
For example, if the total maintenance charges for the year for a society are Rs. 10 lakhs, then the minimum amount that must be transferred to the sinking fund is Rs. 2.5 lakhs (25% of Rs. 10 lakhs).
However, it is important to note that this is only the minimum amount that must be transferred to the sinking fund. The managing committee of the society has the discretion to transfer a higher amount to the sinking fund if deemed necessary to cover anticipated repair and replacement expenses.
Additionally, the Maharashtra Co-operative Societies Rules also state that a housing society must conduct a valuation of its building and assets at least once every five years and adjust the sinking fund contribution accordingly. The valuation report must be submitted to the Registrar of Co-operative Societies along with the audited accounts of the society.