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Co-operative society inot supporting and legal proceedings

(Querist) 18 August 2014 This query is : Resolved 
Dear Sir/Madam,

My Father-in-Law (FIL) bought a flat in Dombivili Mumbai during the year 1990. He passed away in 2012 and this sunday(17th August), we had transferred the flat to his Nominee (my Mother-in-law's name) with a confirmation from the society(after a meeting held on Sunday along with NOCs from my wife and Sister in law for transferring it to their mother and the society members agreeing for the nomination and Flat transfer to my MIL's name. The Co-op society comprises of total 12 families (3 floors of 4 families) and My FIL's 1 BHK flat is in the 1st floor. We reside in Pune and occasionally visit Mumbai (once in 10 months)
Now the issues:
1. The society comes under the Dombivili MIDC area. The MIDC has allocated the land on lease for 99 years. The issue is that, during the society formation in the year 1990, the members of the society had registered and paid around 250 rs/- and submitted the documents for getting the N.O.C from MIDC. But none of the people have the receipts now and MIDC is suggesting that they have no documents available with them supporting the same.
It is almost 24 years now and even though the society is registered, there is no NOC available from the MIDC and the society has no proof of the same. Also each society member needs to provide MIDC with an amount of 35000 RS for each transfer of property(re-selling). Many a members have done 1 or 2 transfers already and they haven't paid anything. The current members(new buyers) are not ready to pay the money to MIDC and get a new NOC. For example, flat owner (1990,is now seller 1) sells his property to Buyer 1. Now Buyer 1 (who becomes seller 2)sells the same property to Buyer 2. Now the buyer 2 has to pay for both the Re-selling( done by seller 1 and seller 2) to get the new NOC from MIDC. So the people who bought the flats on single or double resale are denying to pay the money and is suggesting that the whole of society(12 families) should share the burden and irrespective of how many transfers (0 - whatever) the value should be equally divided between all 12. For this the remaining members disagree as some of them(including my FIL) hasn't even done a single transfer(re-selling).
2. Because of this, the society secretary(who bought his flat on 2nd reselling) is not taking any step forward for getting the NOC from MIDC. The disadvantage because of this is that the society legality is in question and if somebody wants to sell the flat the buyer wont be eligible for a loan(Loan eligibility is 50% for properties aged above 20 years). Also the society hasnt been audited since 2001. This also the society is not ready to do.We are stuck and unable to sell the flat.
3. The other issue is that, because of the heavy rains in Mumbai the water is soaking the ceilings of my FIL's flat (and also some 4-5 other members flats). There is no shed coverage on terrace for rain waters(I've seen it in almost all of the flat top most terraces in and around the area). For this also the there are 2-3 members in the society who are not co-operating and they put the process on hold. By next monsoon there is a very good probability of the building falling down. Not only that, without the top shed cover, no matter how much we will spend on correcting the ceiling, the ceiling will be getting wet again and again. I've spent like 1 lakh already, but all went in vain. We are unable to rent the flat even, as the flat looks really shabby and nobody wants to rent it. They havent painted for more than 20 years now and hence we are unable to show it to people for selling also as the society building looks really very old, dirty and the society name plate is also not there in the building. It looks ugly both in the inside and the outside.

My MIL has only two daughters and my wife is the eldest.The younger one just finished college(unmarried) and starting work this week with a private bank in Pune. My MIL and SIL live with us in Pune. What is frustrating is that, the society doesn't seem to care nor understand the situation, that we have to travel each time for any issue to mumbai and also the three women (My wife, sister in law and Mother in law) are helpless. The society members are heartless,and keep pointing fingers at others and are treating us a joke. We are unable to sell nor rent the flat. The repairs will again cost me around 2 lacs. But I cannot do it until the shed for terrace come into place (which again will cost me money but I am ready to spend) otherwise it will all be wasted again and I don't know when we can sell the flat(It is already 24 yrs old and counting).

My query to all of you is, what can I do legally against these society people. How to get things done. We need to sell the flat so that the share can be divided into three (MIL, SIL and my wife) and part of which can be used for my SIL's marriage and the rest be deposited into her bank account for her future family. But these heartless people are not helping in any way. Myself and my Wife are already disturbed and distressed while my MIL has no words to say. Please consider our case and your very best legal advise will be heartily appreciated.

Thank you.
Best regards
Shankar Mohan
ajay sethi (Expert) 18 August 2014
1) you should lodge complaint with DY regsitrar Cooperative societies for appointment of administrator of society .

2) society appears to be badly mis managed as no audit of accounts have been done for number of years .

3) no repairs are been carried out .

4) it is duty of society to carry out terrace repairs and have building painted .

5) your mother in law can also move coopeartive court against the society to direct office bearers to carry out necessary repairs
ajay sethi (Expert) 18 August 2014
transfer charges have to be paid only by those members who have sold flats . the question of others who have not sold flats bearing transfer charges to MIDC equally does not arise at all
V R SHROFF (Expert) 18 August 2014
Transfer charges payable by those who transfer,{ earn profit out of it , be shared is motive}
[Query TOO LONG TO READ]
Shankar Mohan (Querist) 18 August 2014
Thanks a lot Mr. Ajay Sethi for your time and advice.
Thank you Mr. V.R.Shroff for the reply. There were so many legal issues, that's why had to make it long. Sorry about that

I also have one more query. The current chairman, secretary and treasurer are just acting members who are not officially registered(they took position on mutual understanding and no official voting). The senior most members who's names are registered with the society are not active except for one,who has also mis-managed the society badly. What legal action can we take against them under such circumstances?. Also is the Nominee acceptance provided by these acting members for my MIL still valid?.
Rajendra K Goyal (Expert) 19 August 2014
Consult a local lawyer and show / discuss with him all the issues and documents.


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