Holding share certificates & possession ltrs for defaulter

sudhakar s. yeradkar (Querist) 23 March 2017 This query is : Resolved
Respected Experts,

The newly formed Co-Op.Housing Society is conducting society affairs
by the Provisional Committee which is appointed for one year period.

Now they have to issue SHARE CERTIFICATES to the members duly signed by them.

Additionally they have to handover official possession letters & copy of OC obtained from the Builder.

THE ISSUE IS, few members have done illegal construction, encroachment of society spaces, alteration in the flat etc. The Provisional committee has sent official letters to them to demolish/restore the same.

The Committee has decided not to issue SHARE CERTIFICATES or handover them possession letters till they demolish/restore the construction.

I would like to know whether is it correct action of the committee? and what are the implications and consequences.

Thanks in advance.

Yeradkar

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Kishor Mehta (Expert) 24 March 2017
If the members have submitted copies of the registered sale deeds to their respective flats, and have also submitted all the required forms and fees for the membership and have paid all the dues of the society the relative share certificate and allotment letter should be issued. However the Managing committee can take punitive action against the members as per the applicable CHS rules, and can also make a complaint to the local municipal corporation for the illegal construction.
Good luck,
Kishor Mehta