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Maharashtra co-op society act related.

Querist : Anonymous (Querist) 15 April 2018 This query is : Resolved 
I am the chairman of the society ,registered under Maharashtra Co-op. Socities Act , the society holds a vacant piece of land, the society do not have any means and resources to develop the said property. The society do not wish to sell the said land and there are many members who wish to retire from the said society (the said land was bought by pooling in capital by all the orginal members, and many of these original members wish to retire and exit from the said society). There are potential builders who wish to develop the said property. Our Concern is as follows :
1) If the member wish to retire then in that case how the process would be, and as it is a non-profit organisation then how can there be monetary compensation to these members?? should they just retire by taking the capital the invested during forming of this society?
2) Can the society go ahead with a development agreement with a prospective builder and get the property developed as per pre decided terms and conditions?
3) Should the society have a development agreement with the builder or a Joint Venture agreement or anything else?? pls suggest us a better way to take it forward legally.
4) When the society receives developed property , can that be leased to a third party and if so what will be the tax implications as the society will be getting rent and as the act says its a non-profit organisation.??
Please do the needful
Dr J C Vashista (Expert) 16 April 2018
If you are seeking obligation of experts FREE OF COST you will have to disclose your identity as per rules of this platform.
No reply for an "anonymous" author.
Ms.Usha Kapoor (Expert) 16 April 2018
You come with your identity. you will get many replies.
Guest (Expert) 16 April 2018
Yours is not a problem to be solved through some casual type of query, as you made. This is not an ordinary problem, but a very ticklish problem. Any lapse at the initial stage may cost the society as well individual members with dire consequences in the shape of several court cases for years together for the future.

So, all the membership and property related documents and matters are required to be discussed at length to solve this very ticklish problem.
Querist : Anonymous (Querist) 16 April 2018
thanks for your replies experts, as i am new to this and have already posted the query by not revealing my identity, but how do i reverse the process as i tried to modify the query , but the option of revealing identify has disappeared.pls help.
P. Venu (Expert) 16 April 2018
How has the Society acquired the land? What are the terms on which it is held?
Querist : Anonymous (Querist) 16 April 2018
@P.venu, thanks for reply sir, the society had acquired the said land for the purpose to constructing flats for its members, but over the period of time the society has no means and resources to develop the said land and hence wants to go in for a development of the said land with a potential builder and there are 40 founder members of the said society and presently 25 members are willing to retire,how to retire them?? should they retire by taking the capital they invested during formation of the society?? society being a non profit organisation so can the members demand more then the capital they invested??how to take this forward??
P. Venu (Expert) 16 April 2018
You are avoiding to answer my specific query - how the Society has acquired the land? Is it purchase by execution of deed by paying market value or a grant or assignment by the Government on concessional terms? Who are the founder members of the Society i.e. is there anything common among them?

Moreover, are you one among the founder members? What are the provisions of the bye-law as to retirement of founder members and incorporating additional members?
Kumar Doab (Expert) 16 April 2018
AQ so NO reply
Kumar Doab (Expert) 16 April 2018
Pls post with your ID and you can get many replies.
Your ID does not mean your email id or phone number and don’t post these also.

Kumar Doab (Expert) 16 April 2018
LCI Experts Mr. Hemant Agarwal, Mr. Kishore Mehta, Mr. Madhu, Mr. M.V.Gupta are from your state and post on such matters……
You can visit their profile and threads, Articles, Files etc placed under their profile and approach them….
Mr. Hemant Agarwal has a well nourished blog also.
They can provide you in person LOCAL consultation and considered opinion ad help.
Online consultations are not substitute to in person consultations..
In case you wish to put some docs online erase all names/logo/address etc to maintain confidentiality….from unscrupulous entities that loiter at online portals..
Kumar Doab (Expert) 16 April 2018
Many querists like you from your state post at LCI and agree to get back to their LOCAL counsels...............and Experts also agree

Querist : Anonymous (Querist) 19 April 2018
@P.Venu sir we have acquired the said land through fair market value and thru sale deed and the society has its name on the 7/12 extract, the original founder members have contributed towards the said purchase of land, as regard to provision for retirement of members in the bye laws i have no idea, how do i check on that?? and yes i am the founder member of the said society.
Querist : Anonymous (Querist) 19 April 2018
@kumar doab, thanks sir, well i tried to modify the above query and reveal my identity so that i can receive maximum experts advise but then there the option of revealing identity does not appear when i try to modify the said query, how do i do it? pls help.
Kumar Doab (Expert) 19 April 2018
Get in touch with LCI admin...
Or initiate a new thread with your ID

Have you discussed with LOCAL counsels..
If yes, by now you have got satisfactory response...
Hemant Agarwal (Expert) 26 April 2018
1. Your is a Tenant-Partnership Society. Redevelopment (RD) CANNOT happen on Joint-Venture basis. The Society will have to appoint a Redevelopment Builder, AFTER following due procedure of law. Any profit arising out of RD, has to be appropriated in the Balance Sheet and distributed equally to all the existing registered members or appropriated to Reserve Fund, which can be used for maintenance free society.

2. In Societies members CANNOT "retire". They can only Transfer their membership rights to new other incoming members. When membership rights are transferred, all existing rights /liabilities /assets also gets transferred to the new other incoming members.

Keep Smiling .... Hemant Agarwal

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