Would like to know if there is any rule according to the CHS law in Mumbai which says that buyer of a flat who has applied for a loan from a bank has to make the payment only in the PRIMARY SHARE HOLDERS NAME & not in the name of the associate member .even though both persons happen to be owners of the property
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 to the member or from the Life Insurance Corporation of India or from a Bank or the Society or any other agency approved by the Commissioner for Co-operation and Registrar, C.S.M.S. Pune.
the loan re-payment can also be made by the co-borrowers also/ joint owners of the flat. Society is no where concenred about the same. The member is required to furnish the no dues certificate from his banker / financial institution and then only society shall transfer the shrae certificate on the name of the flat owner.
It has been told to us that the payment which is being made by the purchaser will only be made in the name of the primary share holders name & not in the associate members name .Even though both have been made trustees of the property with all the necessary documentation for the same flat .The buyer is is applying for a bank loan to make the required payment for the purchase of the flat
question here is does a chs have the right governed by the co-operative housing laws to tell the purchaser to do so
CHS cannot make a ruling that only primary share holder shall make the repayment etc., it is purely between the bank and borrower. If the property is under joint holding, both may have to sign for the loan and its repayment. You may ask the CHS to give the same in writing, then you think about next course of action against them,