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UJAS DHARAMSHI (Corporate Lawyer)     03 August 2009

procedures for Registration of Society

Dear Advocates,

  I want to enquire about the details for documentation required during registration of Co-operative Housing Society Under Maharashtra Co-operative Societies Act.

Its a complex of 80 members. So how much would be the actual fees for registration?






 1 Replies

Rajendran Nallusamy (Advocate)     09 August 2009

To form a Co-operative Society, Section 6 of the Maharastra Co-operative Societies Act, 1961 lays down the conditions for registering a society which is among others, that a minimum of ten members would be required to own the various units in the building. These persons should be from different families.

Also, these persons should be competent to enter into a contract under the Indian Contracts Act 1872

Every developer has to form a Co-operative Housing Society at one point of time or another. With the limited amount of options available with regard to management of the affairs of the building i.e. (a) Condominium (b) Private Limited Company and (c) Co-operative Society, (excluding the unrealistic rental housing), it will not be an exaggeration to state that in atleast 90% cases particularly in Mumbai the Promoters and/or the Builders have formed a Co-operative Housing Society. The flat purchasers normally do not know the basic requirement for Registration of Co-operative Housing Society. It is here that apart from the statutory obligations cast upon the builder, the builder as a friend, philosopher and guide of promoters helps in forming a Co-operative Housing Society.

Earlier, unless the registration proposal was signed by 90% of the flat purchasers, the society could not be formed. Now, even if 60% of the total number of flat purchasers is willing to form a Society, then the Co-operative Society can be formed.

The Society has to be registered with the Registrar of Co-operative Societies. The application for registration has to be made in FORM-AUnder section 8 of the Act, 1960 states that for the purposes of registration, an application shall be made to the Registrar in the prescribed form and shall be accompanied by 4 copies of the proposed bye-laws of the society and such registration fee as may be prescribed in this behalf. The application should be signed by at least 10 persons (such persons being a member of a different families) and who are qualified under the said Act.

The procedure for Registration of a society begins with electing a Chief Promoter in a meeting of the Promoter who has the authority to sign the necessary documents on behalf of the promoter members and open a bank account in the name of the proposed Society after obtaining the necessary permission from the Registrar.

The Chief Promoter will apply to the Registrar for reservation of name of the Society of the proposed society and permission to collect share-capital. The name once reserved is valid for 3 Months. He will then deposit the collected share money in the bank account of the proposed Society. This has to be done only after receiving the name reservation from the Registrar and after collection of the necessary share capital.

The application for registration should be accompanied with the Scheme showing economic feasibility of the proposed Society, bank balance certificate, and list of persons who have contributed to the share-capital and the entrance fee of the proposed Society.

The Registrar will enter the particulars in register of application maintained in Form "B" and give serial number and issue receipt in acknowledgement of the same.

Afterward, if the Registrar is satisfied that a proposed society has complied with the provisions of the said Act and the rules and its proposed bye-laws are not contrary to this Act or to the rules, he shall within 2 months from the date of receipt of the application register the society and its bye-laws.

The other documents necessary for Housing Societies are as follows:

The person who has legally acquired or intends to acquire a plot or flat in the proposed Society can join in application for registration of a Society. The following procedures have to be fulfilled:

  • The documents pertaining to the purchase of land/building.
  • Title clearance certificate.
  • Sanctioned/Proposed plan and layouts for construction of building / houses.
  • Proof of payment of stamp-duty and registration of documents.
  • Certificate from the architect showing the scheme of construction.
  • In case of Builder promoted Societies, FORM- Z and for others FORM-X is to be submitted.
  • 60 % of the total members should join in the Registration Proposal.

(i) Registration is optional in the case of a flat owner to another person in a registered Co-operative Society. This is because under section 41 of the Maharashtra Co-operative Societies Act, 1960, any instrument relating to a transfer of shares in a society is exempted from compulsory registration.

(ii) A flat owner to another person in an unregistered society. Registration is advisable.

This is because registration of a document safeguards the interest of a purchaser.

In the Rules framed under the Act known as Maharastra Co-operative Societies Rules, 1961, the Registrar classifies the societies under section 12 and Rule 10 where housing societies is classified into three categories-

(a) Tenant Ownership Housing Society- where land on which the houses are built and constructed is obtained either on lease-hold or free-hold basis by the society for the joint activities of the members.

(b) Tenant Co-partnership Housing Society- is a housing society, which holds both land and building either on lease-hold or free-hold basis and allots the flats or other premises in the building to its members. 

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