FAQ

Bye-law No. 4

4. AREA OF OPERATION

The area of operation of the Society shall be confined to ___________________________________

Explanation :
1) For the Society in the Brihan Mumbai insert City Survey no / Gat no. / Final Plot no / Ward no
2) For the Societies at other places, insert City Survey no / Gat no. / Final Plot no / Ward / Corporation- Municipal limits / Town / Village / Taluka / District 

Bye-law No. 40

40. TRANSFEREE’S MEMBERSHIP RIGHTS

The Transferee shall be eligible to exercise the rights of Membership on receipt of the letter in the prescribed form from the Society or order under section 22 or 23 of the Act from the Registrar; subject to the provisions of the MCS Act 1960, Rules and Bye-laws

Bye-law No. 27

27. a. NOTICE

A Member may resign from Membership after giving three months notice in the prescribed form to the Secretary of the Society as provided under Rule 21(1) of the Rules.

27. b. ACCEPTANCE CONDITION

No resignation of a Member of the Society shall be accepted unless such Member has made payment of the charges payable to the Society in full.

27. c. PAYMENT OF DUES

Where any charges are found payable by the Member to the Society, the Secretary of the Society shall intimate the same giving full details and reasons of dues thereof to the Member within 15 days of the receipt of the notice of resignation, advising him to make payment there of within 30 days of the date of intimation.

27. d. DECISION & COMMUNICATION

Where there are no charges of the Society outstanding with the Member, the Committee shall accept the resignation of the Member and the Secretary of the Society shall communicate the same to the Member within a period of 3 months from the date of the receipt of the notice of the resignation.

27. e. REJECTION

Where any resignation is rejected, the Committee shall record the reasons therefore and communicate the same to the Member concerned within three months from the date of receipt of notice of resignation.

Bye-law No. 11

11. LIMIT ON LIABILITIES

Deposits from Members and loans may be received by the Society for such period and at such rate of interest and up to such amount and on such terms and conditions as may be determined by the Committee, provided that at no time, the total amount of such liabilities shall exceed the limit prescribed under Rule 35 of the MSCS Rules.

Bye-law No. 43

43. 1. INTIMATION TO SOCIETY FOR SUBLETTING 

A member shall intimate to the society, of subletting his flat or giving on leave and license basis or care taker basis or parting with its possession in any other manner, however the member shall submit a copy of leave and license agreement and copy of intimation report to the police station.

43. 2. PERMISSION NOT REQUIRED, BUT INTIMATION IS ESSENTIAL

No permission of the Society is required to sublet the flat / shop. However the intimation needs to be given to the society 8 days before such subletting

Bye-law No. 19

19. a. MEMBERSHIP CONDITIONS FOR INDIVIDUALS

An individual / applicant who is eligible to be the Member and who has applied for Membership of the Society in the prescribed form, may admitted as Member by the Committee on complying with the following conditions:
i. applicant has fully tendered the value of at least Ten shares of the Society, along with his Application for Membership;
ii. applicant has paid the Entrance Fee of Rs. 100/-, along with the Application for Membership;
iii. applicant has submitted the application as prescribed, of the particulars in regard to any house, plot or flat owned by him or any of the Members of his family, anywhere in the area of operation of the Society;
iv. applicant has submitted undertaking in the prescribed form to the effect that he shall use the flat / unit for the purpose for which it was purchased by him;
v. applicant has furnished an undertaking in the prescribed form, if he / she has no independent source of income;
vi. applicant has submitted, along with the application for Membership of the Society, a certified copy of the agreement, duly stamped and registered entered into by him / her/ them with the Promoter Builder or Transferor under Section 4 of the Maharashtra Ownership of Flats Act;

vii. applicant has furnished such other undertakings/declarations, in the prescribed forms as are required under any law for the time being in force and such other information as is required under the Bye-laws of the Society along with the application for Membership.
viii. In case of Societies registered under the jurisdiction of special planning Authority like CIDCO / MHADA / SRA / MMRDA etc. the applicant should be eligible person as per the provision of respective Act and the directives of the Govt. / the Planning Authorities, if any.

Note : The conditions at (iii), (iv), (v), and (vii) above shall not be applicable to the Promoter Builder, applying for Membership of the Society, in respect of the unsold flats.

Bye-law No. 15

15. INVESTMENT OF FUNDS

The funds of the Society, when not deployed in its objects, may be invested or deposited as required under Section 70 of the Act. Provided that the Society’s funds collection shall be invested on long-term basis, along with the interest earned thereon by one of the modes permitted under the said section of the Act.

Bye-law No. 14

The Society may utilise its Funds in the manner indicated below :

14. a. USING RESERVE FUND

The Reserve Fund of the Society may be utilized for the expenditure on repairs, maintenance, and renewals of the Society’s property.

14. b. USING REPAIRS & MAINTENANCE FUND

The Repairs and Maintenance Fund may be utilized for meeting the expenditure on maintenance of the  Society’s property and repairs and renewals thereof.

14. c. USING SINKING FUND

On the resolution passed at the meeting of the General Body of the Society, the Sinking Fund may be used by the Society for the reconstruction of its building/buildings or for carrying out such structural additions or alterations to the building/buildings, as in the opinion of the Society’s Architect would be necessary to strengthen it/them or for carrying out such heavy repairs as may be certified by the Architect and on approval of General Body.

14. d. USING EDUCATION & TRAINING FUND

The Education & Training Fund be utilized as provided under section 24(A) of the Act

Utilization of all the Funds shall be with the specific prior approval of Society’s General Body

Bye-law No. 24

24. a. OCCUPATION BY MEMBER

The Member, who is deemed to have been allotted the flat under the Bye-law No. 76(a) of the Society shall have a right to occupy the flat subject to the terms and conditions set out in the letter in the prescribed form under the said bye-law.

24. b. OCCUPATION BY ASSOCIATE/NOMINAL MEMBER

The Associate/Nominal Member may have a right to occupy the flat with the consent of the Member and written intimation to the Society, subject to the conditions set out by the General Body Meeting.

Bye-law No. 41

41. APPLICATION FOR EXCHANGE OF FLATS BY SOCIETY MEMBERS

The Members, desiring to exchange their flats, shall make a joint application to the Secretary of the Society, containing the following details:
a. The names of the Members concerned;
b. The distinctive numbers of their respective flats;
c. The carpet areas (in sq. metres), of their respective flats;
d. The building number/numbers or name/names of the building/buildings in which the respective flats are situated;
e. The reasons for the exchange of flats.

Bye-law No. 50

50. a. PROCESS FOR EXPULSION OF A MEMBER

The cases of expulsion from the Membership of the Society shall be dealt with in the manner provided under Section 35 of the Act, read with Rule 28 and 29 of MSCS Rules.

50. b. EFFECT OF MEMBERSHIP EXPULSION

Expulsion from Membership may involve forfeiture of the shares held by the Member. Where the Committee decides that expulsions from Membership should also involve forfeiture of the shares, it shall make necessary reference to the proposed forfeiture of the shares in the notice to be issued under Rule 29 of the Rules.

Bye-law No. 49

49. GROUNDS FOR MEMBER EXPULSION

A Member may be expelled from the. Membership of the Society, if such a Member
a. has persistently failed to pay the charges due to the Society,
b. has willfully deceived the Society by giving false information,
c. has used his flat for immoral purposes or misused it for illegal purposes habitually,
d. has been in the habit of committing breaches of any of the provisions of the byelaws of the Society, which, in the opinion of the Committee are of serious nature,
e. has furnished false information or omitted to furnish the material information to the Registering Authority at the time of registration of the Society.
f. A Non-Active Member who does not attend at least one meeting of the general body in next five years from the date of classification as Non-Active Member

Bye-law No. 17

17. a. ELIGIBILITY FOR MEMBERSHIP

No individual shall be admitted as a Member of a Society except the following that is to say:
i. Individual who is competent to contract under the Indian Contract Act, 1872;
ii. a Firm, Company or any other Body Corporate constituted under any Law for the time being in force, or a Society registered under the Societies Registration Act, 1860;
iii. a Society registered, or Deemed to be Registered, under the Act;
iv. the State Government or the Central Government;
v. a Local Authority;
vi. a Public Trust registered under any Law for the time being in force for the registration of such trusts;

17. b. MEMBERSHIP ELIGIBILITY OF MINOR OR PERSON OF UNSOUND MIND

A minor or a person of unsound mind, inheriting shares and/or interest of the deceased Member in the capital/property of the Society, or if nominated may be eligible for admission to Membership of the Society through his guardian or legal representative on an application in the prescribed form, along with undertakings/declarations, in the prescribed forms, mentioned in the application

17. c. ADMISSION TO MEMBERSHIP

Notwithstanding anything contained in these bye-laws, admission of a person to Membership of the Society directly or as a result of Transfer of Shares and interest of the existing Member, in the capital/property, of the Society, shall be subject to the approval of the concerned Competent Authorities such as the Collector of the District and the land grant terms as applicable, (provided if the Society has been given land by Government/CIDCO/MHADA/SRA” or any other authority )

Note (1) : “Family” means as defined under Bye law No. 3 (xxv)
Note (2) : Signatories to the application for Registration of the Society shall be Deemed to be the Members of the Society after its Registration.
Note (3): The number of Members in the Society shall be limited to the number of Flats/ Units constructed in the building/buildings. It shall be binding on the committee to restrict the Members to the extent of the number of Flats/Units in the Society.

Bye-law No. 18

18. MEMBERSHIP ELIGIBILITY OF CORPORATE BODIES

• A Firm registered under the Indian Partnership Act, 1932,
• A Company registered under the Indian Companies Act, 1949,
• A Society registered under the Societies Registration Act, 1860 or
• A Co-operative Society registered or deemed to be registered under the Maharashtra Co-op. Societies Act, 1960,
• A Local Authority,
• The State or Central Government,
• A Public Trust or
• any other Body Corporate, registered under the law for the time being in force, as provided under Section 22(1) (b), (c), (d), (e) and (f) of the Act

may be eligible for admission to Membership of the Society. However, admission of Firms and Companies to Membership of the Society and holding of flats by them shall be regulated in accordance with the notifications issued by the State Government from time to time under the Second Provision to Section 22 of the Act.

Bye-law No. 19

19. c. MEMBERSHIP CONDITIONS FOR CORPORATES

A Firm, Company, or any other Body Corporate, registered under any law for the time being in force, which is eligible to be a Member of the Society and has made an application for Membership of the Society in the prescribed form may be admitted as a Member by the Committee of the Society on complying with the following conditions:
i. applicant has sent, along with application for Membership of the Society, a certified copy of the agreement duly stamped entered into by it, with the Promoter(Builder) or transferor under Section 4 of the Ownership Flats Act.1963, with certified copy of resolution of the firm or company as the case may, authorizing to sign the application.
ii. applicant has paid, along with application for Membership, the full value of at least 10 shares and an entrance fee of Rs. 100/-.
iii. applicant has complied with the conditions mentioned in the notifications, issued by the State Government, from time to time, under the Second Proviso to Section 22 of the Act.
iv. applicant has furnished the undertakings / declarations in the prescribed forms required under any law for the time being in force along with the application for Membership.

Note : The conditions at (i) and (iii) shall not be applicable to the firm/ company of the Promoter Builder, applying for Membership of the Society in respect of the unsold flats.

Bye-law No. 16

16. CLASSES OF MEMBERS

The Membership of the Society shall consist of

(i) Members, including Associate Members and

(ii) Nominal Members

Bye-law No. 32

32. PROCESS FOR APPLICATIONS & REVISIONS

A Member and/or Associate Member of the Society may by writing under his hand, in the prescribed form, nominate a person or persons to whom the whole or part of the shares and/or interest of the Member in the capital/property of the Society shall be transferred in the event of his death. The
acknowledgment of the nomination by the Secretary, shall be deemed to be the acceptance of the nomination by the Secretary. No fees shall be charged for recording the first nomination. A Member may revoke or revise his nomination, at any time, by making an application, in writing, under his hand, to the Secretary of the Society. The acknowledgment of the variation in nomination/ subsequent nomination by the Secretary, shall be deemed to be the cancellation of earlier nomination. Every revision of the nomination shall be charged a fee of Rs. 100/-

Bye-law No. 33

33. RECORDING APPLICATIONS & REVISIONS

On receipt of the Nomination form, or the letter for revocation of the earlier nomination, the same shall be placed before the meeting of the Committee held next after the receipt of the Nomination form, or the letter of revocation of the earlier nomination, by the Secretary of the Society for recording the same in the minutes of the Committee. Every such nomination or revocation thereof shall be entered in the register of nominations by the Secretary of the Society within 7 days of the meeting of the Committee, in which it was recorded.

Bye-law No. 38

38. e. REQUIRED DOCUMENTS & COMPLIANCE FOR SHARE TRANSFER

The Transferor / Transferee shall submit following documents and fulfill compliance as under:
i. application in the prescribed form, for transfer of his shares and interest in the capital/property of the Society, along with the Share Certificate;
ii. application in the prescribed form for Membership of the proposed Transferee ;
iii. resignation in the prescribed form Member / Transferor;
iv. Registered Agreement with Stamp Duty paid;
v. valid reasons for the proposed transfer;
vi. undertaking to discharge all the liabilities to the Society by Transferor;
vii. payment of the transfer fee of Rs. 500/-
viii. remittance of entrance fee of Rs. 100/- payable by the proposed Transferee;
ix. payment of amount of premium at the rate to be fixed by the General Body Meeting but within the limits as prescribed under the circular, issued by the Department of Co-operation / Government of Maharashtra, from time to time. No additional amount towards donation or contribution to any other funds or under any other pretext shall be recovered from transferor or transferee.
x. submission of ‘No Objection Certificate’, required under any law for the time being in force or order or sanction issued by the Government, any financing agency or any other authority;
xi. the undertaking / declaration in compliance with the provisions of any law for the time being in force, in such form as is prescribed under these bye-laws.

Note: The condition at sr. no. (ix) above shall not apply to transfers of shares and interest, of the transferor in the capital / property of the Society to the Member of his family or to his nominee or his heir / legal representative after his death and in case of mutual exchange of flats amongst the Members.

Bye-law No. 42

42. DISPOSAL OF APPLICATION BY MANAGING COMMITTEE

The procedure for disposal of applications for exchanges of flats as indicated in the bye-law No. 62 shall be followed by the Secretary and the Committee of the Society.

Bye-law No. 39

39. a. DISPOSAL OF SHARE TRANSFER APPLICATION

The procedure for disposal of applications for transfers of shares and/ or interest of Members in the capital/property of the Society as laid down under the bye-law No. 62 shall be followed by the Secretary and the Committee of the Society

39. b. ACCEPTANCE OR REJECTION OF APPLICATION 

A meeting of the Committee or the General Body, as the case may be, shall not refuse any application for admission to Membership of transfer of shares and interest in the capital/property of the Society except on the ground of noncompliance of the provisions of the Act, the Rules and the Bye-laws of the Society or any other law or order issued by the Government in exercise of the statutory powers vested in it.

39. c. DELAYED DECISION IS DEEMED ACCEPTANCE OF SHARE TRANSFER 

If the decision of the Committee/General Body meeting as the case may be, on the application for transfer of Shares and/or interest in the capital/ property of the Society is not communicated to the applicant within three months of its receipt, the transfer application shall be deemed to have been accepted and the transferee shall be deemed to have been admitted as a Member of the Society as provided under Section 22(2) of the Act.

39. d. UNAUTHORIZED TRANSFER IS VOID

Any transfer made in contravention of the Act, Rules or the Bye-laws shall be void and not effective against the Society