Prahladrai Dalmia Lions College of Commerce &

Economics

Subject: - Cooperatives & Rural Markets

Project on: - Housing Co-operative

Societies

By: - Dishank Khandelwal

Of: - S.Y.BMS (A)

Roll No.: -56

Submitted to: - Miss Shakuntala

INDEX

SR. NO. CONTENTS

01 CO-OPERATIVE SOCIETIES

02INTRODUCTION OF HOUSING CO-

OPERATIVES

03STRUCTURE OF HOUSING CO-

OPERATIVES

04PROCEDURE FOR REGISTRATION OF HOUSING CO-OPERATIVE SOCIETIES

05CLASSIFICATION OF HOUSING CO-

OPERATIVES

06MANAGEMENT OF CO-OPERATIVE

SOCIETIES

07 PROBLEMS OF HOUSING SOCIETY

08REMEDIAL MEASURES TO SOLVE THE

PROBLEMS

09 BIBLIOGRAPHY

Declaration

I, Dishank Khandelwal of S.Y.BMS (A), Prahaladrai

Dalmia Lions College of Commerce & Economics,

hereby declare that I have completed the project titled

Housing Co-operative Societies in the academic year

2010-11. The information submitted by me is true and

original to the best of my knowledge.

Signature of the student(Dishank Khandelwal)

Certificate of Project Completion

Certified that the project report titled CONSUMER CO-

OPERATIVES has been completed satisfactorily in

partial fulfillment of BMS course of the University of

Mumbai, Mumbai for the academic year 2010-2011 by

Umesh Kothari, a student of Prahladrai Dalmia Lions

College of Commerce & Economics.

Place:Date:

Signature of Principal

Seen By:-

Internal Examiner:Signature:Date:

External Examiner:Signature:Date:

ACKNOWLEDGEMENT

First of all I would like to thank the almighty for his blessing that helped me to achieve everything I had wished for till now.

I express my deepest gratitude to Mrs. Shakuntala whose invaluable guidance and supervision in the project infused in me great inspiration and confidence in making this project in right earnest. This masterly guidance from time to time made the study interesting and meaningful.

She was always there for our help and doing away all the difficulties and confusions that arises during the project period. She also helped me to understand what was actually required from the project and what was needed to be done. At last I would like to thank our respondents for their kind response and their precious time.

Many other who have been associated with work directly or indirectly, all have my sincerely thanks.

The greatest achievements of the facts, that

“ONE WHO PREACHES THE GOAL WINS THE GAME”

Dishank Khandelwal

CO-OPERATIVE SOCIETIES

An autonomous open and voluntary association of persons of the weaker section of the society, to meet their common socio-economic and cultural needs and aspiration through a jointly owned and democratic control enterprise in accordance with the cooperative values and principles.

OR

A Cooperative Society is an Association of a minimum of 25 persons untitled voluntarily to meet their common economic, social and cultural needs and aspirations, through a jointly owned and democratically controlled enterprise, registered under the Cooperative Societies Act.

Classification of Co-operative Societies

As per subject to the provisions of sub-section (1) of section 4, a co-operative society formed with the object of facilitating the operation of any one of the classes or sub-classes here in after given shall be classified as a co-operative society of that class or sub-class namely:-

1) Producers' society: - Objective is producing and disposing of goods as the collective property of its members.

2) Consumers' Society: - Objective is obtaining and distributing goods to or of performing services for its member, as well as to other consumers within the area of operation specified in the bye-laws.

3) Housing Society:- Object of providing its members with dwelling houses subject to the provisions of these rules and on the conditions to be determined by the Lt. Governor from time to time) and may be of any of the following types:-

a. Tenant Ownership.b. Tenant Co-partnership.c. Builder Co-operative.d. Ownership cooperative.

4) Processing Society: - Objective is the processing of goods by mechanical or manual process.

5) Marketing society: - Its main purpose is of marketing agricultural or other produce and includes amongst its objects, the supply of the requisites of such production.

6) Joint Farming Society: - Objective is increasing agricultural production, employment, income and better utilization of resources; land held by members is pooled together and is jointly cultivated by the members on behalf of the co-operative society.

7) Collective Farming Society:-The object is increasing agricultural production land is acquired from outside in the name of cooperative society and is collectively and jointly cultivated by the members themselves on behalf of the cooperative society.

8) Co-operative Union: - Principal objective is the undertaking of Co-operative Education, Propaganda and Training.

9) Apex Co-operative Society: - Their principle object is the promotion of the principal objects and provisions of facilities for the operation of other co-operative societies affiliated to it.

INTRODUCTION OF HOUSING CO- OPERATIVES

The prime necessities of human beings are food, clothing and shelter and housing cooperative is an essential for human existence as much food and clothing. Housing is a significant subject having a concern with a common man. One of the important problems faced by India is the housing problem. The reasons are varied, like tremendous growth in population, migration from rural to urban areas. Highly speculative trend in the cost of land, weakening of joint family system thus creating a requirement of a separate house for each family unit etc.

Housing is an important sector, with a direct connection to human welfare and economic linkages to the construction industry. The National Housing & Habitat Policy has been formulated to address the issues of sustainable development, infrastructure and strong public-private partnerships for shelter delivery. The objective of the policy is to facilitate the construction of two million dwelling units each year. It is envisaged that Government would provide fiscal concessions, carry out legal and regulatory reforms and create an enabling environment. The private sector would undertake actual construction activities.

Policies in the area of housing finance have been a key vehicle through which home ownership has been promoted. Income tax exemptions have been given to households building or purchasing homes; financial institutions and builders have been given fiscal incentives to build housing for low-income groups, and investors in housing finance companies have been given tax breaks.

HUDCO (Housing urban Development Co-operative) plays a major role in the implementation of government policies on housing. It has been entrusted with the implementation of the following programmes: Low Cost Sanitation. Night Shelter for Footpath Dwellers. Building Centres. Shelter Upgradation under Nehru Rozgar Yojana (NRY) and Valmiki Ambedkar Awas Yojna (VAMBAY). HUDCO has been allocating 55 per cent of its housing loans for Economically Weaker Sections (EWS) and Lower Income Group (LIG). Over 92 per cent of the dwelling units sanctioned by HUDCO are meant for EWS and LIG. Out of a target of construction of 20 lakh additional houses, 7 lakh houses would be constructed in urban areas and 13 lakh in rural areas. HUDCO is expected to meet more than 55 per cent of the urban housing target, i.e., 4 lakh units.

The cooperative housing sector plays an important role. All the 26 State- level Apex Cooperative Housing Federations are members of the

National Cooperative Housing Federation (NCHF). At the grassroot level, 30,410 primary housing cooperatives are affiliated to State-level federations. These federations obtain loans from various financial institutions for on-lending to their member housing cooperatives as well as individual members for construction/acquisition of dwelling units. These federations have borrowed a sum of Rs.6.882 crores from LIC, HUDCO. National Housing Bank, cooperative banks, etc. and disbursed loans of Rs.7,371 crores to primary housing cooperatives and individual members, thereby assisting in the construction of about 22 lakhs.

Co-operative housing emerged as a strong, well organized and significant in order to. Solve the housing problem of common man. These are legally established association of persons and are democratically controlled by the members.

The working group on housing co-operatives has therefore said that, “co-operative activity is the best means of providing decent houses at reasonable costs to persons, particularly of low and middle income groups.’’

Mumbai is the 3rd largest density populated city in the world and the prices of the land and construction is becoming unaffordable to the common man. They also say that man is a social animal and is incomplete without a social fabric. A person’s lifestyle, his culture, his social status all are determined on where he stays.

Definition of Housing Co-operatives

"Co-operative housing society" means a society of persons-

(a)which is formed for all or any of the objects referred to in section five of the act 1958;

(b)which has under its rules a share capital divided into equal shares of one or more classes and not being preferential shares; and

(c) which under its rules is to terminate on a specified date or when a specified object is attained or a specified event occurs- but does not include a Starr-Bowkett society, that is to say, a society in which the order of advances to members is determined either solely or partly by the drawing of lots.

OR

A housing Co-operative is also defined as “an association run along with co-operative principles (Voluntary membership, democratic

member control, member economic participation, autonomy and independence, education, training and information, co-operation among

co-operators and concern for community.)”.

It is owned and managed by the members of the co-operative. Most housing co-operatives are fully mutual and further reference to housing co-operatives in this document refer to this type, where only tenants or prospective tenants may be members, and only members may hold a tenancy. This means that decisions are made by the people who are affected by those decisions.

Housing co-operatives provide a way for people to share in the ownership of property and live in it at affordable rent levels, as opposed to rent levels designed to generate profit for an individual or company. They are an alternative to home ownership in the traditional sense or renting in the private sector.

Objectives of Co-operative Society

A co-operative housing society may be formed for all or any of the following objects-

To enable each of its members-

to purchase land and to erect a dwelling-house thereon; or

to erect a dwelling-house on land already owned by him; or

to erect a dwelling-house on Crown land leased by him for a term of not less than 50 years being Crown land within an area approved by the Governor in Council for the purposes of this Act;

subject to section thirty-four of this Act to purchase land upon which is situated a dwelling-house; or

to maintain and keep in proper repair his dwelling-house; or

where the approval of the Governor in Council given after consideration of a report by the registrar is first obtained-to discharge a mortgage held by another society upon any land; or

to discharge a mortgage or any other charge or security over or affecting any land which mortgage charge or security was granted or executed by the member in question in anticipation of the society's making an advance to him and with the approval of the registrar to the making of the advance.

STRUCTURE OF HOUSING CO- OPERATIVES

# First level:

National cooperative: - At the apex of the structure is the National cooperative Housing society’s federation (NCHF) which was established in 1969 and has headquarters New Delhi.

The objectives of this institution are:-

1) Give publicity of cooperation housing movements by publishing books and brochures.

2) To establish financial institutions at state level (Maharashtra Housing Finance Corporation)

3) To help the primary housing cooperative to get loans for building houses and flats at very nominal interest rate.

4) To undertake research for new building material so to reduce the construction cost.

# Second level:

State level housing cooperative: - Their main objective is to guide primary housing cooperatives regarding legal and statutory matters so as to get that registered. They also help in negotiating with institution like MHADA for allotment of plots.

# Third level:

Primary housing cooperative:- The objectives are found in rural, semi urban and urban areas and can get themselves registered if they have ten or more members who have a fix source of income and who come together to build a housing cooperatives and solve the housing problems and prevent exploitation of Land lords. They provide a systematic and organized way of maintaining the building and property of housing cooperatives.

The basic guidelines for the formation of Co-operative society in Maharashtra State are as

follows:-

There should be at least ten persons or more as the Registrar may determine from time to time.

These persons should be from different families. These persons should be competent to enter into a contract under the

Indian contracts Act 1872.

He should reside in the area of operation of the Society.

He should be eligible as per the bye-laws of the proposed Society.

Any individual, firm, company or any other body corporate can become member of the Society.

Any Society registered under this Act or Societies registration Act 1860

State & Central Government, Public Trust, local authority.

The object of the Society should be promotion of economic interests or general welfare of the members or the public, in accordance with the co-operative principles.

Bye-laws of the Co-operatives

Co-operation is an activity of the people. It is a self-generated, voluntary and self-sufficient activity. Hence little governmental interference is desirable. However considering the economic parameters of this movement and interests of several persons involved there is a possibility of misuse of personal power by any of the group-members. The governments therefore had to pass legislation to monitor the activities of the co-operatives mainly with the purpose of safeguarding the interests of all the members.

Great Britain for example had passed legislation as early as 1852. Similar intervention of legislature can be seen in Germany and France (1867) and Italy (1883).

In Maharashtra the Co-operatives are governed by the Maharashtra Co-operative Societies Act 1960 and supported by Maharashtra Co-operative Societies Rules, 1961. The legal system in the co-operatives registered in Maharashtra State is elaborate. Moreover each co-operative should have its own Bye-Laws which are the guiding principles of the co-operative. These Bye-laws have to be approved through a resolution of the Society. These bye-laws can be amended in the General body Meeting of the co-operative. The only condition on the bye-laws is that they should not be contrary to the Maharashtra Co-operative Societies Act, and have to be approved by the Registrar.

Requirements for forming a cooperative society

Minimum number of persons 25. The society's object should be promotion of the economic interests

of its members. The proposed society should be capable of being run on

economically sound lines. The registration of the proposed society should not have an adverse

effect on the cooperative movement. The prospective members should contribute a minimum amount of

share capital prescribed by the Registrar of Cooperative Societies for the particular type of society to be started.

PROCEDURE FOR REGISTRATION OF HOUSING CO-OPERATIVE SOCIETIES

On receiving such applications the Asst. Registrar through his subordinate will conduct an inquiry to find out the feasibility and economic viability of the proposed Cooperative Society and whether it’s proposed bye laws conforms to the Meghalaya Coop. Acts and Rules. In case a proposed Cooperative Society is either a, Fishery, / Dairy/, Poultry/, Piggery/or Handloom etc., views and comments from concerned department has to be obtained before registration of such society.

After inquiry report with views and comments from concerned Department are found favorable, Permission is given to complete the necessary formalities for Registration.

A date will be fixed for holding the inaugural general meeting of the promoter in which members will finally decide on adoption of the Bye-Laws and matters concerning with day-to-day functioning of the Society including constitution of Managing Committee, operation of Bank Account etc.

In the inaugural General Meeting, one of the Promoters presided over the meeting. An officer from the Department is deputed to attend the meeting and help the promoters in organizational matters. In this meeting they will decide what type of a Society they want to form, how many persons would join as members of the Society ,l elect the office bearers of the society and decide the authorized share capital and the share capital to be contributed by each members.

All the papers duly signed by the Promoters are to be submitted to Asst. Registrar of Coop. Societies who after satisfying himself on all points register the society and its Bye-laws. The certificate of Registration in the form set forth and the schedule is issued by Asst. Registrar of Coop. Societies after registration of the society. A copy of registration with Bye-laws is sent to the applicant and also to concerned Departments.

Registration of Co-operative societies

A co-operative society can be registered in Maharashtra State with the Registrar of Co-operative Societies.

Any person competent to contract, as per the Indian contract Act, 1872 can join in the formation of a co-operative.

A group of ten persons, who reside in the area of operation of the proposed society and are from different families, can join in application for registration of a society.

A society with the objects of promoting the economic interests or the general welfare of the members only can be registered.

No society which is contrary to the policy directives of the State can be registered.

Registration can be obtained from the registrar on filling up the application form with the necessary fees and the bye-laws.

Division/Amalgamation/Transfer and conversion of a co-operative is allowed.

A Co-operative Society can enter into collaboration with any Government Undertaking or any other undertaking with the prior permission of the State Government for business.

It can also enter into a partnership with other co-operatives.

Certificate of incorporation as an evidence

A certificate of incorporation under this Act shall be conclusive evidence that all the requirements of this Act in respect of registration and matters precedent or incidental thereto have been complied with:

Provided that nothing in this section shall affect any provision of this Act relating to the winding up or dissolution of the society or the cancellation of its registration.

CLASSIFICATION OF HOUSING CO- OPERATIVES

(a) Tenant Ownership: In the case where the land is owned by the Society and the structure on the plot is owned by the members. Individual members are allotted plots by the co-operative to construct their houses. The society creates infrastructure and may also arrange the finance for the members.

(b) Tenant Co-partnership: The land and the constructed structure is owned by the society and the members who are allotted the flats have the easement rights.

(c) Builder Co-operative: where the builder floats a housing scheme and sells the flats. The buyers of the flats then organize into a housing society. Such societies are merely service societies or maintenance societies.

(d) Ownership cooperative: - In this case, people working in an organization come together and form them into a housing cooperative society. They get their society register, apply to MAHADA. (MAHARASHTRA HOUSING AND DEVELOPMENT AUTHORITY) and get a plot allotted to them in LIG, MIG, and HIG i.e.: low income group, middle income group, high income group. Once the plot is sanctioned they approach a construction company and depending on their budget build up housing society. E.g.: Gulmohar cooperative housing society situated at Ceissor road, Andheri (west) is the housing complex of the ICICI officers.

Terms and Conditions to be complied for admission to membership

1. No person shall be admitted as member of a co-operative society unless-

He has applied in writing in the form laid down by the co-operative society or in the form specified by the Registrar, if any, for membership along with a declaration .on oath that he is-net 9 member of any other co-operative society having similar objects;

His application is approved by the committee of the co-operative society in pursuance of the powers conferred on it in that behalf and subject to such resolution as the general body may in pursuance of the powers conferred on it in that behalf from time to time pass, and in the case of nominal, associate, or sympathizer member by an officer of the society authorised in that behalf by the committee.

He has fulfilled all other conditions laid down in the Act, the Rules and the Bye-laws;

In case of a firm, company or body corporate, society registered under the societies Registration Act, 1860, a public trust registered under any law for the time being in force relating to registration of public trust or a local authority, the application for membership is accompanied by a resolution authorizing it to apply for such membership, and the sanction of the Lt. Governor has been accorded.

In case of a Cooperative Housing Society, he has been a resident of the National Capital Territory of Delhi-for a minimum period of three years at the time of applying for a membership in such society.

2. In case of vacancy in a housing society including group housing society where layout and building plans have been approved by the competent authority, the same shall be filled by the committee by notifying It in leading daily newspaper of Delhi in Hindi and English. In case the number of applications is more than the notified vacancies the membership shall be finalized through draw of lot in the presence of authorized representative of the Registrar.

MANAGEMENT OF CO-OPERATIVE SOCIETIES

As per the Bye-law, there will be a Committee of Management, initially nominated by the Registrar of Cooperative Societies for a period not exceeding 3 years and subsequently elected by the General Body once every 3 years.  Among the members of the Committee of Management there shall be office-bearers like President, Vice-President, Secretary, Treasurer etc.  It will be the responsibility of this Committee of Management to carry on the executive management of the society in accordance with the provisions of the Act, Rules and Bye-laws and as per the annual budget and programme of action approved by the General Body each year. 

The final authority of the Society vests in the General Body of the Society comprising of all the members.

Every Society shall call Annual General Meeting within a period of three months after the date fixed for completing or drawing up of its accounts for the year.

At every Annual General meeting, the Managing Committee shall lay a statement of loans given to the members of the Managing Committee and their family members, Income and Expenditure Account, Balance Sheet, a Report by the Managing Committee regarding the Society’s affairs.

Failure to do so may attract the disqualification of the members of the Managing Committee and other penalties.

A Special General Meeting can be called by the Chairman of the Co-operative or by majority of the members of the Managing Committee. Members too can requisition for such a meeting if 1/5 th of the total members of the Society endorse this requisition. The Registrar also has the powers to call for a Special General meeting. So can the committee of the Federal Society do so?

Failure to call for this meeting may attract penalty for the Managing Committee.

It is the duty of every Managing Committee to arrange for holding of elections of its members before the expiry of its term.

Election to a Specified Society shall be conducted by the Collector and that of a Notified Society by the Registrar.

Management of the Society vests in a duly constituted Managing Committee.

Reservation for the weaker section, women and scheduled castes/tribes has been provided in the Managing Committee.

No committee is duly constituted unless the Registrar publishes the names of the members of the Managing Committee along with their addresses.

If a Managing Committee of a Society is not duly constituted, an Administrator may be appointed by the Registrar.

An Administrator can also be appointed (for a period of six months) by the Registrar if the Managing Committee is removed for negligent performance as per the provisions of Co-operative Law.

A member of the Managing committee can also be removed by the Registrar for negligent performance.

The Managing committee can appeal against its removal / dismissal.

Office bearers of a Society can be removed by the way of No confidence motion. Such a no confidence motion has to be supported by at least one-third of the members of the managing Committee. Removal from office is effected only after the resolution is passed by a simple majority in the Managing Committee.

Members of societies

1.) The members of a society which is formed under this Act shall be the persons who sign the application for membership on the formation of the society, and any other persons who are admitted to membership in accordance with this Act and the rules of the society.

2.) No rights of membership shall be exercised by any member until he has made such payment to the society in respect of membership or acquired such share or interest as is provided in the rules of the society in that behalf.

3.) A person shall cease to be a member in any of the following circumstances, that is to say-

(a) Where his shares are transferred to another person in accordancewith the rules of the society, and the transferee is registered asholder in his place;

(b) Where his shares are forfeited in accordance with the rules of the society;

(c) Where any power of sale (whether expressed or implied) in any mortgage given by the member to the society is exercised by the society;

(d) Where he becomes bankrupt or insolvent under any law relating to bankruptcy or insolvency and the official receiver or assignee disclaims in accordance with the provisions of such law;

(e) On death:Provided that the estate of the deceased person shall remain liable and his executor or administrator shall be and may be registered as the holder of the shares as such executor or administrator (whether eligible to be a member of the society or not) until some eligible person is registered as the holder of the shares by transfer from the executor or administrator or until the shares are withdrawn or discharged in accordance with this Act and the rules of the society, and while any such executor or administrator is so registered he shall be deemed to be and shall have the rights and obligations of a member of the society for all purposes other than voting at meetings of the society and becoming a director thereof;

(f)Where the contract of membership is rescinded on the ground of misrepresentation or mistake;

(g) Where he ceases to be a member in accordance with the rules of the society;

(h) Where the value of his shares is repaid or a refund in respect of his subscriptions is made to him in accordance with the rules of the society.

4.) Where shares are held by the executor or administrator of a deceased member, the Board may in its discretion by notice in writing to the executor or administrator call upon him to transfer the shares to an eligible person or to withdraw or discharge the shares within six months after receipt of the notice or within such further time as the Board may in any particular case allow, and unless the shares are so transferred withdrawn or discharged they may at the discretion of the society be forfeited and dealt with as forfeited shares in accordance with this Act and the rules of the society.

5.) Where a person becomes the trustee within the meaning of the Commonwealth Act known as the Bankruptcy Act 1966 as amended from time to time of the estate of a member or deceased member the trustee may be registered as the holder of the shares of the member as such trustee (whether eligible to be a member of the society or not) until some eligible person is registered as the holder of the shares by transfer from the trustee or until the shares are withdrawn or discharged in accordance with the provisions of this Act and the rules of the society and while the trustee is so registered he shall be deemed to be and shall have the rights and obligations of a member of the society for all purposes other than voting at meetings of the society and becoming a director thereof.

Rights and Duties of the Members of Society

Rights:-

1. Right to get certificate of allotment:-

Every member of a co-operative housing society, whether registered before or after the commencement of this Act, to whom plots of land or dwelling units have been allotted, shall be issued certificate of allotment by the co-operative housing society under its seal and signature in such form as may be prescribed.

2. Right to hold according to terms of allotment:-

Irrespective of the provisions of the Transfer of Property Act, or the Registration act, any allotment or re-allotment of a plot of land or dwelling unit in a building of a co-operative housing society to its member as per terms of allotment shall entitle such member to hold such plot of land or dwelling unit with such title or interest.

3. Right to transfer / inherit the property:-

The right, title and interest in a plot of land or dwelling unit in a building of the co-operative housing society (including the undivided interest in common areas and facilities) shall constitute a heritable and transferable immovable property. However, such land or building shall not be partitioned for any purpose whatsoever.

4. Right to undivided interest in common area:-

Every member of a co-operative housing society shall be entitled to an undivided interest in the common areas and facilities pertaining to the plot of land or dwelling unit allotted to him.

5. Right to use the common area:-

Every member of a co-operative housing society to whom a plot of land or a dwelling unit has been allotted shall have the right to use the common areas and facilities as prescribed by the co-operative housing society. In case of any violation or misuse by a member, the management committee is empowered to recover damages.

6. Right to attend meeting and vote:-

A member has right to attend all the meetings of the society and vote thereat.

7. Right to contest election:-

A member has right to stand for the election of the management committee.

8. Right to seek information from the society:-

A member can seek information relating to any transaction of the co-operative housing society and the society is required to furnish such information within 30 days from the receipt of request. The society may fix the application fee for this purpose.

Duties:-

The rights of members underline the duties of the housing society. The society should not discriminate between members and should not place unlawful restrictions on them. Besides this, the society should be prompt in attending to the complaints and grievances of the members as to provision of services.

Liabilities of Members of Co-operative Society

1.) A member shall be liable to the society for the amount, if any, unpaid on the shares held by him, together with any charges and other moneys payable by him to the society as prescribed by this Act or the rules of the society.

2.) Where, under or in relation to any contract or policy of life insurance or similar contract in a form approved by the registrar after consideration of a report thereon from the Government Statist, or by virtue of any legal or equitable assignment of or trust created in respect of any such contract or policy, or pursuant to any scheme relating to life insurance approved by the registrar after consideration of such a report, provision is made whereby, in the event of the death of a member of a society to whom the contract policy or scheme applies or in the event of the death of a member's spouse or domestic partner to whom the contract policy or scheme applies, moneys will be available for or towards the discharge of the member's liability to the society, then the society shall be empowered-

(a) To receive from any such member, at such times as are agreed upon by the member and the society, the amount of each periodical premium or contribution payable by him in respect of the contract or policy or pursuant to the scheme; and

(b) If the member defaults in payment of any such amount at the agreed time-

To make payment thereof pursuant to the contract policy or scheme on his behalf or to take such other action as the contract policy or scheme requires or allows; and

To recover from the member any amount in respect of which the member has made default as aforesaid-and any amount so recoverable shall until paid be a debt due to the society by the member and the provisions of this Act shall apply in relation thereto accordingly. The society may make either by itself or in conjunction with any other society or societies any contract or arrangement relating to or connected with the carrying into effect of this sub-section and may carry out any such contract or arrangement.

3.) Where, under or in relation to any contract or policy of accident or sickness insurance or similar contract in a form approved by the registrar after consideration of a report thereon from the Government

Statist, or by virtue of any legal or equitable assignment of or trust created in respect of any such contract or policy or pursuant to any scheme relating to accident or sickness insurance approved by the registrar after consideration of such a report, provision is made whereby in the event of any accident to or sickness of a member of a society to whom the contract policy or scheme applies or in the event of any accident to or sickness of a member's spouse or domestic partner to whom the contract policy or scheme applies moneys will be available for or towards the discharge of the member's liability to the society.

Responsibility of members and Co-operatives

The relationship between tenant and co-operative is not a simple one. The co-op supplies the tenant with a service (housing) according to a contract (tenancy agreement/license). The tenant pays rent in return for the housing they occupy according to the contract.

However, the co-operative is run by its members. The tenant is a member and as such is responsible for ensuring that the co-op delivers the service. A co-operator can simultaneously expect to receive a service whilst being responsible for its delivery.

The member is responsible:

As a member, to participate in the smooth operation and democracy of

the co-operative. To attend general meetings. To participate in setting policy.

As a tenant, to pay rent. To behave responsibly towards other tenants

and other duties as laid out in the tenancy agreement/license. As a director, to ensure that the co-operative is run in a fit & proper

manner. All directors are responsible for ensuring that tasks are carried out. Even when tasks have been delegated, all directors are equally responsible for monitoring them. To make management decisions.

The co-operative is responsible:

To provide tenants with suitable housing, and other duties as laid out in

The tenancy agreement/license. To conduct business in a fit & proper manner. To keep accurate records & accounts of the business of the co-operative.

In practice many of the co-operatives tasks are delegated to individuals. However, all directors are equally responsible for ensuring they are carried out and making checks.

Privileges and Duties of Society

A Society is a Body Corporate by the name with perpetual succession and common Seal.

It can acquire, hold and dispose off property in its name. It can enter in a contract. Institute and defend suits and other legal proceedings. It is exempted from compulsory registration of Instruments relating to

shares and debentures of Society under the Indian Registration Act 1908

The society has claim only next to the Government, on the property and interest of the borrowing members.

The society has claim over the sale price of agricultural produce of the borrowing member.

It is mandatory on the part of the employer to deduct from the salary of the employee, dues of the Society, if agreed upon by the member.

The Society can receive deposits and loans from the members and other persons within the area of operation of the Society and /or on conditions imposed by the Registrar

Loans can be advanced to the members only. With the prior permission of the Registrar, loans can be advanced to other Societies.

The Society has to keep and maintain updated records in prescribed format.

There are restrictions on the transactions with the non-members.

Property and Funds of Co-operative Society

No funds shall be divided among its members, other than the net profits earned by the Society.

The society’s funds cannot be utilized to defend any proceedings filed by or against any office bearer of the Society, in his personal capacity under sections 78, 96 or 144-T of the Maharashtra Co-operative Societies Act, 1960.

Remuneration can be paid to the Managing Committee members for services provided by them to the Society.

Net Profit earned by the Society can be appropriated by the members with the approval of the Annual General Meeting.

Reserve fund shall be maintained by the Society.

Investments of Funds shall be made as per the guidelines prescribed in the Maharashtra Co-operative societies Act, 1960.

Audit, Inquiry Inspection and Supervision of Societies. The Registrar of Co-operative Societies makes it compulsory for every

Government -aided Co-operative Society to audit its accounts at least once in a co-operative year (i.e. April - March).

All the other Societies also have to get their accounts audited by a Certified Auditor once in every co-operative year.

A Registrar has powers to order the Society to be re-audited. This is however done by him suo-moto or in the case where 1/3rd members of the Society apply to him for re-audit.

The Registrar can inspect the working of the Society on his own or on application of its creditors.

The Registrar can commission an inquiry into the affairs of the Society on the basis of the audit report or an inspection report. He can appoint an Inquiry Officer and conduct an inquiry through him.

Similarly he can also conduct inspection of a Society just to ascertain that all the Books of Accounts are being maintained properly and that the affairs of the Society are being conducted reasonably by the Managing Committee.

The Registrar can order for compensation, if it is found that any person has misapplied or retained any property, or money of the Society, or has caused breach of trust.

PROBLEMS OF HOUSING SOCIETY

(a)Scarcity of land:

In Asia, the rate of urban growth has led to an increase in the construction activities and real estate which is as high as 42% of GDP as compared to12% in Australia. As of December 2002, there were approximately 710 million homeless people in India. And at the end of 8 th 5 year plan there will be a housing shortage or 3.5 crores houses. This is also because of tremendous growth in population and contribution of joint family making requirement of separate houses for each nuclear family.

(b)Inadequate finance:

In the measure metros, housing finance cooperatives are offering loans at very competitive rates. However in semi urban and rural areas, there is no institutional finance available for building houses. The housing urban developmental cooperative (HUDCO) has launched retail finance for rural and semi urban areas and under them NIWAS scheme sanctioned over 1500 crores and build over 1 million houses as on dec 2004.

(c) Malpractices of builders:

The allotment of land is subject to bureaucratic delays, competition and political influence. Further the cost of the land especially in a city like MUMBAI is highly speculative and is on this increased cost to the members making the real estate a distant dream for a common man. They also use substandard products like steel and cement and the quality of construction also suffers.

(d)Disinterested members:

In the busy city like Mumbai, both husband and wife is working having a very hectic work schedule. They are already under pressure of managing there households and careers. They do not have time to socialize and neither contributes proactively for the development of housing cooperative.

(e) The office bearers are poorly paid:

Most of the staff of housing cooperative is either retired people or people who have taken VRS and are compensated very poorly for services they

offer. The young blood is missing in management of cooperative as they do not pay handsome salaries.

REMEDIAL MEASURES TO SOLVE THE PROBLEMS

Following remedies are suggested for solving the problems of co-operative housing societies:

1.) Supplying materials on priority basis:

The building material should be provided on priority basis. There should be a quota of this material to apex co-operative housing society. The registrar of the society should have control on the quota allotted to co-operative housing society.

2.) Allocate land on priority:

Government should give preference to co-operative housing societies while allocating land as to start the work by the societies or otherwise whose existence is only on paper.

3.) Bye-laws:-

There are no systematic bye-laws of co-operative housing societies in the country. All co-operative housing societies should adopt model bye-laws suggested by the committee appointed under the president-ship of S.T. Raja. Thereby, the registrar of societies can have control over the working of their societies.

4.) Financial assistance:-

Agencies like LIC, HUDCO etc. should provide housing loans at concessional rates. Government should try to make housing societies more strong. Government should establish central housing finance institute to provide finance to apex housing societies.

5.) Tax concessions:-

The houses build by co-operative housing societies should get concession in taxes and certain incentives should be given.

BIBLIOGRAPHY

Management of Co-operatives - Romeo S. Mascarenhas (Vipul Prakashan)

The Maharashtra Co-operative Societies Rules, 1961

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