We have seven buildings on the same land and each of them has formed individual societies. We wish to form a cooperative association for sharing the common expenses. How is a cooperative association different
from a c?
Santosh Kumar Thakur, Kanjurmarg
The purpose of a cooperative housing association is basically to maintain the shared facilities utilised by the member societies on a common land. Section 154B1(8) of the Maharashtra Cooperative Societies (MCS) Act, 1960, defines a cooperative association as an association of housing societies or other legal bodies for the purpose of maintenance of common amenities or conveyance of land. It will also help in sharing the common services, facilities and amenities and share the expenditure amongst the seven societies mentioned by you.
Minimum two registered societies have to come together to form a cooperative. Each society has to pass a resolution to form, register and be a member of such an association. Each of them also has to nominate a person who would be a member of the association's managing committee. Such nominated representatives should coordinate for the formation and registration of the association.
On the other hand, the purpose of forming a housing federation is to serve as a collective body for cooperative housing societies, provide expert guidance and represent the collective interest of the societies affiliated to it. The federation is defined in section 154B-1(16) of the MCS Act as the state or district federal society notified in the official gazette. It is the representative of the registered societies of the specified areas notified by the government from time to time. Powers and duties of a federation are provided in section 154B-28 of the MCS Act. It is required to create an education and training fund and every affiliated society has to contribute towards such a fund.
Our society is in the process of redevelopment. As per the proposal and plan approved by the general body, the developer will provide 850 sq ft flat as against my entitlement of 800 sq ft. The developer is asking us to pay the cost for the balance 50 sq ft along with the GST. Why do we have to pay the GST when it is not applicable to the redeveloped properties?
Nimesh Patel, Mulund
You are right to the extent that there is no GST for the entitled area that you will be getting after the redevelopment. Since you are purchasing 50 sq ft from the developer,
GST will be applicable. Please ensure there is an agreement with regard to the payment terms for the additional area. Developers may enter into a separate agreement for purchase of an additional area to maintain transparency and for the GST purpose. The development plan has to be approved by the society before filing with the authorities for approval. It is a point of negotiation between the developer and the society.
As your society has accepted the proposal and the plan, you have to abide by the same. It is necessary that the terms relating to payment of taxes are also mentioned in the proposal, development agreement and the permanent alternate accommodation agreement to avoid any confusion at a later stage.
Is it necessary to obtain a written consent for proceeding with redevelopment and for selection of the developer in the presence of the registrar's representative?
Jyoti Arora, Borivali
Written consent is required to be obtained in both the cases mentioned by you as per the government resolution (GR) dated July 4, 2019, for redevelopment. After the resolution for the redevelopment is passed by majority, which is not less than 51% of the total members, in the special general body meeting (SGBM), it is necessary for the managing committee to take written consent from the members voting in favour of the redevelopment resolution.
The selection of the developer is one of the agendas of the SGBM in the presence of the representative of the registrar. The members have to select one developer from those shortlisted. Though the proceedings are video recorded, it is necessary to take written consent from members present in the meeting. Again, consent of not less than 51% members of those present in the SGBM is required for the developer's appointment. (Refer clauses 12 and 17(D) of the GR cited above)
The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat. The questions, in brief, may be sent to fpjchs@gmail.com
