How flat owners can form a co-op housing society on their own

Do it yourselves : Housing Society Formation

Very often it is seen that flat buyers are charged ‘society formation’ charges by the builder. This is blatantly illegal. Most of the time they take this amount in cash from the flat purchaser and issue no receipt for it. At other times it is observed that co-operative housing societies are not formed by builders even after many years of handing over possession. Most flat owners are not aware that it is the builder’s responsibility to form a co-operative housing society as soon as 60% of the flats are sold.

Occupancy certificate is not necessary.

A housing society in Navi Mumbai

If builder has signed the sale agreement for 60% of the flats,he is supposed to start the formation of the society as a first step. His duties are complete once he hands over the ownership of the land and building to the society via a conveyance deed. Very often it is seen that flat buyers are charged ‘society formation’ charges by the builder. This is blatantly illegal. Most of the time they take this amount in cash from the flat purchaser and issue no receipt for it.
At other times it is observed that co-operative housing societies are not formed by builders even after many years of handing over possession. Most flat owners are not aware that it is the builder’s responsibility to form a co-operative housing society as soon as 60% of the flats are sold.Occupancy certificate is not necessary. If builder has signed the sale agreement for 60% of the flats,he is supposed to start the formation of the society as a first step.
His duties are complete once he hands over the ownership of the land and building to the society via a conveyance deed.

Here is how the flat buyers can form the society on their own.

  1. The flat owners should send a letter to the builder stating their intention to form a society. A copy of this letter should also be sent to the deputy or assistant registrar or co-operative societies of the ward where the society is located. The letter should also ask for an explanation from the builder as to why he has not formed the society as per the Maharashtra ownership of flats act 1963.
  2. The chief promoter promoter of the society has to then submit a number of documents, statements and undertakings etc along with the registration proposal.
  3. The registration authority will then check whether the proposed society has complied with all the provisions of Maharashtra co-op societies act 1960,The Maharashtra co-operative Societies Rules 1961 and any other laws that are in force at the moment. They will also check whether the society has complied with the policy decisions issued by the state govt under the relevant section of the MOFA Law 1963 and its amendments and notifications and rules.
  4. They will also check whether the proposed bylaws are not contrary to the act or rules.
  5. Once this is done satisfactorily, the officer is under obligation to register the society within 2 months of the lodging of the application. If the registration is not completed within 2 months, the authority should forward the proposal to the State Govt for further action.
  6. After the Registration is done, the Registrar will grant a Registration certificate and a copy of the certified bylaws.

Remember : Society Formation and Conveyance is responsibility of the builder. All expenses have to be borne by him only. if he asks you money for this, refuse ! And approach consumer court. A good lawyer will cost you a few thousand rupees…but will save you lakhs !

Note : For consumer court, you dont even need a lawyer. You can write complaint on a plain paper and submit it in district consumer court. For Navi Mumbai, this court is located in Thane.

Show More

Mayur Panghaal

With more than 20 years experience at every level of the Real Estate market in Navi Mumbai, Mayur is equipped and trained to handle every task when it comes to buying or selling a property in Navi Mumbai. From knowledge of local development regulations to handling matters at the registration office or CIDCO, he is more than capable of helping you achieve your ends. You can get in touch with him on 9987452642

Related Articles

10 Comments

  1. Hello.. in our building 60℅ of the flat are sold..but few are investors and others out of country etc…I would like to know how many signatures are required on society forms to make a society

  2. ust wanted to know that if society can be formed in the our case which is as follows:
    Area – Kharghar, Total Dwelling Unit – 21, Shops-4, resident flat owners-10, Investor flat – 4 (purportedly belonging to builder’s friends), 7 flats belonging to land owners which is still in the name of builder as they are engaged in some litigation. Builder has already taken the amount required for society formation, conveyancing. Resident flat owners wish to form the society as the builder is not co-operating

  3. Hello sir,

    We bought flat in 2011 got the possession in 2012, Builder said he will set-up Co-op Society and had also charged extra money. We paid him the extra money in cash without any receipts given to us. Builder also charged extra money under one time society maintenance fees without any receipt. We have outstanding loan from pvt bank. Now its more than 2 years our Society is still not formed. Builder refuses to set-up a co-op housing society. The building is in Gram panchayat area.

    Please assist in this because the builder is least bothered about the us and says he will not co-operate in any manner.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button