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How To Form Co-Op. Society, When Builders Do Not Assist
By Niyati Kapoor
Now a day, number of developers & builders take up huge projects of residential complex or commercial development in western/eastern suburban area or in other towns surrounding Mumbai/Thane area. Some builders/developers show rosy pictures when buyer intends to buy flats/houses or shops in their projects.
They demands and collects various charges like maintenance, society formation charges, electrical sub-station expenses etc well in advance. Due to ignorance at the initial stage, purchaser normally don't try to go in deep details, he keeps faith in builders/developer and accepts whatever he says at time of booking the premises. Developer collects marginal amounts towards maintenances plus adhoc sum towards society formation charges and other charges form each purchaser as well as even from re-purchaser. When building gets virtually completed developers hurriedly handover possession of flat/shop/office to prospective buyer and start collecting heavy maintenance charges etc. When more than 70% purchasers occupy premises, at that time builder pretend to initiate action of formation of society. Some how builders show various excuses and try to delay and avoid in formation of register society of members. Now a day it is surprise to know that society formation is delayed more than even 10 to 12 years or even more. There by member legitimate right is reduced even lesser then tenant living in tenanted premises. To avoid formation of society is an offence under Society Act, even though developer finds various excuses and delay in formation of society. Builder knows he will be benefited since nos. of transfer may take place during his management of building. He collects heavy transfer fees etc. as per his own whims & terms without receipts including additional society formation charges even from in-coming new member. Moreover builder spent negligible amount towards the upliftment and maintenance of building, hence life of building gets deterioted and ultimately all buyers has to suffer lot at later stage.
§ It is in the larger interest of occupant/purchaser to get united, decide and think about the formation of registered society. More the members delay in formation of society, it is advantageous to developer/builder. Hence members should call informal meeting of all members residing with building and think about how to form co-op. society ?
· The very first step is that to choose & select one member as a Chief Promoter amongst all present members in the informal meeting.
· As a second step present members should appoint competent Advocate to represent their matter at Sub Registrar Office.
· Thirdly, all present members should willing to contribute towards initial Share Capital & Society formation charges even for absent members, This sum may be decided mutually in consultation with Advocate.
· Fourthly, member to request their Advocate to prepare proposal for Reservation of Society name and finally the proposal for formation of co-op. society for submission to Sub Registrar office.
1. It is essential to collect all basic data from each member like copy of premise purchase Agreement, Stamp Duty paid details, Agreement Registration payments receipt detail etc. It is advisable that at initial stage more than 70% members should be ready with all such basic documents/papers. All this document/paper will help advocate enabling to submit proposal to Sub Registrar office.
2. Initially, society should apply for reserving name of proposed society with Sub Registrar office and also obtain permission to open bank account to enable to deposit Share Capital amount in Co-operative bank. To deposit share capital amount is the basic prime requirement for the formation of society.
3. The society Advocate will pursue the matter to Sub Registrar office and reply all the queries. He will clarify various objections which may be raised by developer/builders as a hindrance in formation of society. It is normal practice of Sub Registrar that he tries to listen the grievances of majority of members who desire to form registered society. He may even over-rule objection if found unreasonable of builder, and issue a registration certificate to the chief promoter of society.
4. It is a cumbersome process of society formation, one should have patience and prepare proper document so that builder could not do anything.
5. As soon as Society Registration Certificate is received, then Promoter may convey General Body Meeting within 15 days time and choose about 5 or 7 members as Ad-hoc Committee Members as required by rules. This first General Body Meeting should also decide the levy of reasonable monthly maintenance charges to be collected from each member. It is observed that the first ad-hoc committee tenure is for one year only.
6. It is my humble suggestion to Registrar of Society to advertise more and more so that aggrieved members can come forward to form their co-op. society when developer/builder do not co-operate. When most of the members are agreed for formation of the society than even the requirement of min. 70% condition may also be relaxed considerably and give chance to members to form their own co-op. society.
7. The un-sold premises may be treated as vacant and it should not consider in minimum criteria of 70% requirement, there by builder may not take undue advantage.
8. If most of the members are willing to form their society, then nobody can come in the way and members can definitely form their own society with their own efforts. After the formation of society each member has to apply in prescribed form with requisite papers to the society secretary to become member of the registered society. On receipt of all individual documents of each member, society will recommend as their member in forth coming Annual General Meeting and will admit as a member and will issue necessary share certificate. After the formation of society, it will be obligatory on the part of all members to co-operate managing committee for smooth running of society and resolve their day to day problems in society committee meeting.
9. After formation of registered society, it is necessary to obtain all original documents/papers pertaining to society property from builder/developer like original building approved plans with approval letter, plinth checking certificate, Occupation Certificate (OC), Building Completion Certificate (BCC), RCC completion plan, water supply connection permission, 7/12 extracts, CTS extracts, CTS plan showing actual boundary of the society plot, land title clearance certificate, land purchase agreement or agreement copy of purchase of development rights etc. documents/papers. Normally developer may not co-operate the new society, as such your competent advocate may be able to help out the registered society in procuring all original documents/papers from the builder. All these documents will be helpful to society to even get the land being conveyed in their favour. In this regards also builders delayed the matter of land conveyance for nos. of years.
For more information - http://www.realacres.com
About the Author
International RealEstate Consultant
http://www.realacres.com
Article Source: http://www.simplysearch4it.com/article/28807.html
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