Formation and Registration of a Co-operative Housing Society (CHS) in Maharashtra under Non-cooperation of the Builder or promoter:

It is a prevalent practice now a days most of petty builders are following of not forming the CHS and delaying the formation of CHS by some pretext or the other.  Flat buyers are also somewhat scared to go against such builders since it’s like “Who Shall Bell the CAT? ”.

There are many disadvantages for not forming a CHS and Builders keep on exploiting such situation to their maximum benefit until the CHS is formed and the building and the plot is transferred in the name of CHS.

If at least 60% of the Flat owners in a building are ready to form Co-op. Housing Society, then it becomes easier to form a CHS and register it.

If flats are sold as per the Maharashtra Ownership Flats Act, 1963 [MOFA] then it is the duty of the Builder / Developer under Section 10 (1) of the Act to form society and follow the procedures of handing over the up-to-date account and related documents to nominated committee.

When a society is registered under Co-operation of the builder/promoter, in such a case the builder is called Chief Promoter (CP) and other flat owners automatically become Promoters for Registration of the Society. However, when the Builder is not co-operating to form the Society in such a case one the Flat owner has to take the place of Builder and to be called as Chief Promoter (CP) just for registration purpose only, since the Society is under process of registration under non-cooperation of the builder such a CP continues the formality of registration of Society.

In such a Scenario the flat purchasers with the mutually appointed CP can apply for registration of Co-operative Housing Society under Non Co-operation of builder.

Upon receiving the application from CP the registrar is supposed to issue notice to builder to come forward to cooperate for formation of CHS. If Builder refuses to listen to such a plea from Registrar than an ex-parte decision is taken for registration of the society by the District Dy. Registrar of the Housing Society.

Recently all the issues related to Non Co-operation Registration decisions are designated to the District Deputy Registrar [DDR] to register a society under non-cooperation of Builder.

Of course in such a situation do not expect the Builder to be happy and co-operative, since he is losing the ground legally and practically as well.

The flat owners are supposed to hold a meeting and elect Chief Promoter. All power for Registrations, documentation etc. should be given to the CP. The resolution has to be passed unanimously by all flat owners who wish to become member of the Co-operative Housing Society.  To tackle the legal issues an Advocate of repute has to be appointed to comply with legal requirements. 

Usually with the following initial documents a CHS under Non-cooperation of Builder can be registered:

  • Name Reservation Application for the proposed CHS
  • Resolution duly passed by Flat owners electing the  CP and other Promoter and giving them authority for doing certain acts on behalf of the proposed society
  • Application form "A"
  • Information in Annexure " A " " B " " C "
  • Bye-Law of the Society
  • Details of Accounts Annexure " D "
  • Bank Balance Certificate in Original  
  • Agreement of Flat
  • Title Clearance Certificate by an Advocate of repute
  • Approved Building Plan from Municipality
  • Lay Out Plan / Floor plans
  • Building Permission issued by local authorities
  • Completion Certificate and Occupation Certificate
  • Promoter's Guarantee in form " X "  On appropriate Stamp paper - notarized
  • Guarantee in form " Y "  On  appropriate Stamp paper  - notarized 
  • Guarantee in form " Z "  On appropriate Stamp paper  & notarized  
  • 7/12  or City Survey Revenue Record of Land [not more than 1 month old
  • Promoters Affidavit   On appropriate Stamp paper - notarized
  • Indemnity Bond   On appropriate Stamp paper  - notarized 
  • Non Agricultural Permission under Urban Land Ceiling
  • Plot area Land Map
  • Registration Fee Challan  for Rs.2500
  • Builder Non Co-operation form Z on appropriate Stamp paper  - notarized  
  • CP Affidavit for Child Labour on appropriate Stamp paper - notarized

All the above documents are available at District Co-operative Housing Society Federation and have to be submitted in a documented form to Dy. Registrar / Asst. Registrar Of Co-operative Department in the area where the building is situated.

Upon receipt of above document the Dy./Asst. Registrar shall securitize the same and after satisfaction shall issue of Registration Certificate.

Rest of the formalities can be completed after issuance of Registration Certificate.

M.K. Rathore
Junior Lawyer

Reviewed and edited by:
Ibrahim Deshmukh
Senior Legal Consultant

This page uses Ink lock® technology from 5sl Inc.

Past comments: