A common problem in housing societies (and quite a persistent one at that) is the non-payment of dues by members. Defaulters often refuse to pay for common charges such as electricity, lift, water, service staff payments, or even dodge overall maintenance charges. At times, the managing committee is found to be lax or apathetic to defaulting members and does not recover dues on time or in full. This is unfair to other residents who regularly pay their dues and they might have to bear the brunt of surplus charges that they are not responsible for.

A member who has failed to pay dues for three consecutive months is considered a defaulter. In the past, the procedure to recover dues was to file a case in the cooperative court. However, after an amendment in Section 101 of the Maharashtra Cooperative Societies Act 1960, the procedure for recovery has been laid down definitively and has been handed over to the Registrar of Co-operative Societies.

What is the procedure to recover dues from society defaulters as per law?

Step 1: The first measure is to send a simple letter of notice to the defaulter, informing him of the outstanding dues (with interest that could lead up to 21%) instructing him on how and when to pay the arrears. Issue a warning in the letter stating failure to comply will lead to Registrar’s order to obtain recovery of dues.

Step 2: If the member still doesn’t pay, pass a resolution in the general meeting to file for recovery of dues and send a final warning letter to the member informing him of the decision.

Step 3: Apply to the Registrar’s office for recovery of dues by submitting necessary documents and paying a fee (between Rs 15 to Rs 1000 – refer to the table below) via a challan payable to RBI.

Amount to be recovered	Inquiry Fee based on claim amount	Court Fee
Up to Rs 1000	5.5%	Rs. 15
Rs 1001 – Rs 2000	4.5%	Rs. 20
Rs 2001 – Rs 5000	3.5%	Rs. 20
Rs 5001 and more	3.0% (up to Rs 1000)	Rs. 25

Step 4: The Registrar investigates the matter, verifying the claims made by the society of outstanding dues and may even ask for a hearing from the member to understand his side of the story. After due diligence and verifying the truthfulness of the claim, the Registrar issues a Recovery Certificate.

Step 5: Thereafter, the society approaches the state government court where the presiding Recovery Officer issues a demand notice to the Sale Officer who is required to attach the moveable property of the member.

Step 6: The Sale Officer visits the residence of the defaulting member and submits an inventory of all his movable property, hands it over to the member along with the demand notice. At this stage, the member has the opportunity to pay his dues.

Step 7: If the member does not pay up, the Sale Officer will seize the movable property and hand it over to the managing committee (usually Secretary or Chairman) of the society.

Step 8: The next action is to organize an auction of the defaulter’s property so that the proceeds can be made to settle his outstanding dues. The Sale Officer fixes the date, time and place for the auction.

Step 9: If the amount is still not completely recovered in spite of the auction, the Sale Officer has the right to auction the member’s residence to recover the balance dues. (Note that such extreme cases are few and far in between as the member generally agrees to pay the arrears before such circumstances can arise).

Why should the dues be paid on time? What should be society’s responsibilities in due recovery?

Payment of dues on time is not a debatable issue. It is the member’s duty as per model bye-laws to pay all maintenance charges and any other charges that are agreed upon originally between the member and the society. Members should understand that not paying their dues on purpose and prolonging such irresponsible behaviour can result in serious legal action against them. In case if the member finds that the charges are unnecessarily high and disputes them, the right way to resolve the issue is to take it up officially with the managing committee instead of defaulting on payments. At the same time, if the society faces defaults in payments for over three months in spite of sending notices, it should follow the above-stated procedure and not resort to other illegal measures such as cutting electricity, water or gas connections. Ideally, even without having to involve the Registrar and the subsequent formalities, member and the society should be able to come to some sort of a resolution internally. If not, the law should be followed precisely.

Co-operative societies function on the concepts of mutual assistance and self-help and work towards common goals with harmonious living. If there are a few bad apples in the communal kitchen, the model bye-laws provide guidelines on how to get rid of them. It is important to note that the removal of a member from a co-operative society is not a pleasant or rewarding task and should only be used as a last resort when the case of harassment or non-compliance from the member’s side is extreme and cannot be remedied by peaceful means.

Under what circumstances can a member be expelled from a society?

Detrimental acts that endanger the safety or deregulate the workings of the society are grounds for expulsion. A member can be expelled if:-

• He constantly and persistently refuses to pay due charges to the society (despite reminders and notices)
• He intentionally gives false information to the society to mislead and deceive
• He misuses his residence for immoral, illegal or inappropriate reasons time and again
• He breaches the bye-laws or rules of the society consistently and if they are considered of a serious nature by the managing committee
• He has submitted false information at the time of registration or failed to submit essential information that could have potentially hampered his membership
• He is a non-active member who has not attended a single general body meeting for five years

What is the procedure for expulsion?

Model bye-laws of every state give guidelines for the expulsion of a member. We have referenced Section 35 of the Maharashtra Cooperative Societies Act 1960. Other state provisions also provide similar guidelines.
The member has to be given a show-cause notice 30 days prior to passing a resolution to expel him.

The agenda for the member’s expulsion has to be included in the general body meeting. In the said meeting, a resolution to expel the member in question is to be passed by no less than a three-fourth majority of the members who are entitled to vote and who are present at the general meeting.

Before passing the resolution, the member must be given an opportunity to be heard and should be able to present his case to the general body. He can also choose to represent his case in a written format or take help of other members who may be willing to support his case. The proceedings of the meeting have to be presented to the Registrar of Co-operative Societies who will either approve or disapprove the resolution (within 180 days) after hearing both the parties and their presentation of the case. Such precautions are taken to make the expulsion procedure fair and transparent so that no one party can take advantage of any loopholes. Only after the Registrar approves the resolution, it is considered valid.

The society cannot consider other prejudicial or discriminatory reasons to expel the member such as racial, gender or caste distinctions. If the member has evidence that the society is expelling him under false pretexts or personal prejudices, he has the right to approach the court and fight for his own cause. But this will eventually take a toll on both parties. The Registrar examines every aspect of the case, so the society is not allowed to modify its bye-laws to defend the grounds under which it hopes to expel the member.

What happens after the resolution to expel the member is passed?

On the date that the Registrar approves the resolution, the member ceases to be the member of the society legally. The forfeiture of shares also takes place simultaneously if the society decides the member should give up the right to hold shares to the society as well.

The expelled member is not allowed to occupy the residence after the resolution is passed. He is expected to handover the vacant possession of the flat/house to the Secretary of the Society in a peaceful and conflict-free manner at the time and date that the society considers appropriate for the member.

If the member refuses to vacate the residence, the Society has the right to send him a legal eviction notice.

If the society has decided to simply expel the member and not forfeit his shares, the interest in the capital/property of the member in question and its value is acquired by the society and the same is to be paid to the member in three months after he hands over the possession of the residence or his eviction.

Are expelled members allowed readmittance to society?

An expelled member is not allowed to return back to the co-operative until after one year has passed since his expulsion, except if the General Body of the society recommends such readmittance under any special circumstances that call for early reentry, but that too has to be approved by the Registrar of Co-operative Societies.

Usually, if the member is at fault and has been a repeat offender, a peaceful dialogue or even a moderated confrontation is helpful in solving the problem. If however, the society believes that it has done everything within its power to make the member compliant, and yet there exists a clear and present danger from the member to the society, it should follow the expulsion procedure exactly as per the law and resolve the matter with the help from the Registering Authority and not take any illegal actions on its own.

A member of a co-operative society is someone who applies for admittance into the society by purchasing shares in it and is eventually granted registration, membership and a residential unit to occupy. Let’s understand the six kinds of memberships in cooperative societies.

1. Original Member

An original member is a person under whose name the membership exists (whose name is on the purchase deed) and is registered as a shareholder and allowed admittance into the society. He is the first point of contact for the society and his name is recorded as the primary shareholder on the share certificate. If there are any other members nominated after the original member, their names appear subsequently. After having purchased the residence (owning shares) in the society, he is considered an ‘Active Member’ if he attends at least one general body meeting in a period of five years, pays his maintenance charges and other society charges on time.

2. Associate Member

An associate member is someone who jointly owns the shares/property in the society and whose name appears subsequently after the original member’s name in the share certificate. Associate members are admitted into the society after paying the admittance fee of Rs 100. Even though the ownership of the residence is not primarily under the associate member’s name, he/she has the right to occupy the residence after the written consent of the original member and (upon written approval) is also allowed to attend the general body meetings of the society. Associate members are usually the spouse, parents and children of the original member.

An associate member can also vote and contest in the election of the housing society and if he/she wins, has the right to be the office-bearer in the Managing Committee of the society as well. Keep in mind that any associate member who only paid the admittance fee but does not have joint ownership in the shares/property of the society, cannot contest for the Election. As associate membership ceases to exist upon the death or resignation of the member. Even if the original member ceases to be a member anymore, the associate membership still holds value as long as they own shares/property in the society.

3. Nominal Member

As defined by the model bye-laws, “Nominal Member” means a person who does not hold the right, title and interest in the property individually or jointly admitted to Membership as such after registration. A nominal member is not given any shares in the society. Usually, nominal members are sublettees, tenants or licensed caretakers (such as agents), etc. As the name suggests, a nominal member only has the right to occupy the residence and live in the society by following the bye-laws, but they do not have to attend general body meetings and cannot stand for election or vote and do not have a say in the workings of the Managing Committee but are treated as the rightful residents of the society. Admittance fee for a nominal member is also Rs 100.

4. Sympathizer Member

A sympathizer member is somewhat of an honorary position and it is given to a member who shares the common goals, interests and objectives of the society. He has no right to vote and is not allotted any shares in the society. A sympathizer member is usually someone with a high degree of specialisation and responsible for guiding the society in his area of expertise. This could include architects, engineers, finance experts, housing experts, etc. They are not admitted as members with any residential or title rights.

5. Corporate Member

A legally registered company can become a member of a society to provide accommodation to its employees. But the government dictates that more than 50% of total membership cannot be granted to a company in a housing society. The company’s MOA should have a clause that they can invest money in purchasing residences/shops in the society. The managing committee of such a society should have no more than one-fourth of company members in. Only if the company has invested funds in the society, they have the right to be a part of the committee and the appointed representatives have the right to vote as well. The company is also responsible for informing the society the change in residence occupants and pay monthly contributions to the society.

6. Minor Member

A minor is eligible to enter into a contract and obtain membership of the society but only through his guardian or legal representative; when he is no longer a minor, he has the statutory right to participate in any sale transactions of the residence on his own. If the property is under the name of the minor and handled through the guardian, the society cannot undertake any legal actions regarding transfer unless a judgment is ruled by ‘competent court’.

The handover from builder to co-operative is a critical process that requires due diligence from both sides as they must follow the RERA rules for society handover . It can take anywhere from three to five months for the handover legalities to come to fruition, involving financial, operational and technical aspects. We bring you a complete guide that helps you understand the entire endeavour from start to finish.

Initial Stage of the handover

Typically, the average time for the construction of a residential complex and sale of houses/flats is three years. It is advisable that during the final stages of construction, the buyers should get actively involved in the legal process to ensure things are on track. At the same time, registration of your co-operative is imperative to ensure a hassle-free handover.

What are the property certificates and documents to be obtained from the builder?

You may be familiar with some of the below-listed certificates as the builders sometimes use them in their marketing and advertising strategies as trust-building tools to lend credence to the building project. At the time of the handover, they should be first on your checklist.

1. Approved Building Plan

The builder has to hand over a copy of the construction plan along with block-wise and floor-wise details, approved by the local authority.

2. Completion Certificate

The local authority issues this as proof that the construction is done as per required norms.

3. Occupancy Certificate

This certificate is proof that the building is suitable for occupation by the residents.

4. No Objection Certificates

NOCs are provided from water, fire, pollution and electrical authorities.

What are the financial documents to be handed over?

The protocol involves the handing over of all financial accounts, documents and records from the builder for which the society should ideally appoint an auditor/tax expert professionally or from within the members so that no malfeasance or inadvertent mishandling is possible. The following are the housing society handover checklist:-

• Insurance documents of the building;
• Payment records of taxes paid for property and construction;
• Payment receipts of water and electricity services along with details of security deposits and no due certificates;
• Financial records of maintenance charges and service tax paid while the premises were under the builder’s care;
• Handing over corpus/leftover investment amount;
• A statement or record of all collections made from the members (other than the purchase amount);
• Audited account statements related to all of the above

What is the operational handover required from the builder?

The operational handover can seem like a straightforward process actually entails a wide range of inventories and technical manuals for which the society should involve someone savvy with a working knowledge and understanding of machines and heavy equipment. Safety and security of the residents is of paramount importance for any society. Every component of the premises should be checked beforehand by the Managing Committee physically at the time of the handover.

• Annual Maintenance Contracts (AMCs) and vendor information along with bills and service records of the purchased equipment, such as generators, gym equipment, sewage and water treatment plants, etc.;
• Manual drawings, technical details and specifications of sewage and water treatment plans;
• List of all amenities and assets in the building including movable and immovable ones;
• Detailed and approved compounding layouts of convenience stores, offices, etc that constitute the building premises;
• Piped gas systems diagrams (if applicable) along with approval from relevant authorities, inspection records;
• CCTV Access Control System (if applicable) with user manuals, technical warranty, contracts and inspection report;
• Drawings of electrical wiring with earthing points, instructions on safety measures, generator set configurations and diesel storage facility;
• Water piping diagrams, lab tests of water quality, overhead tanks’ technical documentations, borewell yield report, and documented evidence of rain-water harvesting compliance;
• Fire/ emergency detectors and alarm systems with technical documents and instructions on resident alert protocol, panic button systems, inventory of hoses, hydrants and fire extinguishers;
• Automobile parking with layout and numbering;
• Layout and drawings of common areas including community hall, playground, and others;
• Lift license documents, clearance to operate them, safety manuals, warranty documents and details of renewal;
• Approval, specifications and vendor agreements for multi-utility pre-paid meter with validated software and tariff rates;
• Records of existing maintenance/service staff and their detailed work schedule.

What are the legal documents needed for a handover?

As the society and the builder deal with multiple government authorities and third parties with respect to services, taxes and operations, the paperwork can be long and tiring. Nonetheless, it is imperative that the Managing Committee stays vigilant and well-prepared to review all the legal documents at the time of the handover.

• All legal documents signed between the builder and the landowner have to be handed over to the society;
• Deed of conveyance and sale of ownership for every member along with Share Certificate Copies should be duly passed on to the society’s office-bearers;
• Legally binding contracts signed with any vendors or maintenance companies should be provided to the society along with zero dues certificates/guarantee;
• Insurance documents for amenities/equipments and third party inspection contracts;
• Record of car parking allocation provided to members;
• Undertaking by the Builder regarding Indemnity & Limitation of Liabilities of the Society for all transactions prior to the handover date.

The process of handover is not one that should be unnecessarily rushed or looked over. Getting hold of the right documents and certificates on time with proper checks and inspections is your first step towards building a cohesive co-operative that is well-aligned within and compliant in the eyes of the authorities.

Innovation is the lifeblood of MyGate and what better way to spur collective innovation among our people than an Ideathon. It’s been two days since the event wrapped up and we thought it’s about time we recap the competition and share our experience.

Kickstarting the MyGate Ideathon Series

This being our first Ideathon, we weren’t sure of what to expect at the outset. However, we surely did know that we want our people to get their creative juices flowing and channelise them in a constructive and fun way. Well, isn’t that the most fulfilling incentive of Ideathons?

As per a recent study, 76.3% developers participate in Ideathons & Hackathons because they enjoy the experience, while 66.1% developers seek improved programming ability. Only 18.9% participants aim at winning prizes or cash rewards. Surprising… isn’t it?

Moving on… right after the theme of the event was announced, making MyGate bigger and better, the atmosphere was bubbling with excitement. In a matter of a few days, we had entries flowing in from 40 teams across 10 cities. This was slightly over 200 participants. We weren’t expecting such a staggering response. After a round of careful consideration, 15 teams were shortlisted for the final battle. Once the finalists were broadcasted, the battle began right at that moment.

Eat, sleep, code, repeat…

On the day of the final event, the participants checked in at the registration desk and head over to the commencement ceremony. As soon as the ceremony concluded, participants scattered and joined fellow colleagues to kick off their 24hrs of rendezvous.

The participants were living by the mantra.., eat, sleep, code, repeat, while the clock continued to tick. As they collectively tread into the darker hours of the night, the coffee machine was being put to its best use. Sip after sip… cup after cup… almost like a coffee marathon! Among the anxiety and chaos, one member of the group was rewriting the video function while the other was having a complete change of heart.

The Judgement Day

Just over an hour until show & tell time, the ambience was paradoxical where stress and excitement co-existed. Amidst the mental contradiction, there was Team Chronos who was hustling with their laptops, perhaps codes, to get a basic functional prototype right. With a vision to win the race against time, they were aiming at making MyGate support super fast, with round-the-clock availability. The team successfully brought the judges into their fold and bagged the winners trophy. It wouldn’t be wrong to say, they nearly did beat time leveraging the power of codes and technology.

MyGate Medico and Mygate Express were other deserving ideas, among the rest, that caught the judges’ attention. MyGate Medico aims at creating a healthier community by providing quick, in-app emergency medical assistance. The approach is to add an SOS feature in the user app to trigger an alert to all medical professionals on the app during an emergency event.

MyGate Express is dedicated to providing seamless entries for invited and uninvited guests without having to block the gate for manual entries. The idea is to drastically reduce the waiting time at the gate, from 2-3 minutes to less than 10 seconds. This problem scales up for corporate scenarios where vendors, employees, security personnel check in at the same time and verification needs to be done if the entry is valid. Therefore, the solution results in enhanced security without any waiting queues.

Fostering Innovation. Inspiring Change.

In its introductory edition this year, MyGate Ideathon witnessed palpable energy, overwhelming enthusiasm and a variety of ideas across the spectrum. As much as the code-combat was thrilling, we discovered that ideathons are so much more than a competition. They are an inclusive, collaborative space for brainstorming and building breakthrough prototypes that can change people’s lives for good.

If your idea didn’t work out, don’t sweat it. We’ll be back next year with a fresh theme to promote innovation and encourage the sense of generating value. Stay tuned!

It is mandatory for every housing co-operative to hold an annual general body meeting (AGM) according to Model Bye-Laws set in place by the government of Maharashtra. Such meetings take stock of the yearly activities of co-operative housing societies in Mumbai, keeping the members apprised of the critical developments and overall financial accounts, thus fostering accountability, transparency, and smooth functioning of the society on the whole. Any pertinent or pressing issues are openly discussed and every member’s participation is encouraged, which enables collectively agreeable solutions and a general sense of unity and cooperation.

This article will help you familiarise yourself with the basic rules and structure of an annual general body meeting.

When should the annual general body meeting be held by societies in Mumbai?

The Model Bye-Laws state that a co-operative’s annual general body meeting should be held on or before 30th September of every year. The society’s management committee is responsible for ensuring that the Meeting is arranged before the given timeline. Upon a collectively agreed date and time by the committee members, the Society’s Secretary is required to sign a notice that should be given to the members 14 days before the meeting, not counting the day the notice is given and excluding the day of the meeting.

Who should attend the annual general body meeting?

Ideally, every member should attend the meeting in order to stay updated with the affairs and activities of the co-operative. The quorum (minimum number of members required for the meeting to be considered valid) for every general body meeting of the Society is 2/3rd of the total number of Members of the Society or 20, whichever is less.

A member who has not attended a single general body meeting for a period of five years consecutively is classified as a non-active member and has no right to participate in the annual general body meeting.

In case of co-ownership of a flat/house, the first name on the share certificate is allowed to attend. In case they cannot, the second name can attend with written permission from the first name. No proxy or a holder of power of attorney or letter of authority is eligible to attend an annual general body meeting of the Society on behalf of a member of the society.

How to conduct the meeting

The meeting usually takes place on the premises of the society, usually the community hall. Minutes of meeting from the last year have to be read before the proceedings.

Finance Report

The foremost on the agenda is the finance report of the society which shows the income and expenditure account of the previous year along with the balance sheet and audit report. The President, Treasurer and Secretary must remain present during the meeting and sign upon the audited reports. The Chairman presides over the meeting. In case he/she is unavailable, members can agree upon a substitute to take care of the proceedings. The next year’s Annual Budget is discussed and agreed upon and an Auditor is appointed. After the finance report and associated decisions, other matters of importance are discussed. The committee members are expected to be well-versed with the finance report and be prepared for any questions the members may raise.

Improvement of society

Any decisions or rules/laws made in the previous year to enhance or improve society’s functioning and manage its day-to-day affairs are discussed.

Community concerns

Member’s concerns, queries or complaints about parking spaces, common areas, lifts, security measures, among others are discussed.

Facility staff

Any matters related to the maintenance crew are addressed, including but not limited to their hiring, salaries, timings, and responsibilities.

Dues

Pending dues by defaulting members and actions necessary to rectify or prevent such behaviour are taken into consideration.

Upcoming events

A calendar of events, festivals or special days to be celebrated in the next year is to be created. This can be revisited or modified in the follow-up meetings.

External communication

Any communication received from the government authorities such as from the Registering Authority, the Statutory Auditor, Government, Collector, Local Authority or any other Competent Authority are to be discussed.

Members’ conduct

Any matters related to a general code of conduct or misdemeanors/ violations committed by members that may threaten the workings of the society.

Election dates

Date and conduct of election of its Committee when due, is to be declared.

Prior notice

There are no restrictions on what can be discussed during the meeting, with the permission of the Chairman. However, the following matters cannot be discussed without prior notice:

• Removal of any member of the society
• Amendments to the bye-laws
• Divisions or amalgamations of the society
• Transfer of property

Once the meeting is over (or even before the meeting starts) all present members are required to sign their attendance against the number of their house/flat.

If, within half an hour of the appointed time of the meeting, the required quorum is not present, the meeting should be reconvened to a later time of the same day or any other day (after seven days and before thirty days of the originally planned date of the meeting.) A notice about the reconvened meeting should be issued to all members.

If all the items on the agenda were not completely discussed due to lack of time or any other reason, the meeting can be continued at another date within 30 days.

The Committee is responsible for preparing a draft of the Minutes of Meeting and circulate it among the members within the first 15 days. The members may reply in 15 days if they have any observations. The final minutes of meeting have to be recorded in the minutes book by the secretary or any other person designated for the job.

For an active member of the society, it is not only recommended but also conscientious to attend annual general body meetings in order to be aware of the annual finances in which you have a stake, to forge stronger relationships with fellow members, resolve or highlight any problems or inconveniences, and contribute towards forming a healthy co-operative.