MyGate Forays Into Gujarat With Its Comprehensive Security & Community Management Platform

First push in major expansion plan post Series B funding announcement; adopted by over 100 communities in Ahmedabad during the pilot phase

Ahmedabad, Nov 27, 2019: MyGate, India’s leading security and community management solution for gated premises, today announced its foray into Gujarat. The Bangalore-based startup has run a successful pilot in Ahmedabad over the past three months, during which it was adopted by over 14,000 homes across 100 gated communities; its mobile-based solution will now also be available in the cities of Surat, Rajkot, Gandhinagar, and Vadodara. This is the first step in its major expansion plan following its $56 million Series B funding announced last month.

The company is aiming to secure 150,000 homes across the state over the coming 12 months. Some of the popular communities in Gujarat where MyGate is already present are Kalhaar Bungalows, Ratnaakar Beaumonde, Aryaman Bungalows, Paarijat Eclat, and Basant Bahar Bungalows. MyGate has an on-ground team in Ahmedabad and is in the process of setting up teams in Gujarat’s other major cities as well.

Gujarat is a role model state for its public infrastructure and a strong contributor to India’s growth, led by the economic performance of major cities. As a result, it has seen a rise in the number of gated communities and some of its cities now regular feature as being among the fastest developing real estate markets in India. 

Apartment complexes in Gujarat’s major cities can now deploy the MyGate solution in three days without any investment in hardware or any capital expenditure. The solution is provided in a pay-as-you-go pricing model, and the startup provides and manages the training of facility staff, security guards and residents. 

MyGate is a mobile-app-based system that enhances security and convenience for residents of gated communities by digitizing and automating their manual tasks. With MyGate, all entries and exits are approved and logged digitally, with complete visibility and control to the residents. MyGate also offers several advanced capabilities such as e-intercom (automatic visitor authentication), child safety alerts, staff management, infrastructure-free vehicle management, touchless resident identification, clubhouse access management, and admin dashboards/reporting. Apart from all these, MyGate also helps resident welfare associations (RWAs) to manage their society accounting, payments from residents, help desk and other value adds. 

MyGate is used by over 1.2 million homes in 5000+ gated communities. The solution is available in 13 major cities, including Mumbai, Delhi-NCR, Bangalore, Hyderabad, Chennai, and Pune. Founded in 2016, the startup is backed by a strong founder team comprising Vijay Arisetty, an ex- IAF pilot (Shaurya Chakra awardee), Abhishek K, former VP at Goldman Sachs, and Shreyans Daga, former project head at Oracle and Digit. The company has raised $67.5 million in two funding rounds and was named one of India’s 25 Coolest Start-ups by Business Today in 2019. 

Abhishek Kumar, CEO & Co-founder, MyGate

“With a large number of gated communities in a number of its cities, Gujarat is a strategic market in our expansion plan. Our initial pilot in Ahmedabad has received a phenomenal acceptance, leading to a wave of inbound demand from nearby cities as well. We have massively scaled up our team in the region over the past month and are now geared to serve up our solution to the 18,000-plus gated communities in the state.”

Mr. Sunil Agrawal, Treasurer, Association at Malabar County 2

“MyGate has been a game-changing solution for our community. Our residents are pleased with its innovative features and user-friendly interface, and we as the management committee are now better able to deliver on our mandate of providing a safe, convenient living experience to all. MyGate has elevated security standards by ensuring that no one can enter without permission while also making the entry process easier for us and the security personnel. It has also made accounting processes simpler as it provides many maintenance payment options to residents on the app.”

Mr. Pankaj Patel, Site Incharge, Goyal & Co. Developers

“MyGate’s reliable, robust and hardware-free technology and advanced features enable us to deliver a superior overall experience to our residents. We have already deployed it at several of our properties, where it enhances the security protocol, helps us manage resident tickets, take attendance of housekeeping staff, among much else.”

One of our earliest employees, Biju Srestha, on endless growth opportunities at MyGate

From a field executive to now handling operations across North India, Biju’s career at MyGate has taken significant positive turns. He has been with us since inception, say about three years now. Growing up in Bhubaneshwar, Biju was always business-minded. Managing the everyday challenges of bringing the right people together and encouraging them to work towards achieving a common business objective has always intrigued him. This largely explains his inclination towards the startup ecosystem and specifically towards maintaining healthy client relationships.

Here’s Biju briefing us on his life at MyGate so far and answering a few fun questions. Over to Biju…

The journey early on

Coming from the facility management background, I understood the residential space and its particular nuances. I remember I started with handling ops process directly on the field before overseeing it for East Bangalore. I never imagined that a new security app would catch up this quick with the existing solutions focused on gated societies. However, the popularity and success of MyGate have proved me wrong, and I am more than happy to be proven wrong.

Getting the service and operations right

The small coworking space at that time was like a close-knit family. It was exciting, more so satisfying, to find how quickly societies started accepting the app, bringing MyGate to every lane in Whitefield. All of this has been possible because of the customer-centricity that is deeply ingrained into the company’s culture. We have constantly worked on providing the right and prompt service whenever required. The company’s early focus on making the product user-friendly and getting the service and operations right has not only won MyGate the heart of Bangalore but also the whole game!

Leadership of action and not of position

The best part about working at MyGate is – every day is a new opportunity to explore and excel. It’s only after joining MyGate I realised the entire idea of leadership is misinterpreted and how! The collective company psyche here is extremely open and flexible. Being a leader here simply means giving your team the freedom to do what they deem fit while having enough grasp of the situation to take control whenever necessary. In this entire story, I have been on both sides of the table, witnessing young energy and innovation brew. What a sight!

Advice to the new joinees

Whenever I get a chance to interact with the recent hires I always encourage them to understand the process and follow it in the right way. Honestly and proactively doing what is expected of us will pay us a lot better than worrying about the compensation. 

If you could do another job for just one day, what would it be?
Be an assistant to Abhishek, our co-founder & COO

What is the most unusual job you’ve ever had?
Sell dictionaries, my first job. 

What’s your favourite professional quote or a line?
Jab log aapke peeche bolne lage toh samajh lo ke tarakki kar rahe ho!

If given a chance, who would you like to be for a day and why?
Jack Ma. Retire while you are on top of it…

Three things most people don’t know about you?
I forget things often
I have an obsession for perfection
I invest a lot of time in tech and gadgets

Three words to best describe you?
The show must go on… (five words though, he chuckles)

Prasad Pawate: “With MyGate at my desk, accounting isn’t complex anymore.”

Living in a gated community means a lot more than what meets the eye. Behind the comfortable housing and secure premises, lies a responsive team that continuously ensures a hassle-free experience to those residing in these communities.

The 11-member Management Committee (MC) at Max Spoorthi, Bangalore, is doing just that for over two years. We sat down with Prasad Pawate, President of the committee, to understand their everyday operations and security challenges. He discusses how MyGate has simplified processes while assuring a safer community living experience to its 70 households. 

Why did you choose to be a part of the committee?

It gives me immense pleasure to contribute to society and that’s how I decided to take the lead, two years ago, when three of us took the handover from the builder. Today, we are a team of eleven who dedicate a sizeable amount of time towards the benefit of Max Spoorthi and its residents. Also, I work from home, therefore, the committee members can count on me in case of any emergency.

What made you feel the need for a community management solution like MyGate?

Well, I’m an IT professional, I know the importance of automation. I value processes with minimal human intervention and high accuracy. Earlier, we faced difficulties in managing entries and guarding against fake attempts. Also, residents could not establish a concern regarding fake entries as there were no proper records maintained. We definitely needed a system that could help us manage and filter the footfall at our gate.

With MyGate, it has become fairly simple to authorise visitors, therefore the resident concerns regarding wrong entries have drastically dropped. Also, the entry process has streamlined with much higher accuracy.

Did you try other solutions before you decided to go with MyGate?

No, MyGate was the only app we tried. So, while I was visiting one of my relatives’ apartments, I observed them following a digital entry process. I was curious as much as I was impressed when I saw my relative ready to welcome us the minute we landed up at their door. Then, I got in touch with one of MyGate’s personnel to understand the features in detail. Post that, I arranged a meeting with all committee members and they were very much impressed. Today, after the app is implemented and in use in our society, we see the value for both residents and us as committee members.

What kind of issues are typically raised and how does the committee solve them?

Most day-to-day concerns are raised by the residents. Earlier, they would log complaints in a register with date and time, and we assigned a committee member to look after the same. Based on the severity of the issue we would call for a meeting. I personally used to tell everyone, if the residents don’t log their issues in the register they would not get addressed as we will not know the issue, set aside assigning the task to someone. Other concerns were about assigning the task to the housekeeping staff. 

This is where MyGate’s Complaint Management feature comes handy. Residents can easily log complaints and our team can view them all in one place. Assigning tasks and monitoring progress, everything happens seamlessly without the need for maintaining physical logbooks… truly impressive!

What are your favourite features in the app?

Complaint Management is my favourite feature. Other useful features include Notice Board. It is very interesting how a message is easily broadcasted to everyone. I am also curious to explore the Accounts and Payments feature. The pressure to maintain the payment duelist is increasing day-by-day. The accounting training was conducted recently and very soon we’ll be utilising the feature in full swing. We’re looking forward to these features to provide more transparency to our accounting structure. However, I would like to prematurely mention this as my third favourite.

How is MyGate simplifying your life?

I would like to give a tagline for MyGate – ‘MyGate at my desk!’ It offers the flexibility to view all the reports at my desk. Sitting in one corner, I know what’s going on, at all times. The best part is, reporting isn’t complex anymore.

Do you think MyGate is a value for money solution?

Definitely, I personally feel it’s value for money. None of the eleven committee members ever faced any trouble using it or have any negative feedback.

How would you best describe MyGate?

I would say, super invention, it has made life easy for apartment management.

Feature In Focus: Society Payments via Virtual Accounts

The Accounts and Payments feature on MyGate not only helps the association members manage community finances smartly but also offers a one-click payment convenience to all residents. In our latest update, we’re facilitating society payments via Virtual Accounts, which will further simplify the effort of managing society finances for both committee members and residents. 

What is a Virtual Account?

Virtual Accounts are digital account numbers that are used to make and receive payments on behalf of a physical account. Each resident is assigned a unique virtual id for an account they use to make society payments. This is a one-time effort that helps centralise accounts’ payables and receivables.

Why switch to a Virtual Account?

At MyGate, we’re constantly keen to know what our users expect from the app. In our recent interactions, we’ve identified the following concerns in relation to managing society finances:

  • Convenience charges on online payments
  • Delayed settlements due to cheque payments
  • Resistance in online payment due to third-party platform involvement
  • Payment history scattered across multiple accounts
  • Delayed issuance of payment receipts
  • Extensive manual reconciliation effort

Benefits of Virtual Accounts

Virtual Accounts address each of the above concerns in the following ways:

  • Absolutely no charges on payments made via NEFT or RTGS
  • Real-time settlements as funds are transferred online
  • Comfortable mode of payment as the transaction happens directly from individual bank accounts
  • All funds can be managed from a single, preferred account
  • Digital receipts are issued as soon as the payment is complete
  • Auto reconciliation feature substantially reduces manual effort

How it works

  • MyGate provides a unique account number called a virtual address and an IFSC code to each flat in a particular society.
  • A virtual address is a 20-character, alpha-numeric account ID that is mentioned on the invoice.
  • Residents can easily add this virtual address as a beneficiary to their net-banking portal or banking application to directly transfer funds.
  • The residents needn’t log into their MyGate app to make the payment. Virtual Account payments can be initiated from individual bank accounts.
  • For all IMPS transactions, the receipts are generated immediately, and the statement is updated as soon as the transaction is processed. However, for NEFT, the process may take up to three hours. 

Login to the MyGate app and click on the ‘Payments’ card in the ‘Community’ tab to check for payment receipts and updated statements.

With Virtual Accounts, the residents can easily pay the society charges online without having to worry about any hidden convenience charges. This will eventually lead to an increase in on-time collections for the committee while getting rid of reconciliation headaches. 
Sign up now and get in touch with us today to get these benefits to your society.

MyGate Raises $56 million in Series B to Further Enhance Security & Convenience in Gated Premises

Investors: Tencent Holdings, JS Capital LLC, Tiger Global and Prime Venture Partners

MyGate on track to add over 15 million homes across 40 cities in the next 18 months

Bengaluru, October 17, 2019: MyGate, a company focused on enhancing convenience and security in gated premises, has raised $56 million in series B funding. The investment comes from Chinese internet giant Tencent Holdings, US-based JS Capital LLC, Tiger Global Management alongside existing investor, Prime Venture Partners.   

MyGate has seen 5x growth over the past year and is now present in 1.2 million homes across 11 cities in India. Residents of these homes use the app to communicate with neighbours, manage visitors (guests, deliveries, cabs etc), maintain attendance record and salary payments for daily help, discover services, pay society maintenance bills, among much else. MyGate processes over 60,000 requests per minute and facilitates over 45 million check-in requests every month. 

Since its launch in 2016, MyGate has been building technology to enhance security and convenience for residents in gated premises. New solutions have been launched to benefit the residents, management/builders and other stakeholders of the gated premises, such as Community Management tools and a system for eCommerce players to better manage their deliveries. Additionally, with over 1.7 lakh guards trained on its platform and successful implementation of artificial intelligence to speed up authentication procedures, MyGate is uniquely positioned to enable the digital transformation of the $20 billion private security industry.

MyGate offers a simple yet comprehensive solution for gated communities to manage their operations by digitizing and automating their manual tasks. With MyGate, all entries and exits are approved and logged digitally, with complete visibility and control to the residents. MyGate offers several advanced capabilities such as e-intercom (automatic visitor authentication), child safety alerts, staff management, infrastructure-free vehicle management, touchless resident identification, clubhouse access management and admin dashboards/reporting. Apart from all these, MyGate also helps RWAs to manage their society accounting, payments from residents, help desk and other value adds.

MyGate’s success and rapid uptake can be attributed to the dire need of a security solution that is robust, innovative and easy to use. Currently, over 45 million people reside in gated communities, a number that is growing at 13% year-on-year. For this demographic, the importance of a solution to manage interactions with the home is increasing rapidly, particularly as greater number of goods and services arrive at the doorstep. 

With this fresh funding, MyGate plans to solidify its leadership position by building innovative solutions for eliminating friction in interactions between the home and the outside world, providing convenience and security to its users. The company is also focussing on increasing the efficiency of other stakeholders such as security personnel, local service providers and eCommerce companies.

The startup has over 700 employees spread across all of India’s metros. To power its growth, the company is planning to triple its workforce over the next two quarters. MyGate has earlier raised $11.5M over two rounds of funding. In May 2019, the company also announced partnerships with several major eCommerce brands, including Swiggy, Zomato, Grofers and Dunzo, to make possible a silent and secure delivery experience for its users.

Salil Seshadri, Chief Investment Officer, JS Capital LLC

MyGate is a company with the rare ability to innovate for all of urban India on a single platform. We believe that their deep product focus and technological prowess will enable them to build solutions that bring positive gains to the entire ecosystem.

Sanjay Swamy, Managing Partner, Prime Venture Partners

Right from the first time I experienced MyGate as a customer just two years ago, it’s been great to see a fledgling startup execute consistently and holistically, and grow into a category-creating market-leader. We’re delighted by the progress of MyGate and welcome these marquee investors, as the company prepares for the next wave of growth.

Vijay Arisetty, CEO & Co-founder, MyGate

We started MyGate to solve for the real problem of security and inconvenience faced by households everyday. We are thankful to our customers and investors who believed in our solution, gave feedback and guided us in our journey.  Our mission of simplifying urban living has just started and we’re delighted to welcome marquee investors and business partners in Tencent, Tiger and JSoros to be part of our journey. 

About MyGate:

Founded in 2016, MyGate is a technology-forward app that’s now simplifying the daily lives of over a million homes in 11 cities across the country. It was named one of India’s most innovative start-ups by Inc 42 in 2018 and one of India’s coolest start-ups by Business Today in 2019. MyGate was founded by Vijay Arisetty, an ex- IAF pilot (Shaurya Chakra awardee), Abhishek K, former VP at Goldman Sachs, and Shreyans Daga, former project head at Oracle and Digit.

For press and media enquiries, please contact Samarth Mohan (at [email protected] or +91 98194 87367) or Kenneth Saldanha (at [email protected] or +91 98192 72310)

Series B: How We Got Here and the Road Ahead

We’ve got some news: MyGate just raised $56 million in a Series B round, from Tencent, Tiger Global, JSoros and, existing investor, Prime Venture Partners. This is a momentous event in our journey, and a testament to the positive change we’re bringing to gated communities across the country.

In a little over three years, MyGate has become a byword for security and convenience at gated communities. Every minute of every day, our app helps urban households manage visitors, communicate with their neighbours, maintain salary payments to daily help, discover local services and pay society bills, among much else.

A snapshot of our scale and the extent to which our features are used is a further indication of how large a part of everyday life MyGate has become:

– Over 1.2 million homes across 5,000 gated communities are now on MyGate;
– Over 45 million visitors are validated through our app every month;
– Over 60,000 requests are processed by our systems every minute.

Of course, this is only the beginning.

With the fresh round of funding, we will focus our energies on further enhancing the security and convenience of households, making MyGate available to a greater number of cities and growing the size of our workforce.

– If your gated community is interested in adopting MyGate, our representatives are always available to give you a demo.
– If you’re interested in joining our team, take a look at the list of open positions.
– If you want to partner with us or think that MyGate should be in your city, tell us why by writing in to [email protected].

To read the official press release, click here.

Amendment of Housing Society Bye-laws

Byelaws are a set of instructions and rules for a society to function. They come into effect once the housing co-operative is formed and are universally applicable to everyone. They are formed on the basis of the state’s co-operative societies act. However, based on the structure, requirements and membership, there are various permutations and combinations in bye-laws that a society can adopt at the time of registration and get them approved from the Registrar. Expansive as the bye-laws are, they do not always have the solution or workaround for every unforeseen circumstance. As it evolves, a society has the right to amend its bye-laws as per provisions of the law.

A society can amend its bye-laws when a pre-existing bye-law fails to meet its current situation or need adequately. For example, if your society followed a per square feet rule to arrive at a monthly maintenance charge, but underwent redevelopment and now wants to apply a hybrid maintenance calculation. In such a case, the amendment is necessary. Some societies may be facing a problem with meeting the required quorum for general body meetings and may want to reduce the required number. Others may be struggling with code of conduct within members and want to insert specific sub-clauses with respect to maintaining cleanliness, instructions to use common areas, etc. Many societies also incorporate a new penalty system to elicit better compliance from its members. Societies often put out new rules on notice boards or hand-deliver them to the members instead of amending bye-laws. However, to amend the bye-laws is a surefire policy to ensure the new rules are applied effectively.

Procedure to amend Bye-Laws

No bye-law can be amended or altered unless the members have been notified 14 days before the general meeting in which the amendment resolution is to be passed.

  1. The society should pass a resolution to amend a bye-law in the general body meeting after giving a notice to all its members with respect to the proposed bye-law.
  2. The resolution should be approved by 2/3rd of the majority from among members present in the meeting.
  3. From the date of the meeting in which the resolution was passed, the society should submit the resolution to the Registrar within two months.
  4. You are required to submit the below-mentioned documents when you send an application (with a non-judicial court fee stamp of Rs 25) to the Registrar:-
    • Copy of the existing bye-laws and the revision/ amendment to be made along with substantial reasons that justify the amendment.
    • Four copies of the bye-laws as they will appear after the amendment, signed by the Managing Committee’s authorized office bearers.
    • One copy of the notice given to members about the proposal of the amendment of the bye-laws.
    • Any specific documents required by the Registrar

Once the Registrar receives the application, he examines the proposal thoroughly and after he is satisfied that the amendment is for the benefit of the society, solves a particularly persistent problem, helps better functioning and is not in contradiction to co-operative societies act, he registers the amendment and gives the amended version of bye-laws to the society, certified and officially approved.

If the Registrar fails to close the application within 2 months, he should pass it on (within 15 months from the end of the 2-month window) the same application to an officer on a higher designation than him within the same office.

If the Registrar finds that a modification to the proposed amendment may be needed for it to be more effective, he suggests it to the society, explaining the rationale in writing.

Can the Registrar amend the bye-laws without the society’s own initiative?

If the Registrar believes that a particular amendment to the existing bye-laws is in the interest of a housing society and serves a bigger cause of the co-operative movement, he has the power to direct that amendment to be incorporated by the society within a specific timeframe decided by him.

The Registrar makes it mandatory to implement the amendment within the given timeframe. If the society fails to do so, the Registrar gives them an opportunity to present their case and justify the failure to abide. An issued and certified copy of the amendment is provided to the society which makes it legally binding. The society can make an appeal if there are any justifiable constraints in the amendment, however, it should be noted that the legal power remains with the authority to impose an amendment.

Ideally, all members should obtain a copy of the bye-laws from the housing society’s secretary, so that when an amendment takes place, they have a frame of reference to fall back on and understand why the amendment was made in the first place. The society is required a copy of bye-laws in its office for members’ perusal.

Everything About Housing Society Share Certificate

Societies try to dot the i’s and cross their t’s when it comes to record-keeping and paperwork but there are some hits and misses every now and then. Many societies forget to (or simply don’t know that they have to) issue share certificates to their members on time. While your sale deed is the proof that the property has been legally transferred in your name, a share certificate is a legal proof that you are the rightful owner of the co-operative housing society’s shares. It is the duty of the managing committee to issue share certificates after due diligence. Here’s all you need to know about housing society share certificates.

What is a Share Certificate?

A share certificate is a legal certification given by a housing society that a certain member is the registered owner of shares in the cooperative housing society. It is to be given to the member free of charge. Model bye-laws state that, “Share Certificate, prescribed in bye-laws, bearing distinctive number and indicating the name of the member, the number of shares issued and the value paid thereon, shall be issued by the society to every member for the shares subscribed by him, within a period of six months of the allotment of the shares.” The Registrar decides at the time of the society’s registration the total authorized capital which is divided into Rs. 50 per share and share certificates are thereof distributed to the members. The member is issued 10 shares (worth Rs 500) as the total share capital need not be the same as the actual number of shares issued.

Checklist for issuing the Share Certificate

  • The Share Certificate has to be collected by the member himself in person.
  • The member’s property should be clear of lieu.
  • The conveyance deed from the builder should be in possession of the society.
  • Every Share Certificate should have the seal of the society and be signed by the Chairman, the Secretary and one member of the committee, and authorised by the committee before being issued by the Secretary.
  • The name and the order of names (for primary/associate member) should appear exactly as it is on the original sale agreement between the member and the builder.
  • The member has to indemnify the society against any loans against its name, finish any paperwork and clear any arrears that have to be paid to the society.
  • The society has to ensure that the member provides an indemnity bond stating that he has not transferred the share certificate to anyone else or created any charge or mortgage on the share certificate in favour of any bank, employer, any person or finance agency.
  • The member has to present the original sale agreement while collecting the share certificate.

In case of transfer/resale, the original share certificate has to be given to the society along with the other documents needed. If the share certificate is being transferred to a new member after resale, they have to finished all paperwork prior to handing the share certificate, including the required transfer of shares procedures.

When the ownership of the shares is being transferred to another person, the new member has to pay the transfer premium, produce applications/documents required by the society while it has to be ensured that no dues are pending by the former member. In the event of the death of the original member, the heirs have to apply within 6 months of the death for the share transfer to the nominee along with the issuance of a new share certificate.

Readymade share certificate booklets are available online, housing federation offices or at book printing agencies.

If the members’ arrears are duly paid, and the documents requested by the society are submitted in proper condition, the society MUST issue the share certificate within the prescribed time limit after allotment of actual shares. If not, the member has the right to file a legal notice/injunction against the society.

Issuing a duplicate Share Certificate

It is advisable to keep your original share certificate in pristine condition in a safe place. Getting a duplicate share certificate is not as simple as walking into the society’s office and getting a duplicate copy on the same day. If your share certificate is soiled, misplaced, stolen, destroyed or lost, you can ask your housing society to issue a duplicate share certificate after following the below-mentioned procedure.

  1. File an FIR to the local police station, registering a report that the original share certificate has been lost, misplaced or stolen. Retain the copy of FIR acknowledged by the Police.
  2. Send a written application to the society stating that the original has been lost, misplaced, stolen (is not traceable) and request the society to issue a duplicate share certificate. Also, attach the acknowledged copy of the FIR with the application.
  3. Submit an indemnity bond of Rs 200 to the society, indemnifying the society of all cost/ results of issuing a duplicate share certificate. The Indemnity Bond should be duly notarized and attached along with the application and FIR copy.
  4. Once the society receives the application, it is placed before the managing committee in the next general body meeting. In the same meeting, the society examines the application and attached paperwork and approves the request for a duplicate share certificate.
  5. The society puts out the notice on the society’s notice board and also published notices in two local newspapers (with respect to issuing a duplicate share certificate).
  6. The society waits for 15 days for any objections after putting out the notice on the society’s notice board and the advertisement in the newspapers.
  7. If no objections are raised, the society issues a duplicate share certificate to the member. The cost of publishing notices in newspapers has to be borne by the member.

Nomination in Housing Societies

Nomination in housing societies is a fairly simple and straightforward procedure that requires basic form filling from the member and registration by the society. There may be a few complications, however, if the member has not nominated anyone while being alive or if the nominee is not the same as the actual legal heir, and there arises a legal dispute.

Let us first list down the types of memberships in a housing society to better understand nominations.

Three main types with context to this topic are:

  • Original Member
  • Associate Member
  • Nominal Member

The original member is the one whose name appears first in the share certificate and is the primary title owner of the property/capital in the society. An Associate Owner is the secondary title owner in the property whose name appears second in the share certificate and is a co-owner or joint owner of the flat/home. Both the primary and associate members have legal rights over the property, hold the right, title and interest in the property individually or jointly.

A nominal member is someone who is nominated either by the primary or associate member and is defined by model bye-laws as a person who does not hold the right, title and interest in the property individually or jointly admitted to Membership as such after registration.

What is the purpose of the nomination?

The most common purpose of nomination procedure is to enlist members’ children/relatives as nominees, who are their legal heirs. If they are minors, they cannot be legally allowed to be the title holders of the ownership. Members also nominate their children’s guardians, close family members who under the circumstances of their death, can be the custodians of the property and look after it until the heirs can legally inherit it. Another reason is to nominate their tenants so that there is an official entry in the society’s registers of them having rented the residence.

Who can nominate

A mentally fit person over the age of 18 can be a member of a housing society and only a primary or associate member can legally nominate another while being alive.

Who cannot nominate

  • Minors
  • Nominees
  • Companies (partnership firms, individual firms, LLP, Private/Public Companies, Trust, NGO, HUF, Society)

Who can be nominated

  • Legal heir/ relative/ beneficiary
  • A non-legal heir/ beneficiary
  • Attorney, custodian
  • Any other person deemed fit by the primary and associate members.

Who cannot be nominated

  • A deceased person
  • A nominee cannot nominate himself
  • A non-Indian citizen

What is the procedure to nominate?

  1. A nomination application in the prescribed form has to be submitted to the society by the original/associate members, naming the person to whom the ownership shall be transferred in the event of their death.
  2. Bye-laws state that “the acknowledgement of the nomination by the Secretary, shall be deemed to be an acceptance of nomination by the Secretary”.
  3. The first nomination is submitted for free. Any subsequent revocations/nominations are subject to a fee of Rs 100.
  4. The nomination is placed before the committee meeting, is checked by the Secretary for anomalies and is recorded in the minutes of the meeting as well as duly registered in the Nomination Register, assigned a serial number with a stamp and signature within 7 days of the meeting in which it was approved.
  5. An approved copy of nomination is given to the members for their records.
  6. This entire procedure is to be completed within 2 months.

Actual inheritance with respect to nominations

In most cases, members nominate their own children, siblings, parents or the next of kin to inherit ownership of their property. Whenever a nominated person is not a legal heir, he is most likely a trustee or custodian who is required to look after the property and usually, a will exists in which the original member/ associate member name the heir. A nomination serves as a useful document so that the society/bank/insurance etc. can understand whom to hand over the property when the member dies. However, in situations where the nominee is not the same as the legal heir, or if the member has nominated a non-legal heir, there may arise a complex dispute that can be solved by the intervention of the court. The society usually hands over the property to the nominated person, if the legal heir claims otherwise, the matter lies in the hands of the court. The society should, therefore, do its due diligence in transferring the property as per the recorded nomination. Only when the member dies without nominating anyone, does the society invite claims and objections after putting out a notice in the newspapers and then thoroughly investigates the rightful claimant of the property, although in such circumstances too, sometimes the court of law can help determine proper heir.

Cooperative Housing Society Funds and their Utilisation

You would rarely come across a well-run housing society in a shambles, where lifts are defunct, lawns are unkempt, floor bulbs are broken and water pipes are leaking. All of your society’s amenities and services run smoothly like a river because they are paid for and looked after. The nitty-gritty of a society’s financial management is no joke. Members are often confused and even agitated when they are asked to contribute towards funds that seem to be inconsequential on the surface, but when understood well, they make a whole lot of sense. In this article, we will shed light on a variety of housing society funds that create a perfectly healthy state of affairs.

Types of funds in a cooperative housing society

  1. Reserve Fund: A Reserve Fund is made up of entrance fee paid by the members, transfer fees when shares are transferred with occupancy rights, transfer premium received when a member transfers interest in the capital/property, general donations (not for a specific purpose) received by the society. Accumulated Reserve Fund gets carried forward to the next year every year.
    Utilisation: As per the model bye-laws, Reserve Fund is used for repair, maintenance and renewal of the society’s property.
  2. Repairs and Maintenance Fund: This fund is made up of a fixed maintenance amount paid by the society’s members on a monthly, quarterly, bi-annual or annual basis. It is calculated at a rate decided at general body meetings based on per square feet, equal division or hybrid methods. Bye-laws state that rate is subject to the minimum of 0.75 per cent per annum of the construction cost of each flat for meeting expenses of normal recurring repairs.
    Utilisation: As explained in the title of the fund, it is used for the expenses of amenities, bills and maintenance of premises of the society, repairs, service staff fee, common electricity expense, water charges, etc.
  3. Sinking Fund: A Sinking Fund is a separate amount that the members have to pay on their maintenance bill. A housing society saves this amount for the time when there are any structural additions or alterations to the buildings/wings of society. A Sinking Fund is fixed at the general body meeting and is subject to the minimum of 0.25per cent per annum of the construction cost of each flat, excluding the proportionate cost of the land.
    Utilisation: These are done after consulting the society’s Architect who may recommend such additions/heavy repairs to strengthen the integrity of the structure for the safety of the members and also for posterity.
  4. Education & Training Fund: Members have to contribute to this fund. Each member has to pay Rs 10 every month or as decided by the general body meeting.
    Utilisation: The purpose of this fund is to analyse the issues and complaints of the society with respect to administrative measures and create an atmosphere of camaraderie and unity through conducting training programs in order to develop professional skills among members, distribute articles, books, etc. to train members for a specific skill, to run training classes pertaining to the co-operative movement and issue certificates/diplomas to upskilled members.
  5. Other Funds: Major Repairs Fund is to be created by the society to fill the gap between maintenance fund and Sinking Fund. This has to be paid as and when required and decided by the general body at the rate fixed on an area basis. Additionally, some societies create a surplus fund as and when needed in order to celebrate festivals, special days and other occasions. This does not constitute a formal or mandatory fund, however, members contribute voluntarily to participate in the festivities and to partake in the activities of communal living.

Why do societies generate these funds?

A housing society is a cooperative and democratic movement that functions on the basis of contributions made by the member. All amenities, services, repairs, etc. are paid by the members themselves and there is no outside agency that is going to swoop in and bear the expenses on behalf of the society. Neither the managing committee nor the members would subject themselves to any negative surprises due to lack of funds, a scenario that can be easily avoided if funds are generated fairly and properly in advance. To avert any unexpected financial losses in terms of repairs, failure of amenities, structural damage, the society has to be prepared in order to be able to bear the expenses. It does so by collecting money on a monthly basis in general so as to not burn the pockets of its members. The common ways to generate funds are mentioned below:

  • Entrance Fees
  • Deposits
  • Loans/subsidies
  • By issuing shares
  • Voluntary donations
  • Maintenance bills
  • Fees on the transfer of shares
  • Non-Occupancy fees
  • Renting space for advertisements, billboards
  • Renting terrace space for mobile towers