By Team MyGate
How to form a Co-operative Housing Society in Delhi-NCR
By Team MyGate
Delhi-NCR is the fastest developing urban hub of North India. While the premium and mid-range housing projects are predicted to pick up by 2020, the focus has been strengthened on affordable housing, a segment that is slated to be the future of real estate in the Indian economy. The government’s agenda for ‘housing for all’ has fueled the movement since 2018 on a massive scale and with private companies in the mix, a sizeable number of housing projects have been initiated in the region.
If you’re about to form a housing co-operative society in Delhi NCR, you should be aware of the basic procedure of registration which has specific requirements according to the Delhi Co-operative Societies Act. Nevertheless, the procedure is hassle-free if you follow this step-by-step guide.
What are the prerequisites to form a housing society in Delhi NCR?
The Delhi Co-operative Societies Act, 2003 states that at least 15 Promoter Members are required to apply for registering a society. Anyone who is a member of any other co-operative with similar objects cannot apply. The applicant should belong to different families should have been a resident of the National Capital Territory of Delhi for a minimum period of three years at the time of applying for membership in such a society. The Registrar inspects if the society is economically sound and follows viability norms in accordance with the laws.
The procedure to form a housing society in Delhi NCR
Selection of Chief Promoter: Those members who intend to start a co-operative should get together and form a working committee and select a Chief Promoter.
Name Reservation: The promoter members have to select a name for the society. A specific clause in the Act states that the name should be such that it should reflect no discrimination of gender, social, inequality, racial, political ideology and also consider religious sentiments.
Open a bank account: Promoter members should collect the share capital, entrance fees and open a bank account in the name of the proposed society. In case of a co-operative bank, prior written permission of the Reserve Bank for registration will be needed by the Registrar.
Submit Registration Proposal: The next step is to submit an Application for Registration, the form for which is available here.
Documents required for Registration:
- Four copies of the proposed bye-laws of the co-operative society signed by each promoter member
- List of promoter members along with their name, address, profession, monthly income, proof of residence including ID proofs attested by Gazetted Officers
- A copy of bank account passbook with the address of the bank
- A certificate from the financing bank to the effect that the amount of the share capital raised by the promoters has been deposited in the name of the cooperative society
- Confirmation of availability of land from land allotting agency. You will also need to send copies of ownership documents of land owned by the promoter members along with the certificate of residential land use for group housing from the relevant local body.
- A list of promoters members who have contributed to the share capital together with the amount contributed by each of them, and the entrance fee paid by them
- The scheme showing the details of working of the cooperative society
- A declaration on oath from each of the promoter members stating he is not a member of the family of any other promoter joining in the application for registration
- An affidavit from each promoter member is required to be submitted along with the application form
- Each promoter member should submit a certified resolution which shows they have adopted the bye-laws
- Any other documents specifically requested by the Registrar
Receive acknowledgement from Registrar
Upon receiving the application, the Registrar assigns a serial number to it and issues an acknowledgement. The documents are verified and application is processed by the Registrar within a period of ninety days from the date of receipt. While it is under review, the Registrar allows a period of one month to the promoter members to modify the proposed bye-laws before finally registering the co-operative society.
Receive Registration Certificate
Once the Registrar is satisfied with the application, it issues a certificate which is evidence that the society is duly registered as per the Act. The Registrar also provides to the co-operative society, a copy of the bye-laws duly approved and registered by him.
Managing Committee and Resident Welfare Association
Every co-operative society should commence its business within 180 days from the date of its registration and form a managing committee to look after all affairs of the co-operative.
Additionally, In Delhi NCR, co-operative societies form a Resident Welfare Association for each colony, a block or a pocket of the colony, the formation of which is voluntary and the intention of which is to represent the interests of the residents. It has to function under the Managing as a sub-committee that is formed to help the management of the society but have no statutory powers. However, they do have a governing body to manage the day to day affairs of the co-operative.
How much does it cost to Register a co-operative society in Delhi NCR?
Minimum share capital required (commonly known as a deposit) to form a housing society is Rs. 60,000 which has to be raised by the promoter members first. The registration fee for Housing Society is Rs.2,500/- and for general Society is Rs.1250/-.The admission fees are mutually decided by the promoter members and the amount is usually fixed at Rs 500, but could be more or less. If you hire legal services for registering a society, it could cost anywhere between Rs 25,000 to Rs 35,000.
Address and contact details
Office of the Registrar of Co-operative Societies
Sansad Marg, Old Court Building, Janpath, New Delhi, Delhi 110001
Phone: 011 2374 4492
Registrar of Cooperative Societies, Delhi, West
Lawrence Road, Old Middle School Building, Rajauri Office, Rampura, Delhi 110035
Is it mandatory to register a co-operative society in Delhi NCR?
It is not mandatory to register a housing society. However, to be protected under the statutes of law and to avoid being embroiled in lengthy and expensive legalities in case of disputes, it is highly recommended to register your society.