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Clarification regarding formation of Apartment owners association
22-Mar-2023 (In Civil Law)
I had some questions regarding society formation or Apartment Owners association. Ours is a 4 storey housing building in Pimpri Chinchwad Municipal Corporation (PCMC). 1 flat on each floor and that's it. 4 flats in total. Each Flat is owned by different individuals. Can we form a housing society or apartment owners association? If not then do we have any other provision available?
1) Submit an application for registration to the Registrar (forms available at www.rcs.delhigivt.nic.in, in case of Delhi).
2) Along with the application, you need to submit the byelaws (see below) the society wishes to adopt and the names and occupations of the promoters of the co-operative.
3) Pay the registration fees. In Andhra Pradesh, this amount will be 1% of the total authorized share capital, subject to a minimum of Rs100 and maximum of Rs10,000.
4) The minutes of the meeting in which the byelaws were adopted.
Each housing society has a share capital, which will be paid up equally by the residents of the society, regardless of the size of the flat. Within six months of allotment, the member should receive a share certificate in this regard, according to the byelaws of Mumbai. Byelaws may also be amended by a resolution of its general body. All such amendments need to be approved by the registrar. In Andhra Pradesh, however, approval is needed only if the amendment is of strategic interest to members.
Housing Society Byelaws
The actions of all co-operative society members, insofar as they affect other members or the building itself, are governed by a set of rules. These rules, or byelaws as they are more often called, must conform with the co-operative act or rules in force in that region. In Delhi, for example, it is Delhi Co-operative Societies Act, 2003 and Delhi Co-operative Societies Rules, 2007. A society may frame its own byelaws, so long it doesn’t contradict the act, with the approval of the concerned authority (Registrar, Co-operative Societies in Delhi).
In most cases, though, societies use the model byelaws that are provided, coupled with the provisions relating to housing societies in the rules and act. At times, states also release amendments to the model byelaws. This was done for Mumbai in 2009. However, law relating to housing societies is flexible. So there’s no compulsion for any Mumbai society to adopt the new byelaws.
2) Along with the application, you need to submit the byelaws (see below) the society wishes to adopt and the names and occupations of the promoters of the co-operative.
3) Pay the registration fees. In Andhra Pradesh, this amount will be 1% of the total authorized share capital, subject to a minimum of Rs100 and maximum of Rs10,000.
4) The minutes of the meeting in which the byelaws were adopted.
Each housing society has a share capital, which will be paid up equally by the residents of the society, regardless of the size of the flat. Within six months of allotment, the member should receive a share certificate in this regard, according to the byelaws of Mumbai. Byelaws may also be amended by a resolution of its general body. All such amendments need to be approved by the registrar. In Andhra Pradesh, however, approval is needed only if the amendment is of strategic interest to members.
Housing Society Byelaws
The actions of all co-operative society members, insofar as they affect other members or the building itself, are governed by a set of rules. These rules, or byelaws as they are more often called, must conform with the co-operative act or rules in force in that region. In Delhi, for example, it is Delhi Co-operative Societies Act, 2003 and Delhi Co-operative Societies Rules, 2007. A society may frame its own byelaws, so long it doesn’t contradict the act, with the approval of the concerned authority (Registrar, Co-operative Societies in Delhi).
In most cases, though, societies use the model byelaws that are provided, coupled with the provisions relating to housing societies in the rules and act. At times, states also release amendments to the model byelaws. This was done for Mumbai in 2009. However, law relating to housing societies is flexible. So there’s no compulsion for any Mumbai society to adopt the new byelaws.
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Adv. Siddhant Sharma
Delhi | 500+ Answers
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