Our housing soceity wishes to erect car parking shed in open/common area in soceity. The fund for same would be raised through refundable deposits from members interested in taking the car parking shed space as an allotment. The amount decided is Rs1lac per member per parking space in the shed. The proposal has been passed in GB meeting. 1,Can soceity raised funds in the above manner.?What does MCS Rule 39 mean in relation to this,its interpretation? 2.Can soceity erect car parking shed in common areas.?Do they still need permission from MBMC.? 3.What if they get permission from MBMC?
You need the permission of municipal corporation to erect shed in common areas
2) only after permission is granted should you raise funds from members for said purpose
3) it is doubtful that permissible would be granted by the muncipal corporation for erecting permanent shed for parking purposes
Can soceity accept refundable deposit for this purpose?As per my understanding soceity cannot accept deposits with reference to MCS Rule 39..Your answer sir.
Parking space is a Common area and Deposit for Parking space cannot be collected, even if passed by the GB.
b) MCS RULE 39 restricts rights of society to raise funds.
1. There is no specific bar on the society to maintain a fund to build and operate the parking space.
2. If the Bye Laws so permits society can build such parking space. If the structure is permanent in nature then the building plan is to be sanctioned from MBMC.
3.You can anyway rasie dispite with the Registrar if you dispute the idea of building such parking space.
Rule 39of MCS states
) Every society, which has a share capital, shall provide in the bye-laws the maximum amount of such share capital, the number of shares into which it is divided, the class of shares, the face value of each share of each class and the rights and liabilities attached to each class of shares and where the full amount of share is not payable on allotment, the amount and the number of instalments in which it is required to be paid and such other incidental matters.
(2) Any society, which is authorised under its bye-laws to raise funds by the issue of debentures and bonds may, with the prior sanction of the Registrar, frame regulations regarding the maximum amount to be raised by the issue of debentures and bonds, the class and classes of debentures and bonds, the face value of each debenture or bond, the date on which the debentures or bonds are to be redeemed, the rate at which interest is payable, the terms and conditions regarding transfer of debentures and bonds and other incidental matters.
(3) The total amount of debentures and bonds issued at any time together with the other liabilities incurred by the society shall not exceed the maximum amount which the society can borrow under the provisions of Rules 35, 36, 37 or 38, as the case may be, and its bye-laws.
According to the “Apartment Act” in most states, car parking is a part of the society’s common areas.
The different types of parking
Open Parking – These are uncovered parking spots within the apartment complex premises.
Stilt Parking – These are partially covered parking spots on the ground floor of the apartment complex.
Garage Parking – Fully covered complete parking structures
Thus the society with the approval of GB resolution can put up a car parking space in the common area.
Can soceity accept refundable deposit for this purpose?As per my understanding soceity cannot accept deposits with reference to MCS Rule 39..
As per the referred rule the society can raise funds through debentures and bonds .
But there is no provision to raise funds through refundable deposits.
1. There is nothing illegal in raising funds in this manner, but no member is under a legal obligation to contribute. Society can accept deposits if the resolution to this effect has been passed in Special Body Meeting.
2. If a unanimous resolution is passed then alone the car parking can be erected in common areas.
