• Federal Society vs Housing Society - what's the difference

Dear Advocate friends,

Need your expert and precise advice on:

1. Difference between Federal Society and Housing Society in Maharashtra;
2. We have asked builder to get us registered for Housing Society but he has registered us as a Federal Society. What can be the motive?
3. What are the shortcomings we may face if we work as a Federal society, not housing society?
4. Please elaborate on which is more beneficial.
Asked 8 years ago in Property Law
Religion: Hindu

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4 Answers

federal society “ means a society—

(a) not less than five members of which are themselves societies,and

(b) in which the voting rights are so regulated that the members which are societies have not less than four-fifths of the total number of votes in the general meeting of such society

2) housing society " means a society, the object, of which is, to provide its members with open plots for housing, dwelling houses or fiats; or if open plots, the dwelling houses or flats are already acquired, to provide its members common amenities and services;

3)the reason for formation of federal society is regulation of voting power of the federal society. they have 4/5th votes .

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

for registration of housing society it is necessary that it consists of at least ten persons [or such higher number of persons as the Registrar may, having regard to the objects and economic viability of a society and development of the co-operative movement,determine from time to time for a class of societies](each of such persons being a member of a different family), who are qualified to be members under this Act, and who reside in the area of operation of society :

2) for registration of federal society it needs only 5 members as societies .

3) a federal society is the parent society of all societies in the complex

4)the advantages are re all allocation of internal plans with respect to road , water tanks , sanitation , clubhouse etc

5) builder can use FSI of existing common areas

6) majority votes are with member societies for passage of resolutions in AGM

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

1. Difference between Federal Society and Housing Society in Maharashtra;

As per section 2(13), of Maharashtra Co-operative Societies Act, 1960 ”Federal society”, means a society-

(a) not less than five members of which are themselves societies, and

(b) in which the voting rights are so regulated that the members who are societies have not less than four-fifths of the total number of votes in the general meeting of such society.

As per section 2(16),”Housing society” means a society, the object of which is to provide its members with open plots for housing, dwelling houses or flats; or if open plots, the dwelling houses or flats are already acquired, to provide its members common amenities and services.

2. We have asked builder to get us registered for Housing Society but he has registered us as a Federal Society. What can be the motive?

You gather all the owners and form a society under housing society and get it registered and also file an application seeking to nullify the earlier society 'federal society'

The first step to registrar a Housing Society is that minimum 10 adult individuals from

independent families desiring to form a Society should gather and hold a meeting to (a)select a provisional committee and elect a Chief Promoter for formation of a society and (b) select a name for such Society with three alternatives and to pass appropriate resolutions in that behalf. In case of an Open Plot Society, the Chief promoter should be authorised at such meeting to

(a) appoint architects and building contractors

(b) Negotiate and acquire a plot and

(c) get the plans and estimates prepared for such society. The specimen forms of resolutions to elect a Chief promoter and to give him authority as aforesaid are available with the Registrar office or at the Federations office.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

Please can u elaborate more on the voting power. How does it help to have 4/5th votes? What does it mean? Can u explain with an example? Also, does federal society perform same tasks as housing society?

A co-operative Society is a body corporate registered under the applicable state Act with perpetual succession having a common seal. It can acquire, hold and dispose of properties, enter into contracts and it can sue and it can be sued.

In co-operative Sector, the principle of” One man one Vote “is provided in the statute so as to ensure that the capital does not dominate the administration of co-operative Society.

The shareholders have to personally attend the meeting or for voting. They are not allowed to appoint proxies for attending the general body or for voting in the resolution to be passed.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

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