Facts of the case 1. Company "A" obtained lease rights from land owner "CIDCO" and constructed 50 tenements. 2. "A" transfered the lease rights to builder "B" 3. "B" constructed new 50 tenements and gave them back to "A" and constructed 150 new tenements and sold in market. 4. "B" registered a deed of declaration under Maharashtra Apartment Ownership (MAO) act and formed owners association/condominium. 5. "B" did not got new tenements assessed with municipal corporation (NMMC) in time. 6. NMMC raised huge property tax bill with penalties in name of "B". 7. In meantime "A" also sold their 50 tenements in market. 8. Now NMMC refuses to relent in forgoing the penalty, "B" is also refusing to pay the penalty. 9. NMMC has told failure to pay may result in attachment of the entire property and other legal actions. 10. Some members have decided to form Co-op Housing Society (CHS), and fight this legally with NMMC/"B" Questions 1. Can members legally form CHS without first getting the deed of declaration canceled? 2. Can the CHS be registered without obtaining NOC from NMMC or without deed of declaration be canceled? 3. How many members consent is needed to go for CHS registration? 4. If certain members decide that CHS is not in their interest what are their options? 5. Is it possible by members or builder to obtain stay against CHS formation. 6. Can the conveyance of lease rights to CHS happen without first clearing dues of NMMC or CDICO? 7. Finally is it possible for members to fight this property tax dispute as owners association with going into hassle of CHS creation?
Since deed of declaration is executed society would not be registered by registrar
2) you need court orders to cancel deed of declaration and form society
3) call EGM of all members resolution should be passed by members present and voting
4) stay can be granted against society formation
5) conveyance of lease hold interest would not be done without clearing CIDCO dues
1. AFTER obtaining the clearance NOC of the Registrar of Cooperatives, a CHS can be registered by atleast 10 members, without any further reference to the Builder /NMMC /CIDCO.
2. AFTER registering a CHS, a deemed conveyance application can be duly filed with the district coop. registrar, for conveyance of the society plot, by following due procedure of law and payment of all the relevant charges /fees.
Yes you can file an application to form a chs in this case
1. no need to form a society. The owners association formed under MAOA can itself take steps
2. no NOC of NMMC is required to form any society or owners association
3. why you want to form a society when owners association is already in place? 10 persons or more are required to form a society
4. owners association
5. no
6. yes
7. yes!!!!! i fail to understand who advised to form a society when an owners association is already formed
Thanks for the response. It seems that forming CHS in this case is not necessary. As owners association itself we can protect our interest. Further to form CHS every member would have to shell out hefty fees. I have couple of followup questions 1. Like if some members would like to protect their interest and not be part of this new CHS, what are their options? Can they be forced to sign the documents needed for CHS formation? If not then whats the process of obtaining stay on CHS formation. 2. If they refuse and later CHS is still formed, what happens to issues like common amenities, maintenance charges etc. Do they continue to enjoy those and pay charges as per old resolution.
you cannot force them to sign documents for CHS formation
2) once CHS is formed they would have to join to enjoy common facilities
They can't refuse to be part of the same. Fees are nominal. If you enrol some private consultant then it may increase. They need do pay for common amenities if chs is formed. Chs has many powers and facilities then owner association
1. CHS can be formed by the members of the flats on their own and after that they can fight out all the menaces legally
2. NOC from NMMC may not be mandatory for registering the society.
3. A minimum of ten members are required to form a cooperative society. The Co operative societies Act do not specify the maximum number of members for any co-operative society.
'4. You cannot force them to become members.
5. it is possible.
6. No, the NMMC may take stay for any such move by the builder or any third party.
7. You can fight it out but there is no guarantee for a favorable judgment
1. The CHS formation is not an individual's decision, it is a combined decision taken by all together, if somebody do not want to join then he cannot be forced.
2. That will be decided in the general meeting of the CHS that has formed with the bye laws