¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

1

CO-OPERATION, MARKETING AND TEXTILES DEPARTMENT

Mantralaya, Madam Cama Marg, Hutatma Rajguru Chowk,

Mumbai 400 032, dated the 30th October 2018.

MAHARASHTRA ORDINANCE No. XXV OF 2018.

AN ORDINANCE

further to amend the Maharashtra Co-operative Societies Act, 1960.

WHEREAS both Houses of the State Legislature are not in session ;

AND WHEREAS the Governor of Maharashtra is satisfied that circumstances

exist which render it necessary for him to take immediate action further to amend

the Maharashtra Co-operative Societies Act, 1960, for the purposes hereinafter

appearing ;

NOW, THEREFORE, in exercise of the powers conferred by clause (1) of

article 213 of the Constitution of India, the Governor of Maharashtra is hereby

pleased to promulgate the following Ordinance, namely :—

1.

(1) This Ordinance may be called the Maharashtra Co-operative Societies

(Third Amendment) Ordinance, 2018.

(2) It shall come into force at once.

Mah.

XXIV of

1961.

Short title and

commencement.

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+ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö

´É¹ÉÇ 4, +ÆEòú 73]

¨ÉÆMɳý´ÉÉ®ú, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

[{ÉÞ¹`ä 17, ËEò¨ÉiÉ : ¯û{ɪÉä 27.00

+ºÉÉvÉÉ®úhÉ Gò¨ÉÉÆEòú 142

|ÉÉÊvÉEÞòiÉ |ÉEòɶÉxÉ

¨É½þÉ®úɹ]Åõ Ê´ÉvÉÉxɨÉÆb÷³ýÉSÉä +ÊvÉÊxÉªÉ¨É ´É ®úÉVªÉ{ÉɱÉÉÆxÉÒ |ÉJªÉÉÊ{ÉiÉ Eäò±Éä±Éä +vªÉÉnäù¶É ´É Eäò±Éä±Éä Ê´ÉÊxÉªÉ¨É +ÉÊhÉ

Ê´ÉÊvÉ ´É xªÉÉªÉ Ê´É¦ÉÉMÉÉEòbÚ÷xÉ +ɱÉä±ÉÒ Ê´ÉvÉäªÉEäò (<ÆOÉVÉÒ +xÉÖ´ÉÉnù).

In pursuance of clause (3) of article 348 of the Constitution of India, the following translation in

English of the Maharashtra Co-operative Societies (Third Amendment) Ordinance, 2018 (Mah. Ord. XXV

of 2018), is hereby published under the authority of the Governor.

By order and in the name of the Governor of Maharashtra,

RAJENDRA G. BHAGWAT,

Secretary (Legislation) to Government,

Law and Judiciary Department.

[Translation in English of the Maharashtra Co-operative Societies (Third Amendment) Ordinance, 2018

(Mah. Ord. XXV of 2018), published under the authority of the Governor].

———————

RNI No. MAHENG /2009/35528

¦ÉÉMÉ +É`ö---142--1

(1)

2

¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

2.

In section 73CB of the Maharashtra Co-operative Societies Act, 1960

(hereinafter referred to as “the principal Act”), to sub-section (11), after the existing

proviso, the following proviso shall be inserted, namely :—

“Provided further that, in case of housing society having less than or up

to 200 Members, the elections of the Committee shall be conducted by the

said housing society in the manner as may be prescribed.”.

3.

In section 101 of the principal Act, in sub-section (1), the words “by a

co-operative housing society, for the recovery of its dues or for the recovery of its

maintenance and service charges, or” and the Explanation II shall be deleted.

4.

In section 146 of the principal Act, after clause (p-1), the following clause

shall be inserted, namely :—

“(p-2) any officer or past officer or Member or past Member of the

Committee of the housing society fails to supply the copies of the documents

as provided under sub-section (2) of section 154B-8 ; or ”.

5.

In section 147 of the principal Act, after clause (p-1), the following clause

shall be inserted, namely :—

“(p-2) if it is an offence under clause (p-2) of that section, with fine which

may extend to twenty five thousand rupees ;”.

6.

In section 152 of the principal Act, in sub-section (1), after the figures

and words “105 including against an order for paying compensation to society”

the words, figures and letters “, and sub-section (1) or (3) of section 154B-3” shall

be inserted.

7.

After section 154A of the principal Act, the following CHAPTER shall be

inserted, namely :—

“CHAPTER XIII-B

CO-OPERATIVE HOUSING SOCITIES

154B.

(1) The following provisions of this Act shall apply mutatis

mutandis to the housing societies, namely :—

Section 1, clauses (5), (6), (7), (8), (10), (10-ai), (10-aii), (10-aiii),

(13), (14), (16), (17), (18), (20-A), (21), (24), (26), (27), (28), (29), (29A)

and (31) of section 2, sections 3, 3A, 4, 5, 7, 9, 10, 12, 13, 14, 15, 17,

18, 19, 20, 20A, 21, 21A, 22, sub-sections (1), (2) and (3) of section 23,

sections 25, 25A, 31, 33, 34, 35, 36, 37, 38, 40, 41, 42, except proviso

of sub-section (1) of section 43, section 45 and sub-sections (1)(b), (2)

and (3) of section 47, section 50, sections 64, 65, 66, 67, 68, 69, 70, 71,

71A, 72, 73, sub-sections (2) to (7) of sections 73ID, 73B, 73C, 73CB,

73F, 73I, 75, 76, 77, 77A, sub-sections (1), (1A) and (1B) of section 79,

sections 79A, 79AA, 80, 81 to 89A, 91 to 100, 102 to 110, 145 to 148A,

149 to 154, 154A and 155 to 168.

(2) The following provisions of this Act shall not apply to the housing

societies, namely :—

Clauses (1)(a) and (b), (2)(a), (b) and (c), (4), (9), (10-aii-1), (10A),

(11), (11-A), (12), (14-A), (15), (16-A), (19-a-1), (19-A),(22), (23)

and (25) of section 2, section 6, sections 11, 16, 18A, 18B, 18C,

23(4), 24A, 26, 27, 28, 29, 30, 32, 32A, 39, 44, 44A, 46, 47(1)(a),

47(4), 48, 48A, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61,

62(b), 69B, 72A, 73B(4), 73(1A)(b), 73A, 73CA, 74, 78, 90, 110A

and sections 111 to 144-1A.

Amendment of

section 73CB

of Mah. XXIV

of 1961.

Mah.

XXIV of

1961.

Amendment of

section 101 of

Mah. XXIV of

1961.

Amendment of

section 146 of

Mah. XXIV of

1961.

Amendment of

section 147 of

Mah. XXIV of

1961.

Amendment of

section 152 of

Mah. XXIV of

1961.

Insertion of

CHAPTER

XIII-B in Mah.

XXIV of 1961.

Application

and non-

application of

provisions of

this Act to the

housing

societies.

¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

3

154B-1.

In this Chapter, unless the context otherwise requires,—

(1) “allotee” means a Member of a housing society to whom a plot

of land or a site, or a flat in a building or complex held by it, is allotted by

the co-operative society, or a person who has purchased a flat from the

developer or competent authority and joined as a Member of the society ;

(2) “Architect” means a person registered as an architect under the

provisions of the Architects Act, 1972 ;

(3) “Auditor”

means a person or an auditing firm who or which has

been empanelled on the panel approved by the State Government under

sub-section (1) of section 81 ;

(4) “Builder promoter” means,—

(i) a person who constructs or causes to be constructed an

independent building or a building consisting of flats, or converts an

existing building or a part thereof into flats including the re-

development of building or buildings, for the purpose of selling all or

some of the flats to other persons and includes his assignees ; or

(ii) a person who develops land into a project, whether or not

the person also constructs structures on any of the plots, for the

purpose of selling to other persons all or some of the plots in the

said project, whether with or without structures thereon ; or

(iii) any development authority or any other public body in

respect of allottees of,—

(a) buildings or flats, as the case may be, constructed

by such authority or body on lands owned by it or placed at

its disposal by the Government ; or

(b) plots owned by such authority or body or placed at

its disposal by the Government, for the purpose of selling all

or some of the flats or plots ; or

(iv) an apex State level co-operative housing finance society

and a primary co-operative housing society which constructs flats

or buildings for its Members or in respect of the allottees of such

flats or buildings ; or

(v) any other person who acts himself as a builder, coloniser,

contractor, developer, estate developer or by any other name or

claims to be acting as the holder of a power of attorney from the

owner of the land on which the building or flat is constructed or plot

is developed for sale ; or

(vi) such other person who constructs any building or

apartment for sale to the general public ;

(5) “Chief promoter” means a promoter who has been elected so in

the meeting of promoters for registration of a housing or premises society ;

(6) “Corpus fund” means payment received or receivable by the

society from the developer in lieu of surrendering its development rights

of plot by way of registered document or contributed by Members for

any purpose as decided in general meeting ;

(7) “Co-operative Housing Association” means association of

housing societies or other legal bodies for the purpose of maintenance

of common amenities or conveyance of land and common amenities in

respect of plot or layout ;

Definitions.

20 of

1972.

¦ÉÉMÉ +É`ö---142--1+

4

¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

(8) “Committee” means the managing Committee or other governing

body of a society to which the direction and control of the management

of the affairs of a society is entrusted to ;

(9) “Committee Member” means a Member of the society who has

been elected or co-opted or nominated in accordance with this Act, rules

and bye-laws of the society ;

(10) “defaulter” means a Member or flat owner or occupier who fails

to pay the dues of the society within three months from the date of

service of bill or notice or due date of payment, whichever is later ;

(11) “dues” means the amount payable by a Member or flat owner

to the society and demanded by the society by issuing bill or notice in

writing and such demand is based on the provisions of this Act, rules

and bye-laws of the society ;

(12) “Federal society” means a federation of—

(a) not less than five registered housing societies, and

(b) in which the voting rights are so regulated that the Members

which are housing societies have not less than four-fifths of the total

number of votes in the general meeting of such society ;

(13) “Flat” means block, chamber, dwelling unit, apartment, office,

showroom, shop, godown, premises, suit, tenement, unit or by any other

name, means a separate and self-contained part of any immovable

property, including one or more rooms or enclosed spaces, located on

one or more floors or any part thereof, in building or on a plot of land,

used or intended to be used for any residential or commercial use such

as residence, office, shop, showroom or godown or for carrying on any

business, occupation, profession or trade, or for any other type of use

ancillary to the purpose specified ;

(14) “General Body” means all the Members of the society ;

(15) “General Meeting” means meeting of General Body called and

conducted in view of the provisions of this Act, rules and bye-laws ;

(16) “Housing Federation” means the federal body notified by the

Government in the Official Gazette to be the representative of the

registered Housing Societies of the specified areas notified by the

Government, from time to time ;

(17) “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 and to demolish

existing buildings and reconstruct or to construct additional tenements

or premises by using potential of the land ;

(a) “tenant ownership housing society” means a society the

object of which is to allot the plots to its Members to construct the

dwelling unit or flats thereon or to allot the dwelling units already

constructed and where land is held either on lease hold or free hold

basis by the society and houses are owned or to be owned by the

Members ;

¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

5

(b) “tenant co-partnership housing society” means a society

the object of which is to allot the flats already constructed or to be

constructed to its Members and where both land and building or

buildings are held either on free-hold or lease-hold basis by the

society ; and

(c) “other housing societies” means the house mortgage co-

operative societies, house construction co-operative housing

societies and premises co-operative societies where all the units

are offices or commercial galas ;

(18) “Member” means a person joining in an application for the

registration of a housing society which is subsequently registered, or a

person duly admitted to Membership of a society after its registration and

includes associate or joint or provisional Member ;

(a) “Associate Member” means a person duly admitted to

Membership of a housing society on written recommendation of a

Member to exercise his rights and duties with his written prior

consent and whose name does not stand in the share certificate ;

(b) “Joint Member” means a person joining in an application

for the registration of a housing society jointly, which is subsequently

registered or a person who is duly admitted to Membership after its

registration and who holds share, right, title and interest in the flat

jointly but whose name does not stand first in the share certificate ;

(c) “provisional Member” means a person who is duly admitted

as a Member of a society temporarily after death of a Member on

the basis of nomination till the admission of legal heir or heirs as

the Member of the society in place of deceased Member ;

(19) “Officer” means a person elected or appointed by a society to

any office according to its bye-laws ; and includes any office bearer such

as a chairperson, vice-chairperson, president, vice-president, secretary,

joint secretary, treasurer, joint treasurer, Member of the Committee,

manager and any other person, by whatever name called, elected or

appointed under this Act, the rules or the bye-laws, to give directions in

regard to the business of such society ;

(20) “person” includes,—

(i) an individual, who is competent to contract under the Indian

Contract Act, 1872,

(ii) the State Government,

(iii) the Central Government,

(iv) a Hindu undivided family,

(v) a company registered under the law for the time being in

force,

(vi) a firm registered under the Indian Partnership Act, 1932

or the Limited Liability Partnership Act, 2008,

(vii) local authority,

(viii) an association of persons or body of individuals whether

incorporated or not,

(ix) a co-operative society registered under any law relating

to co-operatives,

(x) a public trust or family trust formed in accordance with a

relevant provisions of law,

(xi) any legal body which can hold the immovable property, and

(xii) any entity as may be notified by the State Government,

from time to time ;

9 of

1872.

9 of

1932.

6 of

2009.

6

¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

(21) “Plot” means a piece of land numbered and shown as one plot

in a layout sanctioned or to be sanctioned ;

(22) “Promoter” means a person intending to become a Member of

a proposed society and who becomes the Member on its registration ;

(23) “Proposed society” means the society the proposal of which

is submitted by the builder promoter or by the chief promoter to the

Registrar and which has been granted permission for reservation of name

and opening account in bank in its name.

154B-2.

(1) No tenant co-partnership housing society shall be

registered under this Act, unless it consists of at least five persons (each of

such persons being a Member of different family) or at least fifty-one per cent.

(of total number of flats as per sanctioned plan) flat purchasers or intending

Members and who are qualified to become Member under this Act, whichever

is higher, joins the registration proposal of housing society to be registered.

(2) No tenant ownership housing society shall be registered under this

Act, unless it consists of at least five persons (each of such persons being a

Member of different family) or at least fifty-one per cent. (of total number of

plots as per proposed or sanctioned lay-out) plot purchasers and who are

qualified to become Member under this Act, whichever is higher, joins the

registration proposal of housing society to be registered.

(3) No federal society shall be registered unless it has at least five

housing societies as its Members.

(4) No Co-operative Housing Association shall be registered unless it

has at least two housing societies or other legal bodies as its Members.

(5) Nothing in this section shall be deemed to affect the registration of

any society made before the commencement of this Act.

(6) The word “limited” or "unlimited" shall be the last word in the name of

every society with limited or unlimited liability, as the case may be, which is

registered or deemed to be registered under this Act.

Explanation.—For the purpose of this section, the expression “Member

of a family” means a wife, husband, father, mother, dependent son or unmarried

dependent daughter.

154B-3.

(1) For the purpose of granting permission to open an account

in the bank and reservation of name of the proposed tenant co-partnership

housing society or premises society, an application shall be made to the

Registrar in the prescribed format and shall be accompanied with the copies

of commencement certificate, or the building completion certificate given by

the Architect and the copy of resolution of promoters electing chief promoter

and authorizing him to make such application and on receipt of such

application, the Registrar shall dispose of it within a period of thirty days from

the date of its receipt.

(2) For the purpose of granting permission to open an account in the bank

and reservation of name of the proposed tenant ownership housing society an

application shall be made to the Registrar in the prescribed format and shall be

accompanied with the copy of tentative lay-out plan certified by Architect or

sanctioned lay-out plan and copy of resolution of promoters electing chief promoter

and authorizing him to make such application and on receipt of such application,

the Registrar shall decide it within a period of thirty days from the date of its receipt.

Registration of

co-operative

societies.

Application for

reservation of

name and

permission for

opening bank

account.

¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

7

(3) For the purpose of registration of a housing society, an application

shall be made to the Registrar in the prescribed format and shall be

accompanied with documents as prescribed alongwith such fees as may be

prescribed :

Provided that, the application shall be signed by the minimum number of

plot or flat purchasers or owners or intending Members as provided under

foregoing section :

Provided further that, for the registration of a federal society or co-

operative housing association, such application shall be signed by minimum

number of authorized office bearers of different societies or legal bodies, as

the case may be, as provided under foregoing section.

154B-4.

(1) Notwithstanding anything contained in section 22, the

society may admit any person as an associate, joint or provisional Member.

(2) Right to vote and contest the election shall be subject to the

provisions of sub-sections (2), (3) and (4) of section 154B-11.

154B-5.

A housing society shall not admit to its Membership persons

exceeding the number of flats or plots, as the case may be, available for

allotment in that co-operative housing society :

Provided that, a plot owners co-operative housing society may admit to

its Membership an organization (co-operative housing society, company,

association, etc.) of flat purchasers, in case the plot owner had constructed

and sold flats as per prevailing rules, in place of original plot owner Member.

154B-6.

(1) Every society may organise co-operative education and

training, for its Members, officers and employees through such State federal

societies or the State Apex Training Institutes, as the State Government may,

by notification in the Official Gazette, specify. Such education and training

shall,—

(i) ensure the effective and active participation of the Members in

the management of the society ;

(ii) groom talented employees for effective management ;

(iii) develop professional skills through co-operative education and

training.

(2) Every Member of the Committee, whether elected or co-opted, may

undergo such co-operative education and training.

(3) Every society shall contribute annually towards the education and

training fund of the State federal societies or State Apex Training Institutes,

notified under sub-section (1), at such rates as may be prescribed, and

different rates may be prescribed for different societies or classes of societies.

154B-7.

Subject to the provisions of this Act, in case of a housing

society, no transfer of share or interest of a Member or the occupancy right,

except the transfer of his heir or a nominee, shall be effective unless,–

(a) the dues of housing society are paid ;

(b) the transferee applies and acquires Membership of the co-

operative housing society in due course of time :

Provided that, the transfer of share or interest in respect of lease

hold properties shall be governed by the terms of the lease, which are

not inconsistent with lease of land to the co-operative housing society

or with lease by housing society to its Members.

Explanation.— For the purpose of this section, occupancy right shall not

include right of a tenant or a licensee on leave and license basis.

Associate,

Joint or

provisional

Member.

Limit on

Membership.

Co-operative

education and

training to

Members, etc.

Restriction on

transfer of

share or

interest of a

Member.

8

¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

154B-8.

(1) Every Member of a society shall be entitle to inspect free

of cost at the society’s office during office hours or any time fixed for the

purpose by the society, copy of the bye-laws, all the records and books of

accounts and entire correspondence of society excluding personal information

of other Members and the correspondence between them and society.

(2) A society shall furnish to a Member, on request in writing and on

payment of such fees at such rate as may be decided by the Registrar, from

time to time, the copies of any documents mentioned in the foregoing sub-

section within one month from the date of payment of such fees.

154B-9.

When any question arises in respect of a Membership of a

person as to whether he has been duly admitted to the Membership of society

or has been admitted in violation of the provisions of this Act, rules and bye-

laws, the Registrar suo motu or on an application shall decide such question

within three months from the date of application and if he is satisfied that the

person has been admitted as Member in violation of provisions of this Act, rules

and bye-laws, pass an order to remove such person from Membership, but

no such order adverse to any such Member shall be given without giving him

an opportunity of being heard.

154B-10.

(1) A Member shall be entitle to exercise such rights as

provided under this Act, rules and bye-laws.

(2) Every Member of a housing society, whether registered before or

after the commencement of the Maharashtra Co-operative Societies (Third

Amendment) Ordinance, 2018, to whom plot of land or dwelling units have

been allotted, shall be issued certificate of allotment by the co-operative

housing society under its seal and signature in such form as may be

prescribed.

Subject to the provisions of the Transfer of Property Act, 1882 or the

Registration Act, 1908, any allotment (including re-allotment), of a plot of land

or dwelling unit in a building of a co-operative housing society to its Member

as per terms of allotment shall entitle such Member to hold such plot of land

or dwelling unit with such title, right and interest, as the case may be.

(3) Except when there is a contract to the contrary, a Member of co-

operative housing society shall not be entitle to any title or interest in any plot

of land or dwelling unit in a building of a co-operative housing society until he

has made such payment as may be specified by the co-operative housing

society towards the cost of such plot of land or, construction of such dwelling

unit, as the case may be, to the co-operative housing society.

(4) No Member shall be eligible for being appointed, nominated, elected,

co-opted or for being a Member of a Committee, if he is a defaulter of the

society.

(5) (i) It shall be the duty of the Member of the society to pay the dues

of the society within time as decided by society in its general meeting.

(ii) Member shall vacate the flat when required for redevelopment of the

building or buildings of the society as decided in its general meeting.

(iii) Member shall perform his duties as provided in this Act, rules and

bye-laws.

154B-11.

(1) No Member of society shall have more than one vote in

its affairs :

Provided that, every right to vote shall be exercised personally :

Provided further that, in the case of an equality of votes, the Chairman

shall have a casting vote in the meeting of a society.

Rights of

Members to

inspect the

documents.

Removal of a

Member.

Rights and

duties of

Member.

Mah.

Ord.

XXV of

2018.

16 of

1908.

4 of

1882.

Voting rights

of Member.

¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

9

(2) The Associate Member shall have right to vote with prior written

consent of a Member but shall not have right to contest the election to the

Committee.

(3) The provisional Member shall have right to vote.

(4) In case of joint Member the person whose name stands first in the

share certificate, shall have right to vote. In his absence, the person whose

name stands second, and in the absence of both, the person whose name

stands next and likewise, who is present and who is not a minor, shall have

right to vote.

(5) In case of federal society, authorised Member of Federal society shall

have right to vote.

(6) In case of company or firm or any other body corporate or local

authority or any legal body constituted under any law for the time being in

force, the authorised director or person or any one of the partners as appointed

by the firm, shall have right to vote.

154B-12.

A Member may transfer his share, right, title and interest of

his property in the society by way of registered document by following the

due procedure as provided in the rules or bye-laws.

154B-13.

On the death of a Member of a society, the society shall

transfer share, right, title and interest in the property of the deceased Member

in the society to a person or persons on the basis of testamentary documents

or succession certificate or legal heirship certificate or document of family

arrangement executed by the persons, who are entitled to inherit the property

of the deceased Member or to a person duly nominated in accordance with

the rules :

Provided that, society shall admit nominee as a provisional Member after

the death of a Member till legal heir or heirs or a person who is entitled to the

flat and shares in accordance with succession Act or under will or testamentary

document are admitted as Member in place of such deceased Member :

Provided further that, if no person has been so nominated, society shall

admit such person as provisional Member as may appear to the Committee

to be the heir or legal representative of the deceased Member in the manner

as may be prescribed.

154B-14.

A society shall have a charge upon share and interest of a

Member or past Member or deceased Member to the extent of dues payable

by such Member to the society.

154B-15.

Every society shall create such funds as may be prescribed

and also such other funds as it may, from time to time, decide.

154B-16.

Every society shall levy the charges as prescribed towards

its such funds created under section 154B-15.

154B-17.

A society shall invest or deposit its funds in one or more of

the following :—

(a) in a District Central Co-operative Bank, the State Co-operative

Bank, having awarded at least “A” Audit Class in last three consecutive

years, if no such Central Co-operative Bank is available in district, then

any Nationalised Bank ;

Transfer of

share, right,

title and

interest.

Transfer of

interest on

death of a

Member.

Charge of

society in

respect of

share and

interest of

Member.

Creation of

funds.

Levy of

charges by

the society.

Investment of

funds.

¦ÉÉMÉ +É`ö---142--2

10

¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

(b) in any of the securities specified in section 20 of the Indian Trusts

Act, 1882 ;

(c) in the shares, or security bonds, or debentures, issued by any

other society with limited liability ;

(d) in any other mode permitted by the rules, or by general or special

order issued in that behalf by the State Government.

154B-18.

Funds mentioned in foregoing sections shall be utilized for

the purpose as may be specified in bye-laws of the society :

Provided that, the corpus fund may be utilized for the purpose as may

be decided in the general meeting of the society.

154B-19.

(1) Committee shall consist of such number of Members as

may be decided by the State Government by notification or special order, from

time to time.

(2) The Committee of the society shall stand constituted on the date of

declaration of result of election to the Committee by returning officer where

more than two third of the Committee Members of the strength as may be

decided by the Registrar, from time to time, have been elected :

Provided that, in case two third is a fraction, it shall be rounded off to

next higher number.

(3) The term of the office of the elected Members of the Committee and

its office bearers shall be five years from the date of first meeting of newly

constituted Committee and the term of the office bearers shall be co-terminus

with the term of the Committee.

(4) Any casual vacancy in the Committee may be filled by co-option and

term of the co-opted Member shall be co-terminus with the term of the

Committee.

154B-20.

(1) Notwithstanding anything contained in this Act or in the

rules made thereunder or in any bye-laws of any society, on the Committee

of such society or class of societies as the State Government may, by general

or special order, direct, three seats shall be reserved for,—

(a) one Member belonging to the Scheduled Castes or Scheduled

Tribes ;

(b) one Member belonging to the Other Backward Classes ; and

(c) one for the Member belonging to the De-notified Tribes (Vimukta

Jatis), Nomadic Tribes or Special Backward Classes.

(2) Any individual Member of the society, or any elected Member of the

Committee or a Member society or any Member of the Committee of the

Member society, whether elected, co-opted or appointed under this section,

belonging to the Scheduled Castes or Scheduled Tribes, or Other Backward

Classes or De-notified Tribes (Vimukta Jatis) or Nomadic Tribes or Special

Backward Classes, shall be eligible to contest the election to a reserved seat

and every person who is entitled to vote at the election to the Committee shall

be entitled to vote at the election to any such reserved seat.

Explanation.—For the purposes of this section,—

(a) a general or special order, if any, issued by the State

Government under section 73-B as it existed before the date of

commencement of the Maharashtra Co-operative Societies (Amendment)

Act, 1983, shall be deemed to have been issued under sub-section (1)

2 of

1882.

Utilization of

funds.

Constitution of

Committee.

Reservation of

certain seat

on Committee

of societies

and election

thereto.

Mah.

XLV of

1983.

¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

11

of this section and shall continue to be in force until duly repealed or

amended ;

(b) the expression “Scheduled Castes” includes “Nav-Boudhas” ;

(c) the expression “Other Backward Classes, De-notified Tribes

(Vimukta Jatis) and Nomadic Tribes and Special Backward Classes”

means such classes or parts of or groups within such classes as are

declared, from time to time, by the State government to be Other

Backward Classes, De-notified Tribes (Vimukta Jatis) and Nomadic

Tribes and Special Backward Classes.

154B-21.

(1) Notwithstanding anything contained in this Act or in the

rules made thereunder, or in the by-laws of any society, there shall be two

seats reserved for women on the Committee of each society consisting of

individuals as Members and having Members from such class or category of

persons, to represent the women Members.

(2) Any individual woman Member of the society, or any woman Member

of the Committee of a Member-society, whether elected, co-opted or

nominated, shall be eligible to contest the election to the seat reserved under

sub-section (1).

(3) Nothing in this section shall apply to a Committee of a society

exclusively of women Members.

154B-22. Till the time the Members of reserved categories are not

available or elected to fill the reserved seats as provided in sections 154B-

20 and 154B-21, such reserved seats shall not be counted for strength of

managing Committee for composition of quorum for conducting its meetings.

154B-23. (1) Without prejudice to the other provisions of this Act or the

rules made thereunder, in relation to the disqualification of being a Member of

the Committee, no person shall be eligible to be appointed, nominated, elected,

co-opted for being a Member of Committee,—

(i) if he is a defaulter of any society, or

(ii) if he carries on business of letting, subletting and selling of flats

in the housing society of which he is a Member, or

(iii) if he has been held responsible under section 154 B-8(2) or 88

or for payment of cost of enquiry under section 85, or

(iv) if he has incurred any disqualification under this Act or the rules

made thereunder, or

(v) if he incurs any of the disqualification similar to that mentioned

in the provisions of clause (vii), (viii) or (ix) of clause (f) of sub-section (1)

of section 73CA shall apply mutatis mutandis.

(2) A Member, who has incurred any disqualification under sub-section (1),

shall cease to be a Member of Committee and his seat shall thereupon be

deemed to be vacant.

(3) A Member of a Committee who has ceased to be a Member thereof,

on account of having incurred disqualification under clause (ii), (iii), (iv) or (v)

of sub-section (1), shall not be eligible to be re-elected, re-co-opted or re-

nominated as a Member of Committee for five years from the date on which

he or she has so ceased to be a Member of the Committee.

(4) A Member of a Committee who has ceased to be a Member thereof,

on account of having incurred disqualification other than disqualifications,

referred to in sub-section (3), shall, unless otherwise specifically provided in

this Act, be eligible to be re-elected, re-co-opted or re-nominated as a Member

of Committee as soon as such disqualification ceases to exist.

Reservation

for women.

General

provisions for

strength of the

Committee for

quorum.

Disqualification

of Committee

and its

Members.

¦ÉÉMÉ +É`ö---142--3

12

¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

154B-24.

(1) An officer who holds office by virtue of his election to that

office shall cease to be such officer if a motion of no confidence is passed at

a meeting of a Committee by not less than two third majority of the Committee

Members who are present and entitled to vote at such meeting and his office

shall thereupon be deemed to be vacant.

(2) The provisions of sub-sections (2) to (7) of section 73ID shall apply

mutatis mutandis to such motion.

154B-25.

Management of housing society, housing complex, housing

association or housing federation shall be carried out in the manner as may

be prescribed.

154B-26.

(1) Except when there is a contract to the contrary, allotment

of plots of land, flats, house or other dwelling units shall be made by the

Committee of a housing society to the Members strictly on the basis of draw

of lots in respect of such Members whose enrollment as a Member of a

housing society is found proper in accordance with provisions of this Act and

rules framed thereunder and the bye-laws of a housing society duly registered.

(2) Every Member of a housing society, whether registered before or

after the commencement of the Maharashtra Co-operative Societies (Third

Amendment) Ordinance, 2018, to whom plots, flats, houses or other dwelling

units have been allotted, shall be issued certificate of allotment by the co-

operative housing society under its seal and signature in such form, on such

terms and on such conditions as may be prescribed. Such certificate shall

be issued forthwith when all the dues as may be determined and notified by

the housing society are duly paid by the Member.

154B-27.

(1) If any society is required to take action for performance

of its obligations, responsibilities and duties as provided in this Act, rules and

bye-laws or to execute the orders issued by the State Government or by the

Registrar, from time to time, and such actions are not taken or such orders

are not executed, the Registrar suo motu or on an application may issue

directions to take such action or actions or execute such orders.

(2) Where any society is required to take any action or to execute the

orders as provided in the foregoing sub-section and such action is not taken

or orders are not executed,—

(i) within the time provided in this Act, rules or the bye-laws or in

the order, as the case may be ;

(ii) where no time is provided, within such time having regard to the

nature and extent of the action to be taken as the Registrar may specify

by notice in writing,

the Registrar may himself or through a person authorized by him take such

action or execute such order at the expense of the society and such expenses

shall be recoverable from the responsible officer of the society as if it were

arrears of land revenue :

Provided that, before issuing an order or direction and fixing the

responsibility of payment of expenses an opportunity of being heard shall be

given to the officer of society to whom the Registrar considers to be responsible

for not taking such action or not executing such orders.

Motion of no

confidence

against

officers of

society.

Management

of housing

society,

housing

complex,

housing

association or

housing

federation.

Allotment of

plots, flats or

houses

through draw

of lots.

Obligation of

society to take

action and

Registrar’s

powers to

enforce.

Mah.

Ord.

XXV of

2018.

¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

13

(3) The Application submitted by a Member to the society for the

certificate or certificates for sale of his flat or mortgaging it for obtaining loan

or for any other purpose shall be decided by the society within a period of

thirty days from the date of receipt of such application and decision thereon

shall be intimated to him within a period of fifteen days. If society fails to decide

and intimate such application within such time or if such application is rejected,

the Member may file appeal to the Registrar for appropriate relief within a period

of three months from date of submission of application to the society or within

a period of two months from the date of decision of rejection by society,

whichever is earlier :

Provided that, every such appeal shall be disposed of by the Registrar

within a period of sixty days from the date of its receipt after giving opportunity

of being heard to all the parties.

154B-28.

(1) Notwithstanding anything contained in this Act but subject

the provisions of this section, the State Government may, by notification in

the Official Gazette, notify any society as a Housing Federation for the areas

specified in the notification.

(2) Every society may affiliate to notified Housing Federation of the area

wherein society is located.

(3) Every notified Housing Federation shall create the Education and

Training Fund.

(4) Every housing society in the areas for which Housing Federation is

notified under sub-section (1) shall contribute to the Education and Training

Fund maintained by the notified Housing Federation at the rate as may be

decided by the State Government by special or general order, from time to

time.

(5) Every notified Housing Federation shall utilise Education and Training

Fund for,—

(i) arranging seminars on issues related to housing societies ;

(ii) imparting training to the persons to be appointed as managers

or special recovery officers and to the Members and officers of housing

societies ;

(iii) any other purpose as may be notified by the Government from

time to time.

(6) (i) Every notified Housing Federation shall prepare, declare and

maintain the panel of managers and special recovery officers as per the

guidelines issued by the Registrar, from time to time.

(ii) The Registrar suo motu or on an application may remove such person

from the panel maintained by Federation who,—

(a) has doubtful integrity, or

(b) has been convicted, or

(c) has been declared mentally incapable, or

(d) has misused his position while rendering his services, or

(e) failed to discharge his duties :

Provided that, such person shall not be removed without giving him

a reasonable opportunity of being heard.

(iii) Required qualifications for the Auditors, Managers and Special

Recovery Officers shall be decided by the Registrar, from time to time.

Housing

Federations,

their powers

and duties.

¦ÉÉMÉ +É`ö---142--3+

14

¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

(iv) Every notified Housing Federation shall apply to the Registrar for

delegation of necessary powers to the persons so trained as special recovery

officer for recovery of the dues of the affiliated societies.

(8) Every society may,—

(i) appoint Special Recovery Officer from such panel for execution

of Recovery Certificates or Recovery Orders or decrees ; and

(ii) appoint manager from such panel for maintaining records and

books of accounts of the society.

(9) Remuneration of Special Recovery Officers shall be decided by the

Registrar, from time to time.

154B-29.

(1) Notwithstanding anything contained in sections 91, 93

and 98, on an application made by a housing society for the recovery of its

dues or for the recovery of its repairs and maintenance, construction cost

and service charges, and on the housing society concerned furnishing a

statement of accounts and any other documents as may be prescribed, in

respect of the arrears, the Registrar may, after making such inquiries as he

deems fit, grant a certificate for the recovery of the amount stated therein, to

be due as arrears.

Explanation.— For the purposes of this sub-section, the expression

“repairs and maintenance and service charges” means such charges as are

so specified in the by-laws of the concerned housing society.

(2) Where the Registrar is satisfied that the concerned society has failed

to take action under the foregoing sub-section in respect of any amount due

as arrears, the Registrar may, on his motion, after making such inquiries as

he deems fit, grant a certificate for the recovery of the amount stated therein,

to be due as arrears and such a certificate shall be deemed to have been

issued as if on an application made by the society concerned.

(3) A certificate granted by the Registrar under sub-section (1) or (2)

shall be final and a conclusive proof of the arrears stated to be due therein,

and the same shall be recoverable according to the law for the time being in

force, as arrears of land revenue. A revision shall lie against such order or

grant of certificate, in the manner laid down under section 154 and such

certificate shall not be liable to be questioned in any court.

(4) It shall be lawful for the Collector and the Registrar to take

precautionary measures in accordance with the provisions of the Maharashtra

Land Revenue Code, 1966 or any law or provisions corresponding thereto

for the time being in force, until the arrears due to the concerned society,

together with interest and any incidental charges incurred in the recovery of

such arrears, are paid, or security for payment of such arrears is furnished

to the satisfaction of the Registrar.

154B-30.

In case of a house building society where all plots have been

allotted to its Members and basic civic service have been transferred to the

local civic body, the Registrar shall, after giving sixty days notice to the

Committee, initiate winding up proceedings and such co-operative house

building society shall be wound up :

Provided that, in the case of a co-operative house building society where

land has been allotted on perpetual lease, before passing winding up orders

the prior consent of the lessor shall be obtained :

Provided further that, where a house building co-operative society has

been provided land to run a club, school, community center, dispensary or

community facility, etc., by the lessor, the above provision shall not apply to

such co-operative house building society, if the general body decides to run

these activities for the benefit of the Members and the residence.

Recovery of

certain sums

and arrears

due to

housing

societies as

arrears of

land revenue.

House

building

co-operative

societies

which have

achieved their

objectives.

Mah.

XLI of

1966.

¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

15

154B-31.

(1) The rules, orders, by-laws, circulars or instruments

having the force of law and existing on the date of commencement of the

Maharashtra Co-operative Societies (Third Amendment) Ordinance, 2018,

which are applicable to the societies governed by this Chapter on the date of

such commencement, shall L, until expressly repealed, modified or amended,

continue to apply to the said societies.

(2) Every proceedings by or against the society and pending before any

Court, tribunal or authority on the said date of commencement shall be

continued and decided as if the provisions of this Chapter are not made

applicable in respect of such societies.”.

8.

(1) If any difficulty arises in giving effect to the provisions of the principal

Act, as amended by this Ordinance, the State Government may, as occasion

arises, by an order published in the Official Gazette, do anything not inconsistent

with the provisions of the principal Act, as amended by this Ordinance which

appears to it to be necessary or expedient for the purpose of removing the difficulty.

(2) Every order made under sub-section (1) shall be laid, as soon as may

be, after it is made, before each house of the State Legislature.

Power to

remove

difficulty.

Saving as to

existing rules,

orders,

by-laws, etc.

Mah.

Ord.

XXV of

2018.

16

¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

STATEMENT

The Maharashtra Co-operative Societies Act, 1960 (Mah. XXIV of 1961),

governs all the co-operative societies having different objects, classifications and

sub-classifications. The provisions of the said Act regulates the management

aspect of the co-operative societies and protects the interest of its members.

Among all co-operative societies governed by the provisions of the said Act,

the co-operative housing societies are largest in number being around 50% of the

total societies in the State. At present, even though the affairs of the co-operative

housing societies are distinct and peculiar, they are regulated in the same manner

as per the general provisions of the said Act, as applicable for all other co-operative

societies, such as Co-operative Sugar Factories, District Central Co-operative

Banks, Co-operative Spinning Mills, etc.

The uniform application of the provisions of the said Act, despite of the

uniqueness of the co-operative housing societies, is creating problems and is

inadequate to address all the affairs of the co-operative housing societies. This

leads to large number of disputes and litigation and thus creates hurdles in smooth

functioning of the co-operative housing societies. In this view of the scenario, an

urgent need is felt to provide a separate Chapter to cater to the specific

requirements of the co-operative housing societies. Therefore a separate Chapter

providing for regulation of co-operative housing societies, is being proposed to be

inserted in the said Act.

The proposed Chapter, among other things, would cater primarily to the issues

of the co-operative housing societies viz. members and their rights, management

of societies, audit, enquiry and inspection, settlement of disputes, liquidation,

elections of societies, recovery of claims, etc.

2.

In the present dispensation, considerable delay is caused in approval and

appointment of Returning Officer and Assistant Returning Officer for conducting

elections of co-operative housing societies. To avoid this delay and to ensure timely

elections, it is proposed to amend sub-section (11) of section 73CB of the said

Act, suitably, by taking the power to the State Government to prescribe by rules

the procedure for speedy holding of such elections.

3.

The provisions related to recovery of dues or arrears from members are

proposed to be deleted from the general provisions meant for all societies in

sub-section (1) of section 101 so as to provide relevant provisions in this regard

in the proposed Chapter XIIIB.

4.

The section 152 is proposed to be amended suitably, for providing appeals

against the orders passed under sub-sections (1) and (3) of section 154B of the

proposed Chapter.

The incorporation of the above-mentioned provisions alongwith other proposed

provisions, would help the members of the societies in the understanding of their

rights and liabilities, thereby enabling a more congenial governance environment

within the co-operative housing societies. The clarity in the various proposed

provisions would minimize the disputes and result in enhancing the efficiency of

the authorities dealing with the affairs of the co-operative housing societies. Similarly,

the simplified mechanism proposed for elections would drastically reduce the

election related disputes in the otherwise resource crunched co-operative housing

societies.

¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ, +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, +ÉìC]õÉä¤É®ú 30, 2018/EòÉÌiÉEò 8, ¶ÉEäò 1940

17

5.

As both Houses of the State Legislature are not in session and the

Governor of Maharashtra is satisfied that circumstances exist which render it

necessary for him to take immediate action further to amend the Maharashtra

Co-operative Societies Act, 1960 (Mah. XXIV of 1961), for the purposes aforesaid,

this Ordinance is promulgated.

Mumbai,

CH. VIDYASAGAR RAO,

dated the 29th October 2018.

Governor of Maharashtra.

By order and in the name of the Governor of Maharashtra,

ABHA SHUKLA,

Principal Secretary to Government.

ON BEHALF OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATION, PRINTED AND PUBLISHED BY I/C DIRECTOR SHRI MANOHAR SHANKAR

GAIKWAD, PRINTED AT GOVERNMENT CENTRAL PRESS, 21-A, NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004 AND PUBLISHED AT

DIRECTORATE OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATIONS, 21-A, NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004.

EDITOR : I/C DIRECTOR SHRI MANOHAR SHANKAR GAIKWAD.