1. Physical Site Survey

This is an extensive Survey conducted professionally by Licensed Surveyors that will give us an exact idea as to the physical extents and dimensions of the plot under reference. There are several other base information’s like presence of trees, access, structures, service etc. that shall be marked up on the Survey Layout giving us a fair idea of the existing status of the plot.

2. Individual Apartment Survey

The Society comprises of several apartments, over a period of time individual users make several modifications, some of these modifications could be classified as Legally permissible and some may not, based on the basic typology one Apartment of each typology that has undergone minimum deviation from the original approved planning would be suchrveyed and measured in detail. This exercise would give all individual members a fair idea of their genuine Carpet Areas.

3. Entire Building Internal Survey

There are several instances where there is no available record of the approved plan’s, in such an event the Entire building will be surveyed in detail so as to ascertain the Carpet Areas of each individual member.

4. Total Area Analysis

• Carpet Area Statement.
• Built Up Area Statement.
• FSI Statement.

• Ownership
• Conveyance & Deemed Conveyance
• Individual Agreements
• Society Matters
• Memorandum of Understanding. (M.O.U.)
• Development Agreement

1. Ownership

Mumbai being a Metro City has already seen one phase of Development, what the City is going thru today is mostly what we know as Re-Development, where there is already an existing structure on site that needs to be broken and an new structure re-build on the same promises. It is in this process that establishment of the ownership of the Property is paramount. Establishment of ownership is ascertained by ensuring that the P.R.Card (for properties within Mumbai Municipal Corporation limits) reflect the name of the present owners, be this the Society, however since the property is already developed once there is a great chance that this card reflecting either the name of the previous owner or developer. Thus there is a technical glitch in the clarity of such an ascertainment. To Clarify this and to establish the true present ownership of the plot is covered under this process.

2. Conveyance & Deemed Conveyance

Further to the process of ascertaining the rightful Owners of the property if it is understood that the Name of the rightful owners of the property doesn't reflect on the Property Registration Card then it is now very important to put into action the process of getting the same done. To transfer the rightful owner of the property’s name onto the Property registration Card is called Conveyance. This is either done in a regular manner when the parties involved are cooperative and or by a method called Deemed Conveyance when the persons involved are non-cooperative or not traceable.

a. Regular Conveyance

Conveyance is a Transfer the Title of Land and Building by the Promoter/Landowner in favor of Housing Society by execution of Conveyance Deed. As per the provisions contemplated in section 11 of Maharashtra Ownership Flat Act 1963, Conveyance is the Right of the Co-operative Housing Society and the Duty of the Property Developer/Promoter to be executed within 4 months from the date of Registration of the Co-Operative Society. After the Land and Building is conveyed in favor of Co-operative Housing Society and the Title of the property is fully and finally recorded in the Property Card and other revenue records then only the property becomes completely free and marketable.

b. Deemed Conveyance

The Promoter (Builder/ Developer) is legally required to convey the land and the building within 4 months of formation to the society or any legal body of the flat purchasers. However, it has been the experience that many promoters (Builders/Developers) have not conveyed the land and building to the legal bodies. Therefore, government has amended the Maharashtra Ownership Flats Act, 1963 (MOFA) and provided for the deemed conveyance in favor of the legal bodies. Under the provision, deemed conveyance means after the expiry of 4 months of formation of the legal body, the land and building is deemed to have been conveyed to the legal body and to bring the same in the revenue record, a Competent Authority has been designated authorized officer to execute the conveyance deed in favor of the society and execute on behalf of non co-operative builder or the land owner. Getting the title of land and building by adopting the above procedure is known as deemed conveyance.

c. Process of Deemed Conveyance

The papers required for doing Deemed Conveyance are as follows:
Application Form 7 to the District Deputy Registrar, Co-operative Societies, affixing a court fee stamp of Rs 2,000 on the application Affidavit made before the Notary or Executive Magistrate True copy of the Society Registration Certificate Stamp duty paid and registered agreement copies of all individual flats/ shops List of members in prescribed format Index-II for each member as issued by the Sub-Registrar of Assurance Copy of the Development Agreement between land owner and builder Copy of the legal notice issued to the original owner or developer for doing conveyance Details of corresponding address telephone number etc. of the original owner or developer Draft conveyance deed/ Declaration proposed to be executed in favor of the applicant

Documents to be obtained from City Survey Office, for submission:
City (CTS) Survey plan Property Registration Card or 7/12 extract of the land Village form 6 (Mutation entries from Revenue Office)

Documents to be obtained from the Collector’s Office, for submission:
Copy of the Non-Agricultural Order Certificate of the exclusion from Land Ceiling Act (ULC) Certificate

Documents to be obtained from the concerned Municipal Authority Office, for submission:
Copy of the approved plan IOD Commencement Certificate Building Completion certificate Occupation Certificate (not compulsory) Property taxes paid Location plan of the building

Documents to be obtained from other professionals, for submission:
Search Report of the land issued by the Solicitor/Advocate Title Certificate of the Property issued by the Solicitor/Advocate (Search by minimum for last 30 years) Land Measurement Map/ Architect’s Certificate (layout plan of the plot) Certified copy from Panel Architect about the utilization of full FSI or FSI if any left in respect of the said property /Plot.

Procedure after submission of all the above documents to the Sub-Registrar:
After spot visit by authorized government officials, a notice would be sent to the builder Builder can submit written argument, before a formal hearing is held Public notice has to be published in 2 newspapers, of which one shall be in Marathi. If there is no response or objection to the notice, then speaking order and certificate of deemed conveyance is issued to the society Once the Deemed Conveyance order with Conveyance deed is executed, the index II has to be obtained and submitted to the Talati office or City Survey office to incorporate the name of the society in the 7/12 extracts or in the property card as the case may be and/ or both. If society did not have an OC while applying for deemed conveyance, it is compulsory for the society to obtain an OC from BMC, after the deemed conveyance is obtained.

3. Individual Agreements

Mumbai being a Metro City has already seen one phase of Development, what the City is going thru today is mostly what we know as Re-Development, where there is already an existing structure on site that needs to be broken and an new structure re-build on the same promises. Given this it is imperative that the existing flats in the building will have an executed sale agreement with the then Developer. We at Society Consultants prepare a summary of the important mentions in these agreements and help the members understand the disparity if any between what the members are using as compared to what was mentioned in the agreements. These may vary from member to member holding the same typical flats in the same building, however it is important to come to some common grounds of establishing what the members rightful holding is. This process explains the area and user disparities between agreements and actual holding and giving the entire Society an understanding and resolving disputes arising because of the same.

4. Society Matters

Most of the holdings in Mumbai City are based on the Structure of a Cooperative Housing Society. There are several issues that crop up in a Society and need to be resolved before the Society goes in for Re-Development. We at Society Consultants take efforts to sit across the table and resolve these issues to make way for a smother development process. Some of the issues that may crop up are enumerated as below: Transfer and Allotment Issues of Flats. Unpaid Property Taxes both pre and post transfer of flats. Unpaid Society Maintenance dues. Unpaid contributions to the Sinking Fund or Corpus of the Society. Allotment / Ownership disputes for Parking or other common amenities of the building like Terraces / decks etc.

5. Memorandum of Understanding. (M.O.U.)

One of the most important stages in the process of Development before a Development Agreement is executed is the Memorandum of Understanding. (M.O.U.). It is a marker for the Society reaching a common consensus, defining common grounds on which a proper legal agreement can be executed. It is initially used in cases where parties intend to imply legal commitments pending the execution of final agreement. For an MOU to have legal effect, the essential terms must be sufficiently clear and certain. There are several important points that are to be specifies and enumerated in such a document, we at Society Consultants have our Legal Team analyze and help the Society in the Drafting and execution of this M.O.U.

6. Development Agreement

DEVELOPMENT AGREEMENT (DA): After the terms of redevelopment are settled and the Developer is selected, the Society receives a Draft of Development Agreement from the Developer specifying therein, all the agreed terms with the Society. This must be compared to the Memorandum of Understanding previously signed to make sure that all the points mentioned in the same are covered. The Development Agreement is executed between the Society and the Developer to construct the new building/s on the land owned by the Society by using the available Base FSI, Government Premiums, T.D.R., Fungible Premiums, CBD potential etc. and provide permanent alternate accommodation in the new building with additional area to the existing members free of cost and also pay rent, corpus, shifting charges etc. as a consideration for allowing the Developer to carry out the redevelopment on the plot of land owned by the Society. The Development Agreement records all the financial, legal, technical and general terms agreed between the Developer and the Society. Through this Document, the Development Rights are assigned by the Society to the Developer. The Developer acts as the Constituted Attorney to the Society and executes the project. We at Society Consultants review, compare and analyze this document to its minutest detail keeping the Society's interest paramount.

1. Property Card & D.P. Remarks

The P.R. Card is like the identity card of the Ownership of the Property. It has been observed in several Societies over the years that the Developer who steps in as the promoter fails to transfer the ownership of the property back to the Society. Thus on several occasions the P.R. Card reflects either the name of the previous owner of the property or the Developer, in either case it is extremely important that the one establishes thru legal and proper means on record that the ownership of the property truly vests with the Society.
D.P.Remarks are the Development Plan remarks for the plot under consideration. The Development Plan for Mumbai was revised and is in effect, the same is know as the Development Control and Planning Regulations 2034 (DCPR 2034). They have issued Development plans for the entire city and their remarks are for Zone Classification, User Classification, D.P. Roads, Road Line Remarks etc. All this information is very vital for the future planning of any project.

2. Existing MMC File Extract

In this process, efforts are made to trace the existing MMC file. Once obtained there is a very clear picture of the Official Records of the Built Form. This gives clarity for issues like illegal extensions, classification of elevation features like flowerbeds, balconies etc., matters of set-back for Roads, Reservations on the Property, uses of additional FSI on the basis of TDR, origination and generation of TDR used on the Existing Building and several other issues that influence the Project in its future potential for re-development.
As of today there are several instances that the Existing MMC File is either missing, lost, destroyed or damaged, in this event we step in and recreate the existing MMC Proposal the way it should have been so that we may be able to run a proper MMC Analysis for the proposal. We also help in extracting as many documents as possible from other concerned departments.

3. D.R.C. Extract

It has been since 19___ that the concept of T.D.R. (Transfer of Development Rights)has been introduced into the Mumbai Suburbs. Over the years Lakhs of Feet of this area has been generated and used both fully and partly by Developers onto the Societies that they develop. This T.D.R. area weather fully or partially loaded is the complete and whole holding and rights of the Society. Thus when the Society goes in for Re-Development and has consumed say 40% floating FSI or TDR on the plot then they can re-use the same in the future proposal’s. This point is not very well understood by most people and ignored in the process of Re-Development. This TDR is loaded by the Developer and the Society does not have any record of the Generation or Utilization of the same. We help the Society in re-gaining these documents and ascertain the applicability and re-usability of this asset. This document is called as a Development Rights Certificate (D.R.C.)

4. Effect of DCPR 2034

The D.P. 2034 has had a very significant impact on most of the city. This part of our analysis offers the society an in-depth study and report on how the new D.P. (Development Plan) for Mumbai will effect the plot under reference. For instance, widening of Roads, new reservations being added onto plots, addition of Roads, etc. All these have a significant impact on the scope of re-development. We bring all these points to the table that will directly or indirectly influence the re-development process so that they can be properly classified and quantified in the Basic Data analysis study that we conduct next.

1. Society Records & Registers

In this process we independently verify the Buildings Municipal Application File to check for certain important documents to ascertain the authenticity of the Building and thus the Flat/Property under consideration.
Here also there are Two Situations.

1. The project is supposedly Complete.
2. The project is under construction.

Both these situations requires a different due diligence with a varying time period. For a supposedly completed project the Documents are to be verified in one go and we can ascertain the authenticity of the property for you. However if the property to be purchased is in an ongoing project the due diligence time period and verification period will extend as long as the project takes to reach it’s Building Completion Certification Stage. (B.C.C.)

The MC of Society shall prepare & maintain all the records, book and files as mentioned in the Rule No. 65 in MCS,Rule1961 and as per Bye-Laws No. 142,143. It is duty & responsibility of Secretary to keep up to date all records, book and files of Society as per Bye-Laws No. 144. The Society has to keep the following Register, records, book and file Permanently and keep update.

• “I” Register
• “J” Register
• Cash Book
• General Ledger
• Personal Ledger
• Property Register
• Share Register
• Sinking Fund Register
• Investment Register
• Nomination Register
• Mortgage Register
• Minutes Book of Meeting of MC
• Minutes Book of Meeting of AGM/SGM
• Audit Report File
• “O” Form File
• Structural Audit Report File
• Application for Membership / Associate Membership / Nominal Membership file[each separate files]
• Approved Plans of Construction and correspondence thereon
• All permission like CC, OC, Society Registration Certificate, NA Order Copy. etc.
• Property Tax , NA Tax, Water Charges, Electric Charges Bill and Payment Receipt [each separate files]
• All Agreement of Flats from 1st Owner [who purchase flat from Builder] to Current/ Last Owner for each Flats in Society.
• All Land related Document Like 7/12, C.T.S. Extract, Development Agreement, POA of Land etc.
• Bank Passbook, Cheque Book ,Fix Deposited etc.
• All Contract Deeds with papers connected thereto
• Conveyance Deed and correspondence about Conveyance of the Property.

It is responsibility of Secretary of Outgoing Committee to Hand Over the Office of Society and all the records, book and files by making List to New Committee along with Chairman and other Member of MC and take sign of New Committee on List If Outgoing Committee not Hand Over the Office of Society and all the records, book and files to New Committee then Registrar of Society take action against the committee U/S 146 & 147 MCS ACT 1960. Registrar give order against Outgoing Committee for Disqualified for re-election of Society. All the records, book and files shall keep in the Office of Society. If Office of Society is not available the MC has to pass resolution where to keep this all the records, book and files If Member of Society has to examine the any the records, book and files OR want copies of the same U/S 32 of MCS ACT 1960 and as per Bye-Laws No. 172 shall pay coping fees at the rates mentioned against them.

2. Property Tax and Outgoings Compliances

In this process we independently verify the Buildings Municipal Application File to check for certain important documents to ascertain the authenticity of the Building and thus the Flat/Property under consideration.
Here also there are Two Situations.

1. The project is supposedly Complete.
2. The project is under construction.

Both these situations requires a different due diligence with a varying time period. For a supposedly completed project the Documents are to be verified in one go and we can ascertain the authenticity of the property for you. However if the property to be purchased is in an ongoing project the due diligence time period and verification period will extend as long as the project takes to reach it’s Building Completion Certification Stage. (B.C.C.)

Property Tax is collected by the Municipal Corporation of Greater Mumbai. The BMC uses the Capital Value System (CVS) to calculate property tax. This CVS is based on the market value of the property.

Capital value is calculated as follows: Market value of the property x Total carpet area x Weight for construction type x Weight for age of the building The market value can be ascertained using the Ready Reckoner (RR). The RR is set by the state government and is a compilation of the fair value prices for properties. You will need to check the ward/zone in which your property falls

Weights for ‘construction type’, in units: Bungalows and RCC construction – 1 unit. Other than RCC (semi-permanent /chawls) – 0.60 units. Under-construction or vacant land – 0.50 units.

Weights for ‘age of building’, in units: Properties constructed before 1945 – 0.80 units. Properties constructed between 1945 and 1985 – 0.90 units. Properties constructed after 1985 – 1 unit.

After you have ascertained the capital value, property tax is calculated as follows: Capital value of property x Current property tax rate (%) x Weight for user category Weights for ‘user category’, in units: Hotels and like businesses – 4 units. Commercial properties (shops, offices) – 3 units. Industries and factories – 2 units. Residential and charitable institutions – 1 unit.

Paying your property tax Property tax can either be paid at the BMC Help Centers, or at the Office of the Assistant Revenue Officer, or at the Citizen Facilitation Centre at all the ward offices. You can also pay the property tax online, on these websites: Municipal Corporation of Greater Mumbai (MCGM) – https://prcvs.mcgm.gov.in/ Navi Mumbai Municipal Corporation (NMMC) – https://www.nmmc.gov.in/property-tax2

After you log in to the BMC website and enter your account number, you can choose to pay your property tax half-yearly or annually. Currently, the website only accepts net banking. Once you make the payment, keep your property tax payment receipt safely. This is important, not only as a proof of payment, but also for proof of ownership of your property. Ensure that the system updates your record and no outstanding amounts are shown against your account. If there are any errors, have them corrected immediately.

* The BMC is not open to collecting Property Tax in the name of Individual Flat Owners. This reduces the complications on the Society and detaches the liability of Defaulting payers and the implications of default of such members on the entire Society.

3. Compliance Checklist for CHS

a. Compliance Checklist by Date

• Finalization of Accounts: 15th May
• Accounts to be handed over for Audit: 1st June
• Audit Completion: 31st July
• Audit Report Upload: 31st Aug
• AGM Date: 30th Sept
• Mandatory Annual Return by Society: 30th Sept
• Mandatory Return by Society about Auditor Appointment: One month from AGM or 31st Oct
• Online Audit Order Generation by Auditor: 31st Oct
• Audit Rectification Report by Society: 3 months from the date of submission of report by Auditor
• Rectification Report Upload by Auditor through Audit login: Once received from Society
• Auditor will verify following registers maintained by society

b. Statutory Register

• I Register
• J Register
• Property Register
• Share Register
• Nomination Register
• Sinking Fund Register
• Associate Membership Register
• Mortgage / Loan Register
• Managing Committee Meeting Minutes Book
• General Body Meeting Minutes Book
• Tenant Register
• Vehicle register
• Inventory / Asset Register
• Investment Register

c. Books of accounts as per by law

• Bank Register
• Cash Register
• Journal Register
• Income and Expenses Report
• Receipts & Payment Report
• Balance Sheet
• Investment Register
• Fixed Asset Register

d. Income Tax

The society needs to pay advance tax, in case its advance tax liability exceeds Rs 10,000 for a year in four installments on June 15, September 15, December 15 and March 15, in the ratio of 15 per cent, 30 per cent, 30 per cent and 25 per cent of the aggregate advance tax liability.

e.TDS

The due date for Monthly payment of tax so deducted at source is 7th of next month. Interest will be levied at 1% for every month or part of a month for delay in deduction of tax and at 1.5% for every month or part of a month for delay in remittance of tax after deduction. TDS returns are filled on quarterly basis. Due date for return filling is as under: Quarter Month Span Last Date of Filling 1st Quarter April – June 31st July 2nd Quarter July – Sept 31st Oct 3rd Quarter Oct-Dec 31st Jan 4th Quarter Jan-March 31st May Under Section 234E of Income Tax Act, you will have to pay a fine of Rs. 200 per day (two hundred) until your return is filed. You have to pay this for every day of delay until the fine amount is equal to the amount you are supposed to pay as TDS.

f. GST (Goods & Service Tax)

All housing society that exceeds 20 lakhs of revenue must obtain GST registration. However, if the monthly contribution received from its member is less than Rs. 7500, no GST is to be charged by the housing society on the monthly bill raised by the society. Further, other dues such as property tax and electricity charges, are exempt from GST and will not be included while calculating the limit of Rs. 7500. Further, if the aggregate turnover of the society is up to only Rs. 20 lakh in a financial year, then such supplies would be exempted from GST even if charges per member are more than Rs. 7500.

Compliance under GST

Society who’s Annual Turnover Crosses Rs 20 Lakhs need to be Registered and such GST Registered Housing Society need to; Issue a GST Tax Invoice to its Members
file 3 returns in a month.

GSTR-1 by 10th of following month for Outward Supply (Maintenance Charges)
GSTR-2 by 15th of following month for inward Supply (Expenses Side) and
GSTR-3 by 20th of following month for monthly consolidated return and
GSTR–9 by 31st December of the Following Year (Annual Return)

Thus in all 37 returns per year will have to be filled. It is mandatory to maintain proper Records of Supply & Expenses for a period of 72 months.

g. Electrical & Fire Audit

As per the Maharashtra Fire Prevention Act, 2006, Form “ B “ for Fire safety equipment should be submitted in local fire station twice a year (Jan & July) by the certified / licensed agency Fire Drill should be conducted twice in year Electrical and Fire Safety Audit should be done in every two year as per National Building Code

h. Lift Inspection

Once in year By PWD inspector

i. DG Return

DG returns are filled on quarterly basis. Due date for return filling is as under:

Quarter	Month Span	Last Date of Filling
1st Quarter	April – June	10TH July
2nd Quarter	July – Sept	10TH Oct
3rd Quarter	Oct-Dec	10TH Jan
4th Quarter	Jan-March	10TH May

j. Fountain license / Swimming pool license

In December every year from Pest Control Department MCGM

k. NA Tax / Lease Payment to Tahsildar / Collector Office

In December every year.

l. Education and Training

Take Training from Maharashtra Rajya Sahakari Sangh for MC members and Society members and obtain Training Certificate from them. Payment of Training can be done from Education and Training Fund

4. Re-Development By Sub-Committee

In this process we independently verify the Buildings Municipal Application File to check for certain important documents to ascertain the authenticity of the Building and thus the Flat/Property under consideration.
Here also there are Two Situations.

1. The project is supposedly Complete.
2. The project is under construction.

Both these situations requires a different due diligence with a varying time period. For a supposedly completed project the Documents are to be verified in one go and we can ascertain the authenticity of the property for you. However if the property to be purchased is in an ongoing project the due diligence time period and verification period will extend as long as the project takes to reach it’s Building Completion Certification Stage. (B.C.C.)

It is important for the Housing Societies to know the formation of any Sub-Committee like Redevelopment Committee while opting to go for redevelopment. Whenever a Redevelopment Committee or Sub-Committee is appointed, the Managing Committee has to prepare a set of Rules and Regulations for the functioning of such Committees. The Duties and Functions of the Redevelopment Committee are to assist the Managing Committee during the entire process of redevelopment. The Rules and Regulations of the Sub-Committee normally should consist of the following points:— A Member may be expelled from the Membership of the Society, if such Member:

• The acts of the Member are detrimental to the interest or proper working of the Society.
• Has persistently failed to pay the charges, dues to the Society.
• Has willfully deceived the Society by giving false information.
• Has used his flat for immoral purposes or misused it for illegal purposes habitually.
• Further Rules and Regulations of the Sub-Committee:-
• How the Committee will be constituted by General Body or by conducting the election.
• How many Members will be selected.
• Representation of Member whether wing 'se or floor wise.
• What are the responsibilities of such Redevelopment Committee.
• Whom the Redevelopment Committee will report to.
• Frequency of Meetings of the Redevelopment committee.
• Recording of Minutes of the Meetings.
• Whether the Redevelopment Committee gets dissolved on the dissolution or on the expiry of the term of the Managing Committee or to continue till the redevelopment is completed.

Once the Draft Rules and Regulations of the Redevelopment Committee are prepared, the same should be sent to all the Members of the Society including the Registrar of Cooperative Societies. Get the same approved in the specially called General Body Meeting and then constitute the Committee as per the Rules. There must be maximum harmony and co-operation amongst the Members of the Managing Committee, Redevelopment Committee and the resident Members of the Society. My sort of rift between the two Committees should be avoided. Legally and ideally the Redevelopment committee should report to the Managing Committee and all the matters, problems, solutions and decisions should be discussed in the General Body meeting. Redevelopment committee directly dealing with Members or bringing the matter directly in the General body is not desirable at all and is not legally correct. For all legal purposes, it is the elected Managing Committee who is held responsible and accountable and not the Redevelopment Committee and therefore, there is no mention about the constitution of the Redevelopment Committee in the Government Order dated 3.12009 issued for the purpose of redevelopment process to be adopted by the Housing Societies. It must be ensured that none of the Members of the Managing Committee should be a Member of the Redevelopment Committee as also neither the Members of the Redevelopment Committee shall have any signing powers or an authority to execute any document relating to the redevelopment of Society nor should be permitted to deal with the Developers directly unless accompanied or permitted by the Managing Committee.

5. Share Certificate

In this process we independently verify the Buildings Municipal Application File to check for certain important documents to ascertain the authenticity of the Building and thus the Flat/Property under consideration.
Here also there are Two Situations.

1. The project is supposedly Complete.
2. The project is under construction.

Both these situations requires a different due diligence with a varying time period. For a supposedly completed project the Documents are to be verified in one go and we can ascertain the authenticity of the property for you. However if the property to be purchased is in an ongoing project the due diligence time period and verification period will extend as long as the project takes to reach it’s Building Completion Certification Stage. (B.C.C.)

Share Capital (Bye Law No 8, 9(a), 9(b), 10)

Bye Law No 8. Authorized Share Capital The Authorized Share Capital of the Society shall be Rs .......................... ...... divided into ............... shares of Rs. 50 each. Bye Law No 9. Issue of Share Certificates to the Members of the Society Bye Law No 9(a) A Share Certificate, prescribed in bye-laws, bearing distinctive number and indicating the name of the Member, the number of shares issued and the value paid there on, shall be issued by the Society to every Member for the shares subscribed by him, within a period of six months of the allotment of the shares. Bye Law No 9(b) The Committee of the Society shall issue a duplicate share certificate, "So Marked", on application to its members on production of following documents. 1. if the share certificate is lost - copy of police complaint lodged, and an affidavit in that regard. 2. if the share certificate is soiled, burnt, torn, disfigured etc. affidavit in that regard. Bye Law No 10. Society's seal and signature of office bearers on every share certificate Every such Share Certificate shall bear the seal of the Society and be signed and by the Chairman, the Secretary and one Member of the Committee, duly authorized by the Committee. The same shall be issued by the Secretary of the Society.

6. Sinking Fund and Other Common Corpus Matters

In this process we independently verify the Buildings Municipal Application File to check for certain important documents to ascertain the authenticity of the Building and thus the Flat/Property under consideration.
Here also there are Two Situations.

1. The project is supposedly Complete.
2. The project is under construction.

Both these situations requires a different due diligence with a varying time period. For a supposedly completed project the Documents are to be verified in one go and we can ascertain the authenticity of the property for you. However if the property to be purchased is in an ongoing project the due diligence time period and verification period will extend as long as the project takes to reach it’s Building Completion Certification Stage. (B.C.C.) .

In the context of Cooperative Housing Society, “Sinking Fund” provisions have been made under Bye-Law No. 13 (C) for reconstruction of the building when the existing building is not safe for human habitation since it is difficult for the Cooperative Housing Society (service & non-profit organization having no other source of income) to generate such a huge fund in short period of time.

This provision helps cooperative housing society to collect contribution towards this sinking fund from the society members on month on month basis and keep on accumulating year after year by long term investment in accordance with Bye Law No. 15 and directions given under section 70 of the Maharashtra Co-operative Housing Societies Act, 1960.

An outgoing member cannot ask for the reimbursement of his accumulated contribution towards the Sinking fund under any circumstance / pretext however the new buyer / member may request to know the accumulated contribution accrued against the account of the intended flat to be purchased. As and when the flat is sold or the membership is transferred this amount invariably gets automatically transferred to the buyer’s account.

Calculation of Sinking Fund Contribution: In accordance with Bye Law No. 13 (C), the General Body can decide the Sinking Fund contribution, subject to the minimum of 0.25% per annum of the construction cost of each flat incurred during the construction of the building of the Society and certified by the Architect, excluding the proportionate cost of the land.

Most of the Cooperative Housing Society takes the decision on the Sinking Fund Contribution at the time of taking over from the builder / developer / inception, which remains constant for years together, while the construction cost of the flat keeps on increasing.

It is therefore suggested that the Managing Committee should conduct a valuation of the construction cost of each flat by a certified Architect once in 5 year and decide the revision in sinking fund contribution in General Body Meeting.

In case of an open plot type co-operative housing society (which has purchased or taken a place of land on lease and constructed building / buildings thereon) it is not difficult to work out the cost of construction of a flat only. Most of the Cooperative Housing Society faces difficulty in working out the cost of construction of a flat in certain cases, particularly the flat owner’s society in which flats are taken by purchasers under agreements under section 4 of the Maharashtra Owners Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act 1963. A builder/ promoter / developer sells the flats on different occasions to different purchasers with a different cost for the identical sizes flats and no difference in the type of construction and the amenities provided.

The price paid for a flat proportionate land also and further that the cost of construction of a flat is not on the basis of actuals. In the majority of cases, the actual price paid by a purchaser is more than that mentioned in the agreement. It would thus be wrong to recover contribution form members at the fixed rate towards the Sinking Fund on the basis of the value shown in the agreements. In most of the cases, the builder/developer may be most unwilling to give the actual cost of construction. We therefore suggest that Cooperative society should employ the agency of an architect or a valuer, appointed by the general body meeting of the construction of the building and apportion such cost amongst costs of a flat so arrived at may be taken as the basis for fixing the amount of contribution to the sinking fund in respect of the flat/shop/garage etc.

Society without Managing Sinking Fund Properly Society with managing Sinking Fund

Utilization: On the Resolution passed at the meeting of the general body of the Cooperative Housing Society, the Sinking Fund may be used by the society for reconstruction of its building/buildings or for carrying out such structural additions or alteration to the building/buildings, as in the opinion of the Society’s Architect, would be necessary to strengthen them or for carrying out such heavy repairs as may be certified by the Architect and on approval of General Body