Forming a Co-operative Housing Society

Last Updated at: January 07, 2020

A co-operative society is best suitable for the residential building because of common needs like security guard, water connection etc. and interests like common area maintenance of the flat-owners. The builders or the flat-owners can promote for the co-operative housing society. Without the housing society, there will be disputes among the members or lack interest.

A co-operative society is the perfect fit for a residential building as flat-owners have common needs (water connection, watchmen, etc) and interests (maintenance of common areas, such as the terrace and compound). If you’ve purchased a flat in a new building, it would probably be best if you took interest in forming a society. The builder may also be statutorily obligated to form a society. For example, under Maharashtra Flat Ownership Act, 1963, a builder must form a society within four months of selling 60% of the flats.

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But you needn’t wait for the builder to form the society. In many states, including Delhi and Maharashtra, ten flat-owners are enough to promote a co-operative housing society. A building without a housing society usually indicates that there is a dispute between members or a general lack of interest. If you’re considering buying a house in a building where the society has not been formed, find out what the problem is. If the builder does not form a society, rights to the terrace and the compound continue to rest with him.

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Here’s what you need to do register a housing society:

1) Submit an application for registration to the Registrar (forms available at, in case of Delhi).

2) Along with the application, you need to submit the byelaws (see below) the society wishes to adopt and the names and occupations of the promoters of the co-operative.

3) Pay the registration fees. In Andhra Pradesh, this amount will be 1% of the total authorized share capital, subject to a minimum of Rs100 and maximum of Rs10,000.

4) The minutes of the meeting in which the byelaws were adopted.

Each housing society has a share capital, which will be paid up equally by the residents of the society, regardless of the size of the flat. Within six months of allotment, the member should receive a share certificate in this regard, according to the byelaws of Mumbai. Byelaws may also be amended by a resolution of its general body. All such amendments need to be approved by the registrar. In Andhra Pradesh, however, approval is needed only if the amendment is of strategic interest to members.

Housing Society Byelaws
The actions of all co-operative society members, insofar as they affect other members or the building itself, are governed by a set of rules. These rules, or byelaws as they are more often called, must conform with the co-operative act or rules in force in that region. In Delhi, for example, it is Delhi Co-operative Societies Act, 2003 and Delhi Co-operative Societies Rules, 2007. A society may frame its own byelaws, so long it doesn’t contradict the act, with the approval of the concerned authority (Registrar, Co-operative Societies in Delhi).

In most cases, though, societies use the model byelaws that are provided, coupled with the provisions relating to housing societies in the rules and act. At times, states also release amendments to the model byelaws. This was done for Mumbai in 2009. However, law relating to housing societies is flexible. So there’s no compulsion for any Mumbai society to adopt the new byelaws.

Procedure to register a housing society are: Fill the application to register along with the promoter’s name and occupation and give it to Registrar, pay the registration charges and byelaws are adaopted. Each house will have a share capital that has to be paid equally by all the residents of the housing society. The housing society is very useful and necessary in maintenance of the building.