management of co-operatives
TRANSCRIPT
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Management ofCo-operatives
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INTRODUCTION
The problem of housing is becoming more andmore critical due to increasing population
One can satisfy these needs of shelter by forminghousing societies in minimum cost and investment.
These are legally established association ofpersons and are democratically controlled by the
members
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HISTORY OF CO-OPERATIVE HOUSING
SOCIETY The co-op housing is of recent origin. The first housing society was
registered in Bombay in 1915. In madras though the society wasregistered in 1914 it became active only in 1923 when governmentstarted financing it.
Economic depression of the thirties and 2nd world war had a greateffect on the growth of the housing movement.
Due to acute shortage of building materials and labour and policy ofrestriction followed by government in financing these societies was
not much progress.
The housing co-op movement made a progress during the 1st twofive year plans although the progress has not been uniform in allstates.
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DEFINITION OF CO-OPERATIVEHOUSING SOCIETY
According to Maharashtra co-operativesSocieties act 1960,a housing society is definedas ,A society ,the object of which is to
provide its members with open plots forhousing, dwelling houses or flats or if open
plots, the dwelling houses or flats are
already acquired to provide its memberscommon amenities and services.
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TYPES OF CO-OPERATIVE
HOUSING SOCIETYTENANT OWNERSHIP
SOCIETIES
TENANT CO-PARTNERSHIP
HOUSING SOCIETIES
BUILDERS SOCIETIES
FLAT OWNERSHIP CO-
OPERATIVE
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CASE STUDYMAY-2006
Sai krupa housing society is located at Mahim Road,PALGHAR DISTRICT, THANE. The society comprises ofseven buildings and has a registered co-operating housing
society. There are certain irregularities in the payment ofmaintenance charges and N.O.C. the members of the societyhas called for an emergency meeting to sort out the problemand difficulties. The secretary in the meantime calls for anemergency meeting.
The members of the society put forth the following problemsbefore the managing committee:
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CASE STUDYMAY-2006
Society levies 100 per cent of monthly outgoing as
non-occupation charges. The plea of members thatnon-occupational charges cannot exceed 10 percent of service charges has been ignored.
Mr. RAKESH KUMAR, a member, of our society
has not paid his maintenance for a long time andhis arrears have ballooned into a huge amount.What to do?
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Case facts
Sai krupa housing society is located atMahim road, which is a registered co-ophousing society.
It consists of 7 building.
The managing committee consists ofchairman, secretary, treasurer and 7
other members.
Due to inefficient management thesociety is facing various problems suchas non occupational charges and
overdue maintenance.
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Case facts
Mr. Kumar member of society has not paid hismaintenance for a long time and his arrears haveballooned into a huge amount.
Under section 70 A of Maharashtra cooperative societiesact, 1960 o society can charge N.O.C at a rate higher than10% of service charges (excluding MunicipalCorporation/Municipality charges) but Sai krupa societylevies 100% of monthly out goings as N.O.C.
In spite of several complaints from the membersmanaging committee regarding excess N.O.C., themanaging committee is not responding regarding thisissue.
In order to solve the above problem EGM is conducted bymanaging committee.
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Assumptions
It is assumed that Sai Krupa housingsociety is well established housingcooperative.
It is also assumed that it is a buildercooperative.
It is assumed that EGM is conducted in
order to take immediate actions to solvethe problems which the society is currentlyfacing.
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It is assumed that a committee member has lack ofknowledge regarding laws and regulations of Maharashtra
co-operative housing.
There is lack of co-operation among the members.
There is a possibility that the members of society bycharging them with extra non-occupation charges
Assumptions
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SWOT ANALYSIS
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STRENGTH
Sai Krupa society is aregistered co- operativehousing society. It consists of 59members.
All the members are honestand loyal to the society as they
attend all meetings of thesociety.
There is cooperation among
the members of the society.
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WEAKNESS
Committee members have lackof knowledge regarding laws and
regulations of co-operativesociety.
Managing committee face torecover the dues from themembers of the society whichleads to financial problem.
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OPPURTUNITIES
If the society succeedsincollecting themaintenance charges
from its members thenthe society wont face afinancial problem and theavailable fund can be
utilized for the benefits ofits members.
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THREATS
Irresponsibility ofmanagement about nonoccupational charges.
Carelessness of membersregarding payment of
maintenance charges.
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QUESTIONS
1. The society maintains that it has sent a letter tothe registrar, co-operative societies and is
awaiting a reply. In the mean while it sends
inflated bills and even charges interest. What are
members to do?
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Solutions In the view of the government notification dated August 1, 2002, nosociety can charge N.O.C. at a rate higher than 10 per cent of servicecharges (excluding Municipal Corporation/ Municipality Charges). Itis illegal for any society to charge in excess of ten per cent, AGovernment notification issued under section 70 A of theMaharashtra cooperative societies act 1960 has the force of law andhas to be obeyed.
The members of the society can approach to the registrar to confirmwhether the society has filed a complain regarding N.O.C .Thenotification is as much binding on the registrar any of us and of hetakes a contrary stand, such a stand sill have to be stuck down as
being illegal, then the members has a right to file a case against thesociety in a court of law.
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Contd
No member of the society is under any
obligation to comply with an illegaldemand. Thus you can safely ignore theinflated bills raised by the society and canrefuse to pay the excess N.O.C. leviedand any interest on such excess. If anyamount has already been paid over andabove what is legally payable, a memberhas the right to adopt appropriateproceedings to recover it from the society.
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2.Can the society withdraw the water connection of
Mr. Rakesh Kumar till he pays his dues? Give your
opinion.
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Solutions Section 12 A of the Maharashtra ownershipflats (regulation of the promotion ofconstruction, sale, management and
transfer) Act, 1963 (MOFA for short) statesthat no person who is a promoter, manager,member of the managing committee,director, secretary, or otherwise of a block
or building of flats shall, without just andsufficient cause, cut off, withhold, or in anymanner curtail or reduce an y essentialsupply or service enjoyed by the person who
has taken a flat.
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Contd
Withholding an essential supply includesacts or omissions on the part of thosemanaging the blocks of flats. An essentialsupply or services includes water,electricity, lights in passages and onstaircases, lifts and conservancy or sanitaryservices. An affected flat purchaser has theright to approach the small causes court foran order to have the water supply resorted.Persons responsible for withholding anyessential supply or services withoutsufficient or just case are also liable for
criminal prosecution It is thus clear that no