CHS PROBLEMS SOLUTIONS

Property ownership in a cooperative housing society (CHS/the Society) extends beyond possession of a flat or bungalow. A clear title, proper conveyance of land, transparent governance and adherence to the Society's bye-laws are all essential for protecting members’ rights and avoiding disputes that can become difficult and expensive to resolve later.

 

This week’s queries highlight two common concerns faced by CHS members in Maharashtra. One reader seeks clarity on ownership and title where the Society remains unregistered and the land has yet to be conveyed by the builder, while another raises questions about the fair allotment and use of parking spaces. Both underscore the importance of following the prescribed legal procedures, maintaining proper records and ensuring that Societal decisions are taken fairly, transparently, and in accordance with the applicable law and bye-laws.

 

Question: I have a unit built on a plot in a housing Society of 47 units. Possession was given by the builder in 2022. The property is near Lonavala, in Pune district. The 7/12 extract shows the builder as the owner of the plots and he has not transferred the plots to the new owners. I do not have a copy of the non-agricultural (NA) order or the mutation form, and the builder has not provided, and is unwilling to provide, a no-objection certificate (NOC).

 

I have been paying property tax since taking possession, the electricity connection is in my name, but the water bill remains in the builder's name. The Society pays the water charges, while I pay my electricity bill directly. The Society has a committee of five elected members and prepares annual audit reports showing collections and expenditures. However, the Society is not registered.

 

The documents I have are the sale agreement and registered sale deed, property tax payment receipts, CHS bye-laws, and old as well as new share certificates.

 

My questions are:

1. Do I legally own the house and plot, even though the plot continues to stand in the builder's name?

2. What documents are required to sell the property?

3. Can I obtain copies of the NA order and Mutation Form online in Maharashtra?

4. What is the purpose of an NOC, and who should issue it?

5. What are the risks of an unregistered CHS?

 

Answer: The first priority should be to register the plot owners’ cooperative housing Society. Until the Society is registered, several important legal and administrative processes, including obtaining conveyance of the land, cannot be completed.

 

The fact that the builder’s name continues to appear on the 7/12 extract does not, by itself, determine whether you own the property. Your registered sale deed is an important title document. However, the continued failure to convey the land from the builder to the Society is an issue that should be addressed.

 

Once the Society is registered, it can initiate the process of obtaining conveyance or, if necessary, apply for deemed conveyance under the law in Maharashtra. After the conveyance process is completed, the relevant revenue records can be updated in accordance with the applicable legal procedure.

 

If you wish to sell the property, a prospective purchaser will ordinarily expect to see the registered sale deed, property tax receipts, share certificate and other title-related documents. The absence of conveyance or an unregistered Society may make the transaction more difficult and could lead to additional queries from buyers or lenders.

 

Copies of the NA order and revenue records, including mutation entries where available, can generally be obtained from the appropriate revenue authorities, and many such records are now accessible through Maharashtra’s online land records services or by applying to the concerned government office.

 

An NOC is not a substitute for a title. Whether an NOC is required depends on the nature of the transaction and the documents involved. Once the land is conveyed to the registered Society, any Society-related permissions, if required, would ordinarily be issued by the Society rather than the builder.

 

Continuing with an unregistered Society and without conveyance can create practical difficulties in managing the property, updating land records and establishing a clear title. It is therefore advisable to have the Society registered and complete the conveyance process at the earliest.

 

Question: I have two allotted parking spaces—one open and one stilt—for which the Society has issued allotment letters. The new secretary is forcing me to park one car in front of my stilt parking space, effectively blocking access to the second car. No other member is being asked to do this.

 

The secretary is enforcing this through the watchman and is allowing another member to occupy my open parking space whenever my car is away. However, he refuses to put any of this in writing or respond to my objections.

 

Answer: Car parking allotment in a cooperative housing Society is governed by the applicable Society bye-laws relating to parking (commonly bye-laws 78 to 84 under the Maharashtra Model bye-laws). If there is no shortage of parking spaces in your CHS, you should ordinarily be allowed to continue using the parking spaces allotted to you, as you have been doing.

 

If there is a genuine shortage of parking, the managing committee should adopt a fair and uniform policy that is applied equally to all eligible members. One member should not be singled out, unless there is a valid reason consistent with the bye-laws.

 

You should first submit a written representation to the managing committee seeking a formal decision and asking why another member is being permitted to use your allotted parking space. If the committee fails to act or continues to apply the parking rules arbitrarily, you may lodge a complaint with the deputy registrar of cooperative societies for appropriate directions. If the dispute still remains unresolved, you may also consider pursuing the appropriate legal remedy under the Maharashtra Co-operative Societies Act.

 

We will not be answering queries posted in the comments. Only questions sent through the Moneylife Foundation's Legal Helpline will be answered. If you want to seek guidance or ask questions to Mr Shanbhag, kindly send it through Moneylife Foundation's Free Legal Helpline. Here is the link: https://www.moneylife.in/lrc.html#ask-question