Maharashtra Co-operative Societies Act
Cooperative housing societies are part of the cooperative societies governed by the Maharashtra Co-operative Societies Act 1960, which was implemented on 26 January 1962. This act applies to the whole of the state of Maharashtra. A few amendments were made to this act on 13 February 2013 and it came into effect on 14 February 2013. This blog will discuss the different terms used in the act, amendments made, and the key provisions of Maharashtra Cooperative Societies Rules 1961.
Types of Housing Societies Under the Maharashtra Co-operative Societies Act, 1960
There are different housing societies under the set criteria by the act. These are:
1. Tenant Ownership Housing Societies
These housing societies’ objective is to distribute plots or apartments on a piece of land that the society owns, either freehold or leasehold so that the members own the houses.
2. Tenant Co-partnership Housing Society
According to the Maharashtra Co-operative Housing Society Act, Co-partnership Housing societies are housing societies that own both land and buildings, either on a leasehold or freehold basis and allot them among their members
3. Other Housing Societies
Other housing societies include housing mortgage cooperative societies and house construction societies.
Different Terms Used in the Maharashtra Co-Operative Societies Act
The Maharashtra Cooperative Societies Act 1960 uses some specific terms. Here are some of these terms and their definitions below:
1. Central Bank
Central banks are cooperative banks aiming to create funds to lend to other societies. However, these do not include the primary urban cooperative banks.
2. Cooperative Bank
Cooperative banks conduct banking business under the Banking Supervision Act 1949 guidelines.
3. Cooperative Appellate Court
The Cooperative Court of Appeal is the Maharashtra Cooperative Appellate Court set up under this act.
4. Bonus
According to the Maharashtra Co-operative Housing Society (MCS) Act, bonus means a payment made in cash or kind. It is taken out of the profits of a society to its members, or to someone who is not a member. It, however, does not include the amount paid to society employees under the 1965 Bonus Act.
5. Managing Committee
A managing committee is a board of directors or any committee of management that manages the daily company affairs according to the law drawn up in Article 73 of the law.
6. Working Capital
Working capital refers to the funds that a society has at its disposal according to the co-op housing society act in Maharashtra. This includes paid-up share capital, profit-based funds, and money raised by borrowing and other methods.
7. Dividend
A dividend is the amount paid from a society’s profits to a member proportionate to the shares held by him.
The Maharashtra Cooperative Societies Rules 1961
The Maharashtra Cooperative Societies Rules 1961 are the detailed rules and regulations that implement the provisions of the Maharashtra Co-Operative Societies Act. They provide specific guidelines on various aspects of cooperative society operations, such as registration, audits, etc.
Key Provisions of the Maharashtra Cooperative Societies Rules 1961
Some key provisions of Maharashtra Cooperative Societies Rules 1961 are:
1. Registration
Here, the process for registering a cooperative society is outlined. There are clear guidelines on the documentation required such as the society’s memorandum of association and its objectives.
2. Membership
These rules specify who can become a member of a co-operative society, what a member’s rights and obligations are, and the process for admitting and terminating membership in the co-operative housing society Maharashtra.
3. Meetings
Co-operative societies need to hold annual general meetings (AGMs) and special meetings as required. These rules define quorum requirements, procedures for conducting meetings, and the resolution of disputes during meetings.
4. Audits and Accounts
Maharashtra Cooperative Societies Rules 1961 mandate that societies maintain proper accounts and undergo regular audits and it needs to be conducted within six months from the end of the financial year. The auditors appointed by the members ensure that the financial dealings are transparent.
5. Management Structure
The rules have established the governance structure within a cooperative, which includes the roles and responsibilities of the managing committee, the election process for committee members, and their tenure.
Conclusion
The Maharashtra Co-Operative Societies Act is an essential piece of legislation that governs the cooperative housing societies in Maharashtra. There are different housing societies, such as Tenant Ownership Housing Societies, Tenant Co-partnership Housing Societies, and Other Housing Societies. This blog has provided the definitions of some important terms used in the co-operative Societies Act, and some of the amendments made to it.
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Frequently Asked Questions
1. What is the latest Cooperative Societies Act in Maharashtra?
The government of Maharashtra has issued the Maharashtra Cooperative Societies(Amendment) Ordinance, 2024, to amend the Maharashtra Cooperative Societies Act, 1960 on 15 January 2024.
2. What is Section 23 of the Maharashtra Cooperative Society Act?
Section 23 of the Maharashtra Cooperative Society Act states that no society shall refuse admission to membership to any person duly qualified therefore under the provisions of this Act and its by-laws.
3. How frequently should the cooperative societies get their accounts audited?
According to section 75 of the Maharashtra Cooperative Society Act, the society must get its books of accounts audited four months after the close of the financial year and within six months after the close of the financial year.