Federal Society vs. Housing Society – what’s the difference? A federal society is an apex society affiliated with central or primary organizations. A Co-operative Housing Society is a non-profit organization that anybody can join. A federal society can be of the same class or category or a significant community affiliated with primary cultures of the same type or category.
According to Section 2(13) of the Maharashtra Co-operative Societies Act, 1960, a “Federal society” is owned by the Maharashtra government.
In a federal society, voting rights are thus restricted, and members of communities have at least four-fifths of the total votes in a society’s general meeting.
- Only five members are required for the registration of a federal society.
- A federal society serves as the complex’s parent society.
- The benefits include the allotment of internal plans for roads, water tanks, sanitation, and clubhouses, among other things.
- The builder can take advantage of the FSI of existing shared areas.
- Member organizations require a majority vote to pass motions at the AGM.
The main reason for forming a federal society is to regulate voting power.
The term “housing society” refers to a society whose purpose is to provide the members with open plots for housing or flats, or if available plots, dwelling houses, or apartments have already been acquired, to provide its members with standard amenities and services. It is an alternate type of property and home ownership in which ownership is held by an institution or organization and then sold as shares to residents. The entity owns the land, while the housing society develops it, builds buildings, and distributes them to members.
Subhash Goel (MD) of Goel Ganga Development says following the epidemic, the influence of covid-19 on affordable housing has impacted all real estate elements. The government has implemented programs to give cheap accommodation to the urban poor, making homeownership more accessible and inexpensive.
The following are the primary qualities of a Co-operative Housing Society:
Any inhabitant can join a housing society. All
individuals with common interests are welcome to join.
- A Co-operative Housing Society is a non-profit organization that anybody can join. These cooperatives are based on the ideas of self-help and self-reliance.
- The representative or office bearer of the housing cooperative is elected democratically through a fair election procedure.
- Housing societies are registered as separate legal bodies under the Cooperative Societies Act. Registered housing cooperatives become legal when they comply with local or national regulations.
- To achieve equity, each housing society member contributes equally to acquiring and maintaining the cooperative’s shared properties.
Objectives of Co-operative Housing Society
A housing society exists to help its members and create a community where everyone can live as a family and develop. These housing cooperatives’ primary goals include:
- Co-operative Housing Society provides essential services such as power and water delivery.
- The housing society’s maintenance is guaranteed.
- Members of the society receive financial help for approval of home loans or any kind of internal structural changes also known as renovation within the housing cooperative.
- The housing organization purchases land builds flats and distributes them to its members.
- Within the housing cooperative, a socioeconomic atmosphere that promotes healthy living standards is formed.
Registration of Co-operative Housing Society
The first step in registering a Housing Society is for at least ten adult individuals from independent families to gather and conduct a meeting for
(a) Selection of a provisional committee and election of a Chief Promoter for the formation of a society, and
(b) Select a name for such a society with three alternatives and pass appropriate resolutions on that behalf. In an Open Plot Society, the Chief Promoter should be authorized at the meeting to nominate architects and building contractors, negotiate and acquire a plot, and create drawings and estimates for the society. The Registrar’s or Federations’ offices have sample resolutions to elect a Chief Promoter and provide him the authority mentioned above.
Under the Cooperative Societies Act of 1912, it is mandatory in India to register a cooperative housing society. The registration procedure is as follows:
Application Authorization: A joint resolution must be enacted to authorize the registration application. A meeting with the potential members must be convened, and the leading promoter must be elected.
Application for the name- The cooperative must apply to the reservation of the housing society’s name, along with two alternate possibilities. The application must be signed by a minimum of ten housing society members to be valid. Once the name has been chosen, an application for reservation of the title must be submitted, together with payment of the price. The reserved name is only valid for three months.
Application for registration: Every housing society with limited liability registered under the Cooperative Society Act 1912 will have the word little as the last word in its reserved name.
Bank account: The cooperative society must open a bank account in its name, and the capital sum must be placed there.
Additional information or clarification: Following the successful registration of the housing society application, any extra information or clarification must be provided to the state’s Registrar within the specified time frame.
Certificate issuance: The authorities will provide a certificate of incorporation within two months of receiving a successful registration application. This certificate will serve as evidence of incorporation and registration.
Conclusion – A cooperative Society is a body corporate with perpetual succession registered under the applicable state Act and bearing a common seal. It has the ability to acquire, keep, and dispose of property, enter into contracts, sue, and be sued.
The idea of “One man, one vote” is provided in the cooperative sector’s statute to ensure that capital does not control cooperative society administration. The shareholders must attend the meeting or vote in person. They are not permitted to appoint proxies for the purpose of attending the general body or voting on the motion to be enacted.
Read More : Byelaws for society government of maharashtra