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The Incorporation of Cooperative Housing Societies


A cooperative housing society is a great way to own an apartment. It is a secure real estate investment and provides a sense of community living. The members also share maintenance expenses and enjoy a variety of tax benefits.

The members of a cooperative housing society are most satisfied with their housing development, direct purchases of houses, and building materials purchase. They are less confident with land allocation and processing of documents.


The incorporation of cooperative housing societies is a vital part of their success. It establishes them as a legal entity that operates under laws governing cooperative societies. It also enables them to access loans and other financial aid from government bodies. The process of incorporating a harmonious housing society includes setting up an association with limited liability, adopting by-laws, and creating a bank account. In addition, the society must provide a list of officers, a member list, and a subscription amount. It is also a good idea to have an attorney oversee the process.

Cooperative housing societies are different from other residential communities because they allow residents to choose their tenants and have a high degree of autonomy. The members can even vote on their fiscal policies. This allows the community to control spending and avoid wasting money on unnecessary expenses. It also means that there is less competition for homes and a more stable environment.

Incorporation of a housing cooperative society can be a lengthy and complex process. The first step is to form a core group and prepare a feasibility report. A promoter is then hired to initiate the process of registering the cooperative. This person will be responsible for drafting the memorandum of association (MOA) and the articles of association (AOA).

A cooperative housing society can get loans from banks and other financial institutions by establishing itself as a legal entity with limited liability. It can also use its funds to purchase land and build apartments. A cooperative housing society can also seek funding from the state and central governments to help with development projects.

If you are planning to buy a flat in a cooperative, be sure to read the articles of association, bylaws, and subscription agreement carefully. It would be best if you also asked questions about the management system and any underlying mortgage. You should also be aware of the society’s policy on pets, renovations, and other issues that may affect your lifestyle.

A thriving cooperative housing society should have the following key elements:

Bank account

A bank account is one of the most important documents required to set up a cooperative housing society. It helps the society to maintain a regular track of the money it receives and disburses. This allows the management committee to carry out day-to-day tasks and implement welfare programs for society. Moreover, it also helps the members to keep track of their expenditures and savings. The account should also be used to store documents such as receipts and invoices. The bank account must be open for all members to view and access. It should also contain the annual financial sheet and other necessary information.

Cooperatives, be it housing or business, are not-for-profit and democratic organizations that are run by and for their members. They are not affiliated with any political parties or religious groups. They are formed by people with common interests who want to do something different and create a better environment for their community. They can be a great place to live in as they promote a healthy economic climate, encourage social interaction, and offer affordable living.

If you are looking for a place to live in Pune, consider joining a cooperative housing society. These societies have a number of benefits, including the ability to secure mortgages and other loans that are difficult to obtain through traditional means. Additionally, they can provide residents with amenities such as gyms and playgrounds. They can also help with the construction process, which can be difficult for individuals without sufficient expertise or resources.

Some cooperatives are based on tenant ownership, where the cooperative owns the land and building, and the tenants hold occupancy rights. Others are based on shared ownership, where the collective owns both the land and the buildings, and the members own shares in the legal entity. In both cases, the members are expected to contribute capital and pay a monthly rent to the cooperative.

In order to establish a cooperative, the promoter needs to submit the MOA and AOA along with the registration fee to the Registrar of Cooperative Societies. Once the documents are verified, the Registrar will issue a registration certificate. The promoter should then open a bank account in the name of the society and get a PAN from the Income Tax Department, which is essential for all financial transactions.

Management Committee

A cooperative housing society is a group of people who live together in a shared apartment or house. It offers many benefits that residents of independent houses don’t enjoy, including a sense of community spirit and good fellowship. In addition to providing affordable housing, a cooperative society can also provide shared amenities and facilities that improve the quality of life for its residents.

The management committee of a cooperative housing society is responsible for the overall administration and financial health of the organization. This includes the maintenance of common areas and amenities, the collection and utilization of funds, and the settlement of disputes. Moreover, the committee is responsible for promoting the social and economic well-being of its members. The committee can avail of loans for the purpose of purchasing land, building apartments, and constructing infrastructure within its complex. It can also borrow money for other purposes, such as settling debts or buying a vehicle.

Once the management committee has determined that a cooperative housing society is eligible for a loan, it must submit the necessary documents to the government. These documents include Form A, which is used to register the society, and Form B, which contains specific details about the cooperative. Once the application has been approved, the society can start functioning as a legal entity.

Cooperative housing societies are based on the principles of self-help and mutual aid, which make them open to all individuals regardless of their gender, caste, or religion. They are also non-coerced, allowing members to choose their representatives or office-bearers through fair elections. In addition, the members of a housing cooperative are encouraged to participate in the decision-making process and contribute to the management of the society.

The management of a cooperative housing society is also in charge of financial transactions, such as depositing and withdrawing money. This is facilitated through the use of a dedicated bank account that ensures transparency and accountability. It is important to note that a cooperative housing society must conduct an annual account audit to remain compliant with the law.

The management of a cooperative housing society is often a complex task. This is because the committee must balance the needs of individual members with the interests of the entire group. To do so, it is essential to understand the laws that govern cooperative societies and their members.


The election process in a cooperative housing society is a democratic procedure that involves every member’s right to vote. However, the members must follow a few basic guidelines in order to ensure that the elections are fair and free of any controversies. In addition to this, members should not make any personal gains in the election process. They should also not use the funds of their housing cooperative to participate in the elections. If they do, they may face disciplinary action from the board.

A cooperative housing society is a membership-based legal entity consisting of one or more residential buildings. It is a collective form of ownership that encourages brotherhood and camaraderie among its members. It is also a democratically governed enterprise that emphasizes mutual support, sharing expenses, and community living. Its motto is – one for all and all for each other.

There are many types of housing societies. These include ownership housing societies, house mortgage societies, and building construction societies. Usually, the co-operative housing societies hold both land and the building on a leasehold or freehold basis and allot flats to its members. However, some of these societies build houses on their own. Moreover, they also lend money to their members for building houses on their own and recover the money spent on them as a loan.

Co-operative housing societies are a popular alternative to individual housing units for middle and lower-income earners. These societies offer more affordable housing options, including amenities like gyms and swimming pools. In addition, they are open to people of all genders and castes, irrespective of their religious beliefs or political affiliations.

While there are many advantages of living in a cooperative, there are some drawbacks as well. These include indefinite delays or stalling of projects, corruption allegations and underhand practices, refusal to pay rent to the members after some months, and a failure to meet 100% commitments.

In order to address these issues, the government has introduced a number of new policies for housing cooperatives. These include concessions in the rate of premium charged from the planning authority, subsidies on loans for redevelopment, and amendments to the laws that favor housing cooperatives.