Co-Op Society..docx BB

TOPIC NAME: FINANCIAL ANALYSIS OF COOPERATIVE
HOUSING SOCIETY
REFERENCES TO AMBERNATH (WEST) AREA.
A Project Submitted to
University of Mumbai for partial completion of the degree of

Bachelor in Commerce (Accounting and Finance)
Under the Faculty of Commerce
By
MISS. BHARTI SURESH CHALWADI
ROLL NO. 06
T.Y. BCAF
Under the Guidance of

CA. KAJAL VARDHAYA
Smt. Chandibai Himathmal Mansukhani College

Managed by Hyderbad (sind) National Collegiate Board
Opp. Railway Station, Ulhasnagar-03, Dist: Thane
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2018-19
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FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

SMT.CHANDIBAI HIMATHMAL MANSUKHANI
COLLEGE,
Managed by Hyderbad (Sind) National Collegiate Board
Opp. Railway Station, Ulhasnagar-03 Dist: Thane.
CERTIFICATE
This is certify that Miss.Bharti Suresh Chalwadihas worked and duly completed
her project work for the degree of Bachelor in Commerce under the Faculty of
Commerce in the subject of commerce in Banking and Insurances and her project
is entitled, “A FINANCIAL ANALYSIS OF COOPERATIVE HOUSING
SOCIETY” under my supervision. I further certify that the entire work has been
done by learner under my guidance and that no part of it has been submitted
previously for any Degree or Diploma of any university. It is her own work and
facts reported by her personal findings and investigations.
Guiding Teacher
(CA. Kajal Vardhya)
______________
Date of Submission:- 2
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DECLARATION BY LEARNER
I the undersigned Miss. Bharti Suresh Chalwadi here by, declare that the work
embodies in this project work titled “FINANCIAL ANALYSIS OF
COOPERATIVE HOUSING SOCIETY” form my own contribution to the
research work carried out under the guidance of CA. KAJAL VARDHYA is a
result of my own research work and has not been previously submitted to any other
Degree/Diploma to this or any other university. Wherever reference has been made
to pervious work of other, it has been clearly indicated as such and included in the
bibliography.
I, here by further declare that all information of this document has been obtained
and presented in accordance with academic rules and ethical conduct.
Learner
(BHARTI SURESH CHALWADI)
________________
Certified by
Guiding Teacher
(CA. KAJAL VARDHYA)
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______________
ACKNOWLEDGMENT
To list who all have helped me is difficult because they are so numerous and the
depth is so enormous.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to
do this project.
I would like to thank my Principal Mrs. MANJU LALWANI PATHAK for
providing the necessary facilities required for completion of this project.
I take this opportunity to thank our Coordinator Mrs. KAJAL VARDHYA for her
moral support and guidance.
I would also like to express my sincere gratitude towards my project guide CA.
KAJAL VARDHYA whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference
books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my Parents and Peers who
supported me throughout my project.
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CHAPTER. NO. 1.
INTRODUCTION
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1.1 INTRODUCTION
Out of the three basic needs of human being one is a residence. The process of
urbanization has been fast due to inevitable migration for bread and butter. Due to increasing
civilization in the urban areas the need of the houses to reside is also increased rapidly. In the
concept of the modern homes the expectation is not limited for residence only. The expectations
like luxurious, full of amenities and delightful residence are included in it. In the concept of the
residence, if seems that in addition to more and more facilities the exception like delightful,
healthful, civilized, independent surroundings and still the feeling like togetherness has been
included in it. It can be easily noticed from the advertisement of Housing Project.
Due to fast urbanization process, need of the houses increased and it has become difficult day
by day to make the idea in reality of constructing houses with own expenses by coming together
and purchasing land. Therefore it came to experience that instead of coming into reality the main
purpose of the co-operative housing societies to make available facilities of residence by
constructing houses for the members, the only purpose remained in reality is of providing basic
amenities, management etc. Especially in the metropolitan city it came to experience at every
step that by constructing housing projects by the construction professional and to sale the flat to
many persons who are unknown to each other and thereafter registering the housing societies by
coming together such unknown persons compulsorily.
Even though rules/procedure for management of facilities are mentioned through Co-
operative Housing Societies Act, Rules and bye laws based on them it came to notice generally
that the people who are unknown to each other starts disputing by taking support of these rules.
Therefore, the concept of this manual is not to break each other but to unite them. They should
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know what the exact provisions are in the bye laws. How can it be used for not raising dispute in
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the society? The aim of this Housing Manual is to give authorized information in easy language.

Since the working of the Premises Co-operative Housing Societies is same like Housing Society,
this manual can be applicable to the premises societies also.
The main reason behind the dispute between society and member is that the reply to the
letters/complaints of the members is not given from the managing committee meeting by taking
immediate decision. Therefore it is necessary to call at least one meeting of the Managing
Committee in a month and it is the main responsibility of the Managing Committee to take
proper decision in this meeting on the letters/complaints received from the members and to give
reply accordingly.
It is utmost necessary that with their rights, the members should obey their duties also.
Especially the member should not stop of paying maintains charges to the society for any reason.
This could not resolve problems and it also becomes difficult to run the society for want of
maintenance charges.
To take precaution by the members of the committee and members to discharge their
duties and responsibilities with one’s own discipline means to obtain eminence of Dispute Free
Housing Society.
It is the joint responsibility of the managing committee and all members of the society to
achieve the goal of Dispute Free Housing Society. This manual has been prepared with a purpose
that it would be useful to all officers related to the Housing Societies, members and managing
committee members. It is expected that all should use this for making cordial relation and ending
dispute because it is main aspect of the co-operation that “United we stand divided we fall.”
Cooperative Societies as from organization doing the business is assuming growing

importance, next to cooperate sector on the Indian economic scene. Cooperative Society is a
collective effect of large number of people, operating in various fields of activities such as
Cooperative Sugar Factories, Spinning and weaving Mills, Cooperative Credit Societies, Urban
Cooperative Banks, Cooperative Societies, Industrial Cooperative Societies, Housing Societies
and so on. Maharashtra is considered as a most progressive state in the development of
Cooperative Societies. The Accounting Procedure and Final Accounts differ from State as each
State in India has its own Cooperative Act. Let us study the main provisions of the Maharashtra
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Cooperative Societies (MCS) Act, 1960 and the Maharashtra State Cooperative Societies Rules,
1961.
A co-operative can be described as an organization set up for the benefit of its members. A
housing co-operative is a small housing association run along co-operative principles. It is owned
and managed by the members of the co-operative. Most housing co-operatives are Fully Mutual
and any further reference to housing co-operatives in this document refer to this type, where only
tenants or prospective tenants may be members, and only members may hold a tenancy. This
means that decisions are made by the people who are affected by those decisions.
Housing co-operatives provide a way for people to share in the ownership of property and
live in it at affordable rent levels, as opposed to rent levels designed to generate profit for an
individual or company. They are an alternative to home ownership in the traditional sense or
renting in the private sector.
A cooperative society is not a new concept. It prevails in all the countries, this is almost a
universal concept. The cooperative society is active in all countries worldwide and is represented
in all the sectors including agriculture, food, finance, healthcare etc. To protect the interest of
weaker sections, the co-operative society is formed. It voluntary association of persons, whose
motive is the welfare of the members.
Co-operative movement in our country shall not only stay but also grow in times to come. In
spite of the drawbacks experienced in the working and administration of the co-operative
societies, they have positively contributed to the growth and development of the national
economy. Promotion of thrift, self-help and mutual aid are the fundamental principles of co-
operation. The orientations of commercial organization and co-operative organizations are
basically different. In a commercial organization, earning and maximizing the profits is the sole
motive; whereas in a co-operative organization profit cannot be the sole motive. The prime
objectives, in addition to the three fundamentals of co-operation mentioned above are to make
available the goods and services in required quantity, of better quality and at a reasonable price
to its members. It does not mean that a Co-operative Society is a charitable organization. It
should, therefore, conduct itself in a businesslike manner in attaining its objectives efficiently.
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To form or setup a co-operative society one has to follow certain set rules or guidelines which
have to be followed in sequential order which will be dealt in the latter part of this paper, but
firstly it is important to ascertain the nature and importance or advantages of forming a society in
present scenario over other business structures.
The co-operative movement started because to protect the interests of weaker sections of
society. The primary or main objective of this movement is ‘how to protect economically weaker
sections of society’ from the middlemen who gain illegally by eating away the major chunk of
the profits. In all forms of business structures whether be it is a sole trade, partnership or joint
stock company, the primary motive is to increase profits.
Cooperative housing is a different type of home ownership. Instead of owning actual real
estate, with cooperative housing you own a part of a corporation that owns the building.
Cooperative housing usually includes an apartment building or buildings. Instead of buying an
individual unit, the residents are a corporation that owns the entire building. Each shareholder is
then entitled to reside in a unit. As long as the shareholder owns the stock, s/he can live in that
unit.
It is typical to have a board of directors with cooperative housing. This board of directors
is usually a bit more powerful than that of a condominium association. They can limit who is
allowed to live in the cooperative housing if there is a sale of stock. That may make it harder to
move from cooperative housing since it potentially can be hard to sell your share.
A housing cooperative, co-op, or housing company is a legal entity, usually a cooperative or a

cooperation, which owns real estate, consisting of one or more residential buildings; it is one
type of housing tenure. Housing cooperatives are a distinctive form of home ownership that have
many characteristics that differ from other residential arrangements such as single home shop
ownership, condominiums and renting.
The corporation is membership-based, with membership granted by way of a share purchase in

the cooperative. Each shareholder in the legal entity is granted the right to occupy one housing
unit. A primary advantage of the housing cooperative is the pooling of the members' resources so
that their buying power is leveraged, thus lowering the cost per member in all the services and
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products associated with home ownership.

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Housing cooperatives fall into two general tenure categories: non-ownership and ownership .
In non-equity cooperatives, occupancy rights are sometimes granted subject to an occupancy
agreement, which is similar to a lease. In equity cooperatives, occupancy rights are sometimes
granted by way of the purchase agreements and legal instruments registered on the title. The
corporation's articles of incorporation and bylaws as well as occupancy agreement specifies the
cooperative's rules.
The word cooperative is also used to describe a non-share capital co-op model in which fee-
paying members obtain the right to occupy a bedroom and share the communal resources of a
house that is owned by a cooperative organization. Such is the case with student cooperatives in
some college and university communities across the United States.
As a legal entity, a co-op can contract with other companies or hire individuals to provide
it with services, such as a maintenance contractor or a building manager. It can also hire
employees, such as a manager or a caretaker, to deal with specific things that volunteers may
prefer not to do or may not be good at doing, such as electrical maintenance. However, as many
housing cooperatives strive to run self-sufficiently, as much work as possible is completed by its
members.
In non-equity cooperatives and in limited equity cooperatives, a shareholder in a co-op does

not own real estate, but a share of the legal entity that does own real estate co-operative
ownership is quite distinct from condominiums where people own individual units and have little
say in who moves into the other units. Because of this, most jurisdictions have developed
separate legislation, similar to laws that regulate companies, to regulate how co-ops are operated
and the rights and obligations of shareholders.
Each resident or resident household has membership in the co-operative association. In

non-equity cooperatives, members have occupancy rights to a specific suite within the housing
co-operative as outlined in their "occupancy agreement", or "proprietary lease" ,which is
essentially a lease. In ownership cooperatives, occupancy rights are transferred to the purchaser
by way of the title transfer.
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Since the housing cooperative holds title to all the property and housing structures, it bears the
cost of maintaining, repairing and replacing them. This relieves the member from the cost and
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burden of such work. In that sense, the housing cooperative is like the landlord in a rental setting.
However, another hallmark of cooperative living is that it is nonprofit, so that the work is done at
cost, with no profit motive involved.
In some cases, the co-op follows Rochdale Prinicple where each shareholder has only one
vote. Most cooperatives are incorporated as limited stock companies where the number of votes
an owner has is tied to the number of shares owned by the person. Whichever form of voting is
employed it is necessary to conduct an election among shareholders to determine who will
represent them on the board of directors (if one exists), the governing body of the co-operative.
The board of directors is generally responsible for the business decisions including the financial
requirements and sustainability of the co-operative. Although politics vary from co-op to co-op
and depend largely on the wishes of its members, it is a general rule that a majority vote of the
board is necessary to make business decisions.
In the lifecycle of buildings, the replacement of assets (capital repairs) requires significant
funds which can be obtained through a variety of ways: assessments on current owners; sales of
Treasury Stock (former rental units) to new shareholders; drawdowns of reserves; unsecured
loans; operating surpluses; fees on the sales of units between shareholders and new and increases
to existing mortgages.
There are two main types of housing co-operative share pricing: market rate and limited
equity. With market rate, the share price is allowed to rise on the open market and shareholders
may sell at whatever price the market will bear when they want to move out. In many ways
market rate is thus similar financially to owning a condominium, with the difference being that
often the co-op may carry a mortgage, resulting in a much higher monthly fee paid to the co-op
than would be so in a condominium. The purchase price of a comparable unit in the co-op is
typically much lower, however.
Co-operatives in India were introduced by the British primarily to aid small-scale farmers and
to improve access to rural credit. The first Co-operative Societies Act was adopted in 1904,
which then only included credit co-operatives. The act was soon amended to grant the
registration at the State level of non-credit co-operatives, including housing and its
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administration, allowing them to adapt the legislation to prioritize local needs, in the years 1912
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and 1919 respectively.

The political context and public environment continued to be supportive of the development of
co-operatives by the time India emerged independent. In fact, the first Prime Minister of India,
Jawaharlal Nehru, supported the growth of co-operatives envisioning them as “a part of his
paradigm of democratic socialism”.
However, the development of housing co-operatives remained marginal until the 1950s,
mainly due to an inadequate organizational support structure and an unsupportive legislative and
administrative framework. Initiatives were undertaken to provide housing for middle and low-
income groups in the former states of Madras and Bombay. For example, in 1950 about 4,000
houses were built and 12,000 were under construction by 273 housing co-operatives in the State
of Madras whereas in the State of Bombay, 3,500 houses were built, 229 were under construction
by 315 housing co-operatives.
The Report of the Working Group on Housing Co-operatives released in 1964 marked a
turning point for Indian co-operatives. It stated that housing co-operatives are the best means to
provide decent houses at affordable prices for lower-income groups. One of the
recommendations of the Report led to the foundation of the National Co-operative Housing
Federation of India in 1969.
Circumstances changed when the co-operative housing sector received explicit support
through successive Five Year Plans implemented by the Government (the 1st plan was instituted
in 1951–56). The Government of India invested large sums of money to improve the economic
conditions of the people through innumerable social, economic and institutional means, along
with around one-third of the money allocated to housing in the first plan. The share was 17% in
the tenth plan covering the period 2002–2007. Although, the housing share in these plans has
decreased over the years, considerable progress has been made.
Housing co-operatives were particularly prevalent in Delhi, Gujarat, Haryana,

Maharashtra, Uttar Pradesh and West Bengal. Two events in 1988 changed the face of Indian
Housing Policy. First, the National Commission on Urbanization inferred that housing should,
from then on, not restrict itself to the aim of providing shelter, it should explore the broader
context of urban development. Secondly, the United Nations Centre for Human Settlements
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(UNCHS) steered Governments to adopt an “enabling approach” towards housing, i.e.

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supporting the role of the private and third sectors in housing instead of direct public

intervention. Consequently, India along with its states removed legislative barriers to facilitate
the participation of the sectors.
Since the 1990s, India’s population has grown at an average of 2% annually, within
which the urban population, mega cities and slum populations grew by 3%, 4% and 5%
respectively. Industrialization and urban migration have created a grave housing situation. The
UN Report “State of World Population” indicates that 29% of the Indian population is urban and
it is expected to approach 41% by 2030. Currently, 55% of the present urban population lives in
slums. In the year 2007, the housing deficit in India was estimated to be 24,7 million houses in
urban areas and 15,95 million houses in rural areas, totaling 40,66 million units.
All round participation has been encouraged from citizens and housing organizations to
tackle this housing crisis, instead of relying solely on the direct intervention of the government.
However, the government has put in place the essential conditions to assist the development of
affordable housing.
Over the years, the co-operative housing sector has gained credibility and is trusted as an
able entity to provide adequate solutions to the housing challenges in the country. The co-
operative housing sector thrives to assist low-income people in attaining decent living conditions
through slum improvement drives, affordable housing in rural settings and where private
developers are not willing to intervene.
Upon realizing the benefits of housing co-operatives coupled with its “enabling”
approach, the National Housing Policy explicitly promoted housing co-operatives in all segments
of the population and encouraged the efforts of the co-operative housing movement through
preferential allotment of land and house sites, convenient availability of financing and by
gradually removing legal and technical limitations.
However, obstacles remain to housing co-operatives realizing their potential. With the
scarcity of affordable land, the need rises for specific urban land regulations. Availability of
financing is still a major problem for many. The high cost of building materials and the
inexistent/poor infrastructure (water, electricity, transport etc.) add to the woes of building
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housing.
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In addition, as the very nature of housing co-operatives is to empower people to control
their housing conditions, the movement must establish adequate training programs for members,
directors and employees. This is a significant challenge for a country where 26% of the
population is illiterate.
Set up in 1969, the National co-operative Housing Federation of India (NCHF) is the
nation-wide organization for the co-operative housing movement in India. Founded by 6 state-
level federations, NCHF takes the lead in promoting, coordinating and facilitating the
development of housing co-operatives, along with providing guidance to housing co-operatives
and their federations.
The function of the 26 state-level federations is playing a significant role in the pursuance
of co-operative strategy. It not only provides financial assistance to housing co-operatives in
their respective jurisdiction but they also provide guidance on technical matters and assist them
in the general co-ordination and supervision of activities, such as assisting them in obtaining
building materials. As an example, the Pondicherry Co-operative Housing Federation has set up
a Pondicherry Co-operative Building Centre whose main objectives are to “set up manufacturing
units of building materials, purchasing bulk quantity of materials for construction of buildings
and sell them off to members and public at fair and reasonable price”. An idea to promote the use
of certified low cost materials helps them to bring a more cost-effective methodology to the
construction process. The center has received several awards for its work.
Approximately 30,000 out of the 100,000 housing co-operatives in the country are members with
state-level federations. Non-affiliated housing co-operatives can receive financing from other
sources.
There are seven relatively new district federations based in the states of Maharashtra, Gujarat
and Uttar Pradesh, whose mandate is to assist housing co-operatives in a particular district.
Apart from serving the basic cause of housing co-operatives, its contribution towards human
development lies in creating one million jobs every year in India. The job opportunities in
housing cooperatives are related to:
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• Organizational management and administration.

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• Planning, designing and construction of housing units.
• Post construction management of services and maintenance of houses and community

assets.
• Production, transport, storage and delivering of building materials.
• Real estate business related activities.
Housing societies that have fewer than 200 members may soon be able to hold their
elections in the annual general meeting, every five years. So far, the societies had to request a
government body, Maharashtra State Cooperative Election Authority (MSCEA), to conduct their
elections, making the procedure tedious and expensive.
The government on Friday decided to dilute the provision related to the elections of
cooperative housing societies. Of more than 2 lakh cooperative societies in the state, 1 lakh are
cooperative housing societies. Of them, 80,000 have fewer than 200 members. Mumbai has
about 20,000 housing societies with fewer than 200 members.
The state cabinet on Thursday decided to incorporate a separate chapter as section 154(b) in
Maharashtra Cooperative Societies Act (MCSA), 1960 to govern housing societies
independently, separating them from profit-making cooperative societies such as sugarcane
factories, credit societies and banks.
The section proposes to redefine registration, election procedure, disqualification of members,

voting rights, fund raising liberties, among others. The constitutional amendment in the MCSA
in 2013 made it compulsory for the Authority to conduct the elections. This led to a rise in the
expenditure and corruption. Taking the number of complaints by housing societies into account,
the government appointed a committee in February 2017 to suggest changes.
“Housing societies are not profit-making societies and need to be treated differently. We had
received complaints of difficulties in holding the elections. The reservation for backward classes
and women was another contentious issue, as finding members from reserved categories was
tough in some cases,” said an official from the cooperation department.
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The state government will now introduce a bill to amend the MCS Act. It has also proposed to
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amend section 73(c) (b) to simplify the process for members with voting rights. “We had

suggested exemption from election by MSCEA, simplifying the definition of the members with
voting rights by giving status of joint member to legal heir and constituting a regulatory authority
to address disputes within societies,” said Ramesh Prabhu, chairman, Maharashtra Societies
Welfare Association, and member of the panel.
The state cabinet has not taken any decision on constituting the regulatory authority, as it feels
that there was no immediate need to have one more body to govern the societies, as the proposed
amendment will help in most of the disputes.
The Cooperative Societies Act Embraces a wide range of economic activities through
District Cooperative Banks and primary agricultural societies for agriculture credit, urban
cooperative bank for nonagricultural credit, primary dairy cooperatives and the unions for dairy
activities, housing societies, consumers’ cooperatives etc. The public at large deals with the
cooperatives and many a times they are associated with some cooperative societies as members.
Therefore, it is important to know about the rights of the members in a cooperative society.
It is important to note that similar Sec. 40 also repeats certain items as public documents
which is also reproduced herein below: Section 40 "Every society shall keep, at the registered
address of the society, a copy of this Act and the rules, and of its bye-laws and a list of members
open to inspection to the public, free of charge, during office hours or any hours fixed by the
society therefore."
The most important item is the bye-laws which is made public document U/S 40 so that the
publics while dealing with the society can appreciate the powers and limitation of the office
bearers analogous to Memorandum of Association and Article of Association under the
Company Law.
Soon there may be a Housing Regulatory Authority to deal with disputes pertaining to co-
operative housing societies and its members. This is expected to be on the lines of Maharashtra
Real Estate Regulatory Authority (MahaRERA).
The government's Co-operation, Marketing and Textiles department had formed a team.
The purpose of the team was to study and include a separate chapter for co-operative housing
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societies in the Maharashtra Co-operative Societies Act 1960.

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In this context, to make the functioning and administration of co-operative housing
societies simple, distinct and consummative, formation of the Committee for making
recommendations with regard to inclusion of a separate chapter in the Maharashtra Co-operative
Societies Act 1960 was being considered by the government. The government later on formed a
team and included officers like Sandeep Deshmukh (SRA), Chairman of Maharashtra Societies
Welfare Association Ramesh Prabhu, Chhaya Ajagaonkar (of Housing Federation), and other
eminent members working in this field.
According to Prabhu, the team has already submitted its proposal comprising of suggestions to
the government and one of the many suggestions is that a Housing Regulatory Authority on the
lines of MahaRERA be formed to look into disputes of co-operative housing societies and its
members.
1.2 DEFINITION
Cooperative housing is an alternate form of ownership of homes and property, in which the
property is owned by an organization and then sold as shares to the residents of the community.
Cooperative housing splits costs on shared housing amenities, and is frequently used as a part of
an intentional community initiative.
According to Calvert, "Co-operation is a form of organization wherein the persons voluntarily

associate together as human beings on the basis of equality for the promotion of economic
interest of themselves"
1.3 CONCEPT OF CO-OPERATIVE SOCIETY
The word "Co-operation" is derived from the Latin word "Co - operati" which means, "to work
united".
That is "Co-operation" means working together with others for a common purpose. In general,
"co-operation" stands for the idea of "living together and working together".
"Each shall work for all and all for each" is the motto of co-operation. Mutual trust, Mutual
supervision, self-reliance, spontaneity, and equality are the five pillars of a co-operative
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organization and co-operative spirit is the backbone of the society.

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1.4 MEANING
Co-operation is a form of organization wherein persons, irrespective of caste, creed and religion,
voluntarily associate together, as human beings, on the basis of equality for the promotion or
furtherance of their common economic interests.
It is self-help through mutual help. The Philosophy behind Co-operative movement is "All for
each and each for all".
1.5 TYPES OF COOPERATIVE SOCIETY
consumers
cooperativ
e societies
Credit producers
Cooperati cooperativ
ves es
Housing Marketing
cooperativ cooperativ
es es
cooperativ
e farming
societies
1. Consumers cooperative societies:
Consumers' cooperatives are formed by the consum-ers to obtain their daily requirements at
reasonable prices. Such a society buys goods directly from manufacturers and wholesalers to
eliminate the profits of middlemen.
These societies protect lower and middle class people from the exploitation of profit hungry
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businessmen. The profits of the society are distributed among members in the ratio of purchases
made by them during the year.
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Consumer's cooperatives or cooperative stores are working mainly in urban areas in India.
Super Bazar working under the control of Government is an example of consumers' cooperative
society.
2. Producers cooperatives:
Producers or industrial cooperatives are voluntary associations of small producers and artisans
who join hands to face competition and increase production. These societies are of two types.
(a) Industrial service cooperatives:
In this type, the producers work independently and sell their industrial output to the
cooperative society. The society undertakes to supply raw materials, tools and machinery to the
members. The output of members is marketed by the society.
(b) Manufacturing cooperatives:
In this type, producer members are treated as employees of the society and are paid wages for
their work. The society provides raw material and equipment to every member.
The members produce goods at a common place or in their houses. The society sells the output in
the market and its profits are distributed among the members.
3. Marketing Cooperatives:
These are voluntary associations of independent producers who want to sell their output at
remunerative prices. The output of different members is pooled and sold through a centralized
agency to eliminate middlemen. The sale proceeds are distributed among the members in the
ratio of their outputs.
As a central sales agency, the society may also perform important marketing functions such as
processing, grading and packaging the output, advertising and exporting products, warehousing
and transportation, etc.
Marketing societies are set up generally by farmers, artisans and small producers who find it
difficult to face competition in the market and to perform necessary marketing functions
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individually. The National Agricul-tural Cooperative Marketing Federation (NAFED) is an

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example of marketing cooperative in India.

4. Cooperative Farming Societies:
These are voluntary associations of small farmers who join together to obtain the economies of
large scale farming. In India farmers are economically weak and their land-holdings are small.
In their individual capacity, they are unable to use modern tools, seeds, fertilizers, etc. They
pool their lands and do farming collectively with the help of modern technology to maximum
agricultural output.
5. Housing Cooperatives:
These societies are formed by low and middle income group people in urban areas to have a
house of their own. Housing cooperatives are of different types. Some societies acquire land and
give the plots to the members for constructing their own houses.
They also arrange loans from financial institutions and Government agencies. Other societies
themselves construct houses and allot them to the members who make payment in instalments.
6. Credit Cooperatives:
These societies are formed by poor people to provide financial help and to develop the habit of
savings among members. They help to protect members from exploitation of money lenders who
charge exorbitant interest from borrowers.
Credit cooperatives are found in both urban and rural areas. In rural areas, agricultural credit
societies provide loans to members mainly for agricultural activities. In urban areas, non-
agricultural societies or urban banks offer credit facilities to the members for household needs.
In India, several national federations of cooperative societies have been formed. National
Cooperative Consumers Federation, National Federation of Cooperative Sugar Factories,
National Agricultural Cooperative Marketing Federation, National Cooperative Dairy
Federation, National Cooperative Housing Federation, All India State Cooperative Banks
Federation is some examples.
1.6 CONDITIONS FOR COOPERATIVE SOCIETY

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Co-operative Societies Act under which the same is registered whether it be under state Act or
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Central Act. Co-operative Societies rules made there under whether it be central or state rules

Bye-laws approved by the registrar at the time of registration and amendments made from time
to time and approved by the registrar, these bye-laws have to be formed by the concerned
members themselves and present it to the registration authority for its approval. Notification and
Orders by the concerned Government
The following steps have to be followed while forming a Co-operative society, they are
Step 1: Ten Individuals together who are desirous of forming a Society
To form a society, law mandates that 10 member’s minimum must show intention to be part of
the society having same aim and objective to be achieved through the society for their mutual
benefit and thereby be desirous to be part of it.
Step 2: Provisional Committee to select Chief Promoter
Once a group of individuals have a desire to form a society the next step should be there must
be a provisional committee of which everyone is part of and all of them should by mutual
consent or by majority whichever them prefer must choose a person who will be a chief promoter
of the society which is going to be formed by them.
Step 3: A Name for the Society has to be selected
Thereafter once a chief promoter is selected by set of individuals among them, they have to
select a name for the co-operative society which they wish to form
Step 4: Application has to be made to the Registration Authority
Once the name of the society is selected by the members then they have to make an
application to the registration authority stating that they have an intention to form a society and
the name of the society has to be given to the authority for its approval and registering authority
has to confirm that name is in conformity with laws and issue a confirmation certificate to the
members. Then when the members get their name approval from the authority it is valid for 3
months from the date of approval.
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Step 5: Entrance fees and share capital

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Thereafter once name approval comes from the concerned authority, the entrance fee and the
share capital must be collected from the concerned prospective members to meet the statutory
requirements under law and it can be prescribed by the members themselves or society act
mandates certain fees to be paid by them.
Step 6: Bank Account
Thereafter once the prescribed fee and share capital is collect from the prospective members,
then as per the directions of the registering authority promoter has to open a bank account in the
name of the society and deposit the said fees and share capital in that account and a certificate
has to be obtained from the bank to that effect
Step 7: Application for registration
Once the bank formalities are completed then the promoter has to apply for the society
formation to the registration authority and it has to be accompanied with set of documents, they
are
Form No. A in quadruplicate signed by 90% of the promoter members
1. List of promoter members
2. Bank Certificate
3. Detailed explanation of working of the society.
4. Four copies of proposed bye-laws of the society.
5. Proof of payment of registration charges.
6. other documents such as affidavits, indemnity bonds, any documents specified by the
Registrar also have to be submitted.
All these documents have to be submitted at the time of applying for registration of the society to
the registering authority and the authority after it is satisfied with the documents submitted to it
has to apply its mind to whether or not to register the said society.
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Step 8: Registrar has to acknowledge

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After the submission of the said documents has mentioned in step 7, the registrar of that
municipal ward has to enter the particulars in the book called the “register of Application” which
is generally specified in form B and give it a serial number to the application. Thereafter the
registrar has to issue a receipt to that effect and give it to prospective members to know the status
of the application when it is pending.
Then the registrar after perusal of the records submitted to him/her has to make a decision
whether has to issue a certificate of registration or not and if there are any discrepancies noticed
then he/she has to inform the members of the same and get it rectified if any.
Step 9: Registration
Last step is that the registering authority after being satisfied with the documents meeting the
legal requirements will notify the registration of the society in the official gazette mentioned by
the state or central government and should issue the registration certificate of the society and
give it to the members of the society.
1.7 FINANCIAL RECORD MAINTAINED THROUGH COOPERATIVE

SOCIETY
1. To keep and maintain the records of the society
⦁ It is necessary that the managing committee of the society should have to prepare all
registers, books of accounts and files as mentioned in Rule 65 and Bye-law No. 142 of the
Maharashtra Co-operative Societies Rules, 1961.
⦁ It is the responsibility of the Secretary of the society to take entry in time in all registers kept
in society (byelaw No. 144)
The society should have to prepare following registers permanently.
1. Managing Committee minute book
2. Register of General Body Meeting and special general body meeting.
3. All types of cash books

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4. Bank Pass Book

5. Member Register
6. Bye-laws booklet
7. Audit Report
8. Papers regarding ownership of the society
9. Sanctioned plan / lay-out of the society
10. Various permissions letter regarding construction
11. Occupation certificate of the building
12. In addition to this all such papers which are necessary as per resolution of the society.
13. Records of the society shall be in possession of the Secretary.
⦁ After expiry of the tenure of the Secretary of the society, the responsibility to prepare list of
the records, and hand over it as per list to the new secretary shall be of concerned Chairman,
Secretary and Managing Committee.
⦁ It shall be obligatory to keep the record of the society in the office of the society only. If there
is no office of the society, the managing committee should fix the place for keeping record by
making resolution. It shall be obligatory to keep record in such place.
⦁ The responsibility of maintaining the record of the society in neat and up to date shall be of
Secretary and with him it is the responsibility of the managing committee also.
⦁ The Society may appoint salaried manager for looking after day to day working of the
society. For this the concerned candidate should have obtained the management diploma in
Housing Co-operative Societies proposed by the Co-operation Department, or should have
obtained qualification prescribed by the office of Commissioner Co-operation. The Society
where members number is 50 or more then such society should appoint a full time manager and
other small societies can appoint manager collectively. The General Body decides Manager’s
working terms, conditions, salary etc.
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2. Working of the Managing Committee

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⦁ It is the responsibility of the Managing Committee to hold election before expiry of tenure as
per provision in the sanctioned by laws (byelaw No. 116) and to inform the same to the
Registrar of societies.
⦁ For the availability of the Managing Committee members, the members of the managing
committee should be those who are residing in the societies flat as far as possible.
⦁ It is necessary after conducting election, the election of the office bearers should be made by
the Election officer (bye-law No. 126)
⦁ It is obligatory to follow the limit of cash in hand as per provision in by rules. If more cash in
hand remained, then to charge interest on it as per by law no. 72 shall be necessary.
⦁ All payment above Rs 1000/- should be made by crossed cheque.
⦁ It is necessary to invite price list / tender for above Rs. 10,000/- expenses. The power to
decide the minimum limit for this shall be with general body meeting.
⦁ The Managing Committee should give a receipt to the application received from the
Members, similarly should have to give reply within 15 days as per law No. 174.
⦁ It is binding on the managing committee to note in the minute book all subjects in the agenda
as discussed actually. The subjects comprising important policy matter/ financial decision could
not be taken on eleventh hour.
⦁ It shall be the responsibility of the chairman and Secretary of the Society to write down the
minutes of the meeting of General Body and special Body within three months from the date of
the meeting.
⦁ It shall be the responsibility of the managing committee to take action in time on repairing/
maintenance, internal and external leakage and illegal construction.
3. Responsibility of the Annual Meeting
⦁ To take review of the minutes of last Annual meeting and special meeting and action taken
on it and finalize the same.
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⦁ To accept and approve the last year’s income and expenditure statement presented by the
managing committee similarly information of reconciliation and their working report.
⦁ To take note of the last years audit report and similarly approve the rectification report
presented by the managing committee.
⦁ To declare the result of the election of managing committee if the Annual general meeting
held earlier.
⦁ To appoint the auditor from the registered panel available with co-operative department.
⦁ To take decision by discussing on the proposal regarding expulsion of members.
⦁ To take decision by discussing on the proposal regarding the bye-laws and approve the same.
⦁ To take decision on the rate of contribution regarding maintenance fee, maintenance and
repair fund and sinking fund.
⦁ To determine the interest rate to be charged on the members defaulting in paying societies
maintenance.
⦁ To decide about parking and determine its rate
⦁ To take decision about penalty to be charged on members, violating by-laws of the society
and to determine its amount.
⦁ To determine the amount of remuneration to be given to a member if he has got ended his
services to the society.
⦁ To approve the expenditure of major repairs.
⦁ To recommend for giving membership again to the expelled member by the society.
⦁ If all the members of the managing committee tender their resignations then to put them
before the annual meeting and approve.
4. Development of the land.

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Procedure to be adopted for transferring land e.g. Surrender of lease, lease deed, Property
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management on commercial basis for e.g. office, sports complex, playground, garden etc.

5. Redressal of compliant of Members
A member can submit application of explanatory written complaint to any member of the
office bearer. After receiving the complain the committee will take decision on it in its
immediate meeting and thereafter that decision will be communicated to the concerned member
within 15 days.
If the concerned member was not satisfied on the decision communicated by the committee, or
to contact was made by the committee within 15 days in this regard, then the member of the
committee can contact to the complaint redressed committee formed by the Annual General
Body Meeting. If a member is not satisfied with composition and powers of such committee,
then the complainant member can contact the following authorized officers as per nature of the
complaint.
A) Registrar
⦁ Registration of Society on misrepresentation
⦁ Non-issuance of the Share Certificates.
⦁ Refusal of Membership.
⦁ No registration of nomination by the society.
⦁ Non Occupancy charges.
⦁ Demand of excess premium for transfers.
⦁ Non supply of copies of the record and documents.
⦁ Tampering, suppression and destruction of the records of the Society.
⦁ Non acceptance of the cheques or any other correspondence by the committee.
⦁ Non maintenance or incomplete maintenance of records and books of the society.

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B) Co-operative Court

If following types of dispute arises between member/ members, member and/ or member and
society as per Section 91 of the Act.
⦁ Resolutions of the Managing Committee and General Body Meeting.
⦁ Repairs, including major repairs, internal repairs, leakages.
⦁ Place of Parking.
⦁ Allotment of Plot/ flats.
⦁ Escalation of construction cost.
⦁ Appointment of Developer, contractor, architect,
⦁ Unequal water supply.
⦁ Excess recovery of dues from the members.
⦁ Any other, like disputes which falls within the jurisdiction of Co-operative court.
C) Civil Court
Following types dispute
⦁ Non-compliance of the terms and conditions of the agreement, by and between the Builder/
Developer.
⦁ Substandard constructions.
⦁ Purchase Deed. (Transfer of Property)
⦁ Escalation of construction cost.
⦁ Any other, like disputes which fall within jurisdiction of the civil court.
D) Municipal Corporation/ Local authority

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Matter Shown Below –

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⦁ Unauthorized constructions/Addition/Alterations, made by the builder/Member/ occupant of
the flat.
⦁ Inadequate water supply to the society.
⦁ Change of use by the Member/ occupants
⦁ Any other subject falls under jurisdiction of Municipal Corporation / local authority.
E) Police
⦁ Threatening/Assault by or to the members of the society.
⦁ Any other subject falls under the jurisdiction of the Police.
F) General Body Meeting
⦁ Non maintenance of the Property of society by the Managing Committee.
⦁ Non display of Board of the name of the society.
⦁ Levy of excess fine, by the Managing Committee for act of the member which is in violation
of the bye laws.
⦁ Managing Committee’s opposition for legal utilization of available open space.
⦁ Non issuing the property of the society by the managing committee.
⦁ Appointment of the architect.
⦁ Any other subject in the jurisdiction of general body meeting.
G) Housing Federation
Matter mentioned below –

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⦁ Denial of entry to the Secretary of the society by the members.

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⦁ Non acceptance of any communication by the Member/ Managing Committee
⦁ Convening Special General Meeting provided under byelaw No. 97 and Managing
Committee meeting provided under the bye law No. 133.
⦁ Any other matters.
1.8 OBJECTIVES
1. To make detailed study of final account which may be maintained by the society.
2. To understand the perception of individual about the cooperative society.
3. To note the problems faced by the members of the society.
4. To study the satisfaction level of members in society.
5. To know about investors’ expectations.
1.9 SCOPE OF THE STUDY
1. To study the confined to cooperative housing societies in Ambernath.
2. To study the various accepts i.e. organizational, managerial and financial progress carried out
by the cooperative housing societies in Ambernath City.
3. To study four cooperative housing societies have been selected as samples.
4. To study includes various activities carried out by the selected cooperative housing societies
whose head office as well as branches is situated in city.
5. To study covers the analysis and interpretation of selected city for the period.
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CHAPTER. NO. 2
RESEARCH AND METHODOLODY

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2.1 INTRODUCTION
A research methodology defines what are activity of research is, how to proceed how to
carry the research work systematically. Research methodology is the study of how to perform
scientific research. In other words, research methodology is the information for the purpose of
decision making related to the identification and solution of problems. The success of any
research depends on the study thoroughly attempt to follow systematic and scientific approach to
undertake the study. This chapter is considered with the presentation of the method and
procedures used ingathering, consolidating and statistically quantifying the information which
served as basic for the establishment other trend of reaction to the topic discussed in this study.
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Research is a careful investigation or inquiry specifically through search for new facts in any
branch knowledge. It is an original contribution to the existing stock of knowledge making for its
advancements.
Research can simply be defined a task of searching from available data to modify a certain result
or theory.
Research Methodology is a way to find out the result of a given problem on a specific matter or
problem that is also referred as research problem. Methodology is used by the researcher for
solving/searching the given research problem. It includes various steps like selection of problem,
literature review, research design, sample size, techniques of data collection, techniques of data
analysis and reporting. This research is concerned with Problems faced by employees working in
banks, basically to study their contributions and their problems.
2.2 Source of Information.
• . Interview with the selected Chairman of the Cooperative Housing Society.
• Interview and Discussion with Manager according to their Society.
• Visit to the Selected Society to Know the Information of the Society.
• Member of the Cooperative Society.
2.3 SIGNIFICANCE
The significance of the study is to study about the member’s perceptions towards Cooperative
Housing Society. In this, the research is made to study on various independent variables affecting
the member’s perceptions towards the Cooperative housing society for demographic factor and
types of benefit whether can effect on members’ perceptions on investing in the cooperative
housing society. Many people are not aware of the Cooperative housing society investment
strategy and the benefit given on investment in the same. Where one can ask for or look for
financial statement of cooperative housing society. The need and importance of cooperative
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housing society in our lives originates from its unique services to the member of the society.
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2.4 SAMPLE SIZE
This includes people survey. As larger number of respondents gives primary results or outputs
then small number of respondents because of less time and money the sample size is restricted to
80 member of cooperative housing society in Ambernath.
2.5 HYPOTHESIS
H0- Members do not have good perceptions towards cooperative society.
H1- Investors have good perceptions towards cooperative society.
H0- Members expectations are not satisfaction from the cooperative society.
H2- Investors’ expectations are satisfaction from the cooperative society.
H0- Members faces more problem in the cooperative society.
H3- Members faces fewer problem.
2.6 LIMITATIONS OF THE STUDY
The followings are the limitations of the project- The study is restricted only in Ambernath.
Since all the questions are direct, there is chance for basied answer from the respondent. The
number of respondents are restricted to 80.
2.7 DATA COLLECTION
Data is collected from two sources:
1. Primary Sources:
Primary sources give original data, i.e. this is the first hand information collected at the time of
research. So it will give more reliable and accurate results of the research so this source is used
by interviewing the people who has account in cooperative housing society and uses the services
and products of the Post office saving schemes.
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Primary Sources of Data will be used due to the following reasons:

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As the data collected by Primary researcher is original, it will give accurate results. Researcher
will collect the data as per the objectives and also the data collection will be a recent one.
2. Secondary Sources
Secondary data includes published and unpublished work done by others, this help in detailed
understanding of the search problem and provides data for future comparison. If there are some
issues related to the study, then those issues could be solved using these sources of data.
Secondary source of data is useful due to following reasons: -
• It helps to understand some problems and issues related to the area of the study.
• Secondary data always give base to the study.
• It also saves time and efforts of the researcher.
• It can be used as addition to the primary
2.6 SOURCES AND METHODS OF DATA COLLECTION:
Information for research can be collected through following sources:
• INTERVIEW METHOD
PRIMARY • QUESTIONNARIE METHOD
DATA • FIELD VISIT AND
COLLECTION OBSERVATION
• WEBSITES
SECONDARY • BOOKS
DATA
COLLECTION
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1. Primary data:
The primary data for research can be collected by using following sources of data:
1. Interview Method
Researcher will collect the primary data by interviewing customers who uses the Cooperative
housing society. This method will be required when there is need for face to face interaction, to
the authenticity of questionnaire method. This will bring out potential information from the
respondent. Interviews may be structured or non-structured interview. Interview will be
conducted from the different respondent from the area selected for research.
2.Questionnaire Method
This method has given detailed of quantitative data, it is more precise, bulk data can be easily
collected easily, it is time saving and data can be analyzed with easy. Two questionnaires can be
prepared for:
• Customer satisfaction level relating to the services of cooperative housing society.
• Customer relations with the employee working in the post.
3. Field visits and observation Method
Personally visiting the Cooperative Housing Society and has studied their style of functioning.
Through visiting offices and work places of employees, has to understand their working style. If
there are many pitfalls, they can be known easily and suggestions can be provided at the end for
the same. Researcher has a direct access to customer’s views about the products. It has helped in
knowing the accuracy of the other methods of research and it will also enhance the quality of
evidences.
2. Secondary Data:
Secondary data requires for research has been collected from following sources such as; Various
references books, various journals of professional bodies\organizations, various websites,
government reports and reports of professional organizations. This has helped the researcher to
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get the background study related to same topics.

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Research design:

A research design is “a blueprint for conducting a study with maximum control over factors that
may interfere with the validity of the findings”. By Burns and Grove (2003:195) Researcher has
planned all the research activities in such a way that it focuses only on accomplishing research
objectives. The current research design is an arrangement of primary and secondary data. It also
includes methods and procedures to conduct current study. Research design has the helped
researcher to give proper way for conducting research activities.
PROBLEMS FACED DURING DATA COLLECTION: -
Following problems faced while collecting data;
Unwillingness of the respondent:
Respondents were not willing to give answer the questions or participate, as filling
questionnaires is time consuming and there could be some information which they do not want to
share.
Biased answers:
Respondents were not giving correct information in hurry or they do not want to
get us know about the exact problems about it. Respondents were not willing in filling the
questionnaires. Respondents may not be able to give reliable information because of timing or
nature of the services.
Tabulation of Data:
The Data collected was tabulated and graphical, the present data has been presented with the
help of various chart types are:
GRAPHS like Bar graphs, Column graphs, line graphs.
TABLE
PIE-CHART
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CHAPTER NO. 3.
REVIEW AND LITERATURE

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2.1. INTRODUCTION
The previous chapter dealt with the brief introduction of the present study, in addition the
first chapter dealt with various concepts like cooperatives and housing cooperatives with a
theoretical background. The present chapter deals with the review of literature and adopted for
the study to understand the work done on the study area. A literature review discusses published
information in a particular subject area, and sometimes information in a particular subject area
within a certain time period. A literature review can be just a simple summary of the sources, but
it usually has an organizational pattern and combines both summary and synthesis. A summary is
a recap of the important information about the source, but a synthesis is a re-organization, or a
39
reshuffling, of that information. It might give a new interpretation of old material or combine
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new with old interpretations. Or it might trace the intellectual progression of the field, including

major debates. And depending on the situation, the literature review may evaluate the sources
and advise the reader on the most pertinent or relevant information on the subject. Literature on
housing in general and co-operative housing in particular is exhaustive in nature. At the global
level and at the national level studies on housing facilities received extensive support after 1981
is the UN declaration of international year of shelter. Accordingly, a number of research studies
have been undertaken by a large number of institutions, government agencies and innumerable
research’s for the sake of convenience.
The review of literature can be classified as follows.
 Reviews on Growth and Development of Housing Co-operatives;

 Reviews on Institutional Sources of Finance for the Housing Co-operatives;
 Reviews on Problems faced by Cooperative Housing Society
1. Reviews on Growth and Development of Housing Co-operatives
Leeladevi (2014), in her paper “100 years of Housing Cooperatives Achievements and
Prospects” she concluded that housing provision should be an integral component in the
nation building. The housing cooperatives should strive sincerely in strengthening the
primaries at grass root level with basic and standard facilities that are required for a
common man like water, electricity and sanitary services. The economic and
infrastructural development plan of the country should be well supported by having
cooperatives through committed leadership.
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Leeladevi (2014)
Ravichandran and Gopalakrishna (2014),
Eswaramoorthy and Nirajan (2014)
Pothen (2010)
Khurana (2006)
Corzo (2005)
Eswaramoorthy and Nirajan (2014), presented a paper “Housing Scenario and Housing
Cooperatives - A Case Study” they analyzed that cooperative housing societies has succeeded in
meeting the housing needs of the majority of its members. That is 59 percent. The society is
housed in its own two storied building with a total constructed area of around 110 sq. ft. CHS has
consecutively baked the first prize from the federation has the last seven years.
Ravichandran and Gopalakrishna (2014), in his paper “A Case Study on the Cooperative
Housing Federation Limited” he found that the modern world housing does not limit the scope of
housing merely to the provision of shelter and it also makes an attempt to establish social and
recreational activities for the benefit of members. The long history of housing cooperatives
reveals that they have been instrumental in rebuilding the social life of people uprooted from
their old surroundings. The housing provides the physical framework in which the human, social,
economic and cultural resources of the individuals are released, enriched and integrated.
Pothen (2010), in his paper “The Opportunity for Co-operatives in Rural Housing” in his study
analyzed that the pyramid structure of the prevalent cooperative system can be duplicated in the
parallel rural housing initiative. He has adequate detailed planning at the initial up into a widely
utilized and socially useful service which could transform the Indian countryside pilot and
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demonstration units could develop into a wider movement for better habitations nationally can
the NCUI prompted this concept.
Khurana (2006), has worked on “Supreme Court on Housing Co-operatives” and analyzed that,
the apex court has delivered several judgements disputes connected with the housing co-
operatives. These decisions have direct bearing on the working of housing co-operatives and are
also shaping the future enactments in the country.
Coro (2005), has worked on “Housing Cooperatives: Possible Roles in Havana’s Residential
Sector” and reported that Despite the influx of foreign investment in tourism and commercial
real estate projects during the 1990s, conditions in Havana’s residential sector have continued to
deteriorate. By the end of 2001, more than 90,000 housing units were considered in “poor”
condition, and an estimated 60,000 were in urgent need of repair. The city’s sub-standard or slum
housing included more than 7,000 ciudadelas and cuarterías, and 186 barrios insoluble, providing
shelter to more than 90,000 inhabitants. Experts believe that some 1,000 dwellings suffer partial
or total collapses every year due to poor maintenance, years of neglect, and the severity of
tropical storms.
2. Reviews on Institutional Sources of Finance for the Housing Co-operatives
Rambabu (2013), in his study “Housing Finance System in India”, he found that the Housing
finance may be defined as the need to reconcile the three partially conflicting objectives of
affordability of households, viability of financial institutions and resource mobilization for the
expansion of the housing sector and of the national economy. In this paper mainly concentrated
on the housing finance system in India. The rapid increases in population and migration of rural
people to urban areas and expansion of industrial and commercial activities have created huge
demand for housing in urban centers. The problem is actually felt in urban areas and the worst
affected are the migrants from rural areas belonging to the low income groups. The critical
problem of housing finance is that of capital mobilization for construction purpose. Both private
and public agencies are invested in the construction of housing sector.
Arunodayam (2010), has worked on the “Housing Finance Market” and he found that the
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housing is a significant engine for growth and development of the economy. The important of the
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housing sector as the engine of growth has been historically acknowledged in most of the

developed nations of the world. Housing finance institutions now operating on squeezed margins
have to pay due attention to these factors in their order to importance to expand their volume of
business. The institutions that are geared to meet the expectations of customers only will survive.
Institutional philosophies, traditions, priorities and standards will help while understanding the
changes in the perception of the customers and will enable strategic planning for improved
market share.
Khurana (2007), focused on “Housing Co-operatives Provide Less Expensive Housing Loans”
and he explained that co-operative housing is not just another mode of housing for the urban
middle classes. In fact, its largest beneficiaries are the lower income groups and the
economically weaker sections. Co-operative housing has been traditionally reputed as the most
common and appropriate mode of housing for these income groups, whether it is in city slums or
in rural areas. The role of public agencies in direct provision of housing is being reduced, as it is
a form of organised self help by the people to house themselves its development would
considerably reduce the burden on the public housing agencies.
Khurana (2002), has worked on “Inter Institutional Cooperation for Housing” and he found that
if it institutions development authorities. Local bodies, Housing cooperatives builders, Realestate
developers, financers, etc, can really strike a partnership deal, Project specific, region specific,
and programme specific. Then we can assure ourselves that we are on the right course. The
sooner that happens. The better will be the housing output and faster will be the improvement in
the government as envisaged under the national housing and habitat policy need specifically
focus on this.
Kumar (2001), in his doctoral thesis entitled “Primary Housing Co-operatives An Evaluated
Study Examined the Financial Performance of Housing Cooperative Societies” and analysed the
managerial perspective problem. The study revealed that lack of professionalism and
competitiveness are the main problems faced by the housing cooperative societies.
Lokhotia (2000), has studied on “Income Tax and Housing Co-operatives” and he reported that
the tax provisions existing in the income tax law as an today would be instrumental in increasing
the overall quantum of housing co-operative societies in the country. However, what remains to
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be seen is that these new provisions should be well publicised by the government in
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collaboration with national co-operative housing federation of India and such other apex bodies.

Sukumar (2000), has worked on “Institutional Potential of Housing Cooperatives for low-
income Households: The case of India” and he analyzed that the institutional potential of housing
cooperatives to fulfil housing objectives of lowincome households, using three Indian cities
(Mumbai, Chennai, and New Delhi) as empirical basis. The institutional framework could help
or hinder in realizing the potential benefits in a given housing market by lowering or raising
transaction costs of formation and functioning of cooperatives.
Kalathil (1996), stated that “Housing Finance Help or Hurdle” it will be advisable for all
governments and public sector housing finance organizations to have a central pool arrangement
of counseling with would be borrowers. Legalities will have to be simplified. He advocates that
tax exemption from annual income for the person taking a loan for his own occupation will have
to be increased considerably.
2. Reviews on Problems of Housing Co-operatives.
Rajendran and Sasikumar (2014), in his paper “problem and prospects of housing cooperative
societies at the housing cooperatives provides a sustainable base for up gradation of economic
status and quality of life the people. Investment in housing has multiplier effects on the economic
growth of the country. The whole world is confronted with housing problems. Several agencies
are implementing housing schemes in the state. Most of these institutions are targeting middle
and higher income groups with regular income. The low income and the economically weaker
section are neglected.
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Rajendran and Sasikumar (2014),
Kulkarni (2014)
Shankar and Vidya (2013)
Harish (2011)
Kadriu and Wendorf (2011)
Manoj (2010)
Mahadeva (2008)
. Kulkarni (2014), in his paper “practical approach- management of cooperative housing”

presented that due to many drastic changes proposed in the 97th constitutional amendment
cooperatives should be independent of the government whose role would be only to facilitate the
formation of genuine cooperatives rather than interfere in their management. A new era in
cooperative sector has begun with the enactment of 97th amendment a new and modified
cooperative registration to provide for the formation and transformation of cooperatives as self-
reliant, self-help, mutually aided, autonomous, voluntary and democratic business enterprises.
Shankar and Vidya (2013), their study “Changing Dynamics of Land Use in Residential
Neighborhoods of Vani Vilas a Mohalla, Mysore”, they found that the City of Mysore is
experiencing changing dynamics in residential areas. Vani Vilas a Mohalla is the one of the
oldest residential layouts developed during the Maharaja’s period, before the independence
India. The diversity index for house is the inverse of the Hirschman - Herfindahl index has been
developed into a mixed land use pattern and is difficult to get alter. A well-developed policy
would set the tone for harmonized development of existing residential areas in to mixed land
area.
Harish (2011), in his paper “Spatial Analysis of Land”, he was analyzed the urban land use
45
pattern is an outcome of geographical and socio economic factors by man the decades. Hence
Page

spatial information on land use and possibilities for optional use is essential for the section,
planning and implementation to meet the increasing demands for human needs and welfare of the
urban areas. This information assists in monitoring the land use resulting out of charging
demands of increasing urban population over the decades. So in this article a detailed work on
urban land use pattern in analyzed. An attempt has been made to study the status of urban land
use during 1995 to 2011 with a view to detect the changes in land utilization rate that has taken
place in this status particularly in the built-up land. The set of measures taken by the city
corporation to contain problems is highlighted on extremely bothering the existing land use.
Kadriu and Wendorf (2011), have worked on “How can German Housing Cooperatives
Contribute to Reducing Climate Change?” and they reported is well known for its long and
significant history of housing cooperatives. This paper they will try to present some facts about
the current situation and identify the problems and challenges that housing cooperatives face
with the aim to reduce climate change.
Manoj (2010), in his publication “Prospects and Problems of Housing Microfinance in India:
Evidence from “Bhavanashree” he analyzed that housing problem in India is very chronic,
particularly among the low income and such other marginalized groups who are beyond the
reach of the formal institutional agencies for housing finance. The paper suggests a few
strategies for faster growth of HMF in India for rapid housing development in the country, and
hence national economic development.
Mahadeva (2008), has worked on “Housing Problem of the Scheduled Caste and Scheduled
Tribe. An Alternative Framework”. In his study he found that the housing needs of the depressed
sections has emerged as a major challenge, social housing schemes, being the only avenue of
meeting the housing and amenity needs have been very ineffective in terms of the coverage due
to inadequate financing by the government since public expenditure has not increased
correspondingly to the housing needs during the 90s, this paper documents institutional
potentialities in the state to effectively address the problem besides suggesting a need based
housing development strategy higher public expenditure, reorienting the existing institutional
infrastructure and an integrated approach in meeting the total housing requirements of these
46
families.
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A case study analysis was made on “Problems of the Co-operative Societies of India by
Thiripurasundari (2006). She has analyzed that the main objective of the co-operative housing
societies is to provide services to its members without any profit motive. However, the profit is
also a necessary indicator for the successful performance of any institution. The urban societies
suffer from heavy loss continuously throughout the period of study. But in the case of NGO
society and Taluka society the losses show a decreasing trend. To summarize the co-operative
housing societies should take measures to TNCHF should release the funds to the society without
much delay. The societies should take suitable measures for reducing the problem of over dues
and unnecessary expenses and thereby increases their operational efficiency.
Danmole, Taibat (2004), has worked on “Housing Provision the Cooperative Alternative” and
he analyzed that the Housing problems are multi-dimensional. They occur both in the urban and
rural areas. This paper examined the Cooperative housing concept as a strategy for housing
delivery. The essential features of the concept are discussed and an evaluation is made of its
impact on the housing sector in selected countries based on various criteria. Some of these are:
aims and objectives, modalities for funding, peculiarities of implementation, planning
imperatives and levels of success the paper concludes by relating the experiences of these
countries to the contemporary Nigerian housing situation and determining the applicability of the
cooperative housing concept given the nation’s socioeconomic environment.
Apte (2001), studied on “Management of a Cooperative Housing Society” he found that the
members normally are for smaller society dues. Their idea is to start staying happily and
comfortably in own residences without any avoidable expenses. The management committees
(MC) having large funds at their disposal to try to increase society assets to enhance the prestige
of the society. Without any explicit support in the act tor rules members can hardly do anything
to control the MC’s activities. The MC should provide special amenities to the members only on
voluntary subscriptions. The publications of National Housing Federation are a good source for
better guidance in such cases to prevent disputes within the society.
Rodman and Cooper (1995), studied on “Accessibility as a Discourse of Space in Housing Co-
operatives” consider accessibility as a socially and culturally produced that responds to and
47
shapes the built environment. The study showed how it is both a discourse about a social
Page
category and a critique of the category of the itself. Ironically, a key characteristic of the

category “people with disabilities” is the diversity of its members and their accessibility needs.
The study of disability suggests: society “makes disability” (Higgins 1992); individualizing
disability is a sleight of hand that blames each with a so-called disability for what is a socially
constructed problem (Higgins 1992). Similarly, the anthropologist Robert Murphy and his co-
authors have observed that the meanings attributed to people with disabilities are socially
constructed, partly through cultural symbolism (Murphy et al. 1988).
Narayanam and Mohankumar (1994), presented a paper “The Housing Problem from the
Resource Base Point” of view and attempt to highlight the use locally available materials that
can act as an alternative to the presently popular building materials.
Aslam and Wilson (1991), highlighted “The Problem of Housing Especially ” they made an
attempt to assess the outflow of money from the state for construction. The financial problem for
salaried individuals in relation to investment in housing is also analysed. They suggest a solution
to these problems by means of economic house building technique which can bring down cost by
30 percent.
Varghese (1988), while explained “Main Problem States that Housing Sector is Indissolubly
Linked with Financial Sector”. He is the opinion that housing is a very expensive commodity
which needs heavy capital outlay testifies to the vital role of finance which makes housing a
function of finance to a considerable extent.
Dietrich (1986), in his study on “Housing the Urban Poor”, he focused on the situation ,' but it
tries to do this within a framework which may be applicable for other situations as well. It
reflects mainly the experiences of the Karnataka Kolageri Nivasigala Samyukta Sanghatana
which has organised slum dwellers in the state since 1982 and had held a convention of slum
dwellers putting forward a first charter of demands as far back as December 1982. On February
6, 1983, a massive procession (around 15,000 slum dwellers from 200 slums) was conducted and
a charter of demands submitted to the government.
48
Page

BOOKS
Financial
Cooperative
Cooperative
housing societies
society
New model bye Basic rules of

laws cooperative cooperative
housing societies houisng society
Financial Cooperative Housing Societies.
Author Name- Well Kenton Dec 16,2017
Financial cooperatives have open membership, and unlike banks, they may be focused on seeing
to the financial wellness of their member, rather than yurning a profit. Control of the cooperative
takes a democratic form with each member getting one vote. Their individual financial standing
is not relevant, and they do not hold different layers of control based on ownership of shares. The
members of a cooperative, while being owners, are also customers. The size the cooperative is
based on the number of member who participate. As more members join, the financial
cooperative has more resources to offer financial products, reduced fees, lower interest rates on
loans, and higher yields on savings. Credit unions, in particular, offer ATMs and collectively
may have more of these devices in place than large banks. In addition to the financial products
and services the cooperative offers, they can also be sources of financial education for its
member and others. The services that cooperatives make available might include retirement
planning and understanding of how credit works. The history of financial cooperatives stretches
49
back to rural cooperatives that formed to offer credit and financial services to farmers. Consumer
Page
cooperatives may also be establishment to make a variety of products and services available to

members, such as healthcare, housing, grocery and insurance. Housing cooperatives, for
instance, can be made up of apartment complexes that the members reside in and buy ownership
into. The cooperatives can vary from small, local operations to large cooperatives that operate
across numerous states. A financial cooperative may form a board of directions to provide
leadership and structure to the organization.
Basic rules of cooperative housing societies
Author name- Swapnil Karmalkar. 1 Nov 2018
This book provides good information on code of conduct or rules of member in cooperative
housing societies. The cooperative housing societies are like joint member’s family. All the
members are shareholders and hence owners of the society. It is up to them ensure that is
security, amenties,hygenic and keep up are kept at high standard. This book contain general
society rules framed to help and understand the responsibility for day to day management of the
managing committee, all members, all residents their family members, guest, servants and
tenants/licenses. etc.
This sample set of rule of for an in cooperated society is intended as a guide only. You can
consider that a template and create a draft rules should be approved by the managing committee
over and above the society bye laws are observed by the society residents and visitors of the
society.
More than 215 societies have followed this book and started living in harmony and peace. This
book provides good information on code of conduct or rules for members in a Co-operative
housing society. This book because he believes that being responsible members of the society, it
is for us to discharge our obligations towards the community by conserving water, electricity,
consuming less and ensuring recycling of natural resources.
New Model Bye laws of Cooperative Housing Societies
Author Name- Snow White Jan 24, 2007
If your co-operative society is old, it may continue to follow old byelaws. But when a new co-
50
operative society approaches the registrar it would have to compulsorily adopt the new byelaws.
Page

Under the Maharashtra Co-operative Societies Act 1960, a housing society is free to adopt its
own set of laws that governs its members. These are called byelaws and are limited to the
Maharashtra state.
Byelaws are the rules that govern a co-operative society and its members and these undergo
changes from time to time through amendments whenever the government feels the need for
changes.
For instance, the cash on hand limit under the old byelaws was Rs 300. Cash on hand is
maintained by the society for day to expenses such as plumber's payments for instance. Over the
years it was felt that the amount was not sufficient. And hence in the new byelaws the same has
been increased to Rs 4,500.
Such changes under various headings become imminent and that is how the new model
byelaws came into effect from July 2, 2001. Since then, the government has made it mandatory
for co-operative societies in Maharashtra to adopt the new byelaws.
Byelaws are district specific. In other words, while these are more or less the same there could
be minor changes depending on which district you fall in whether it is Mumbai, Pune or Thane.
Enumerated here are some of the differences between the old and the new byelaws.
Transfer of flat: Under the old byelaws in case you were to transfer your flat, a charge of 2.5%
of the difference in the purchase value minus sale value would be levied as transfer charges. But
under the new model byelaw number 45 all that has been scrapped and a common charge is
levied as per the general body resolution subject to the condition that it is not above Rs 25,000.
Maintenance: Under the old byelaws the maintenance charged varied among members. For
instance, let us say the monthly maintenance amount payable was Rs 500. Now if the flat was
given on leave and license, the maintenance charge would be hiked to Rs 1,000.
But as per the new byelaws, maintenance is 10% of service charges. Service charges include
salary of the office staff, liftmen, watchman, the property taxes, electricity charges, water
charges, etc. in case the society has an independent office.
51
That apart it also includes entrance fees for affiliation to the housing federation and any other
Page
co-operative institution, audit fees for internal, statutory and re-audit if any besides expenses

incurred at meetings of the general body, the committee and the sub-committee retainer fees,
legal charges, statutory enquiry fees among others.
Purchase of second flat: Under the old byelaws there were restrictions on holding more than
one flat. You needed to obtain the registrar's permission to purchase a second flat in the same
society or within the limits of a certain district.
You were also needed to submit an affidavit saying that you do not hold any other flat in the
same district. For instance, if you were the owner of a flat in Mumbai you could not own another
flat in the same city. But another flat in Pune or Thane was allowed.
In the new byelaws the same has been done away with. So you can very well purchase a flat in
the same society. Under Byelaw number 62 of the new model byelaws all you need to do is make
an application to the society saying that you intend to purchase another flat. It's the society's
consent that matters.
Transfer among family members: Under the old byelaws there were transfer charges
applicable even if the transfer was between family members. But then under Section 6 read with
byelaw number 3 of the model byelaws, no transfer charge is to be levied in case of transfer of
flat to any one of the family members. Under byelaw number 3(25) family members means the
following group of persons: husband, wife, father, mother, sister, brother, son, daughter, son in
law, brother in law, sister in law, daughter in law, grandson, granddaughter.
"Cessation of membership can take place when the member has sold his flat. And such
communication in reality takes more than seven days or even a month since the committee needs
to find out whether all dues such as electricity bills, housing loans if any among others have been
paid. But then note that when a new co-operative society approaches the registrar it would have
to compulsorily adopt the new byelaws."
Cooperative housing Societies Management Procedure
Author Name: Deai C. D.S. Revised Edition 14th 2018
Co-operative Housing Society Registration, Management, Managing Committee Meetings,

52
Society Charges, Billing, Accounts Writing, Banking, Auditing, Byelaw Tips, Recovery Process,
Page
Disputes and Co-operative Court, Appellate Tribunal, All Problems & Solutions, Minutes

Writing of FGM, AGM, SGM & M.C. Auditing of Accounts, Recovery U/s.101, Action/s.83 &
88, Housing Society Land Conveyance etc.
Contents
Part - I:- Co-operative Housing Society Management Procedure & Practice
Part - II:- Minutes and Resolutions Writing for Co-operative Housing Society
Part - III:- Co-operative Housing Society Accounting and Auditing procedure
Part - IV:- Co-operative Housing Society Charges and Recovery procedure U/S 101
Part - V:- Co-operative Housing Societies Land and Conveyance Procedure
Under ownership acts, the builders, developers, land lord, after sale of flats has to form the
Cooperative housing societies and had over the management affairs of the members committee.
Due to the industrialization in Mumbai, Thane and other area more people are migrated. Other
than this existing population increased. This created more accommodations. To solve this
Accommodations growing needs, many housing institutions and bank took birth within 40 years
of time of cooperative housing societies formed in geometrical ratio and increasing day by day.
To overcome burning problem of Housing Construction RERA Act must be passed.
Due to fast increase in the cooperative housing societies. management. is unorganized

mismanaged unsystematic sector. Only few societies are managed where knowledgeable,
educated person, participate in the Society's management. In the city 2% to 5% population know
what is cooperative. This subject bill not taught in schools and college properly. Cooperative
illiteracy is innocence of the Housing Society Management. However now attempt are being
made housing society management education through training program.
This may encourage us to make ready to use Guide for best Management of cooperative
housing societies. As per us each and every Member should read this book for Society
Management. There is many books in the market, but you see difference only after reading this
book completely. All efforts are taken over the problem. If the reader find any other Cooperative
housing societies management problem other than specified in this book.
53
ARTICLE
Page

Article
MUMBAI
SAKAL TIMES
MIRROR
TIMES OF
DNA
INDIA
REDIFF ECONOMIC
WEDSITES TIMES
ADDA
TIMES OF INDIA NOV 23, 2018
MUMBAI: Every member of a housing society would be able to access all its records. If
documents are not made available to a member, the committee would be made to pay Rs 25,000
fine. Also, after a member’s death, a nominee would become a provisional member who can
contest elections to the managing committee but not sell the flat till the time the family’s legal
succession row is resolved. These are some of the proposed amendments to the State
Cooperative Societies Act tabled during the ongoing winter session of the state legislature.
Besides, associate members would not have their names on share certificates and not contest
elections but would be able to perform duties on the owner’s behalf. Any member not vacating a
flat for redevelopment would have to compulsorily do so once majority owners agree to it. A
member who is a real estate agent cannot contest elections or would be disqualified.
“Every member of the society shall be entitled to inspect free of cost, at the society’s office
during office hours or any time fixed for the purpose by the society, the copy of bye-laws, all the
records, books of accounts and correspondences, excluding personal information of other
54
members. The society shall furnish the documents requested by the member, maybe by charging
Page

fees as decided by the registrar, within a month’s time,” stated the bill proposed by cooperative
minister Subhash Deshmukh.
The proposed bill further stated that in case of an equality of votes, the chairman would have
the casting vote in the society meeting. Associate members would have the right to vote with
prior written consent of the member but would not have the right to contest the election to the
committee. The provisional member would have the right to vote. It pointed out that upon a
member’s death, the property share, right, title and interest would be transferred to a person or
persons—nominee can be given provisional membership or act as a trustee —on the basis of
testamentary documents, succession certificate, legal heirship certificate, or documents of family
agreement executed by those entitled to inheritance.
SAKAL TIMES 10 Sept 2018
MCDC will help Financially to redevelop housing societies
Pune: In order to help old cooperative housing societies carry out their redevelopment process
on their own, Maharashtra Cooperative Development Cooperation (MCDC) will provide
financial assistance to the at a reasonably low interest rate, said Subhash Deshmukh,
Maharashtra's Cooperative, Textile and Marketing Minister.
He was speaking at a workshop for the members of cooperative housing societies in 'Kothrud'
organized by Federation of Cooperative Housing Societies, Cooperative Department,
Maharashtra and MLA Medha Kulkarni. The workshop was attended by members of cooperative
housing societies in a large number. A book by Sakal Publcation, authorsed by Manisha Prabhu,
'Gruhanirmaan Sanstheche Sulabh Vyavasthapan' (Society By-laws) was also published by the
minister at the event.
Speaking at the event, Deshmukh said cooperative housing societies face many problems.
However, instead of pointing fingers at members or other societies, the societies need to come
together under the banner of organizations like the Federation of Cooperative Housing Societies
and collectively find solutions to their problems.
Cooperatives Commissioner Dr Vijay Zade State Cooperative Election Authority (SCEA)

55
Commissioner Madhukar Chaudhary, Chairman of Pune Diatrict Cooperative Housing

Page

Federation Suhas Patwardhan, Adv Jayant Kulkarni were among the others present on the
occasion.
Deshmukh said,"As societies face many difficulties in order to take up the redevelopment
project, the cooporation has decided to aid them in whatever way possible. While we wi be able
to grant them loans, we will try to keep the interest raye for the same at as low as 4%.
LIVE MINTS 12 Sept, 2017
Maharashtra govt forms two panels to keep an eye on cooperatives.
Mumbai: As part of its reform agenda for Maharashtra’s once vibrant cooperative sector, the
Devendra Fadnavis government has formed two committees to study the working of some
prominent cooperative institutions and suggest measures to improve them. A government
resolution announcing the appointment of the two committees was issued on Monday.
According to the resolution, a four-member committee of experts under Anand Jogdand,

director, Maharashtra directorate of co-operation in Pune, will study the working of cooperatives
in agriculture, agriculture marketing, and district cooperative banks. The other four-member
committee under Chandrakant Kardak, managing director, Consumer Federation, will look at the
functioning of cooperatives in the consumer sector like the cooperative housing societies. Both
committees have to submit their reports within 60 days.
“The government has noticed that some cooperative institutions have violated the provisions
under Maharashtra Co-operative Societies Act and its by-laws as well as the policy guidelines
issued by the government. As a result, a large number of cooperatives are in deep financial
problems which are affecting their day-to-day functioning," the government resolution says.
A senior cooperation department official who is associated with the decision and who did not
want to be identified said it was “long overdue".
“The once thriving cooperative sector in Maharashtra has earned notoriety for corruption as well
as political control and exploitation of the economic resources of the cooperative units. Many
cooperative units, especially the sugar factories, district banks, and urban and rural credit
56
societies in both agriculture and non-agriculture sectors have allowed themselves to be looted by
Page
their directors and influential members who have local political clout. Both the Reserve Bank of

India and the National Bank for Agriculture and Rural Development (Nabard) have pointed out
these problems from time to time but not many corrective measures have been taken so far," the
cooperation department official said.
Maharashtra tops India’s states in terms of the number and penetration of cooperative
institutions. The state has around 200,000 cooperative units with an aggregate membership of
more than 50.5 million. Some of the prominent cooperatives are 31 district cooperative banks
with over 21,000 primary agriculture credit societies which cater directly to farmers, cooperative
sugar factories which buy sugar cane directly from the member-farmers, cooperative textile mills
and power looms, agriculture marketing and processing units, urban and rural non-agriculture
credit societies, and milk cooperatives. The working of all cooperative units in the state is
governed by the Maharashtra Co-operative Societies Act of 1960 and guidelines from Nabard.
ECONOMIC TIMES 12 Oct, 2012
Is houing society using the maintenance charge for your benefit.
You could call him the Arvind Kejriwal of his housing society. Like the feisty anti-corruption
crusader, 64-year-old Jayant Patel also stood up against the high and mighty of the Andheri
Panchvati Housing Society in Mumbai and exposed their wrong practices. “My complaint to the
registrar led to an inquiry, which uncovered at least 10 violations by the managing committee.
The chairman has now been barred from contesting elections for five years,” he says.
Patel was elected .. Patel was elected the secretary of the housing society in 2008, but
resigned on 10 July 2010 after differences cropped up with the society chairman. Still, he
continued to play an active role in the functioning of the society. Then one day he got the shock
of his life when he was slapped with a legal notice for the recovery of Rs 70 lakh. “The money
was spent on the building’s renovation and it was a decision everyone knew of before the
renovation contract was awarded.
Though financial dealings is one of the most contentious issues in the functioning of housing
societies, there are other problems that crop up frequently between residents and the managing
committees. These can be as minor as a resident not being allowed to keep a pet, to as serious as
57
the levying of unreasonable charges and not following the proper procedures in society elections.
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To be able to protect his rights as a member of a housing society, one must be aware of them and
should know which forum to approach in case of any violation.
TIMES OF INDIA 19 Feb 2019
1 week deadline for cooperative societies on govt land to give NOC on flat rate
MUMBAI: Suburban collector Sachin Kurve on Tuesday made it mandatory for chairmen of
cooperative housing societies on governement land in the subrubs to issue a no objection
cetificate for the sale/transfer of flat or tenements within seven days date of the application.
A month after Kurve took over as suburban collector, he found there eas rampant harrasment in
the sale/transfer of flat or teneements in cooperative housing societies situated in governement
land.Complaints received stated that presidents and secretaties of such societies refused to give
NCO's for sale/ transfer of tenements, forced member to sell or transfer in the name of the
member of the same society forced in the name relatives and often ensured tenements were sold
at a price much lower than market prices.
A senior bureaucrat said Kurve’s office was flooded with complaints in cases pertaining to
cooperative housing societies on land alloted by the state according to the Maharashtra land
revenue code, 1960 and distribution of land rules 1971.
MUMBAI MIRROR 20 JULY 2017
159 Housing societies stripped of legal status
Over 150 cooperative housing societies between colaba and sion have ended up in a legal no-
man's land after their registraton was cancelled recently. The district deputy registrar took the
measure because the societies failed to maintain or share their financial records despite several
reminders.
The 159 colonies will now have to strike off the word 'society' from their name boards and
official documents, and their managing committees will not be recognised by the registar of
cooperative residential societies.Any order the committees, the building chairperson or secretary
may pass will have no legal standing.
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The registration revocation will hit the residents the most they will not get government
protection or assistance in any disagreement with their colony over property use, parking or
maintenance charges, and they won't be able to sell or transfer their flats easily. Essentially, the
residents have lost their rights under the Maharashtra Co-operative Societies Act 1960.
Out of the 159 de-registered colonies, 137 are located in an around Dadar, Matunga, Sion and
Antophill . The remainder are in marine lines and grant road.
The are around 22,000 registered cooperative housing societies in Mumbai. Of these, 3,785 are
in the coloba-matunga stretch. District deputy registrar dongre said apart from the 159 de-
registered colonies, 190 others were also under scrutiny. The interim order against the 190
societies can be withdrawn if they submit their audit reports by july 31
There is a lot of uncertainty right now. We cannot have formal society meeting to
discuss any problems. If the maintenances charges are suddenly increased, we cannot
remonstrate about it with anyone, she said if there is an accident or a tragedy in the building
there's no one who will take the responsibility'.
DNA 15 JULY 2018
Maharashtra: Soon, a regulatory body for co-operative housing units
Soon there may be a Housing Regulatory Authority to deal with disputes pertaining to co-
operative housing societies and its members. This is expected to be on the lines of Maharashtra
Real Estate Regulatory Authority (MahaRERA).
The government's Co-operation, Marketing and Textiles department had formed a team. The
purpose of the team was to study and include a separate chapter for co-operative housing
societies in the Maharashtra Co-operative Societies Act 1960.
The reason behind such an initiative, is the large number of co-operative housing societies in the
State, and their further increase in future due to urbanisation. Also functioning and problems of
co-operative housing societies are different from other co-operative societies.
In this context, to make the functioning and administration of co-operative housing societies
59
simple, distinct and consummative, formation of the Committee for making recommendations
Page
with regard to inclusion of a separate chapter in the Maharashtra Co-operative Societies Act

1960 was being considered by the government. The government later on formed a team and
included officers like Sandeep Deshmukh (SRA), Chairman of Maharashtra Socities Welfare
Association Ramesh Prabhu, Chhaya Ajagaonkar (of Housing Federation), and other eminent
members working in this field.
According to Prabhu, the team has already submitted its proposal comprising of suggestions to
the government and one of the many suggestions is that a Housing Regulatory Authority on the
lines of MahaRERA be formed to look into disputes of co-operative housing societies and its
members.
"Currently when there's a dispute between the members and the housing society the complaint
is heard either in the co-operative court or the Consumer Forum. The suggestion of the team is
that a Regulatory Authority must be formed, which will deal with disputes arising out of a co-
operative society and it will be solved there itself," he said. Like MahaRERA the complaints will
be heard within a time frame.
A dispute in a housing society can be related to leakage, parking and so on. Apart from this,
Prabhu also said that the committee has suggested, mandatory election under the supervision of
an election officer from the co-operative department should not be made a compulsion for
societies that have less than 100 members.Proposals are with government now and soon they will
be put in black and white.
ADDA - 3 OCT 2018
GST on Cooperative Housing Societies
Supply of services by any person is liable to GST even if it is a non-profit or co-operative

society. The activity of the society is considered as in the course or furtherance of business.
Business as per clause (e) of section 2(17) of the CGST act also includes “provision by a club,
association, society, or any such body (for a subscription or any other consideration) of the
facilities or benefits to its members“.
The activities of the housing society would thus attract the levy of GST and the housing
society would be required to register and comply with the GST Law.
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Page

Exemption -Notification No.12/2017 -Central Tax (Rate) dated 28.06.2017 at sr.no.77 provides
for the following exemption to housing societies:
Service by an unincorporated body or a nonprofit entity registered under any law for the time
being in force, to its own members by way of reimbursement of charges or share of contribution
– (a) as a trade union
(b) for the provision of carrying out any activity which is exempt from the levy of Goods and
Service Tax
(c) up to an amount of five thousand rupees per month per member for sourcing of goods or
services from a third person for the common use of its members in a housing society or a
residential complex
As per clause (c) above if the housing society is collecting up to Rs. 5,000 per member per
month then no GST is to be levied. The condition is that the amount is for the purpose of
sourcing of goods and services from a third person for the common use of its members.
Therefore, if a society charges per day rent from a member for using its community hall then it is
liable to GST as it doesn’t amount to procuring of goods or services and also not for common use
but specific to a member.
Also, clause (b) above states that any amount which is exempted from GST is not be considered.
Therefore, property tax, electricity charges etc which is exempt from GST is not considered in
Rs. 5000 limit.
Also if the limit of Rs. 5,000 per month is crossed then GST is applicable only on the amount
which is over and above Rs. 5,000. For example, a housing society gives a bill of Rs. 7,000
(doesn’t contain exempt goods or services) to a member, in such case GST is payable on Rs.
2,000 only.
Registration Requirements-
If the turnover of housing society is above 20 lakhs/ 10 lakhs, it needs to take registration under
GST in terms of Section 22 of the CGST Act, 2017. The amount which is exempt as per above
61
provisions is not included while calculating turnover.

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As per Section 23. (1) of the CGST Act, 2017, the following persons shall not be liable to
registration, namely:–
(a) any person engaged exclusively in the business of supplying goods or services or both that
are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and
Services Tax Act
Thus, if the turnover of the society is even more than Rs. 20 lakhs but the monthly contribution
of individual members towards maintenance is less than Rs. 5000/- (such services being exempt)
and the society is providing no other taxable service to its members or outsiders, then the society
need not take registration.
Rediff - 12 Sept, 2016 Redevelopment compensation is not taxed
Cooperative societies get more tax benefits as compared to individual house owners.
Members of cooperative housing societies, going in for redevelopment, can stop worrying about
the tax on the compensation developers pay them.
A recent judgment of the Mumbai Income Tax Appellate Tribunal (ITAT) clarifies how the
different components of compensation should be taxed.
Property redevelopment is widespread in Mumbai. Developers are increasingly eyeing old

housing societies in other big cities such as Delhi and Pune. Experts say the judgment can be
used as a reference by house owners to plan their taxes.
“The judgment favours home owners and reinforces that compensation should not be taxed. The
observations made in this landmark judgment also balance the expectations of home owners and
the income tax (I-T) department,” says Arvind Rao, founder o`f Arvind Rao & Associates.
Relief for taxpayers
1. An I-T officer demanded tax from an assessed on a corpus fund of Rs 22 lakh and rent of Rs
8.56 lakh received as compensation after his society went for redevelopment
2. The officer contested the corpus fund is a share in developer’s profits

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3. The tribunal ruled the nature of payment in the hands of payer (developer) could not
determine the nature in the hands of recipient (assesse).
4. The money was paid for hardship caused to assess on redevelopment and, hence, was not
taxable
5. The corpus fund reduces the cost of acquisition and, therefore, will be taken into account
while computing capital gains on transfer
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CHAPTER NO.4.
DATA COLLECTION ANALYSIS
AND INTERPRETATION
64
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INTRODUCTION
Data interpretation refers to the interpretation of processes through which data is reviwed for
the purpose of arriving at an informed conclusion. The interpretation of data assigns a meaning
to the information analyzed and determines its signification and implications.
Data analysis is a process of inspecting, cleansing, transforming and modelling data with the
goal of discovering useful information, informing conclusions, and supporting decision making.
The term data analysis is sometimes used as a synonym for data modelling.
Q. 1. Do people view to cooperative housing societies as a democratic organization?
Fig No 4.1.
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INTERPRETATION:
From the fig. 4.1 seen the 83 Responses view to the cooperative society as democratic
organization. 71.1% people agree to view the cooperative society towards the respondent, 16.9%
strongly disagree to view the society, since 7.2% disagree and 2% strongly disagree to view the
cooperative society.
FINDING:
Form the survey it is noticed that 71.1% people Agree view the Cooperative Housing Society as
a Democratic Organization.
Q. 2. Are the Member are satisfied with the functioning of your Cooperative Society?
Fig No 4.2.
66
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INTREPRETATION:
From the fig. 4.2 Seen the 83 respondent. 65 member responses to YES to satisfied with the
function of the cooperative society. While 19 members not satisfied with the function.
FINDING:
From the survey it is noticed that 78.3% people satisfied with the function of the Cooperative
Housing Society.
Q.3. Whether you are kept your saving?
Fig No. 4.3
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INTERPRETATION:
From the Fig 4.3. Seen that 83 respondents. There are 4 types saving towards cooperative
Housing Society i.e. Bank, Cooperative Society, Home, Post office and Other. In this only 9.6%
people save there saving in post office, 12% people in Home, 19.3% in Cooperative Society and
the highest people save there saving in Bank i.e. 34.9%.
FINDING :
From the survey it is noticed that 34.9% people save there saving in the Bank.
Q.4. Are you know many share/ share purchased form the Cooperative Society?
Fig No.4.4.
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INTERPRETATION:
From the Fig. 4.4. Seen that 60.2% member of the society know about the share purchased by the
society and 39.8% Don’t know about the share purchased of the Society.
FINDING:
Form the survey it is noticed that 60.2% member of the society know about the share purchased
by the cooperative society.
Q.5. Are you received any saving pass book and receipts for your Cooperative Society?
Fig No. 4.5.
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INTERPRETATION:
From the Fig. 4.5. Seen the Respondent, 43.4% member of the society doesn't received any
saving pass book and receipt of the society since 57.6% received saving pass book and receipt of
the society.
FINDING:
From the survey it is noticed that 57.6% member received the saving pass book and receipt of the
Q.6. Are you borrowed loan for the Cooperative Society?
Fig No.4.6
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INTERPRETATION:
From the fig. 4.6. Seen the respondent, 53% Member not borrowed any loan to their cooperative
society. While other 47% Member borrowed loan for their cooperative society.
FINDING:
From the survey it is noticed that 53% Member not borrowed any loan to their cooperative
society.
Q.7. Are you satisfied with the working mechanism of Administration and Management
Committee of your cooperative Society?
Fig No. 4.7.
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INTERPRETATION:
From the fig. 4.7. Seen the respondent 10.8% Poor, 22.9% Outstanding, 26.5% Average and
38.6% Very Good Member satisfied with the working of Administration and Management
Committee of cooperative society.
FINDING:
From the Survey it is noticed that 36.6% Member satisfied with the working of Administration
and Management of cooperative society.
Q.8. Which aspects of Financial Planning do you find important?
Fig No. 4.8

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INTERPRETATION:
From the Fig. 4.8. Seen that respondent 13.3% refers to the determining financial objective,
16.9% reviewing financial plan, 28.9% formulating financial objective and the highest refers to
developing financial procedure i.e. 41%
FINDING:
From the survey it is noticed that 41% member refers to the Developing Financial Procedure.
Q.9. Do you ever follow the rules of Cooperative Society Act?
Fig No. 4.9
73
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INTERPRETATION:
From the Fig. 4.9. Seen the respondent, 20.5% member doesn't ever of any cooperative society
act and only 79.5% Member ever about the Cooperative Society Act.
FINDING:
From the survey it is noticed that 79.5% Member should be ever about the Cooperative Society
Act.
Q. 10. Are You satisfied with the Growth in funds owed by your Cooperative Society?
Fig. No. 4.10
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INTERPRETATION:
From the fig. 4.11 Seen that 34.9% Member doesn't satisfied the growth since, 65.1% Member
satisfied with the growth in fund owed by cooperative society.
FINDING:
From the survey it is noticed that 65.1% Member aware about the growth in funds owed by
Q.11. Is it necessary to participate in all meeting of the Management Committee?
Fig No. 4.11.
75
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INTERPRETATION:
From the fig. 4.11. Seen that 53 respondents, in the graphs 0-5 5.7% member does not need to
participate in all meeting and 15-20 in 19- 35.8% and in 18- 34% satisfied to participate in the
meeting of the management committee.
FINDING:
From the survey it is noticed that the 35.8% member of the society satisfied to participate in all
meetings of the management committee.
Q.12. As a Management Committee what are Your opinion and suggestion to the government,
Doc and other stakeholder of cooperative?
Fig. No. 4.12

76
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INTERPRETATION:
From the fig. 4.12. Seen that 36 respondents, 0-1 2.8%, 1-5 8.3%, 5-10 13.9% and 10-15 30%
member refers to the Management Committee opinion and suggestion.
FINDING:
From the survey it is noticed that 10-15 30% member refers to the Management Committee
opinion and suggestion.
Q.13. Are You aware of the registration and services charges levied by the society?
Fig No. 4.13
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INTERPRETATION:
From the fig. 4.13. Seen the 68.7% Member aware about the registration services and 31.3%
doesn't aware about the registration.
FINDING:
From the survey it is noticed that 68.7% member aware about the registration services of the
society.
Q.14. How you ever seen, read the Audit report and Audit report of Cooperative Society?
Fig No. 4.14 78

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INTERPRETATION:
From the fig. 4.14. Seen that respondent, 57.8% seen the audit report and 42.2% member have
not seen the audit report of the cooperative society.
FINDING:
From the survey it is noticed that 42.8% Member seen, read the audit report of the cooperative
society.
Q.15. What are Your suggestion for the Improvement of your cooperative society?
Fig No. 4.15
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INTERPRETATION:
From the fig. 4.15. Seen that 0-5 2.5%, 5-10 6% and 10-15 18.1% need improvement in their
society.
FINDING:
From the survey it is noticed that 18.1% Member need improvement in their Society.
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CHAPTER. 5.
CONCLUSION
81
Page

CONCLUSION
In this study I have make an attempt to study the Member's perceptions towards The Cooperative
Housing Society. The member has been approached and untainted for data analysis. There is no
complicated procedure in making investment in cooperative housing society schemes and the
return are more as compared to others. All the cooperative housing society are computerized
today and speed postal services are also available. One of the main motive of the Department of
CHS is to uplift the saving of the people. Savings not only help the people, but also help for the
economic development
The department of member may consider extensive use of automated machines for speedy
processing and to save time in those areas where it involves manual and repetitive work. This
can cut expenditure and assist in improving its profit. The department of member can introduce
appropriate grievance reprisal mechanisms and make detail available to the member and settle
disputes within a limited time.
To understand the perception of individuals towards Cooperative Housing Society has being
noted, each and every individual has different aspects of thinking on one concept. Among my 80
respondents all were having different view through the cooperative society. But all has different
opinion about the schemes such has some of them want some improvement in their society. A
majority of member needed proper services in their society and all the financial need should be
follow by the society member. Proper action should be taken in any of the incident.
To investors’ expectations towards cooperative housing society, as the research has made it clear
about the expectation of investor for need to increase the interest and make tax exemption in all
schemes, and also increase the cooperative society member and population is increasing day by
day.
To study the satisfaction level of member, all the respondent was satisfied with cooperative
society on some points they were not satisfied.
All the above mentioned objectives were achieved through this research.
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Page

APPENDIX- I
BOOKS
• Financial Cooperative Housing Society
• Cooperative Housing Management Procedure
• Bye laws of Cooperative Housing Society
REFERENCE
Scribd.com
Issuu.in
Shodhganga.com
Statement on the Cooperative Identity. International Cooperative Alliance.
www. researchagte.net
https://www.referenceforbusiness.com/encyclopedia/Con-Cos/Cooperatives.html
Bibliography
Ravichandran and Gopalakrishna (2014)
Eswaramoorthy and Nirajan (2014)
Leeladevi (2014)
Corzo (2005)
Rambabu (2013)
Arunodayam (2010)
83
Khurana (2007)
Page

Khurana (2002)
APPENDIX
(QUESTIONNARIE)
Respected Respondent,
I am TYBCAF student of Smt. C.H.M. college required you to assist me in filling up tht
following questionnaire to complete my Research Project of Curriculum activity. Your
respondent keep confidential and will be used for my project purpose only.
Name of the Cooperative Society -
Designation -
1. Do people view to Cooperative Housing Societies as a democratic organization?
a) Agree b) Strongly Agree
c) Disagree d) Strongly Disagree
2. Are the Member Are Satisfied with the functioning of Your Cooperative Society?
a) Yes b) No
3. Whether You Are Kept your Saving?
a) Home b) Bank
c) Cooperative Society d) Post office
e) Other
4. Are you Know how many share/ share purchased from the Cooperative Societies?
84
a) Yes b) No
Page

5. Are You received any saving pass book and receipts for Your Cooperative Society?
a) Yes b) No
6. Are you Borrowed Loan for the Cooperative Society?
a) Yes b) No
7. Are You satisfied with the working mechanism of Administration and Management
Committee of Your Cooperative Society?
a) Poor b) Average
c) Good d) Very Good
e) Outstanding
8. Which aspects of Financial Planning do you find Important?
a) Determining Financial Objective
b) Formulating Financial Objective
c) Developing Financial Procedure
d) Reviewing Financial Plan
9. Do you ever Follow Cooperative Society Act?
a) Yes b) No
10. Are You Satisfied with the Growth in Funds owed by your Cooperative Society?
---------------------------------------------------------------------------------------------------------------------
85
--------------------------------------------------------------------------
Page

11. Is it necessary to participate in all meeting of the Management Committee?
---------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------
12. As a Management Committee what are Your opinion and suggestion to the government, Doc
and other Stakeholder of Cooperative?
---------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------
13. Are you aware of the registration and service charges levied by the society?
a) Yes b) No
14. How you ever seen, read the Audit report and Audit Repot of your Cooperative Society?
a) Yes b) No
15. What are Your Suggestion for the Improvement of your Cooperative Society?
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------.
86
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TOPIC NAME: FINANCIAL ANALYSIS OF COOPERATIVE

University of Mumbai for partial completion of the degree of

MISS. BHARTI SURESH CHALWADI

Under the Guidance of

Smt. Chandibai Himathmal Mansukhani College

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

Cooperative Societies as from organization doing the business is assuming growing

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

A housing cooperative, co-op, or housing company is a legal entity, usually a cooperative or a

The corporation is membership-based, with membership granted by way of a share purchase in

products associated with home ownership.

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

In non-equity cooperatives and in limited equity cooperatives, a shareholder in a co-op does

Each resident or resident household has membership in the co-operative association. In

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

and 1919 respectively.

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

Housing co-operatives were particularly prevalent in Delhi, Gujarat, Haryana,

(UNCHS) steered Governments to adopt an “enabling approach” towards housing, i.e.

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

• Organizational management and administration.

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

• Post construction management of services and maintenance of houses and community

• Production, transport, storage and delivering of building materials.

• Real estate business related activities.

The section proposes to redefine registration, election procedure, disqualification of members,

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

societies in the Maharashtra Co-operative Societies Act 1960.

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

According to Calvert, "Co-operation is a form of organization wherein the persons voluntarily

1.3 CONCEPT OF CO-OPERATIVE SOCIETY

organization and co-operative spirit is the backbone of the society.

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

1.5 TYPES OF COOPERATIVE SOCIETY

1. Consumers cooperative societies:

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

(a) Industrial service cooperatives:

(b) Manufacturing cooperatives:

individually. The National Agricul-tural Cooperative Marketing Federation (NAFED) is an

example of marketing cooperative in India.

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

1.6 CONDITIONS FOR COOPERATIVE SOCIETY

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

Step 1: Ten Individuals together who are desirous of forming a Society

Step 2: Provisional Committee to select Chief Promoter

Step 3: A Name for the Society has to be selected

Step 4: Application has to be made to the Registration Authority

Step 5: Entrance fees and share capital

FINANCIAL ANALYSIS OF COOPERATIVE HOUSING SOCIETY TYBCAF

Step 6: Bank Account

Step 7: Application for registration

Form No. A in quadruplicate signed by 90% of the promoter members