Understanding the Housing Society Bye-Laws: Rules and Regulations for Co-Operative Living

by ADDA.io
List of Housing Society Bye-Laws Your Society Needs to Know

How does a society govern all owners? How does it raise different funds among members? Why amendment is a part of the administration process? Where and when do members raise complaints? You must ask these questions concerning housing society bye-laws while purchasing a flat unit or for legal administration. Apart from apartment deeds and declarations, you can get a copy of sample bye-laws along with the Declaration statement if you’re a resident or an MC member.

Once the co-operative housing society is formed and registered under the RWA, a set of instructions, rules, and regulations become applicable as society bye-laws to all its members. The Registrar approves these bye-laws in terms of the overall structure, objectives, membership rights, etc. 

There are a total of 174 model bye-laws of the housing society, solely based on one of India’s leading State Acts i.e., the Maharasthra Co-operative Society’s Act. It also involves registered amendments [section 2(5)] and only housing society management can approve amending bye-laws under legal provisions. 

Read further to take down the entire list of co-operative housing model bye-laws, its purpose for every MC & occupant, and its differences. Download the PDF below for a detailed reading.

Co-Operative Housing Society Model Bye-Laws in PDF

Purpose of Housing Society Bye-Laws

Housing society bye-laws involve administrative rules to self-regulate activities of the higher management authority and other society members. As a result, the framework of bye-laws applies to the election method of MC, RWA, and Board of Management in a housing society. Although it may vary from one state to another, the broad categories are similar.

Its purpose is to cover individual rules and regulations of the management association including society affiliations, meeting procedures, raising funds and limiting liabilities, membership rights & duties, collecting maintenance, holding elections, raising parking & other complaints, audit affairs, basic redevelopment procedure and amending affairs of a housing society.    

Several societies amend a host of bye-laws when a pre-existing law doesn’t prove to serve its current affairs. It can be for maintenance issues, general body decorum, annual meetings, or admins’ code of conduct. Thus, members can amend particular sub-clauses to maintain harmonious citizenship and a proper administrative environment.

So, let’s dive into the entire list of housing society bye-laws to note how they not only define and restrict management activities but also determine the liabilities and rights of all homeowners.

List of Co-Operative Housing Society Bye-laws

The Registrar can hold the co-operative housing society to make bye-laws in terms of the broad subject matter of the following categories –

1. Preliminary (Registered Name, Classification & Address)

The Preliminary bye-laws No. 1(a) to No. 2(e) talk about the regulations for society’s name, name changing procedure, housing classification, registered address, address change procedures, and the exhibition of society’s Name Board. 

2. Interpretation of Words & Terms

The model bye-laws No. 3 involve commonly used terms/acts such as nomenclature meanings of Act, Promoter Builder, Maintenance & Sinking Funds, Common Areas, Parking and Facilities, Member Types, Authorized Persons, etc. As a result, it identifies actual roles in terms of a cooperative housing association. 

3. Area of Operation, Affiliation & Objectives

Here, bye-law No. 4 talks about the society’s locality i.e., town/village/ward/municipal corp/city survey no., etc. Next, its main objectives under the Ownership Flats Act & other rules are described under bye-law No. 5. Lastly, bye-law No. 6 declares its affiliation with other Coop Institutions viz. Co-op Housing Federation of the District/Taluka, the District Central Co-operative Bank/Ward. 

4. Raising, Utilization & Investment of Funds

The co-operative society bye-law No. 7 deals with 13 ways (by loans & subsidies, entrance fees, corpus fund, etc) to raise funds. Bye-Law No. 8, 9(a), 9(b), 10 talks on authorized share capital and members/MCs issuing share certificates with society’s seal & signature of officials. However, the total restrictions on member liabilities are limited under Bye-law No. 11 and the constitution of the Reserve Fund of the Society goes under Bye-law No. 12 (a, b).

Next, the methods in which several funds such as sinking fund, maintenance & repair funds, reserve fund, education & training funds, etc are created, utilized, and invested are described in several parts on Bye-law No. 13, 14, and 15 respectively. 

5. Member Classes, Eligibility & Conditions

Bye-law No. 16 distinguishes members into associate, nominal, active, and non-active types. Their eligibility and approval process are classified under bye-law No. 17(a, b, c).

Model co-operative housing society bye-law No. 18, however, talks about the eligibility of local and govt. bodies, corps & firms for society membership. But the conditions for certain memberships like associate, nominal, for the corporate body, and the disposal of membership applications are enlisted under Bye-Law No. 19, 20, 21.

6. Members’ Rights & Duties (Society Bye-Laws)

The society bye-laws enlisting member rights, disputes categorized under Active & Non-Active members for each financial year come under bye-law No. 22 (a-f). Other rights include books/records inspection, and getting a bye-laws copy account for bye-law No. 23. However, bye-law No. 24 makes flat occupation clear for associate & nominal members whereas membership restrictions and resignation conditions come under bye-laws No. 25 to 29.

Next, bye-law No. 30-37 on member rights also include their nomination and its revision/revocation, acquisition & transfer of shares & interest of the deceased Member in the capital/property of the Nominee/Nominees and that of society heir, payment valuing shares & interest to nominees, Legal Representative, etc.

Other rules and necessary issuing of documents, and certificates to fulfill society’s management compliance come under Bye-laws No. 38-41. It starts with member applications & disposals for flat exchanges. After that, the Sub-letting of flats, and mortgaging occupancy fall under bye-laws No. 42 & 43.

7. Liabilities & Responsibilities of Members

The bye-laws section No. 44 to 47 details members’ responsibilities viz. clean maintenance, permission for addition and modification in flats, flat examination & reporting repair notices, storage restrictions, making peace with other members, action on bye-laws violation, etc. Bye-Laws No. 48 to 53 entails necessary procedures & grounds for expulsion from society, forfeiture, acquisition of shares, and even re-admission of members expelled.

In addition, circumstances for cessation of membership and the follow-up duties of the committee, cessation rules for sub-lettee, corporate body, etc, restrictions on holding multiple flats, liabilities of past & deceased members to paid-up shares amount, and other matters for application disposals, members’ payment acquisition are explained under housing society Bye-Laws No. 54 to 63 in parts.

8. Levy of Society Charges (Society Bye-Laws)

Model bye-laws No. 64 to 67 deal with society composition, member contribution, and break-up of around 16 types of apartment maintenance charges viz. water charge, fixed property taxes, service & parking charges, sinking fund, defaulter interest charges, repayment of the installment of the loan & interest, lease rent, election fund, education & training fund, miscellaneous charges, etc. 

Similarly, other charges levied on society account for repairs, maintenance, payment default reports, defaulter payments, and service interests, are classified from bye-laws No. 68 to 70 in detail.

9. Powers & Duties of Society (Society Bye-Laws)

These housing society bye-laws sections No. 71 to 83 cover society duties and rules from the time of registration tuned with eventual incorporation and a common seal. It’s empowered to hold, acquire, and dispose of the property to move into legal contracts & proceedings. Additionally, the Society’s duties include charges on member shares & interests, allot purchased flats, fixing policies for allotment, handover, and even cancellation of flats. After that, it also covers the committee’s sanction for user change, structural audit execution, and obtaining occupation certificates from allottees. However, policies for allotment, restriction, eligibility applications, and payments of parking slots & other vehicle parking measures are covered in parts.

10. Society General Meetings (First General Meeting, Annual General Meeting & Special General Meeting)

General meetings opt for a set of bye-laws which determine the meeting specifics such as notice, decorum, functions, etc of several types of meetings viz.  First General, Annual General Body, and Special General Body. Firstly, Bye-Law No. 84 to 92 deals with the First General Meeting agenda, notice period, functions, duties & handover procedure of the Provisional Committee.

Secondly, bye-law No. 93(a) states 30th September as the period before/on which the Annual General Meeting is to be held yearly whereas No. 93(b) talks about the disqualification in case of default in calling it. However, AGM functions come within bye-law No. 94 where its agenda & other annual reports/audits from the previous year are evaluated.

Thirdly, the entire Special General Meeting is specified under Bye-Law No. 95-108 enlisting fixed date, time & place, AGM & SGM notice period, quorum, proxy restrictions, chairman’s presiding role, one member-one vote right, general body meeting timestamp, decisions. Moreover, postponement or even cancellation of the previous resolution for the General Body Meeting is discussed here.

11. Management of Society Affairs (Society Bye-Laws)

The housing society bye-laws ranging from No. 109 to 139 state the society rules for determining affairs such as the role of MC in committee, bank account opening & funds investment, committee’s strength, election procedure, membership cessation & disqualification process, etc. After that, bye-law No. 120 & 121 explicitly notes the newly elected committee’s office period & first meeting.

The detailed list of powers, functions & liabilities such as the resignation of the office bearers such as a Chairman, Secretary, and Treasurer from amongst the Committee members are also notable. While bye-law No. 137 deals with the overall duties of the committee (subjected to bye-law No. 111), the powers of the Chairman & Secretary are listed under bye-law No. 138 & 139 respectively.

12. Book-Keeping of Accounts, Registers & Records

Book-keeping consists of maintaining accounts, registers & other records by the authorized person (commonly Secretary) to hold members’ accounts and subject files of society in a detailed manner. These come within Bye-laws No. 140 to 146.

Firstly, the housing society maintains around 16 types of registers & accounts such as forms for member registers & lists, cash books, general & personal ledgers, registers (sinking fund, investment, nomination), etc. Secondly, it keeps records in 33 external files related to society’s capital/property, approved construction agreements, torn receipts of issued cheques, credit challans & share certificates. Thirdly, correspondence on the co-operative registrar, property taxes, electric supply & property conveyance, etc.

Other bye-laws (No. 142-146) include specifics for maintaining account books by Secretary, cash book limit for in-hand cash, cheque-limit payment, accounts finalization, and filing of annual reports. In conclusion, employees holding security over any office affairs also form a major part of book-keeping

13. Profit Appropriation & Distribution (Society Bye-Laws)

Under bye-law No. 147(a), the rules apply for the contribution to the Statutory Reserve Fund of the society i.e., after levying loan interest, making deposits, or other such deductions. This allocation under housing society bye-laws No. 147(b) entails the following profit distribution ways –

  • 75% of the net profit to the co-operative housing society for paying dividends on shares below 15% per annum
  • compensating office-bearers below 15%
  • Common Welfare Fund allocation, and for serving other objectives under bye-law No. 5(d)

14. Writing Off Accounts & Dues (Society Bye-Laws)

This section is prescribed under bye-law No. 148 which allows the society to write off irrecoverable charges out of member dues, accumulated losses, and recovery expenses. Bye-law No. 149 mentions three conditions viz.

  • General Body’s sanction.
  • Approval of the financing agency to which society is in debt.
  • Approval of the Registering Authority for writing off amounts successfully.

15. Audit of Society Accounts (Society Bye-Laws)

The annual financial audit procedure is approved by the govt. authorized Statutory Auditor in its General Body Meeting as described under bye-laws No. 150 to 152. These rules include the committee’s responsibility to audit accounts of society, remuneration of auditors, timeframe to produce audit reports by Internal/Statutory Auditors, preparing Audit Rectification Report (ARP) draft, and the penalty provisions to members in case of default in submitting the same to the Registrar.

16. Maintenance/Repair & Conveyance of the Property

Firstly, bye-laws No. 153 to 160 detail the steps and execution of the deed of conveyance/deemed conveyance of the property under society’s Advocate consultancy. Secondly, it issues maintenance/repair rule lists of the Committee. Moreover, society’s maintenance expenses, tenders for redevelopment via. approval of architect, contracts dispute settlement, repairs & redevelopment as per Govt. directives are also covered. 

Bye-law No. 158(a) lists 27 types of maintenance areas at society’s cost such as water pumps, storage tanks, lights, elevators, generators, etc. Other repair guidelines under bye-law No. 159 include members’ expenditure for repair, insurance against calamities, emergency planning schemes in respect of disaster management, response machinery, and key telephone numbers (eg., fire brigade, police, etc.)

17. Other Miscellaneous Matters (Society Bye-Laws)

These bye-laws from No. 161 to 170 state the minor yet essential rules regarding the daily operation of the housing society. It states key housing society concerns regarding communication modes of notices, resolutions, decisions for General body meetings, accounting year requirements, member penalties for breaching any bye-law, and amendment rules. Moreover, committee operations like installing lifts, solar water heaters, etc in available member spaces, and penalties on common/open amenities such as staircases, clubhouse, etc are also highlighted.

Above all, bye-law No. 170 explicitly mentions supply charges of document copies such as bye-laws copy, list of active members, indemnity bond, etc that vary from Rs. 5 to Rs. 100 per page.

18. Committee’s Redressal of Member Complaints (Society Bye-Laws)

A housing society can raise a number of member complaints which can be confusing if specific authorities are not approached timely. The bye-laws No. 171 & 172 state for members to submit complaint applications before the committee to make decisions. Next, if the committee doesn’t take action within 15 days, bye-law No. 173 clearly separates complaints escalated to respective authorities such as the Registrar, Co-operative Court, local Municipal Corporation, Civil Court, Police, District or State Federation, and other specific matters for General Body Meeting. 

19. Redevelopment of the Property/Building of the Co-operative Housing Society

The bye-laws No. 174 is given in respect of the co-operative housing society redevelopment strictly as per the registered Maharashtra state Govt. directives as dated on 3rd Jan 2009. Other laws include a Development Agreement with the builder, a fresh procedure for appointing new developers for rebuilding, mandatory attendance of the Representative of the Registrar, and increasing authorized shared capital by amending the bye-laws in case of higher membership after re-development.

Differences between Old & New Housing Society Bye-Laws

Do I need to adopt the new set of housing society bye-laws if my society is registered new? It’s true that your society would be following the old model bye-laws. 2009 if it has been registered prior. Be it cash on hand limit, active member provisions & duties, maintenance rates, AGM, society election tenets, etc, bye-laws have been newly modified after the 97th Constitutional Amendment and MCS Amendment Ordinance, 2013.

Several MCs search for the procedure to adopt the new bye-laws while others simply look out for the bye-law amendments. Download the PDF below to know the overall differences and why you need to adopt it in your apartment management system today.

Old vs New Housing Society Bye-Laws

Why Do You Need This List of Housing Society Bye-Laws?

The answer to your housing society’s foundational policies, disputes, member complaints, or even day-to-day functioning of smooth citizenship can be found in the list of housing society bye-laws. Although the entire list might seem tough to decode line by line, it’s a stepping stone for not just MCs but also the owners and tenants. Manipulative or dishonest committees have wrecked society’s reputation earlier due to violations of member rights. But now you can actually keep a timely check on your management guidelines, annual meetings, etc, for resolving all kinds of legal breaches with the complete set of model bye-laws provided by ADDA as per Maharasthra Govt. guidelines.

Familiarize yourself with all the housing society bye-laws set under Govt. directives in the aforementioned PDF or just ask for a manual copy from your MC right away. 

We hope this article was informative enough. If you are facing any violation of bye-laws from the builder, RWA, or fellow members of your society,

Feel free to contact ADDA experts at 022-48905764 or mail us at sales@adda.io today. 

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