Explained: Eligibility & Conditions of Society Membership

For a cooperative housing society, the most basic form of requirement to secure its membership is to own a housing unit in that society. On the fulfillment of this primitive condition, the owner of that unit acquires their access to the road of being an active voice in the development, planning and maintenance processes of that society.

While owning a unit is the first step towards membership, it isn’t the only condition for it. In this article, we will look at what needs to be fulfilled to become a member of a cooperative housing society.

The quintessential entity of a cooperative housing society – the Member stands at the core of its functioning. The member participates, collaborates, and initiates the upkeep and progress of that society.

Acquiring a cooperative housing society’s membership is a 2-stage process. Firstly, the entity must be eligible to apply for membership. And then the conditions of the membership application process must be fulfilled to be accepted as a member of the society.

What is the Eligibility criteria for membership application?

Let us first understand who all are eligible to become a Member in the society. If an entity falls under any of the following identities, then it becomes eligible to submit a membership application.

1. An Individual who can contract under Indian Contract Act 1872
2. A Firm registered under the Indian Partnership Act, 1932
3. A Company registered under the Indian Companies Act, 1949
4. A Society registered under the Societies Registration Act, 1860
5. A Cooperative Society registered or deemed to be registered under the Maharashtra Co-op Societies Act, 1960
6. The State Government
7. The Central Government
8. A Local Authority
9. A Public Trust registered under any Law for the time being in force for the registration of such trusts
10. Any other Body Corporate constituted under any Law for the time being in force

Other than these entities, a Minor or a Person of unsound mind can also be eligible for society’s membership after their original member’s death. A minor or a person of unsound mind become eligible either if they are nominated by the deceased member or if they are to legally inherit the deceased member’s shares and/or interest in the property. This can be attained through a special process that requires their guardian to submit the prescribed application form along with all necessary undertakings/declarations.

If an entity is eligible according to the above criteria, they must then complete a set of conditions for their membership application to be accepted. These conditions differ according to the type of entity – individuals or corporate bodies.

For Individuals, what are the conditions for membership acceptance?

Individual applicants must:

1. Submit the application for membership
2. Pay value of at least 10 shares of the society
3. Pay Rs. 100 Entrance Fee
4. Own a house, plot, or flat anywhere in the area of society’s operation
5. Submit an undertaking that the flat shall be used for the purpose it was purchased for by them
6. Submit an undertaking in the prescribed form if they lack an independent source of income
7. Submit a certified copy of the agreement duly stamped and entered by them with the Promoter (Builder) or the transferor as per the Ownership Flats Act (Section 4)
8. Submit all other undertakings and declarations as demanded by the law in force at the time as well as per the Bye-laws
9. Be eligible as per the provisions set in the respective Act and directives applicable for units under the jurisdiction of special planning authorities like CIDCO, MHADA, SRA, MMRDA, etc.

For Corporate Bodies, what are the conditions for membership acceptance?

Corporate Body applicants must:

1. Submit the application for membership
2. Pay value of at least 20 shares of the society
3. Pay Rs. 100 Entrance Fee
4. Own a house, plot, or flat anywhere in the area of society’s operation
5. Submit a certified copy of the agreement duly stamped and entered by them with the Promoter (Builder) or the transferor as per the Ownership Flats Act (Section 4)
6. Submit a certified copy of the resolution from the firm or company before authorizing an individual to sign the application
7. Submit all other undertakings and declarations as demanded by the law in force at the time as well as per the Bye-laws.
8. Comply with all conditions mentioned in the second provision to Section 22 of the act

If an entity is both eligible and completes all conditions applicable to their type, then the society cannot refuse admission to membership unless there is a sufficient cause to do so. This is protected under the Section 23(1) of Maharashtra Societies Act, 1960.

Also, if the Society fails to communicate whatever the decision is to that applicant within 3 months from the membership application date, the applicant is deemed to have been admitted as society’s member as per Section 22(2) of the Maharashtra Societies Act, 1960.