New BMC Property Tax Rules

January 29, 2013 yazdi5 Comments

Dear Friends

Find below the details of

New BMC Property Tax- Bills/Notices- Rules, hidden in “News and Events” on MCGM Website

There is a change over in the system of MCGM tax/property tax from Rateable Value system to Capital Value system. This is with effect from 1st April, 2010 retrospectively.
MCGM is sending Special Notices to owners of all buildings/properties i.e. Co-operative Housing Societies as well landlords of buildings. Most of the owners have received the said notice. As per the Notice, the tax payers can file objections within 21 days to any of the particulars of property like built up area, factors, categories, capital values, etc.
The Notice states that -“for details of the factors and categories of users of buildings and weightage by multiplication to be assigned to- please refer to MCGM website- www.mcgm.gov.in. (A Sample Notice is attached herewith).
The MCGM website shows the Rules for Fixing Capital Value of Lands and Buildings which contains such critical information for calculation of capital value of buildings/flats and the tax payable in the section called “News and Events” and as such is not easy to locate. The said Rules which provide details of the factors and categories of users of buildings, nature and type of building, age factor, floor factor and weightage by multiplication to be assigned thereto and also the tax rate are very important for all citizens for calculating the tax payable. Therefore, the Final Rules should be posted prominently on MCGM website under a separate and specific heading. (Final Rules are attached herewith).
It is also desirable to post on the MCGM website the main BMC Act and particularly the Amending Act (effecting change in the tax system) as there are references to various sections of the Act in the Special Notice as well as the Rules.
The Notice also states that “For details of Zone, Subzone, and base values, please refer to the Stamp Duty Ready Reckoner of the year 2010”. Since the market value (called base value) of the properties is as per the Stamp Duty Ready Reckoner (SDRR), the complete SDRR of the year 2010 should also be posted on the MCGM website for ready reference. This is very important as the entire new tax system is based upon SDRR and without its ready and easy availability a tax payer cannot have the complete picture regarding his tax payment responsibility.
The said Special Notices are being sent by the MCGM to landlords, housing societies etc. It is possible that the landlords or the Society officials may not circulate copies to the tenants and the members who are important stake holders in the matter. It would be hence desirable that the MCGM issues an advisory or direction to the owners/addressees of the Special Notices to circulate them to all the occupants in the building to enable them to send their comments and objections, if any, to the MCGM in time. This will save a lot of potential disputes and litigations which can unnecessarily jeopardize the new tax system.
The 21 days time given for response/objections is not at all adequate. The MCGM has taken good 3 years to set the new tax regime in motion but has given only 3 weeks to respond to the Notice and all the property facts and the parameters stated in the attachments. It is suggested that the time should be extended at least to 60 days.
The change over in the system for levy of BMC tax/property tax impacts all citizens of Mumbai. Therefore, the entire process has to be transparent and citizens should not be compelled to run from pillar to post.

Thanks and regards
For JANHIT MANCH

Utsal Karani

Hon Secretary

(9324991030)

Final rules fixing capital value of buildings

Types of membership of Co-operative Societies

January 27, 2013January 27, 2013 yazdi5 Comments

There are 4 types of membership in the co-operative housing societies

as per the directive to be given to all co-operative Housing Societies in the Maharashtra State Under section 79 (A) of the Maharashtra Co-operative Societies Act, 1960.

In respect of applying Co-operative Housing Societies Manual, Government of Maharashtra No. SAGRUYO-2011/PRA.KRA. 360/14-SA, Co operation, Marketing and Textile Department,

Date 15th October, 2011

CHAPTER 3

3.1 Member

Types of membership

There are 4 types of membership in the co-operative housing societies as under:

A) Original Member:

• Original member means an individual / society, trust, company whose name is included by the society in registration case or admitted as a member of the society after registration. Only such original members name is recorded on the share certificate. In case there are other members along with the original member, the name of the original member is recorded on Sr. No.1. Other members’ name recorded thereafter serially.

B) Associate Member / Co-Member:

• Associate member means a person who holds jointly a share of the society with original member but his name does not stand first in the share certificate. In case of more than one associate members, such associate members’ names are recorded in the share certificate in the serial order number 3, 4, 5, etc.

• Rights of the Associate Members: Since more than one person made payment of the cost price in the purchase deed of flat in co-operative housing society, they gets ownership rights.

• Even though there is not mentioned the name as a owner in the purchase deed, the Associate Membership can get by paying only admission fee and with the consent of the original member. In the absence of original member and with his consent associate member can attend the annual general body meeting, the associate member can take part in the election as a voter/ candidate. In case the associate member gets elected as a committee member, he becomes office bearer also. A person, who became an Associate member by paying only admission fee, shall not get any rights in voting or election behalf the original member. It is necessary for the Associate member that his share/name is included in the ownership of property for holding share jointly.

C) Nominal Member:

• Nominal member means a person admitted to membership as such and registration in accordance with the bye-laws of the society. Share certificates are not issued any. Nominal members are admitted so that necessary legal actions can be initiated u/s 91 of MCS Act, 1961. Only a Sublette, a licensee or care-taker or occupant of the flats is admitted as a nominal member.

D) Sympathizer Member :

• Sympathizer member means a person who sympathizes with the objects of the society and is admitted to the society as such.

In case of Co-Operative Housing societies promoted under the authorities like MHADA, SRD and SRA, the persons whose name appears as eligible persons in Annexure II only becomes the member of that society and the house provided by such Authorities given on ownership will remain in the name of original member for the period of ten years and that cannot be transferred also. Therefore, only whose name appears in Annexure II they only expected to take part in the election. Therefore, the provisions of associate members have been excluded in case of SRA/SRD and MHADA societies.

• If a shop owner is a flat owner in the co-operative housing society, then it is compulsory that to become the member of the society. In case such shop owners do not come forward to become the members of the society, the same can be informed to the Deputy Registrar who shall inform the shop owners to become the member of the society.

• If the benefits of common amenities created by the members of the society are taking by the shop owner/flat owner without being the member of the society, then society can take decision on its level regarding not providing such benefits/services to the shop owner/flat owner.

• The above rights are not available to the nominal and sympathizer members.

• Even after giving the membership form and the Managing Committee has accepted such membership, one can be considered to be member and can exercise the rights of the membership only after paying the necessary fee towards the membership. Thus even if the membership is granted by the committee, the person cannot exercise his rights of membership unless the required fee is paid to the society.

• In a co-operative housing society, if a member is holding more than one flats, during election such member can cast only one vote. In spite of owning any number of flats, the person can apply for only one share and also becomes only one membership statutorily, therefore, he get right to cast only one vote.

Minor Member:

• Minor member cannot enter into any contract. Therefore, all the contracts on his behalf is done through his guardian. After attaining the maturity, the minor member can take objections against transactions regarding sale of flat done by his parents/ guardian statutorily.

• The societies should not transfer the flats which is in the name of a minor member and the transaction of which is done through the Guardian unless and until, an order from the Competent Court is produced approving such transaction. The society should start the procedure only after taking proper legal advice in this matter.

Corporate Membership:

• A firm, company or any other body corporate can become the members of the society. However, as per the Government Resolution, more than 50% of total membership cannot be given to the firms and the company.

• It is binding to make provision in the constitution/rules of the firm or company to make provision for making available of residential places for their employee/officers.

• The firm or the company should not carry out the business which is against the objects of the society.

• The firm or the company should have objective of providing houses to its employees in its memorandum of association or articles association.

• There should be a provision in the Memorandum and Article of association of the company that they can invest their funds for purchase of the flats/ shops. It is compulsory for firm or the company to take the membership of the society. The management of the society or committee shall consist of not more than one fourth members of the firms and companies and the remaining shall be from the individual

members and such provision shall be made in the bye-laws of the society. According to the constitution of firm or company, the firm or company with provision of making available of residential place to its employee/officers, such company or firm should have to give guarantee letter to the society regarding giving details of the changes that took place time to time in the name of the concerned employee/officer and giving monthly contribution of the society. Similarly should nominate those who are going to take part in the working of the society behalf the concerned employee/officer.

Courtesy : J.B. Patel – Jeby – Housing Societies’ Activist

Download Registered Property transactions

January 19, 2013 yazdiLeave a comment

You can now download Registered Property documents by visiting igrmaharashtra.gov.in Please click on eSearch facility on the left. (Be sure to use Internet Explorer and not Chrome or Mozilla for best results.) This will provide a unique Document id. You can then go to download document, enter that id and then click on Download. The time taken to download the document will be less than 30 minutes.

This new facility has been initiated for 14 of the 23 registrar’s offices in Mumbai. This is a free service for about a week – after that it will be chargeable. The data is available from 2002 to 2011

Special Drive for Deemed Conveyance

January 15, 2013 yazdi8 Comments

Special Drive for Deemed Conveyance

The Maharashtra Ownership Flats Act, 1983, provides for Conveyance of the Titles of the land by the developers to the Co-operative Housing Societies within four months of their formation. At present, the Co-operative Housing Societies have to depend fully upon the developers for getting the benefits of additional FSI, redevelopment of buildings, etc. till conveyance of the land to them.

The State Government has decided to undertake a special drive from 15^th December, 2012 to 30^th June, 2013 with a view to confer upon the Co-operative Housing Societies the legal right of land from the developers. You have to apply in the prescribed pro-forma for Deemed Conveyance to the office of the concerned District Deputy Registrar, Co-operative Societies and Competent Authority of your area. He would pass appropriate orders after due hearing to all interested parties and issue conveyance certificate.

Once a Co-operative Society submits the certificate regarding Deemed Conveyance for registration with the respective Sub-Registrar (Stamps), necessary action would be taken for registration of the certificate of conveyance. Upon registration of the conveyance you have to approach concerned Revenue / City Survey Officer to make a mutation entry and issue property card in the name of Housing Society.

It is my sincere endeavor to see that the ownership title of the land to all the Co-operative Housing Societies in Maharashtra in conferred as a part of this special drive. ‘The building belongs to the Society; so does the land under the building’. Therefore, I appeal to all Co-operative Housing Societies to actively participate in this special drive and make it a grand success.

The Government Resolutions and Circulars relating to Deemed Conveyance are available on State Government’s website http://housing.maharashtra.gov.in

Yours Sincerely,

Prithviraj Chavan

Chief Minister, Maharashtra

M-20 Bond FAQs

December 13, 2012 yazdi4 Comments

Q-01. Whether M-20 bond is compulsory for all the committee members?
Ans: MC Members of co-operative housing societies in Maharashtra are exempted from signing M 20 Bonds w.e.f. 06.09.2012.

02. What is the effective date for filing M-20 bond
Ans: Within forty five days of their election (Within 15 days in case of committees having assumed the office prior to 14.01.2011 and within 45 days in case of committees assuming the office after 14.01.2011 as per the Maharashtra co-operative societies (Amendment) Act, 2010 (MAHARASHTRA ACT NO.11 OF 2011) published in the “Maharashtra Government Gazette” Dated.14.01.201 1).
If the Managing Committee member fails to execute the bond within the specified period, then such member shall be deemed to have vacated his office as member of the Managing Committee.

03. Whether M-20 bond is to submit to registrar is compulsory.
Ans: Although Rule 58(a) says to notify the Deputy Registrar about M – 20 Bonds having signed, it is important to submit copies of M-20 Bonds to the registrar under acknowledgement.

Q – 04. When was this law is made (i.e. from which year is effective)
Ans: Signing of M – 20 Bonds for housing societies was given effect by Section 73(1AB) of the MCS Act., 1960 R/w Rule 58 (a) of MCS Rules, 1961 w.el. 23.08.2000.

05. Whether as on today this law is applicable.
Ans: No. Govt. has exempted co-operative housing societies from the provision of signing mandatory M-20 Bonds. The GR No. CSL – 2012 / P.R. 402 / 15 – S, Dated 06.09.2012 for exemption is announced using powers U/s. 157 of MCS Act, 1960 (1961 Mali 24)

Relevant all GRs available our Association office Contact 42551414

J.B.Patel (jeby)- HOUSING SOCIETIES ACTIVIST Mobile : 9820538570, Eamail : jebypatel@rediffmail.corn

Recommendation Circular for Co-op Societies in Maharashtra

November 7, 2012 yazdiLeave a comment

Enclosed is the Report and recommendations of the study group constituted by Government of Maharashtra on the suggestion of Up Lokayukta vide letter dated 15.06.2009 and headed by the additional Registrar (Recovery and planning), Co-operative Societies, Maharashtra State, Pune, submitted to the office of the Lokayukta on 27.11.2009.

Circular No. gruh / d-3 / housing / soc / takrarnivaran / 10, dt: 15/03/2010, Co-operative Commissioner and Registrar of Co-operative Societies, Maharashtra State, Pune – Click Here for English Version and Click Here for Original Marathi Version

This report includes the following issues :

Levy of penalty for remaining absent and not participating in elections of society
Provision for safety of members
Decision about the day and date of the AGM and managing committee meetings
Minutes of the managing committee meetings
Accounts of the society
Machinery for redressal
Registration of the Federation of co-operative housing societies at ward level
Appointment of Administrator
Audit of the accounts
Developing a computerized control system
Working of AGM / Management Body Meetings, including Video Shooting of Meetings
Appointment of the manager for the working of co-operative societies

Courtesy : J.B.Patel (Jeby) – 9820538570 – CHS Activist – RTI Union

Whether unutilised FSI belongs to the Society or Builder?

November 1, 2012 yazdiLeave a comment

This is a common complaint of the flat owners that builders insist on keeping unutilised FSI for themselves even after a society has been formed and the land conveyed. Sometimes flat owners do not read the agreement drafted by the builder while buying their flats. These agreements usually have clauses that the builder is entitled to all further FSI and other development rights that may occure on the land.

“when a purchaser is buying a flat; he is not only purchasing the flat but also acquiring an undivided right title and interest in the property.” In one of the judgment, the Maharashtra State Consumer Disputes Redressal Commission has ruled that after the registration of a housing society any balance unutilised residual floor space index (FSI) shall be available to the society and not to the builder. In the said matter when the District Forum directed the builder to enjoy the unutilised and future FSI. The housing Society aggrieved by the judgment went in appeal before the State Commission it was held that as per the MOFA provisions, after registration of the society, the builder cannot claim residual FSI or further FSI in the plot or layout. Any provision in the builders agreement for sale contrary to the statutory provision will not be binding on any flat purchaser or the society.

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