Introduction:
In West Bengal, housing societies and cooperative housing society are organizations formed by a group of individuals for the purpose of acquiring land and constructing buildings for residential purposes. While the ownership of the land and buildings is held by the society, the members of the society have the right to use and occupy a specific portion of the property. The main difference between the two types of societies is that a cooperative housing society is governed by the West Bengal Cooperative Societies Act, 2006, and gives its members more rights and control over the management of the society. The legal provisions governing housing societies and cooperative housing societies are primarily enshrined in the West Bengal Co-operative Societies Act, 2006, and the West Bengal Apartment Ownership Act, 1972. Adherence to these legal provisions is crucial for ensuring the legality and legitimacy of housing societies and cooperative housing societies. Ownership and management structures, membership and shareholding requirements, and financial management differ significantly between housing societies and cooperative housing societies.
Understanding the concept of housing society and cooperative housing society in West Bengal:
In West Bengal, a housing society is an organization formed by a group of individuals for the purpose of acquiring land and constructing buildings for residential purposes. The ownership of the land and buildings is held by the society, and each member of the society has a right to use and occupy a specific portion of the property.
On the other hand, a cooperative housing society is a specific type of housing society that is registered under the West Bengal Cooperative Societies Act, 2006. In a cooperative housing society, the members not only have a right to use and occupy a portion of the property but also have a say in the management and administration of the society. This means that the members of the cooperative housing society have a democratically elected board of directors that manages the affairs of the society and makes decisions on behalf of the members.
Overall, the main difference between a housing society and a cooperative housing society in West Bengal is that a cooperative housing society is governed by the West Bengal Cooperative Societies Act, 2006, and gives its members more rights and control over the management of the society.
Legal Framework:
In West Bengal, the legal provisions governing housing societies and cooperative housing societies are primarily enshrined in the West Bengal Co-operative Societies Act, 2006, and the West Bengal Apartment Ownership Act, 1972. The laws lay down various rules and regulations that are mandatory for the formation and management of housing societies and cooperative housing societies. These include provisions on the registration process, rights and obligations of members, governance structure, decision-making procedures, financial management, and dispute resolution mechanisms.
It is essential to note that adherence to these legal provisions is crucial for ensuring the legality and legitimacy of housing societies and cooperative housing societies in West Bengal. Any violation of the legal framework can lead to legal consequences and jeopardize the functioning of the society. Therefore, it is advisable for individuals or entities intending to form housing societies or cooperative housing societies in West Bengal to have a comprehensive understanding of the legal framework governing such societies.
Formation and Registration:
The process of forming a housing society involves the selection of a group of individuals who wish to collectively own and manage a residential property. Once the group has been formed, they must register the society with the Registrar of Co-operative Societies, under the provisions of the West Bengal Co-operative Societies Act, 2006. This involves submitting an application along with the required documents, such as a copy of the by-laws of the society, the list of members, and the details of the property to be owned.
Similarly, the formation and registration of a cooperative housing society in West Bengal follows a similar process. The cooperative housing society must be registered under the provisions of the West Bengal Apartment Ownership Act, 1972, and must follow the required procedures for registration, including submitting the necessary documents and obtaining the necessary approvals from the relevant authorities. The process of forming a housing society involves the selection of a group of individuals who wish to collectively own and manage a residential property. Once the group has been formed, they must register the society with the Registrar of Co-operative Societies, under the provisions of the West Bengal Co-operative Societies Act, 2006. This involves submitting an application along with the required documents, such as a copy of the by-laws of the society, the list of members, and the details of the property to be owned.
Similarly, the formation and registration of a cooperative housing society in West Bengal follows a similar process. The cooperative housing society must be registered under the provisions of the West Bengal Apartment Ownership Act, 1972, and must follow the required procedures for registration, including submitting the necessary documents and obtaining the necessary approvals from the relevant authorities.
Ownership and Management:
As per the laws of West Bengal, there are significant differences in the ownership and management structure between housing society and cooperative housing society. A housing society is formed by individuals who come together to buy a flat or a house, and they are the sole owners of their respective units. In contrast, a cooperative housing society is formed by individuals who come together to collectively own and manage the entire building. Therefore, in a cooperative housing society, the ownership of the building is shared by all members of the society, and each member holds an undivided interest in the property. Additionally, in a cooperative housing society, the management of the building is done collectively by the members of the society through the elected managing committee, whereas in a housing society, the management is typically done by a developer or a property management company.
Membership and Shareholding:
As per the West Bengal Co-operative Societies Act, 2006, both housing societies and cooperative housing societies have certain requirements for membership and shareholding. In the case of a housing society, an individual can become a member by purchasing a flat or a unit within the society. Each member has one vote regardless of the number of units owned. However, in a cooperative housing society, a person can become a member by purchasing shares in the society, and the number of shares held determines the number of votes the member has. The shareholding requirement in a cooperative housing society is generally higher than the ownership requirement in a housing society. Moreover, in a cooperative housing society, the maximum number of shares that a member can hold is limited, which is not the case in a housing society.
Financial Management:
Financial management is an important aspect of both housing society and cooperative housing society in West Bengal. In a housing society, the expenses and revenue are typically managed by the management committee elected by the members of the society. The committee is responsible for creating a budget and collecting maintenance fees from members to cover expenses such as maintenance, repairs, and utilities.
On the other hand, in a cooperative housing society, the members collectively own and manage the property, which means they have a greater role in financial management. The society’s members contribute to a common fund to meet expenses and share profits or losses. The cooperative society is also required to maintain a separate fund called the Reserve Fund, which is used for unexpected expenses, major repairs, and replacements.
Both housing society and cooperative housing society have their own rules and regulations regarding financial management. These rules must comply with the legal provisions governing housing societies and cooperative societies in West Bengal. It is essential to have a proper financial management system in place to ensure the smooth functioning of the society and to avoid disputes or conflicts among members.
Dispute Resolution:
In case of any dispute arising in a housing society or cooperative housing society, the members can seek resolution through different mechanisms available under the law.
For housing societies, the dispute resolution mechanism is governed by the West Bengal Co-operative Societies Act, 2006. According to the Act, disputes can be resolved through mediation, arbitration, or by filing a case in a civil court. In case of mediation, a mediator is appointed by the Registrar of Co-operative Societies to facilitate negotiation and settlement of disputes. If the dispute remains unresolved, it can be referred to an arbitrator appointed by the Registrar.
On the other hand, for cooperative housing societies, the dispute resolution mechanism is governed by the West Bengal Cooperative Societies Rules, 2011. According to the Rules, disputes can be resolved through mediation or by filing a case in a civil court. In case of mediation, a mediator is appointed by the Registrar of Co-operative Societies to facilitate negotiation and settlement of disputes. If the dispute remains unresolved, it can be referred to an arbitrator appointed by the Registrar.
It is important to note that the decisions of the mediator or the arbitrator are binding on the parties to the dispute. Additionally, any member or group of members can approach the Registrar of Co-operative Societies to settle disputes or differences between them and the society or its managing committee. The Registrar may pass such orders as he deems fit in the circumstances.
Conclusion:
In conclusion, a housing society in West Bengal is formed by a group of individuals for acquiring land and constructing buildings for residential purposes. The ownership of the land and buildings is held by the society, and each member has the right to use and occupy a specific portion of the property. On the other hand, a cooperative housing society is a specific type of housing society that gives its members more rights and control over the management of the society. It is governed by the West Bengal Cooperative Societies Act, 2006, and the members have a democratically elected board of directors that manages the affairs of the society and makes decisions on behalf of the members. The legal provisions governing housing societies and cooperative housing societies in West Bengal are enshrined in the West Bengal Co-operative Societies Act, 2006, and the West Bengal Apartment Ownership Act, 1972. Adherence to these legal provisions is crucial for ensuring the legality and legitimacy of housing societies and cooperative housing societies in West Bengal. The formation and registration of a housing society or a cooperative housing society involve submitting the necessary documents and obtaining the necessary approvals from the relevant authorities. In terms of ownership and management structure, there are significant differences between housing society and cooperative housing society. Financial management is an essential aspect of both, and in a cooperative housing society, the members collectively own and manage the property, which means they have a greater role in the financial management.
