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Complete Guide to CHS Membership Rules in Maharashtra (Bye Laws 16–40)

CHS BYE LAWS, cooperative housing society bye laws maharashtra

Introduction

In Maharashtra — especially in Mumbai, Thane, Pune and Navi Mumbai — most apartment buildings are registered as Cooperative Housing Societies (CHS).

Membership in a CHS is not automatic. It is governed by the Model Bye Laws 2014 framed under the Maharashtra Cooperative Societies Act.

Understanding membership rules is critical because:

  • Only members can vote
  • Only members can contest elections
  • Only members can transfer property
  • Only members can participate in redevelopment decisions

This guide explains Bye Laws 16 to 40 in simple language.

1️⃣ Who Can Become a Member in a CHS?

Under Model Bye Laws, the following are eligible:

✔ Individual Buyer

A person who purchases a flat and submits:

  • Sale Agreement copy
  • Share certificate form
  • Entrance fee
  • Transfer fee (if resale)
  • KYC documents

✔ Joint Purchasers

If flat is bought jointly:

  • First name becomes Primary Member
  • Others become Joint Members

✔ Nominee After Death

If original member dies:

  • Nominee can apply for membership
  • Society cannot deny without valid reason

2️⃣ Types of Members in a Cooperative Housing Society

There are mainly four categories:

1. Ordinary Member

  • Main owner
  • Full voting rights
  • Eligible for committee

2. Associate Member

  • Usually spouse or co-owner
  • Can vote only with written consent of primary member
  • Can contest elections if authorized

3. Joint Member

  • Co-owner
  • Voting priority based on name order

4. Nominal Member

  • Tenant or temporary occupant
  • No voting rights
  • No ownership rights

3️⃣ Documents Required for CHS Membership

When purchasing a resale flat, you must submit:

  • Transfer application form
  • Copy of registered agreement
  • NOC from previous owner
  • Entrance fee (usually ₹100)
  • Transfer fee (max ₹25,000 as per rules)
  • Indemnity bond (in some cases)

Society must decide within 3 months.

If society does not respond → application is deemed approved.

4️⃣ Can a Society Refuse Membership?

Society can refuse membership only if:

  • Documents incomplete
  • Buyer does not meet eligibility criteria
  • Legal dispute pending
  • Dues unpaid by previous owner

They cannot refuse because:

❌ Personal dislike
❌ Religion
❌ Profession
❌ Tenant status
❌ Redevelopment disagreement

If refused without valid reason, you can complain to:
Assistant Registrar of Cooperative Societies.

5️⃣ Nomination Rules in CHS

Nomination protects legal heirs.

Important Points:

  • Nomination does NOT transfer ownership automatically.
  • Nominee acts as trustee until legal heirship decided.
  • Multiple nominees allowed with percentage share.

Society must record nomination in its register.

Failure to nominate creates legal complications.

6️⃣ Rights of a CHS Member

A member has the right to:

  • Attend General Body Meetings
  • Vote in elections
  • Inspect society records
  • Get copy of audited balance sheet
  • Participate in redevelopment voting
  • Receive share certificate
  • Seek information under RTI (if applicable)

7️⃣ Liabilities of Members

Members must:

  • Pay maintenance on time
  • Follow society rules
  • Not carry out illegal alterations
  • Not use flat for unlawful commercial purposes
  • Comply with redevelopment resolutions

Defaulting members can face:

  • Interest penalty
  • Recovery proceedings
  • Attachment through cooperative court

8️⃣ Transfer of Membership

When selling a flat:

  1. Seller gives 15-day prior notice
  2. Society verifies dues
  3. Transfer premium (max ₹25,000)
  4. Share certificate endorsed
  5. New member admitted

Society cannot charge arbitrary “donation”.

9️⃣ Associate Member Voting Rules

Very common confusion in Mumbai societies.

Associate member can vote only if:

  • Primary member submits written authority
  • Primary member is absent

Without authorization → no voting rights.

🔟 Deemed Membership Rule

If society does not communicate rejection within 3 months:

Applicant becomes deemed member.

This is powerful protection for buyers.

🚨 Common Membership Disputes in Mumbai

  • Society delaying transfer
  • Excess transfer charges
  • Refusal to add spouse as associate
  • Denial of nomination
  • Illegal premium demand

In such cases:
File complaint before Registrar.

🏗 Membership Rules During Redevelopment

Only valid members:

  • Can vote on redevelopment
  • Count toward 75% consent
  • Eligible for new agreement

Nominal members (tenants) cannot vote.

This becomes critical in Mumbai redevelopment cases.

📊 Quick Summary Table

TopicRule
Transfer FeeMax ₹25,000
Entrance Fee₹100
Decision Timeline3 months
Associate VotingWith authority
Nominee RightsTrustee, not owner

❓ Frequently Asked Questions (FAQ)

Can society refuse membership after registration of agreement?

No, unless valid legal grounds exist.

Is nomination compulsory?

Not compulsory but highly recommended.

Can associate member attend AGM?

Yes, but voting requires authorization.

Can society charge donation for membership?

No. Only statutory charges allowed.

What if society delays share certificate?

You can complain to Registrar.

🏁 Conclusion

Membership in a Cooperative Housing Society is not just a formality — it defines your legal rights, voting power, redevelopment participation and financial obligations.

Understanding Bye Laws 16–40 protects you from:

  • Illegal charges
  • Membership denial
  • Redevelopment manipulation
  • Governance abuse

For Mumbai property buyers and society members, knowing these rules is essential.

Disclaimer: This is not legal advice. Kindly consult a qualified lawyer or legal professional for advice specific to your situation.

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