Navigating the MCS (Amendment) Ordinance, 2019: A Guide for Housing Societies

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Hemant Joshi
Senior Manager - CRM & New Business
Introduction
The Maharashtra Co-operative Societies (Amendment) Ordinance, 2019, has been promulgated to streamline the governance and management of cooperative housing societies in Maharashtra. With over 50% of the state’s cooperative societies being housing societies, the need for specialized regulations has become imperative. This blog post will delve into the key amendments and provisions introduced by the Ordinance, providing a comprehensive guide for housing societies and their members.
Understanding the Amendment
The Ordinance introduces a new Chapter XIII-B to the Maharashtra Co-operative Societies Act, 1960, which specifically addresses the unique challenges faced by housing societies. It amends several sections of the Act to better suit the needs of these societies, including clarifications on elections, recovery of dues, and the rights and duties of members.
Key Highlights:

  1. Registration and Membership

  1. The Ordinance sets minimum membership criteria for different types of housing societies and outlines the process for registration, ensuring a more structured approach to the formation of housing societies (refer to sections 154B-2, 154B-3, and 154B-4).

  1. Management and Governance

  1. The amendment provides a framework for the management of housing societies, including the creation and utilization of funds, and the constitution of the managing committee with reserved seats for specific groups, including women (refer to sections 154B-5, 154B-6, and 154B-7).

  1. Member Rights and Duties

  1. It clarifies the rights of members to inspect documents, the process for transfer of shares, and the rights of members on the death of another member, promoting transparency and accountability (refer to sections 154B-8, 154B-9, and 154B-10).

  1. Recovery of Dues

  1. The Ordinance simplifies the process for the recovery of certain sums and arrears due to housing societies, treating them as arrears of land revenue for efficient recovery (refer to section 154B-29).

  1. Housing Federations

  1. It establishes Housing Federations and outlines their powers and duties, including maintaining panels of managers and special recovery officers, to support the smooth functioning of housing societies (refer to sections 154B-28 and 154B-29).

  1. Transitional Provisions

  1. The Ordinance ensures the continuation of existing rules and the resolution of pending proceedings, providing a seamless transition to the new regulatory framework (refer to section 154B-31).

Why It Matters
The amendment is a significant step towards addressing the peculiar challenges faced by cooperative housing societies in Maharashtra. By introducing specialized regulations, it aims to reduce disputes and litigation, enhance the efficiency of authorities dealing with housing society affairs, and create a more congenial governance environment.
Conclusion
The Maharashtra Co-operative Societies (Amendment) Ordinance, 2019, is a comprehensive update to the regulatory framework for housing societies in the state. It is designed to improve governance, protect member rights, and ensure the smooth functioning of these societies. As a member or manager of a housing society in Maharashtra, it is crucial to understand and comply with these new provisions to navigate the cooperative landscape effectively.
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