@ JSDN
If the comment is indirectly for me too then all I would add here is that being member of Bar let us not become Judges and Jury all rolled into one to a enquiry. In legal forums people come for remedy and not come to get tangled in web of why, when and how of its implementations and or its ultra vires and or Writ jurisdiction so limited question by any queriest needs limited answers.
Here is addendum gyani especially crafted for you in case you want one right now from professionals J
If a co-operative society is old it may continue to follow old byelaws. But when a new co-operative society approaches the Registrar it would have to compulsorily adopt the new byelaws. Under the Maharashtra Co-operative Societies Act 1960, a housing society is free to adopt its own set of laws that governs its members. These are called byelaws and are limited to the Maharashtra State.
Byelaws are the rules that govern a co-operative society and its members and these undergo changes from time to time through amendments whenever the Government feels the need for changes.
Illustration:- The cash on hand limit under the old byelaws was Rs. 300. Cash on hand is maintained by the society for day to expenses such as plumber's and or gardener’s payments for instance. Over the years it was felt that the amount was not sufficient. And hence in the new byelaws the same has been increased to Rs. 4,500. Such changes under various headings become imminent and that is how the new model byelaws came into effect from July 2, 2001 came into force. Since then, the Government has made it mandatory for co-operative societies in Maharashtra to adopt the new byelaws.
Also note these byelaws are district specific. In other words while these are more or less the same there could be minor changes depending on which district a member fall in whether it is Mumbai, Pune or Thane.
Here are some of the differences between the old and the new byelaws.
Transfer of flat: Under the old byelaws in case you were to transfer your flat, a charge of 2.5% of the difference in the purchase value minus sale value would be levied as transfer charges. But under the new model byelaw number 45 all that has been scrapped and a common charge is levied as per the general body resolution subject to the condition that it is not above Rs 25,000. Also the Society needs to meet/pay TDS on this charge as per tax Laws.
Maintenance: Under the old byelaws the maintenance charged varied among members. For instance, let us say the monthly maintenance amount payable was Rs 500. Now if the flat was given on leave and licence, the maintenance charge would be hiked to Rs 1,000. For the same one need ot refer to general body resolutions ofd the Society made from time to time.
But as per the new byelaws, maintenance is 10% of service charges. Service charges include salary of the office staff, liftmen, watchman, the property taxes, electricity charges, water charges, etc. in case the society has an independent office.
That apart it also includes entrance fees for affiliation to the housing federation and any other co-operative institution, audit fees for internal, statutory and re-audit if any besides expenses incurred at meetings of the general body, the committee and the sub-committee retainer fees, legal charges, statutory enquiry fees among others.
Purchase of second flat: Under the old byelaws there were restrictions on holding more than one flat. A member was needed to obtain the Registrar's permission to purchase a second flat in the same society or within the limits of a certain district.
Member was also needed to submit an Affidavit saying that you do not hold any other flat in the same district. For instance, if you were the owner of a flat in Mumbai you could not own another flat in the same city. But another flat in Pune or Thane was allowed.
In the new byelaws the same has been done away with. So you can very well purchase a flat in the same society. Under Byelaw number 62 of the new model byelaws all you need to do is make an application to the society saying that you intend to purchase another flat. It's the society's consent that matters.
Transfer among family members: Under the old byelaws there were transfer charges applicable even if the transfer was between family members.
But then under S. 6 read with byelaw number 3 of the model byelaws, no transfer charge is to be levied in case of transfer of flat to any one of the family members. Under byelaw number 3 (25) family members means the following group of persons: husband, wife, father, mother, sister, brother, son, daughter, son in law, brother in law, sister in law, daughter in law, grandson, grand daughter.
If a co-operative society is old and continues with the old byelaws it may do so as byelaws cannot be enforced by law per se. Also, in my opinion, there are many mistakes in it. For instance, under the new model byelaw number 61, the managing committee needs to inform the member in writing within seven days of the date of the decision of committee about cessation of a membership.
Why this is a mistake because a cessation of membership can take place when the member has sold his flat as we all know. And such communication in reality takes more than seven days or even a month since the committee needs to find out whether all dues such as electricity bills, housing loans if any among others have been paid or not and all these practically not possible to comply with in 7 days time frame ! But then note that when a new co-operative society approaches the Registrar it would have to compulsorily adopt the new byelaws so there pops few minor lacunas in even adopting new model bylaws.
Few pointers to @ Author’s subsequent question are mentioned above and alternate approach for remedy is available before Court under Writ Jurisdiction and or via PIL route.