Maharashtra Cooperatives Society Act or MCS Act 1960, which is Maharashtra Cooperative Societies Act 2019. It was brought into action on 26th January 1962. There were various amendments made to this act.
The Maharashtra Cooperative Societies Act or the Maharashtra Housing Society Act 1960 states its key features are based on better housing plans for its people.
The act offers an easy and quite inclusive registration system. It also includes membership perks, privileges, and duties offered across Maharashtra. The Maharashtra Cooperative Act aims to offer a fair system and solutions in Maharashtra for cooperative societies. This act has defined very clear criteria for housing societies that enjoy membership perks.
With the increasing NPA in India, it is important that cooperative societies need to be examined carefully to safeguard the interests of financial institutions.
Types of housing societies defined in the act
The act clearly defines and classifies different types of housing societies and their characteristics.
Tenant Ownership Housing Societies
According to the MCS Act, Tenant Ownership Housing Societies are societies that aim to allot plots or flats on a parcel of land that is owned by the society. This ownership is on a freehold or leasehold basis, while all members own the house.
Tenant Co-partnership Housing Societies
MSC Act rules that the objective of Tenant Co-partnership Housing Societies is to provide flats to their members. Here, the society owns both the land and the building, either on a freehold or leasehold basis.
Other Housing Societies
Societies that do not fall under the two above-mentioned categories are called other housing societies. Some of the examples are House mortgage cooperative societies, house construction cooperative housing societies, and foundations cooperative societies with all units being offices or commercial establishments.
To control NPA in India, the government is enforcing additional regulations on cooperative housing societies so that timely repayment of loans is ensured.
According to Section 22 of the Maharashtra cooperative societies act, it is made very clear that if a person meets all eligibility criteria, then the person cannot be denied membership. As per Section 79 of MCS Act, every transaction, whether it is a money exchange, expenditure, or receipt, has to be documented legally and it should be preserved for further verification. Section 91 of this act takes care of the dispute occurring in the authorship of the property.
Various amendments have been made with the intention to combat increasing corruption, governmental involvement, and politics in Cooperative societies.