Owning a home in a cooperative housing society (CHS/the Society) often comes with its share of challenges. From disputes over flat measurements during redevelopment to questions about CHS formation, parking allocations and pending dues, members frequently find themselves in situations where rules, laws and bye-laws are not always clear. In many cases, confusion arises because of the gap between what builders, banks or managing committees say and what is actually permissible under the respective Co-operative Societies Act and the model bye-laws.
 
This week’s set of questions reflects some of the common concerns that crop up for members—whether it is dealing with liabilities after purchasing an auctioned flat, recovering deposits wrongly taken for car parking, or figuring out whether to form a CHS when promised amenities are still incomplete. These examples show why it is important for members to be aware of their rights, keep proper documentation and seek professional guidance when needed.
 
Liability for Society Dues after Auction Purchase
 
Question: I successfully bid for a flat through an e-auction under the Securitisation Act in February 2024. The flat is in a registered society. The borrower had defaulted on the bank loan from 2012 to 2024, and Society maintenance dues of around Rs4.5 lakh are also pending. The Society has denied a no-objection certificate (NOC) for a housing loan and the deputy registrar has denied membership unless the old dues are cleared. In June 2025, based on my membership application under Section 22(2) of the MCS Act, 1960, dated October 2024, the Society sent me a legal notice through its advocate under Section 154(B-29) for the outstanding dues. I did not file an appeal to the joint registrar or a writ petition in the Bombay High Court against the deputy registrar’s order. I asked the Society to provide me details of the resolution passed, recovery certificate, correspondence, and bank statement showing notices to the earlier member. Should I reply to the legal notice from the Society? Please advise.
 
Answer: Since the Society has transferred the share certificate of the flat you purchased in the bank auction, ask the Society for a month-wise statement of dues for your flat. Show this bill to the bank that auctioned the flat to verify whether it had recorded the defaulted loan and related dues. If there is any discrepancy, present the bank’s dues to the Society for confirmation. If the Society does not cooperate in providing details of the dues, you can file a complaint with the deputy registrar of cooperative societies under Bye-law No. 174(A)(xxii). If the deputy registrar also does not cooperate, you should, with the help of an experienced advocate, make a complaint against the Society in a cooperative court under Bye-law No. 174(B)(ix) to ascertain the earlier owner’s dues on your flat.
 
Refund of Deposit Taken for Car Parking Slot
 
Question: I applied for a car parking slot after one member sold his flat and surrendered his parking space. On a first-come, first-served basis, it was allotted to me. I was asked to pay Rs40,000 as a non-refundable deposit to acquire the slot which I paid. Later, I came to know that a managing committee cannot ask for any deposit from members for car parking. When I asked for a refund, the MC members denied it, saying that if they refunded me, they would have to refund others as well. How can I get my deposit back? Please guide.
 
Answer: If the car parking slots are mechanical, a non-interest-bearing refundable deposit can be levied when a slot is allotted. However, if the parking is in an open space or a stilt, such charges cannot be levied. Under bye-law No. 174(B)(iv), you can file a complaint against the Society in a cooperative court by engaging with a lawyer experienced in such matters.
 
Delay in CHS Formation due to Pending Amenities 
 
Question: My query is regarding CHS formation. We are staying in Viva City and have not yet formed a CHS because the builder has not provided the basic amenities such as Vasai-Virar Municipal Corporation (VVMC) water supply or the promised facilities mentioned in the brochure. We are in a dilemma whether to proceed with Society formation or wait for the builder to complete the pending work. At the time of possession, we had paid corpus funds and two years’ lump sum maintenance. However, only the garden has been provided and the rest of the amenities are still pending.
 
Answer: If 51% of the flats (including shops) in your building are sold, you should go ahead and register your CHS. To complete the process, you can take the services of the Vasai Taluka Cooperative Housing Federation, Swagat Bhavan Building, Opp. MSEB Colony, Vasai East, Pin 400208.
 
Dispute over Flat Area in Redevelopment Plans
 
Question: My father has been paying maintenance charges based on a flat area of 550sqft (square feet) or 560sqft, as shown in the Society’s receipts. Now, redevelopment talks are underway and the builder is saying that as per the Society agreement, we are supposed to get only 515sqft after redevelopment. Since my father has always paid maintenance charges on 560sqft, and I have all the receipts as proof, what can I do in this case? Please guide me.
 
Answer: Kindly appoint an architect to measure the area of your flat. You can also measure it yourself with a tape or a foot ruler. If you hire an architect, he can verify the municipality-approved plan of your father’s flat and argue with the builder for the additional area during redevelopment.
 
NOTE
We will not be answering queries posted in the comments. Only questions sent through the Moneylife Foundation's Legal Helpline will be answered. If you want to seek guidance or ask questions to Mr Shanbhag, kindly send it through Moneylife Foundation's Free Legal Helpline. Here is the link: https://www.moneylife.in/lrc.html#ask-question
 
Disclaimer: The guidance provided in these columns and on our Legal Helpline is on the sole basis of the facts provided by the reader/questioner and does not amount to formal legal advice in any form whatsoever. 
 
(Shirish Shanbhag has an MSc in Organic Chemistry, Diploma in Higher Education, and a Diploma in French and has completed his LL.B. in first class in 2021. Before his retirement, he was a junior college teacher at Patkar College from July 1980 to May 2012, teaching theoretical and practical chemistry. Post-retirement in 2012, he started providing guidance and counselling to people on several issues, specifically focusing on cooperative housing society-related matters. He has over 30 years of hands-on experience in all matters about housing societies and can provide out-of-box solutions for any practical issue.)