Disputes in cooperative housing societies (CHS/the Society) often arise from issues around parking rights, discriminatory practices and transfer of ownership after a member’s death. Many managing committees (MCs) overstep their authority, while other members are left confused about their rights under the law and model bye-laws.
 
This week, I will address three such concerns raised by readers—whether societies can demand car registration papers for parking, whether a Society can deny a no-objection certificate (NOC) or essential documents on discriminatory grounds and the procedure for transferring a flat from a deceased co-owner to the surviving joint-owner.
 
Can Societies Demand Car Registration Papers for Parking?
 
Question: Can the MC of a CHS demand car registration papers for allowing parking in the Society premises, despite the parking space being allotted by the builder?
 
Answer: If the parking space is in the stilt portion, basement, podium or open area around the Society’s building, which are not covered under the floor space index (FSI) of the building, then such parking space belongs to the Society and cannot be sold by the builder.
 
Even if a builder or the Society has sold such parking space, the sale has no legal standing—even if the sale deed is duly registered and full stamp duty has been paid. 
 
As per the 2014 Model Bye-laws, under bye-laws nos. 78 to 84, allotment of parking slots must be made by the Society.
 
Therefore, the MC of the CHS can ask for registration papers of vehicles parked in the Society to confirm that the vehicle is, indeed, owned by the resident member or their family and not by an outsider.
 
Society Cannot Deny NOC or Documents on Discriminatory Grounds 
 
Question: I have purchased a flat in Vasai West. The registration has been completed, but the Society is denying me a NOC for a bank loan, stating that my husband is a foreigner (he is an overseas citizen of India -OCI holder). They also have an issue with the fact that we are Christians and speak English. I have already made the down payment, completed the registration process, paid the processing fee for the bank loan and also paid for insurance. Am I eligible to approach the district deputy registrar (DDR) with a complaint regarding this? The Society is also not providing the original occupation certificate (OC) copy and the blueprint. What can I do?
 
Answer: Since you are an Indian citizen, the Society cannot refuse you an NOC for your bank loan. The Society is also required to provide you all necessary documents, such as the OC, approved building plan and the NOC for your loan.
 
Therefore, you should file a complaint against the Society with the deputy registrar of cooperative societies under bye-law no. 174(A)(vii), which covers the non-supply of copies of records and documents.
 
Transfer of Flat Ownership from Deceased Co-owner to Surviving Joint-owner
 
Question: I have a query regarding a recent case in our Society in Mumbai. I am the newly elected chairman and need help in this regard. A lady, who co-owned a flat in our Society with one of her daughters, has passed away. She had two daughters in total. The other daughter (daughter 2) is based in Dubai and is ready to give an NOC, if required. Now, I have two questions:
 
1. Does the co-owner (daughter 1) automatically become the sole owner since there is no Will (or at least we are not aware of one)?
 
2. If daughter 1 does become the owner automatically, what is the procedure the Society should follow and what documents should we ask for?
 
Answer: Since the flat was jointly purchased by the mother and daughter, after the death of one joint-owner, it can be transferred into the sole name of the surviving joint-owner under the Right of Survivorship. Under the Right of Survivorship, if a co-owner passes away, his/her share is automatically transferred to the surviving co-owner/s. This transfer does not require an NOC from other legal heirs whose names are not included in the flat’s sale deed. This process should be followed if the mother had not nominated anyone or only nominated daughter 1 (the other joint owner) for her share in the flat.
 
In case the mother has made daughter 2 her nominee for her share in the flat, then instead of an NOC, daughter 2 would have to sign a release deed on a Rs500 stamp paper in favour of daughter 1. By signing such a release deed, she will release her right to the flat in favour of her sister. 
 
The modified forms for such a transfer—from a deceased joint owner to the surviving joint-owner—are provided in appendix nos. 3, 17, and 19 of the 2014 Model Bye-laws (or the appropriate bye-laws of the year 2019 as the case may be). The form in Appendix 3 must be typed on a Rs200 non-judicial stamp paper. The form in Appendix 19 must be typed on a Rs500 non-judicial stamp paper. Both must be signed by the surviving joint-owner.
 
Along with these forms, the following documents must also be submitted:
1. A self-attested copy of the death certificate of the deceased member.
 
2. The original share certificate of the flat.
 
The surviving member must also pay an entrance fee of Rs100 by crossed cheque in the Society’s name. Upon receipt of these documents and the fee, the Society will transfer the share certificate into the sole name of the surviving joint-owner, affix the Society seal, obtain the signatures of the chairman, secretary and a committee member and return the updated share certificate to the surviving member.
 
If you face any difficulties in this process, you may visit Moneylife Foundation’s office at Prabhadevi, after taking an appointment by calling their office - 022-35131664 or (022) 35036925 during business hours. 
 
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.)