Co-op Housing Society is better than Apartment Owners Association in Maharashtra

Why Co-op Housing Society is better than Apartment Owners Association in Maharashtra


A significant question here is that why the builders always tend to go for ‘Apartment Owners Association’ formation and always try to avoid ‘Society’? The reason is that the builders have lot of vested interests in doing so which are listed below:

  1. The builder is interested in using the increased FSI which will be awarded by the govt. for that area at any time in future. If the ‘Society’ is formed, then upon the transfer and conveyance of land in favour of the Society, the increased FSI will be owned by the Society and the builder shall not have any right over it. But if it is an Apartment, then the builder owns that increased FSI and can use it anywhere. Thus, the builder will keep taking advantage of every increase in FSI throughout in the future.
  2. In an Apartment, the builder retains the ownership of the open spaces which are not included in the saleable area. Example – Terrace or any open parking/stairs space which is not included in the saleable area. But in case of Society, the builder cannot retain any right on any of these areas and has to hand over everything to the Society. The Maharashtra Apartment Ownership Act also provides for the ownership of an individual Apartment in a building and to make such Apartment heritable and transferable property.
  3. Bye-laws and Rules of ‘Society’ are binding on all the residents and nobody can act as per his/her whims. Hence, if the Society decides to ban any objectionable commercial activities in the flats such as noise-making music classes or using the flat for catering or courier activities etc or not to rent out to bachelors etc, then all the residents have to abide by it. But if it is an Apartment, then owners can violate the Apartment Rules and the Apartment Body can just file a case in the Civil Court. However, while the Society disputes are resolved in a separate Court i.e. Co-operative Court dealing with Society matters and hence they are fast resolved whereas, the Apartment matters have to be taken to the normal Civil Court and hence they typically take years and decades to resolve.
  4. When the building contemplates redevelopment after 25-30 years, the Society’s decision will be final and hence the Society members will have negotiation power with the builder at that time. But if in case of an Apartment, the consent of every Apartment-owner is required and hence it goes into an endless delay due to lack of a common decision acceptable to everybody. There are many instances in Mumbai wherein finally the dilapidated buildings had to be forcefully vacated by an eviction order from Court since they became unlivable. Thus, while the decisions are taken on a ‘majority’ basis in Society, the Apartment goes with rule of ‘Acceptable by Everybody’. So if the builder has retained even one flat in an Apartment, he will play a veto card in his favour at the time of redevelopment.

Differences between a Society and Condominium (Apartment Owner’s Association)

Although the basic purpose of both the formation is similar, there are many differences between a Society and Condominium. Some of the differentiation’s are as under:

  1. Generally to form a Society, 10 persons would be required and each of them is to be from a different family who reside in the area of operation of the Society (within the same city) and who have purchased premises in the building. However, in case of Condominium, even one person who owns the entire building can form a Condominium provided there are at least five Apartments in the building.
  2. In the case of a Society, the title of the land and the building is transferred and conveyed to the Society, which becomes the owner thereof. Buyers, upon purchase of flats, become members of the Society. In the case of a Condominium, the title of each Apartment rests with the Apartment owner, who also has a proportionate undivided interest in the land on which the building stands the common areas and facilities of the building.
  3. A Society adopts the Model Bylaws periodically with changes if required but with subsequent approval from Dy. Registrar of respective ward. Similarly, while adopting the Bylaws in a Condominium, suitable changes can be made so long as the provisions of the Act are not contravened.
  4. A Society issues certain shares to its members as per the Bylaws and the Share Certificate becomes an important title deed, since the allotment of the premises are related thereto. This is not so in a Condominium of Apartments/Buildings.
  5. The affairs of the Society are managed by the Managing Committee which is elected by the members of the Society. The Managing Committee elects a Chairman, Secretary and a Treasurer. Similarly, the affairs of a Condominium are managed by the Board of Managers who is elected by the members of the Apartment Owners Association. The Board also elects a President, Vice-President, Secretary and a Treasurer.
  6. Under the Model Bylaws, a Society can charge only Rs. 500/- as Transfer Fee with a maximum of Rs 25,000/- as a premium. In case of a Condominium, the Bylaws can be more flexible and the amount of Transfer Fee can be provided therein.
  7. In a Condominium, the owner can give his Apartment on lease or leave and license basis without the approval of the Board of Managers. While in a Society, permission of Managing Committee including ‘Police Verification’ is required.
  8. In a Society, every member has one vote, irrespective of the area of his premises. In a Condominium, every Apartment owner has a voting right in proportion to the value of his premises which is generally as per the area of the Apartment owned by him and which is defined while forming the Condominium.
  9. In a Society, disputes are generally referred to the Registrar appointed under the Act or to a Co-operative Court, depending on the nature of the dispute. In the case of a Condominium, the Court having jurisdiction over the area in which the Condominium is located, hears the disputes.
  10. A Society can expel its member under certain extreme circumstances. In case of a Condominium, there is no such provision. However, if an Apartment owner fails to comply with the Bylaws or the Rules and Regulations, either damages or injunctive relief or both can be claimed against him.
  11. In a Society, a member can nominate a person in whose favour shares of the Society should be transferred upon the member’s death. No such facility is available in a Condominium. An Apartment can be transferred to a person to whom the Apartment owner bequeaths the same by his will or to the legal representative of the Apartment owner’s estate.
  12. The difference between Maharashtra Ownership Flat Act, 1963 and Maharashtra Ownership Apartment Act, 1970 is that in case of Maharashtra Ownership Flat Act there should be atleast 10 members for forming Co-operative Housing Society and in Apartment ownership there should be 5 Apartments in one or more building. In case of Ownership Flat Act or Co-operative Societies Act the assessment of the flats will be in the name of owner of the land or builder or the Society and in case of Apartment Ownership Act there will be separate assessment in respect of each Apartment and its percentage of undivided interest in common areas and facilities. In case of Ownership Flat Act, there will be registration of Co-Op Society or Pvt. Ltd Company as contemplated under Section 10 of Maharashtra Ownership Flat and in case of Apartment Ownership Act, a declaration is required to be made in prescribed form before the Magistrate as required under the Act. (See Rule 2)

Hence, it is recommended to impress upon the Developers & owners to form a Co-operative Housing Society only under the Provisions of Maharashtra Co-operative Societies Act, 1960.

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6 High Grossing Bloggers in India

Bloggers are the people who make internet interesting and knowledge rendering for us. In India blogging is never been considered as conventional profession but there are few who have left their jobs and chosen blogging as full time profession and designer of their own destiny. Being an internet researcher and avid reader I came across few wonderful bloggers who have done substantial work in this domain. This post is not about who is first or who is last but a salute to these young guys, who have shown that offbeat careers do have more earning potential than conventional jobs. These "6 High Grossing Bloggers in India" are leaders in their own chosen domain and trendsetters for the young internet savvy generation.


amit-agarwal1Amit Agarwal holds an Engineering degree in Computer Science from I.I.T. and has previously worked at ADP Inc. for clients like Goldman Sachs and Merrill Lynch. In 2004, Amit quit his job to become India’s first and only Professional Blogger.

Amit authors the hugely popular and award-winning Digital Inspiration blog where he writes how-to guides around computer software, consumer gadgets, and web apps. He has also written columns on personal technology for major publications including The Wall Street Journal India, The Financial Express, Outlook Magazine, CNN IBN, CNBC TV18 and The Hindustan Times.


jaspal-singhSaveDelete is a blog on topics like design, internet tips, technology and software. Many changes have been made to this blog since its inception in Oct, 2009. Continuing the efforts to provide best content, we are going to focus on topics which we really like.

This blog is managed by Jaspal Singh, who is professional blogger from Jaipur, India. He is a Mechanical Engineer with some skills of Designing & Coding. His interest in computers & internet has made him a self proclaimed geek. Most of the time he is found with his laptop even when he is sleeping he keeps it close enough to grab a look whenever possible. founded in 2008 is a leading website on technology. They are the team of young tech-enthusiast committed to create one platform for users where they can find every interesting news on Technology, Internet & Web.


Sandip-Dedhia1Blogsdna cover almost all news from Microsoft Windows to Apple Mac to iPhone to Google Android Phones & about every ground breaking new technology. They strive hard to provide accurate news at lightning speed. Blogsdna can give you, the reader, the latest news as it happens, and the latest reviews before anyone else. They try to deliver the content in a fresh and insightful way, offering nothing but the highest quality.

Sandip Dedhia is the founder of, he loves to write on technology, gadgets & web services. At Blogsdna you can read his Windows tutorials, free and useful software related articles. He is now now having a team of seven editors making positive impact on his readers.


Harsh-GravatarHarsh Agrawal is an Engineer by education and a Blogger by profession. He finished his schooling from Laxman public school in 2004 and later finished engineering in B.Tech from Sharda University in 2008.  Before becoming a professional blogger he was working with Convergys in India, and was about to join Accenture, but on April 2009, he decided to become a professional blogger to become his own boss.

Computer and technology have been his passion since he was a child and after few blogs and communities on technology he started with full-time blogging via Shoutmeloud.

Here at ShoutMeLoud, he share everything he have learned over the time, and in last 4 years he has grown from 0$/month to $7000+/month just from blogging. And, the best part is he has shared everything via blog posts, which you can use to learn and be your own boss.


arunArun Prabhudesai, an avid Internet geek, IT professional since 1996. He is in my early thirties, hailing from India and was living in East Coast moved back to India. He was in IT industry for more than a decade, and currently doing management and consulting work has taken a plunge into entrepreneurship.

This blog news and opinion site officially started on 1st May 2007, although he wrote a few posts in the end of April 2007. The reason he started was to keep himself, and in the process also the readers, in touch with latest Indian Business and Startup Buzz. The focus of this blog will always remain on Indian Business and startups in general, however, being in IT for more than a decade and being passionate about technology sometimes he propose to drift into Technology and Web2.0.


pp-dpRaju PP is an Electronics engineering graduate from Bangalore, India and has previously worked as a Technical Specialist in a leading IT firm. He quit his day job to pursue his passion of blogging in late 2009. He holds an Engineering degree in Electronics and Communications and has previously worked in Banking software domain. He was featured amongst 151 Top Tech Indians by Exhibit magazine in May 2011. While the Economic Times listed him amongst the top web entrepreneurs in India in September 2011, the HT Brunch magazine listed him as the most influential Indian on the social media in the field of Technology. Currently, he is also the editor of Wearables Arena, a dedicated site for Wearables and Internet of Things.

Launched in 2008, is one of the top technology blogs on the web with focus on personal and consumer technology including web tools and gadgets. Their aim is to make the life of readers simpler and easier with the help of technology solutions. They believe in providing a forum and a platform to people where they can air their views and issues openly.

If you come across more such vibrant people who are lightening internet for us, please do write a mail at with details, I will be happy to add them in next post. Please write your comments and let's together respect their efforts.

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