Unstamped document no barrier to redevelopment benefit

Can the society general body meeting delegate power of appointment of statutory auditor to its managing committee?
—Ratan Verma
No. The powers and functions or the agenda prescribed for the annual general meeting or special general meeting under the provisions of the Maharashtra Co-operative Societies Act, 1960, or rules framed thereunder or in the bye laws of the society cannot be delegated to the managing committee or its office bearers and the members at the general body meeting would have to exercise or discharge the same.

My flat was bought by my late husband before December 10, 1985, under an agreement to sell on a stamp paper of Rs5. On his death, I, as a nominee, became member in the society. Now, the flat is going under redevelopment. Do I have to pay stamp duty on my earlier purchase to be eligible for a new flat under redevelopment? Can the society/ developer refuse to recognise my title to the existing flat on non-stamping of the document?     —Anju Sharma
When your husband purchased the flat, that is before December 10, 1985, stamp duty on market valuation was not attracted on agreement to sell an immovable property. 

Thenafter, the stamp law in Maharashtra was amended to provide that an agreement to sell an immovable property, in which possession of such property is transferred or agreed to be transferred, is deemed as conveyance and the stamp duty as applicable to conveyance of an immovable property is attracted. Consequently, your agreement to sell having been executed before such amendment was not liable to the stamp duty on market valuation of the flat.

By virtue of ownership of the flat, your husband was a member of the co-operative housing society. On his death, you, as a nominee, became member of the society. Subject to ownership rights being sorted out on the basis of testate or intestate succession upon the death of your husband, unstamped document before December 10, 1985, of your flat will not disentitle you to have new flat in the process of redevelopment envisaged by your society.

My flat is on leave and licence. Do I need to make licensee the nominal member of the co-operative housing society?     —Ankita Rai
Model bye laws provide that a member letting the flat shall make the licensee a nominal member in the co-operative housing society. Such provision is also in your interest as once the licensee is made a nominal member, he also comes within the jurisdiction of co-operative authorities and the co-operative court. Nominal member’s name does not get entered on the share certificate and he is not entitled to any property rights whatsoever. Nominal member is not entitled to attend general body meetings of the society nor can he be a part of the managing committee.

Tarun Ghia is a chartered accountant and can be reached at
ghiatarun@rediffmail.com.

Pradnya Vairale is an advocate and can be reached at advpradnyag@gmail.com