Bangaluru
Central Goods and Services Tax is an indirect tax to be paid by end-users for the consumption of goods and services. It was implemented in 2017, and it applies not just to individuals and corporations, but to housing societies as well, with exceptions, of course.
To understand in-depth the correct eligibility criteria for a housing society’s liability towards GST, here’s a comprehensive guide that covers all essential information and facts you need to know about co-operative society compliance with GST rules.
What is GST & inclusion provision under the Act
| Act | Inclusions/Definitions |
|---|---|
| CGST Act 2017 Section 7 | “Supply” includes all forms of supply of goods or services or both, such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. |
| CGST Act 2017 Section 7 And Section 2 (17 e) | States “business” as “Provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members. |
GST Act applicability to housing societies
1. As per Section 2(84) “Person” includes
a co-operative society registered under any law relating to co-operative societies or a Society as defined under the Societies Registration Act, 1860. A cooperative housing society is to be considered as a ‘person’ under the definition of ‘supply’.
2. As per Sec 2(31) “Consideration”
in relation to the supply of goods or services or both includes (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government.
Housing society registration under GST
As per Section 22, if the turnover of the housing society is over Rs 20 lakh and/or it levies more than Rs 20 lakh in aggregate annual maintenance charges in a financial year, it needs to take registration under GST laws and obtain a registration number, but the payment of GST depends on other parameters (covered below).
However, there are exceptions for Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand, where the threshold limit for registration liability is Rs 10 lakh.
Criteria for applicable GST payment for society maintenance
If the society’s monthly maintenance bill is more than Rs 7500 per house, 18% GST is applicable on the entire amount.
If a person owns more than one residence in a society, then a ‘separate’ ceiling of Rs 7500 is considered as the second unit also gets an individual exemption of Rs 7500.
However, there is an exemption if the annual aggregate turnover of the housing society is not over Rs 20 lakh.
Thus, for GST to apply, two criteria must be met.
| Annual turnover of a housing society | Monthly maintenance charge | GST |
|---|---|---|
| ₹20 Lakh or less | ₹7500 or less | Exempt |
| ₹20 Lakh or less | More than ₹7500 | Exempt |
| More than ₹20 Lakh | ₹7500 or less | Exempt |
| More than ₹20 Lakh | More than ₹7500 | Applicable |
Furthermore, GST doesn’t apply to the difference amount alone. For example, if the monthly maintenance bill is Rs 9000, GST will apply to the entire amount, not just to Rs 1500.
Property Tax, Water Tax, Municipal Tax, Non-Agricultural Land Tax paid to the state are exempt from GST.
Sinking Fund, Maintenance and Repair Funds, Car Parking funds, Non-Occupancy Funds, interest from late payments, are not exempt from GST since they are considered charges collected by the society for the supply of services to members.
Let’s understand this in detail for clarity.
Inclusions and exclusions for the societies that fall above the limit of Rs 7500
1. Sinking fund
It is considered a type of service provided by the housing society to its residents hence included.
2. Repairs & maintenance fund
This falls in the category of residents paying for repairs, common services, audits, maintenance dues, etc., thus it’s to be considered as inclusion as it falls under taxability.
3. Non-occupancy charges
These are not considered a part of the Property Tax for common premises, hence included.
4. Parking charges
The same logic applies for parking charges since it’s an individual collection for a specific service.
5. Water charges
If the water charges are collected on behalf of the members by the society for individual use (e.g. water tankers or government source), then they don’t fall under taxation under GST limit as tax may already be applied on it as per the law. If the water charges are for common use,l (e.g. generating electricity to give drinking/potable water facilities as a service), then they’re included under the Rs 7500 limit.
6. Property tax
Property tax on common areas is to be considered as an inclusion in the limit as well. However, if the society is only an intermediary, collecting individual residents’ property tax and handing it over to the government, then it’s not considered under the limit. Property Tax on any other places, like stores and parking spaces (if applicable) should be subject to respective law but not included in GST calculations.
7. Share transfer fees
At the time of property sale share transfer fees are charged which are taxable, which is why they are not included in GST.
8. Common services
Services like the clubhouse, gym, pool are considered taxable, hence must be utilised under GST calculations. If a society uses common spaces like clubhouse, garden, terrace or any other part of the premises for use of members and outsiders on rent, for hire, it’s liable for tax, hence must be covered under the calculation slab.
9. Income received as interest on defaulters
It is considered an individual charge and not used for common uses, thus it’s excluded from taxation consideration.
10. Income received from renting space
Income received from renting space for mobile towers is derived from business, thus it’s to be included in the calculation.
Input tax credit for society
ITC is the tax reduction that you can claim since you’ve already paid on the goods and services. For example, if you’re a housing society who has paid for pipes and construction materials for repair and maintenance of your premises, or have hired the services of an Auditor for your annual accounts, you can claim the credit upon it.
Housing Societies will avail the benefits of ITC which means that if they pay taxes on repair and renovation, capital goods (generators, lawn furniture, water pumps, etc.) and other goods (taps, pipes, hardware, construction materials), they will receive a tax deduction but for them to avail this benefit, the reverse charge mechanism will apply on all goods and services received by suppliers; the set-off can be claimed against the tax liability for maintenance funds.
However, this benefit is available if the amount charged for these supplies is over Rs 7500 per member.
A housing society can impart the benefits of Input Tax Credit by lowering the maintenance charges for members, the amount of which can be determined after proper cost analysis and comparison of output/input tax amounts against overall expenses and income.
What are the requirements for claiming ITC for housing society?
- Society should have the tax invoice
- Goods/services procured should be received, and if they’re being received in installments, the last installment should be received before claiming ITC.
- Tax Returns should have been filed by the society
- The supplier of goods/services has paid the tax being charged to the government.
- ITC is not allowed if the depreciation has already been claimed on the tax component of capital goods/services.
Periodic filing & compliance rules for housing society
A housing society has to file 37 returns, three returns per month, which include:
- Billing Side – 10th of the following month
- Expense Side – 15th of the following month
- Consolidated Return – 20th of the following month
- As well as: One Annual Return GSTR 9 by the end of 31st December next year (for the year 2019-2020 by 31st December 2020)
If a housing society deducts TDS, then they have to file GSTR7 by the 10th of the following month. Housing Societies do not fall under the Composition Scheme.
MC/RWA are expected to maintain proper records of all Supply and Expense reports for 72 months for auditing purposes.
Different GST forms & their importance
- GST 1 – to be filled by all regular taxpayers who are registered under GST, including casual taxable persons (with debit/credit notes, invoices of outward supply).
- GST 2A(&B) are view/read-only available and relevant for the recipient or buyer of goods and services, and can be referred to when any invoice is missing, the buyer can communicate with the seller to upload it in their GSTR-1. No action can be taken on GSTR 2. 2B contains constant ITC data for back referral.
- GST 3B (3 not in use currently)- This is also to be filled by all normal taxpayers, including societies, to provide details of supplies made, ITC claims details, tax liabilities, and payments.
Housing societies should ensure that sales/supplies and ITC details are reconciled with GSTR 1 and GSTR 2B every tax season before filing GSTR 3 B.
Frequently asked questions
It’s Goods and Services Tax, which is levied on the supply of goods and services and is a value-added tax levied on most goods and services sold for domestic and commercial consumption.
No.
Yes. GST exemption and application apply to property used for commercial purposes.
Yes. If the vendor’s services fall under GST rules, the society has to pay as per the percentage applied. E.g., GST payable for contractor services.
In this case, GST applies only to the second apartment for which the maintenance is Rs 8000.
How does this affect maintenance bill/other bill formats?
The society has to add GST to the monthly, quarterly, and yearly invoices and mention the GSTIN No on all invoices where applicable.
What forms are to be used for monthly filing?
Monthly GST forms are GSTR 1, GSTR 2A,and GSTR 3.
On what repair and maintenance services is Input Tax Credit allowed?
On services such as lift AMC, Housekeeping, Security, Fire AMC, Contracting Staff, Accounting and Auditing Services, etc.
What should be excluded while calculating the limit of Rs 7500?
Property tax, electricity charges collected from individual flat owners and other statutory levies are excluded.
What should be included while calculating the limit of Rs 7500?
Water/electricity charges for common areas and common services like clubhouse, swimming pool, along with parking charges, common property tax, payments for repair and maintenance, security, admin, accounting, Non Occupancy charges.
Are share transfer fees/ interest on late payment included in the limit of Rs 7500?
No. Share Transfer Fees are taxable but not included in the Rs 7500 limit as no third party is involved. Similarly, interest on default is an individual charge, so it’s taxable, but not covered under the limit of Rs 7500.
Does GST apply to housing societies?
Ever since the changes in Budget 2021 were introduced, all types of cooperative housing societies are included under GST applicability as they provide services to the members. However, exemptions apply.
It’s 18% (State GST is 9% and Central GST is 9%).
What are the documents needed?
a) In general, invoices issued by the supplier.
b) An invoice such as a Bill of Supply if the amount is less than Rs 200 or if reverse charges mechanism applies.
c) Bill of Entry or similar documents issued by the Customs Department (if applicable)
d) Bill of Supply issued by the supplier
e) Other documents required in the Form
Is GST applicable to maintenance charges paid by residents?
Maintenance charges up to an amount of Rs. 7500 per month, per member, are exempt from GST. Earlier, the exemption was available on a monthly maintenance charge of up to Rs. 5000 per member. The limit was increased to Rs. 7500 with effect from 25th January 2018.
How does the GST exemption work if a person owns two or more flats in a housing society?
In such case, GST exemption of Rs. 7500 per month, per apartment, shall be applied separately for each apartment owned by him.
For example, if a person owns two residential apartments in a society and pays Rs. 15000 per month as a maintenance charge (calculated at Rs. 7500 per month, per apartment), the exemption from GST shall be available to each apartment.
How is GST payable in societies where maintenance charges exceed Rs. 7500 per month, per member?
In case, for society, the maintenance charges exceed Rs. 7500 per month, per member, the entire amount is taxable.
Let’s understand this with an example. If the monthly maintenance charges for a housing society are Rs. 9000 per member, the GST @18% shall be payable on the entire amount of Rs. 9000 and not on Rs. 1500.
* Refer to the latest GST circular issued by the Government of India, Ministry of Finance Department of Revenue (Tax Research Unit), New Delhi.
How does the GST calculation work (with example)?
| Total amount received | Water charges | Sinking fund | Taxable |
| 8000 | 500 | 500 | 7500 |
| 4000 | 500 | 500 | 0 |
What is the procedure to claim ITC and how much can be claimed?
Taxpayers should enter the ITC amount in their monthly, quarterly, yearly GST forms (Form GSTR-1,2,3) and enter details like amounts eligible and ineligible for ITC and reversal, etc. as mentioned in the form. The recipients can claim provisional input tax credit in GSTR-3B to the extent of 5% instead of earlier 10% of the total ITC available in GSTR-2B for the month.
Where can society view the seller’s uploaded invoices?
Invoices uploaded by the seller in GSTR-1 can be viewed by the purchaser in his GSTR-2B form.
Homeowners base a lot of their buying decisions on the availability of good amenities, car parking being one of the top priority needs. With the proliferation of high-rise buildings, parking spots in residential societies are an everyday battle. The lack of uniform parking laws across the board concerning parking rules in societies has created an epidemic of unwritten rules and indiscriminate behavior by everyone at stake. How does one maintain sanity and ensure fair treatment when there are too many cars and not enough space? This is why societies have bye-laws for parking. Read more to find out the car parking rules in housing society.
Apartment car parking problems & their solutions
1. Unofficial parking
If you own a 4-wheeler vehicle, you’re eligible for a parking space or stilt (usually one or two according to your BHK size) at your apartment car parking. Members park more vehicles than allowed in their allotted space/s. For example, the husband already owns a car and parks in his usual spot. When the wife buys a new one or a relative/friend visits for an extended period, they park theirs in the open space or guest parking without permission.
Solution: If you’ve been allotted a car parking space/spaces (according to your BHK size) which you’re already using, and even if it is big enough to allow an extra two-wheeler parking, consult the MC before permanently parking it. Extra cars/ scooters cannot be parked in spaces not allotted to you unless approved by the MC. You have to pay parking charges for an additional four-wheeler parking. A fine may be placed by society for violation of vehicle parking laws in society.
2. Guest parking
A common occurrence is that even though there’s space inside the building for guest parking, security guards, at the behest of MC or out of their own volition, instruct delivery personnel, guests, and visitors to park their vehicles out on the streets. Sometimes such unnecessary measures lead to vandalism and theft of vehicles.
Solution: A building has to keep at least 25% space for visitor parking as per BMC though it recently dropped it to 5%. Give strict instructions to guards regarding visitor parking rules as per your apartment by-laws.
3. Unmarked spaces
Open parking spaces lead to confusion among members if there is no structure or markings for them to follow. Unabiding members can inconvenience the rest regularly.
Solution: Bye-laws require a society to mark and number parking spaces (for bicycles, 2-wheelers/ 4-wheelers separately).
4. Unfair allotment
In societies with limited parking spaces and where some residents own second and third vehicles, they occupy more parking spaces (albeit while paying for it) even though other owners who may own just the one vehicle are not given a parking space and some are made to park outside the building.
Solution: The MC allows parking on a ‘first-come, first-served basis for eligible members who own a vehicle. If unoccupied spots are at society’s disposal, the same member may be allowed second and third stilts/parking spaces on an annual basis, except there are no other eligible members who haven’t even been assigned one spot.
5. Tenant parking
Tenants are sometimes not allowed to park inside the society premises if there is an excess of permanent resident vehicles.
Solution: If the landlord is already eligible for a parking spot, then the tenant should get access to it legally. It is the responsibility of the landlord to ensure that the tenant gets a spot. Only if the landlord isn’t eligible for parking, the tenant may be asked to pay for parking charges, unless the landlord decides to pay it on his behalf.
6. Limited number of parking spots
Due to the parking space deficit and excess of vehicles (especially 4-wheelers), residents are required to park outside in the building vicinity regularly.
Solution: If there are way too many vehicles belonging to eligible members, the society draws a lot every year. Another option is to provide spots on a rotating basis. Everyone is given an equal opportunity to park inside even though they may have to take turns.
Apartment car parking laws in India
According to RERA Act (2016), covered garage space can be sold separately by the builder, however, open or stilt parking spaces are clearly defined as part of common amenities such as lobby, stairs, elevator, garden, etc. Therefore, it is illegal for a builder to charge a buyer for a separate parking space. These become the property of the society as soon as it’s registered, an Occupation Certificate is issued by the municipal corporation and the builder arranges a handover (http://mohua.gov.in/cms/rera.php)
This is per the Supreme Court decision that upheld Bombay HC’s verdict in 2011 in the case of Nahalchand Laloochand Pvt Ltd vs Panchali Cooperative Housing Society. The builders agreed that they can sell parking spaces to outsiders as independent units, to which the society residents disagreed later. The builder approached the court so that the society members don’t object to 25 stilt spaces sold to buyers who weren’t society residents. (https://indiankanoon.org/doc/1359331/)
Model building by-laws developed by the Ministry of Housing and Urban Affairs dictate that permissible ECS ( Equivalent Car Space) per 100 sq meter of floor area in residential premises is 2. This can be translated to 1 space per 3BHK and 2 per 4 BHK. Development Control Regulations of every state mandate that the builder provides parking space to buyers albeit parking provisions may vary state-wise. (http://mohua.gov.in/cms/model-acts.php)
Various apartment acts (e.g. Maharashtra Ownership Flats Act, Delhi Apartment Ownership Act) allow MC to constitute their own parking rules including a parking fee which is decided in the General Body meeting, varies from types of vehicles, and is to be mandatorily paid by members (https://housing.maharashtra.gov.in/Sitemap/housing/housingactnrules.htm)
Types of parking in apartments
Let’s check the types of parking generally available in residential complexes. Different types of parking which you can choose according to your parking lot construction:
1. Angle parking
When cars are parked at an angle, a technique used in open parking where spreads are manageable. The vehicles usually face the same direction (any one direction) and sliding in and out remains easy if all the vehicles are parked with rules and required spaces between all four sides are maintained.
2. Perpendicular parking
This is a type of parking in which the vehicles are parked at a 90° angle and perpendicular to the curb up front, similar to angle parking. In this, the driver needs to ensure that the tires are facing straight ahead. This is a commonly used style in garages and parking bays and in apartment complexes with limited spots.
3. Parallel parking
This is what you commonly see on the roads on the side of the curb where the driver parks between two cars, between the one in the front and one in the back. This type is used when a residential complex has a long pathway with enough space to accommodate cars and bikes without obstructing the path.
4. Tower parking system
This is a fully automated car parking system in which come equipped with parking lifts for cars to move up and down to the designated spot. There must be a lift operator along with the entire set-up since this is used in large complexes in urban areas with narrow spaces.
Role of RWA in parking rules in residential areas India
RWA (Residential Welfare Association) is the managing committee that is registered under the Societies Registration Act, 1860. This means that if you face a parking issue as a resident of a housing society, they are the ones who could come to your help. Since this association is such an important one, RERA ((Real Estate Regulatory Authority) Act emphasises on establishing an RWA within the first 90 days of when the flats are booked.
However, there are some important factors you would need to be aware of, before booking a complaint. You must know that:
- Any Shared/Common Space in the society belong to the apartment complex/housing society.
- Parking spaces are not owned by the RWA members or residents.
- The MC (RWA) or General Body could allocate parking slots to residents who’ve done their registration, since parking allocation comes under the jurisdiction of the housing society’s managing committee.
- Homeowners, their families and associate members could all be registered members.
- The parking spaces in your area are all numbered using the LOP (Lay-Out Plan) that the civic body has approved.
- If you have a sticker on your vehicle, provided to you by the managing committee of the RWA, you would be exempted from security checks when you enter/drive inside the society premises.
FAQs – Parking issues in apartment complexes
How do I keep a track of vehicles allowed in parking space?
You can ask for a copy of the RC book from members and provide them with parking stickers for each vehicle.
Is the parking area considered as FSI?
Open/Stilt parking, visitor parking, and basement parking are not included in the FSI calculation.
Can I cover my parking space or use it for storage?
According to the apartment acts, you are not allowed to cover or repurpose parking spaces.
How much space is allowed for parking?
As per the National Building Code, one car parking space must not be less than 13.75 sq meters. For a 2-wheeler, it must not be less than 1.25 sq meters.
Can a society sell members parking spaces?
No. But they can allot a space for a fee.
What can I do if society doesn’t abide by parking bye-laws?
An appeal in consumer forum or cooperative court.
Can a builder allot open parking space?
No. Society allots parking spaces.
Can a member sell or transfer parking slots?
According to model bye-laws, a member shall have no right to sell or transfer parking slots allotted by the society.
Can the society collect parking deposits?
No. Bye-laws restrict society to raise such funds.
How much does parking space cost typically?
Most societies charge between Rs 100 and Rs 500 for a single vehicle, increasing with second and third vehicles.
How does a Society finance itself? How does it screen potential members? Why does it bill its members maintenance charges? Where and when does the member voice his concerns or opinions?
These questions must have popped in your head time and again as a member of a housing society. Look no further than the inconspicuous little book of ‘ Society Bye laws ”.
What are bylaws for a housing society?
Society Bye-laws are rules formed by residential societies to self-regulate their activities and to control the actions of its members. Housing society bye laws are provided and approved by higher authorities (government bodies, legislative authorities). Society Laws could vary from one state to another in their particulars, yet the basic framework and nomenclature remain the same. Let’s briefly explore distinctive categories for each component of the functioning of a society. These are broad categories that cover every aspect of housing society rules and regulations, be it holding a meeting, issuing shares to members, collecting dues from them, conducting Elections, allotting parking spaces or putting out a circular on the notice board.
Purpose of housing society bye-laws
The managing committee of an Apartment Owners Association (or Residents Welfare Association) must have bye-laws in order to ensure adequate upkeep of the apartment building and to swiftly and effectively address the problems residents encounter. Escaping the problems is difficult. Convincing the society to accept the chosen laws and regulations is a challenging endeavour. A set of regulations known as the bye-laws provides a solution to all associated problems. The bye-laws are adopted by each apartment building as soon as it registers. The bye-laws are regarded as the apartment complex’s constitution and regulate how it operates on a daily basis.
Why should you know about the model housing society bye-laws?
The answer to any question you have about the functioning of your society can be found in the model bye-laws of housing society . They may seem verbose or cumbersome, but they should be on your ‘essential reading list’ as they are your ‘set in stone’ legal chaperones that cannot be refuted by any society under any circumstances. As part of a society, you’d be remiss if you are not aware of your basic rights and duties, your society’s foundational policies, its management and the guidelines that dictate its decisions. A lot of homeowners harbour an approach of ‘we’ll cross that bridge when we get to it’ with respect to the rules of a society, thinking all is accomplished once they have occupied their residence inside it. Be that as it may, to avoid being misinformed or manipulated by dishonest committee members, to stop the violation of your rights, or simply to be aware of the workings of the community you’re part of, familiarising yourself with model bye-laws of housing society is necessary. Cooperative society bye-laws are easily available online to peruse in your own time. Otherwise, as a member you have the right to ask for a copy from your society.
List of housing society bye-laws
1. Preliminary- name and address
This section informs us about the procedure for naming, change in name, classification, address change procedure and exhibiting the Name Board of the society.
2. Interpretations
The meaning of the nomenclature, i.e the exact definition of commonly used terms (common areas, sinking fund, active member) is given so as to legally distinguish common usage of words in the context of a housing co-operative.
3. Area of operation, objectives, affiliation
To define the locality of the society within a municipality and to define the main objects of the society as well as declare it as Member of the Co-op Housing Federation of the District / Ward / Taluka, the District Central Co-operative Bank of the district.
4. Raising of funds and their utilisation
Cooperative society bye-laws lay down rules on modes of raising money such as issuing shares, taking loans, voluntary donations & deposits, etc. and explains how to issue shares to members and limit of liability for the society. The ways in which the funds are utilised are also described, such as reserve fund, repair and maintenance, emergency fund and training fund.
5. Rights & duties of a member
This section describes the eligibility, conditions, and procedure of obtaining membership in a society distinguishes between active, non-active, associate, and nominal members. The rights of members elaborated under bye-laws of the society include the right to inspect records, get a copy of RWA bye-laws, right to Occupation of Residence, conditions for and acceptance of Resignation by Members, procedure for Nomination by a Member and its revocation / revision, procedure and requisite documents for Transfer of Shares and interest from a member to another in the Capital/Property of the Society, Transfer of Shares and interest of the deceased Member, and rules on Exchange and Sub-letting of residences.
6. Responsibilities and liabilities of members
This section details the duties of the member, including applying for permission to make additions and alterations in a flat, allowing examination of flats and report about repairs, not to cause inconvenience to other members. It also entails the grounds for expulsion from the society and its procedure, circumstances under which a person ceases to be a member and the follow-up action taken by the society, rules on holding multiple flats, liability limited of members to unpaid amount on shares.
7. Society charges
Bye-laws of society describe the composition and break-up of the society charges, including Property Taxes, Water Charges, Common Electricity Charges, contribution to Repairs and Maintenance Fund, expenses on Repairs. Operation and Maintenance of the lifts contribution to the Sinking Fund, Service Charges, Car Parking Charges, Interest on the defaulted charges, Repayment of the Loan, Installment and Interest, Non-occupancy Charges, Insurance Charges, Lease/Rent, Non-agricultural Tax, Education and Training Fund, Election Fund, and any other charges.
8. Duties and powers of the society
These are rules specific to the common seal and incorporation of the society as holding the power to acquire, hold and dispose of the property, to enter into contracts and other legal proceedings. It also pertains to having a charge on the shares and/or interest of a Member, policy for allotment of flats and cancellation of flats, handing over possession of flats, society’s duty to carry out Structural Audit, allotment of parking lots and its restrictions, marking of parking lots and their eligibility, along with payment of charges for parking of vehicles.
9. General meetings (first general meeting, annual general meeting & special general meeting)
This section gives detailed and specific rules on how to conduct society meetings, including general, annual and special body meetings. Rules regarding the agenda of the first general meeting, the duties of provisional committee and its handover to newly elected committee, the functions of the annual general body meeting, rules for special general body meeting, period of notice and quorum of a general body meeting, voting rights of members, recording of the minutes of meeting, holding of the adjourned General Body Meeting, among others are explicitly stated.
10. Management of society affairs
Rules under this category include opening up of bank account for operations, strength (in numbers) of the Managing Committee, guidelines for Election, First Meeting of new committee, duration of holding office, conditions for cessation of membership of the Committee, and Resignation of Committee Member/Office bearer. There are detailed lists of all the required functions of the Managing Committee, Chairman and Secretary of the society.
11. Book-keeping
Detailed lists of maintaining books of accounts, records and registers are specified, including but not limited to cash books, ledgers, Sinking Fund, Investment, Nomination, Loan Registers, Minutes Books, Applications for membership, resignations, correspondences received from within the society or from external agencies related to property tax, conveyance, electricity, vouchers and counterfoils of share certificates and issued cheques, periodical statement of accounts, audit memos, election papers, service staff payment records.
12. Profit distribution
Rules on how to distribute funds (after paying interest on loans/deposits and after making such other deductions) are prescribed clearly in the bylaws of the cooperative society . The allocation includes a percentage of the amount to be deposited in the Reserve Fund, in dividends of shares to shareholders, compensation paid to office-bearers, and towards Common Welfare Fund.
13. Writing off dues
This section prescribes the conditions under which the Society is allowed to write off its irrecoverable charges due from the members, the expenses incurred on recovery and the accumulated losses.
14. Society accounts audit
The basic procedure for conducting an annual financial audit of the society is described in detail, including the appointment of a registered Auditor/CA, the timeframe to conduct the audit and the steps for completing an Audit Rectification Report before Annual General Meeting.
15. Conveyance, redevelopment and repair/maintenance
This section gives details of getting the deed conveyance under society’s name through an advocate and proceeds to list rules on renovation and repair. Member’s contributions towards repair are stated, along with the procedure of inviting tenders from architects/ developers, and a step-by-step guide to the entire redevelopment process is given. Guidelines on emergency planning schemes, disaster management and response machinery are prescribed as well.
16. Other miscellaneous matters
Minor yet important rules regarding day-to-day operational activities are mentioned in the bye-laws of residential society . These include sending and displaying notices on general meetings and their resolutions, how to fix the Notice Board and what to display on it, penalty amounts for member breaches against the society, regulating the services, amenities as per members’ convenience, fixing timings and rules for use of common areas such as parks, staircases, etc, making available spaces for members to install solar energy electrical systems, making copies of the documents required by the members and the charge per page.
17. Committee redressal of member complaints
Based on the complaint type, the society bye-laws give a list of relevant authorities to approach. They describe the types of complaints handled at the Society’s General Body Meeting. Other than that a variety of complaints are handled by the Registrar, Co-operative Court, Civil Court, Municipal Corporation/Local Authority, Police or the District/State Federation, depending on the nature of the grievance.
Differences between old & new housing society bylaws
Do I have to adopt a new set of housing society bylaws if my society is newly registered? True, your society would adhere to the old model bylaws. If it was previously registered, the year is 2009. Bye-laws have been newly modified following the 97th Constitutional Amendment and the MCS Amendment Ordinance, 2013. This includes cash on hand limits, active member provisions and duties, maintenance rates, AGM, society election tenets, and so on.
Several MCs look for the procedure for adopting new bylaws, while others simply look for bylaw amendments.
What are the core duties of the managing committee?
Once the registration and selection of the first committee have taken place, the regular functions of the MC include monetary transactions, daily management, obligatory membership servicing and compliance with the laws.
1. Financial Management
- Deposit all the monies received by the society to the bank/depository and issue receipts to the payers.
- To keep a record of member’s contributions towards maintenance, reparation, common funds, etc, to bring to the Secretary’s notice any late payments or consistently defaulted payments, and to implement a functional due collection procedure that the Secretary/committee members can follow.
- Pay all the vendors, service providers, etc through cheques, bills of exchange, etc. by being the signatory of the cheques or (transferer of online payments).
- Reconcile member’s ledgers, passbooks, statements, bills received from depositors with respect to the general accounts ledgers and have them reconciled annually too.
- To compute maintenance charges, parking charges, premium payable by the transferor, and to compute the contribution amount of the members in any other charges, verify dues by members and interest payable by defaulters.
- Create a financial transaction policy when paying the vendors and creditors petty cash policy for internal expenses, cash withdrawal policy, etc to be followed by the MC
2. Duties towards the members
- To consider and decide resignations from members/office-bearers and record nominations and revocations that may follow after;
- To issue allotment letters of flats once a member buys them and make available to members the papers of the society;
- To take required action once a membership ends;
- To refund shares and associated interest if and when due in case they have been acquired by the society;
- To review complaints registered by the members and take necessary actions to resolve them;
- To organize events, festivals and special days to encourage camaraderie and friendships among the members.
3. Operational duties
- To authorize a Committee member to attest any document that bears the seal of the society, such as lease agreements, deed of conveyance, share certificates, etc.
- To look after the lift operations, manage and instruct service staff about their duties and take care of their compensations and accommodation (if any).
- To maintain, inspect the property of the society and carry out renovations, repairs as and when needed.
- To review and finalise vendor applications for services needed in the society, e.g. produce stalls, dry cleaning services, etc.
- To regulate parking
- To supervise compliance of bye-laws and society rules by the members and suggest fines or penalties in case if a consistent breach is found
- To review the Secretary’s report on inspection of flats
- To hold election of a new committee in a timely manner, to elect new office-bearers, consider their resignations and replacements
- To organise and recommend general body meetings and hold annual/special general body meetings
- To hold a Committee meeting at least once a month
4. Executive duties
- To execute a deed of conveyance of the land and building/s;
- To approve the audit rectification reports of statutory and internal audits and to forward them to the authorities concerned;
- To scrutinise tenders received for construction work and to submit the same along with the committee’s report to the meeting of the General Body and to enter into a contract with the contractor;
- To enter into a contract with the Architect of the society in case of redevelopment;
- To ensure that the Society is affiliated to Housing Federation and its subscription is regularly paid.
What are the duties of the Chairman?
When the managing committee is elected, the Chairman is at the helm of all affairs for five years and is expected to keep a watch over all activities of the Committee. The chair is accountable and answerable for any malfunction during his term and has the final decision power in all matters. Here’s what the chair does:
- He presides over all the meetings of the Committee, determines the quorum and reviews the agenda of every meeting beforehand.
- He has the power to allow or bar any issue from being included in the meeting agenda but like a democracy, he has to have a reason for doing so.
- When it comes to voting, if there is an equal number of votes for or against a matter, the Chair decides to cast a decisive vote, i.e he has two votes.
- He is the Signatory for bank operations out of joint authority.
- He is the final authority on ballot decisions, expenditure approvals, acceptance of procedural decisions, committee nominations, proxy attendees in a meeting, and disciplinary actions.
- The Chair is responsible for initiating community building activities and maintaining a healthy and progressive environment in a co-operative.
What are the duties of Secretary of housing society?
Society Secretary duties come with responsibilities that can sometimes seem daunting, but once you get to the brass tacks, the role is quite rewarding and engaging.
1. Record-keeping
The role of a Secretary of housing societies is to maintain immaculately the accounts, records and registers of the society, including the Cash Book, Ledgers, Sinking Fund/Investment Register, Audit Register, Nomination Register and The Minutes Book.
Additionally, he is in charge of membership files, plans of construction, bank account statements, society statement of accounts, annual reports, election documents, vouchers for expenses, member applications/complaints, among others.
2. Organizational activities
- The Secretary is responsible for organizing meetings and recording the minutes.
- He must liaise between the Chair and members with respect to the meeting agendas, check the quorum and ensure that the items on the agenda are carried out completely.
- He must issue share certificates to the members on time, deal with resignations, expulsions, and cessations of memberships.
- He must carry out the conduct of election thoroughly in the manner prescribed in the bye-laws.
- He should produce records of the Society before different authorities concerned with the working of the Society with the consent of the Chairman.
- He must bring to the committee’s notice any breach of the rules/laws or default cases and be present at disciplinary hearings.
- He must finalise the accounts of the preceding year, prepare the receipts and payments Statement, the Income and Expenditure Statement for the year and the Balance Sheet as at the close of the year.
- He is responsible for the functioning, recruitment and compensation of the service staff, including watchmen, lift-operators, cleaning crew, vendors, etc.
3. Communication & correspondence
- The Secretary must issue notices and agenda of all meetings of the general body and the committee.
- He must issue a letter of allotment of flats, prepare and issue demand notices/bills for payment to the Society’s charges, issue a notice of repairs to be carried out in flats.
- He is in charge of all types of communication and applications received by the society from members, vendors and be the go-between for the committee and the members.
- He deals with communication with the authorities, including correspondence with the Co-Operative Registrar, correspondence on common electric supply, property taxes including Non-agricultural taxes.
- The Secretary must inspect the property of the Society and visit flats for inspection after prior notice to the members.
Even though running a co-operative can be a challenging task,it is by no means insurmountable. A well-integrated and proactive MC is the key to a thriving co-operative.
Roles and duties of a Treasurer in a housing society
1. Financial Management
The Treasurer is required to:
- Deposit all the monies received by the society to the bank/depository and issue receipts to the payers.
- To keep a record of member’s contributions towards maintenance, reparation, common funds, etc, to bring to the Secretary’s notice any late payments or consistently defaulted payments, and to implement a functional due collection procedure that the Secretary/committee members can follow.
- Pay all the vendors, service providers, etc through cheques, bills of exchange, etc. by being the signatory of the cheques or (transferer of online payments).
- Reconcile member’s ledgers, passbooks, statements, bills received from depositors with respect to the general accounts ledgers and have them reconciled annually too.
- To compute maintenance charges, parking charges, premium payable by the transferor, and to compute the contribution amount of the members in any other charges, verify dues by members and interest payable by defaulters.
- Create a financial transaction policy when paying the vendors and creditors petty cash policy for internal expenses, cash withdrawal policy, etc to be followed by the MC
2. Budgeting
- To prepare an annual budget for the society
- Prepare the budget for an ongoing or future activity, such as festival celebrations, repair, renovation, etc.
- To prepare a revised financial forecast based on the actual expenses on a project or for the overall year
3. Accounting/Book-keeping
- To open and manage the society’s bank account
- Keep a detailed and true account of all of society’s financial transactions
- To manage and make timely entries in all account books, manage cash flow, securities, vouchers, receipts, invoices counterfoils, bank statements.
- To ensure that petty cash doesn’t go over Rs 5000 and any amount over Rs 1500 is paid by cheque
- To maintain audit memos and prepare audit rectification reports in response
- To produce society’s accounts before the external Accounts Auditor
- To prepare monthly, annual account statements and the society’s profit loss balance sheet
- To make available any financial records that members want to inspect and to also produce the same for the Registrar, Managing Committee or other government authorities
4. Asset Management/Investment
- To ensure that there is an updated inventory and financial maintenance/reparation records of all fixed and moveable assets of the society
- To compute insurance on assets and pay regular premiums
- To advise the Managing Committee on where and how to invest profits or surplus and alternatively create investment guidelines/policies keeping in mind the suitability of the investment with respect to the society’s needs, considering risk factors, society’s financial capacity, and calculating ROI effectively
5. Fundraising
- Recommend and create fundraising strategies for the society
- To set forth rules and regulations on how the funds should be utilised
- Ensure compliance of fund utilisation as predetermined by policy/plan, observe and report any wrongdoing to the Managing Committee
6. Compliance
- To ensure that the society is compliant with the guidelines of the financial institutions such as co-operative, nationalised banks as well as RBI
- To stringently review and adhere to any legal, contractual, or builder-related compliances that impact society’s funds and financial management
- To be well-versed with the society bye-laws so as to be compliant with internal or external rules that directly affect financial undertakings by members, vendors, or the society
A treasurer is also allowed to appoint a sub-committee of accountants or finance experts from within the society and supervise their work, however, he remains answerable to the managing committee eventually.
The apartment management committee of a housing co-operative is its nerve centre, steering the society towards a wholesome, efficient and harmonious existence. Whether it is financial management, member grievances or day-to-day affairs, the apartment management committee has to run like a well-oiled machine to create the best living conditions for the residents.
We have put together a comprehensive guide with checklists in this article so that you can be well-informed and prepared for the myriad roles you may have to assume as part of the MC.
What are the core duties of the managing committee?
Once the registration and selection of the first committee have taken place, the regular functions of the MC include monetary transactions, daily management, obligatory membership servicing and compliance with the laws.
1. Financial Management
- Deposit all the monies received by the society to the bank/depository and issue receipts to the payers.
- To keep a record of member’s contributions towards maintenance, reparation, common funds, etc, to bring to the Secretary’s notice any late payments or consistently defaulted payments, and to implement a functional due collection procedure that the Secretary/committee members can follow.
- Pay all the vendors, service providers, etc through cheques, bills of exchange, etc. by being the signatory of the cheques or (transferer of online payments).
- Reconcile member’s ledgers, passbooks, statements, bills received from depositors with respect to the general accounts ledgers and have them reconciled annually too.
- To compute maintenance charges, parking charges, premium payable by the transferor, and to compute the contribution amount of the members in any other charges, verify dues by members and interest payable by defaulters.
- Create a financial transaction policy when paying the vendors and creditors petty cash policy for internal expenses, cash withdrawal policy, etc to be followed by the MC
2. Duties towards the members
- To consider and decide resignations from members/office-bearers and record nominations and revocations that may follow after;
- To issue allotment letters of flats once a member buys them and make available to members the papers of the society;
- To take required action once a membership ends;
- To refund shares and associated interest if and when due in case they have been acquired by the society;
- To review complaints registered by the members and take necessary actions to resolve them;
- To organize events, festivals and special days to encourage camaraderie and friendships among the members.
3. Operational duties
- To authorize a Committee member to attest any document that bears the seal of the society, such as lease agreements, deed of conveyance, share certificates, etc.
- To look after the lift operations, manage and instruct service staff about their duties and take care of their compensations and accommodation (if any).
- To maintain, inspect the property of the society and carry out renovations, repairs as and when needed.
- To review and finalise vendor applications for services needed in the society, e.g. produce stalls, dry cleaning services, etc.
- To regulate parking
- To supervise compliance of bye-laws and society rules by the members and suggest fines or penalties in case if a consistent breach is found
- To review the Secretary’s report on inspection of flats
- To hold election of a new committee in a timely manner, to elect new office-bearers, consider their resignations and replacements
- To organise and recommend general body meetings and hold annual/special general body meetings
- To hold a Committee meeting at least once a month
4. Executive duties
- To execute a deed of conveyance of the land and building/s;
- To approve the audit rectification reports of statutory and internal audits and to forward them to the authorities concerned;
- To scrutinise tenders received for construction work and to submit the same along with the committee’s report to the meeting of the General Body and to enter into a contract with the contractor;
- To enter into a contract with the Architect of the society in case of redevelopment;
- To ensure that the Society is affiliated to Housing Federation and its subscription is regularly paid.
What are the duties of the Chairman?
When the managing committee is elected, the Chairman is at the helm of all affairs for five years and is expected to keep a watch over all activities of the Committee. The chair is accountable and answerable for any malfunction during his term and has the final decision power in all matters. Here’s what the chair does:
- He presides over all the meetings of the Committee, determines the quorum and reviews the agenda of every meeting beforehand.
- He has the power to allow or bar any issue from being included in the meeting agenda but like a democracy, he has to have a reason for doing so.
- When it comes to voting, if there is an equal number of votes for or against a matter, the Chair decides to cast a decisive vote, i.e he has two votes.
- He is the Signatory for bank operations out of joint authority.
- He is the final authority on ballot decisions, expenditure approvals, acceptance of procedural decisions, committee nominations, proxy attendees in a meeting, and disciplinary actions.
- The Chair is responsible for initiating community building activities and maintaining a healthy and progressive environment in a co-operative.
What are the duties of Secretary of housing society?
Society Secretary duties come with responsibilities that can sometimes seem daunting, but once you get to the brass tacks, the role is quite rewarding and engaging.
1. Record-keeping
The role of a Secretary of housing societies is to maintain immaculately the accounts, records and registers of the society, including the Cash Book, Ledgers, Sinking Fund/Investment Register, Audit Register, Nomination Register and The Minutes Book.
Additionally, he is in charge of membership files, plans of construction, bank account statements, society statement of accounts, annual reports, election documents, vouchers for expenses, member applications/complaints, among others.
2. Organizational activities
- The Secretary is responsible for organizing meetings and recording the minutes.
- He must liaise between the Chair and members with respect to the meeting agendas, check the quorum and ensure that the items on the agenda are carried out completely.
- He must issue share certificates to the members on time, deal with resignations, expulsions, and cessations of memberships.
- He must carry out the conduct of election thoroughly in the manner prescribed in the bye-laws.
- He should produce records of the Society before different authorities concerned with the working of the Society with the consent of the Chairman.
- He must bring to the committee’s notice any breach of the rules/laws or default cases and be present at disciplinary hearings.
- He must finalise the accounts of the preceding year, prepare the receipts and payments Statement, the Income and Expenditure Statement for the year and the Balance Sheet as at the close of the year.
- He is responsible for the functioning, recruitment and compensation of the service staff, including watchmen, lift-operators, cleaning crew, vendors, etc.
3. Communication & correspondence
- The Secretary must issue notices and agenda of all meetings of the general body and the committee.
- He must issue a letter of allotment of flats, prepare and issue demand notices/bills for payment to the Society’s charges, issue a notice of repairs to be carried out in flats.
- He is in charge of all types of communication and applications received by the society from members, vendors and be the go-between for the committee and the members.
- He deals with communication with the authorities, including correspondence with the Co-Operative Registrar, correspondence on common electric supply, property taxes including Non-agricultural taxes.
- The Secretary must inspect the property of the Society and visit flats for inspection after prior notice to the members.
Even though running a co-operative can be a challenging task,it is by no means insurmountable. A well-integrated and proactive MC is the key to a thriving co-operative.
Roles and duties of a Treasurer in a housing society
1. Financial Management
The Treasurer is required to:
- Deposit all the monies received by the society to the bank/depository and issue receipts to the payers.
- To keep a record of member’s contributions towards maintenance, reparation, common funds, etc, to bring to the Secretary’s notice any late payments or consistently defaulted payments, and to implement a functional due collection procedure that the Secretary/committee members can follow.
- Pay all the vendors, service providers, etc through cheques, bills of exchange, etc. by being the signatory of the cheques or (transferer of online payments).
- Reconcile member’s ledgers, passbooks, statements, bills received from depositors with respect to the general accounts ledgers and have them reconciled annually too.
- To compute maintenance charges, parking charges, premium payable by the transferor, and to compute the contribution amount of the members in any other charges, verify dues by members and interest payable by defaulters.
- Create a financial transaction policy when paying the vendors and creditors petty cash policy for internal expenses, cash withdrawal policy, etc to be followed by the MC
2. Budgeting
- To prepare an annual budget for the society
- Prepare the budget for an ongoing or future activity, such as festival celebrations, repair, renovation, etc.
- To prepare a revised financial forecast based on the actual expenses on a project or for the overall year
3. Accounting/Book-keeping
- To open and manage the society’s bank account
- Keep a detailed and true account of all of society’s financial transactions
- To manage and make timely entries in all account books, manage cash flow, securities, vouchers, receipts, invoices counterfoils, bank statements.
- To ensure that petty cash doesn’t go over Rs 5000 and any amount over Rs 1500 is paid by cheque
- To maintain audit memos and prepare audit rectification reports in response
- To produce society’s accounts before the external Accounts Auditor
- To prepare monthly, annual account statements and the society’s profit loss balance sheet
- To make available any financial records that members want to inspect and to also produce the same for the Registrar, Managing Committee or other government authorities
4. Asset Management/Investment
- To ensure that there is an updated inventory and financial maintenance/reparation records of all fixed and moveable assets of the society
- To compute insurance on assets and pay regular premiums
- To advise the Managing Committee on where and how to invest profits or surplus and alternatively create investment guidelines/policies keeping in mind the suitability of the investment with respect to the society’s needs, considering risk factors, society’s financial capacity, and calculating ROI effectively
5. Fundraising
- Recommend and create fundraising strategies for the society
- To set forth rules and regulations on how the funds should be utilised
- Ensure compliance of fund utilisation as predetermined by policy/plan, observe and report any wrongdoing to the Managing Committee
6. Compliance
- To ensure that the society is compliant with the guidelines of the financial institutions such as co-operative, nationalised banks as well as RBI
- To stringently review and adhere to any legal, contractual, or builder-related compliances that impact society’s funds and financial management
- To be well-versed with the society bye-laws so as to be compliant with internal or external rules that directly affect financial undertakings by members, vendors, or the society
A treasurer is also allowed to appoint a sub-committee of accountants or finance experts from within the society and supervise their work, however, he remains answerable to the managing committee eventually.
When dealing with buying or selling property, the possession certificate of that property is extremely important. It is essential that the seller of the property hands over the possession certificate to the buyer of the property, which will state the date of possession. In rural areas, the possession certificate is usually issued by the Tahsildar. In urban areas, the possession certificate is issued by the RDO (Revenue Divisional Officer).
The possession certificate has many uses besides confirming the ownership of the property and the date of possession. It is used as proof when securing a home loan from a bank. It is also important when entering the property in the land revenue records.
Without the proper issuance of a possession certificate, it becomes unclear whether the possession of a property has in fact been transferred from one party to another. This can lead to complicated legal issues regarding possession and ownership.
If you are planning to buy property, it’s essential you know how to obtain a possession certificate, what it contains and all the documents required to obtain it to ensure your purchase is hassle-free.
What is a possession certificate?
A possession certificate is a legal document that hands over the possession of land from the owner to the buyer. Once the land has been bought by the buyer for a sum of money, the possession certificate is given to the buyer by the previous owner to signal the transfer of the property.
The possession certificate is extremely important when it comes to buying a home or property as it proves that the property has been sold legally to the buyer and that they (the buyer) own all the rights to the concerned property.
When it comes to buying property from a builder or developer, the possession certificate is usually issued within 30 days. It is important that a resident obtains it as, without a possession certificate and registration documents, the buyer cannot prove to have rights to the property and the builder still owns it by law. This is problematic as the builder can then vacate the buyer (resident) lawfully.
The possession certificate will be issued only if the building has been constructed according to the proposed plans and adheres to the design rules and fire safety rules. It will also need to have a certificate of completion. The laws regarding this may vary from one state to another so it is best to check with your local authorities about how to go about getting the possession certificate in your area.
What are the contents in a possession certificate?
The possession certificate indicates the change in ownership – it is issued by the buyer. The ownership certificate will show that the property ownership has been given to the buyer. This ensures that the buyer has full interest in the property. Both parties have to register for the property. So, the developer has to sign the declaration that the property is no longer his and the buyer signs to take over the property. The possession certificate also includes the additional features of the property (parking area, garage, etc) that have been mentioned in the sales agreement.
What is a conditional possession certificate?
A conditional possession certificate or a conditional possession letter is a document that is used when the buyer of a property is not completely satisfied with the conditions of the property.
For example, reasons for dissatisfaction could include things such as repairs needed, low-quality construction, the wrong materials used or even a delay in the occupancy certificate. When the buyers are not happy with certain aspects of the property, they can send their concerns to the seller or builder along with the possession letter so that the seller or builder makes the needed changes that we agreed upon.
If the project happens to be delayed, the buyer can also ask for compensation from the builder for the losses incurred due to the delay.
Documents required
If you need to get the possession certificate of a property, you need the following documents:
- Sale deed agreement copy
- Identification proof of the applicant
- Signature proof of the applicant
- Encumbrance certificate
- Registered sale agreement copy
What are the rights of the holder of the possession certificate?
The person who has the possession certificate has certain rights with regard to the property. These are listed below.
- It gives the purchaser complete authority on the property. They can decide to do as they wish with the property.
- They have the right to sell the property.
- The purchaser can do enhancements to raise the value of the property.
- They have the right to rent out the property and take the rent money.
- The seller of the property has no rights and cannot claim any benefits regarding the property.
- The buyer has rights to the details of the property plans by the regulatory authorities in charge, as well as the schedule, the structure plan and other documents that may be relevant.
Differences between possession certificate, occupancy certificate & completion certificate
1. When are each of these certificates issued?
Possession certificate: After the initial paperwork has been submitted and a down payment has been made.
Occupancy certificate: The builder applies for this document (the occupancy certificate) after obtaining the completion certificate.
Completion certificate: The completion certificate is issued when the property has been constructed and is by the state’s regulations and norms.
2. Which authority issues each certificate?
Possession certificate: The possession certificate is issued by the RDO (Revenue Divisional Officer) in urban areas. In rural areas, it is issued by the Tehsildars.
Occupancy certificate: The municipal body of the area where the property is in will issue the occupancy certificate.
Completion certificate: The authority that is in charge of declaring that the construction process of the property has ended will issue the completion certificate of that property.
3. What are the key contents of each certificate?
Possession certificate: It includes all the timelines that the new owner has to adhere to regarding making the final payments of the property.
Occupancy certificate: It states that the property follows all the necessary building codes and is ready to be occupied.
Completion certificate: It will state that the project has been finished according to the building plans that were submitted. It also states that the property adheres to the state norms and lists the clearances that the property has.
4. What does each of these certificates signify?
Possession certificate: It shows that the property rights have been transferred from one party to the other party.
Occupancy certificate: It signifies that the property can be occupied by the buyer.
Completion certificate: Completion certificate implies that the property is constructed fully according to the building plans that were proposed and agreed upon.
Checking the status of the possession certificate online
It is easy to track the status of the possession certificate of your property online through these ways:
1. E-district portal
Go to the E-District portal from the state you are from. Click on “Transaction History” and enter the application number. You can then see the status of your possession certificate.
2. Meeseva portal
You can see the status of the possession certificate of your property on the Meeseva portal. Log in to your Meeseva account. Click on the option to track your application status – this will be on the homepage. Fill in the application number and click “Track Application Status” to see the status of your application.
If your society’s basement turns into a swimming pool every monsoon, you’re not alone. Urban flooding is no longer an occasional inconvenience, it’s a recurring problem across major Indian cities. According to the National Disaster Management Authority (NDMA), while natural causes like extreme rainfall and storms play a role, most urban floods are driven by human factors such as poor drainage systems, encroachments, and lack of maintenance.
For societies, the basement is often the first space to flood. Water creeps in, damages vehicles, affects electrical systems, and weakens the structural integrity of buildings. So while the city works on large-scale flood prevention, here’s what you can do as a resident or RWA member to protect your basement from flooding.
1. Installing and maintaining a sump pump
A sump pump is your most reliable ally when it comes to basement flooding. It works by collecting water in a pit (or sump) and pumping it out through a pipe to a storm drain or soak pit. In India, especially in flood-prone zones like Mumbai, Chennai, or Gurugram, sump pumps are common in newer buildings.
Choose an automatic sump pump with a battery backup, so it keeps running even during power cuts. Regular maintenance is a must—clean the pit, remove debris, and ensure the valve and float switch aren’t jammed. You can also add a water level sensor or alarm to alert security in case water starts accumulating.
2. Choosing the right waterproofing method
If your society hasn’t waterproofed its basement, it’s time to act. One of the most widely used techniques is box-type waterproofing. This involves laying limestone slabs (often Shahabad stone), grouting, and sealing joints with integral plasticizers. It typically costs ₹25 to ₹40 per square foot and takes 7 to 15 days for proper curing.
Other options include crystalline waterproofing, which grows water-resistant crystals within the concrete, and liquid membrane waterproofing, which is applied with a brush or roller. Some societies also waterproof exterior walls to stop moisture before it enters the structure.
3. Adding a backwater valve to prevent sewage backup
One of the most dangerous forms of basement flooding happens when rainwater overwhelms city drains and causes sewage to flow backward into homes. To prevent this, a backwater valve can be installed on the basement drainage line. It automatically closes when water tries to flow the wrong way, keeping your basement free from contaminated water.
This is especially useful for older societies where the sewer system isn’t separated from stormwater lines.
4. Keeping your drainage system clean and functional
Flooding often starts with something as simple as a blocked drain. Make it a routine to clean roof gutters, stormwater outlets, and basement floor drains at least twice a year—ideally before and after the monsoon. Ensure downspouts and drainpipes are not clogged with dry leaves or waste.
Also, check where your basement drains lead. Some are connected to the sewer system, while others might link to a sump pit. Either way, regular maintenance is the best preventive step.
5. Redirecting rainwater through harvesting and landscaping
Rainwater harvesting not just recharges groundwater but also helps prevent flooding. By redirecting rooftop runoff to soak pits or recharge wells, you reduce water pressure around the building foundation.
In your society premises, you can also design swales or rain gardens. These shallow, landscaped depressions help absorb rainwater and reduce surface runoff. You can connect the roof or terrace downspouts directly to them, or extend the piping away from the basement to these collection zones.
6. Creating gentle slopes and adding flood barriers
Many societies retrofit their parking areas and basement entries with flood prevention features. This can include small ramps or flood humps that create a barrier at the entry point. These can deflect rainwater or reduce the volume that enters.
Additionally, check that the surrounding landscape gently slopes away from the building so water naturally drains outward.
7. Taking preventive steps to protect your car
Cars parked in flooded basements often suffer long-term damage. One basic way to reduce this is by disconnecting the battery and elevating the car on a jack if water starts seeping in. Cover the vehicle with a tarpaulin sheet to prevent water from reaching the engine and interiors.
If your society regularly faces this issue, consider adding parking platforms or raised concrete pads. Some societies have also installed wheel ramps with a central flood hump to protect multiple vehicles.
8. Inspecting and repairing weak spots before the rains
Don’t wait for water to enter your basement to look for cracks and leaks. Before the monsoon, get a structural inspection done. Look out for cracks, mold, damp spots, peeling paint, rusted steel, and signs of water seepage on walls and floors.
It’s best to have a professional conduct this inspection so you don’t miss weak points like the rooftop, building corners, or pipe junctions. Catching and repairing these early reduces the chance of structural damage later.
9. Understanding your insurance coverage
Most homeowners and RWAs in India are not aware that standard property insurance often doesn’t cover flood damage unless specifically added. Make sure your personal home insurance includes flood or water damage clauses.
RWAs can also purchase society-level building insurance that includes basement areas, electrical panels, and common amenities. This can make a big difference in post-flood recovery costs.
10.Knowing when to call the professionals
If your basement does get flooded, especially with water mixed with sewage, don’t attempt to clean it yourself. Such water may contain pathogens, bacteria, and chemical residue. Instead, alert your municipal water department or call a licensed flood restoration contractor.
Also, ensure that the electricity to the flooded area is switched off before anyone enters.
Your quick checklist to stay flood-ready
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Install and test sump pumps with battery backup
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Clean drains, spouts, and floor traps before every monsoon
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Waterproof basement floors and walls
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Add a backwater valve to prevent sewage backup
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Build gentle slopes and flood humps at basement entry points
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Create rain gardens or recharge pits for excess rainwater
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Check and repair structural damage early
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Raise parked vehicles or install flood barriers
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Confirm insurance covers flood-related damage
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Avoid entering flooded areas and always call professionals