COOPERATIVE

HOUSING
SOCIETY
AGREEMENT

1.NAME, ADDRESS, AREA OF OPERATION:

The name of the Cooperative Society shall be “ ________ Mutually Aided Cooperative
House Building Society Limited ”. Presently its address shall be at Plot/flat No.___,
H.No.__________________________________________________________________________
_________ and it shall be a Co-Operative House Building society registered under the A.P.
Mutually Aided Co-Operative Societies Act, 1995. Change of address, if any, shall be
intimated to the Registrar promptly.

The area of operation of the Society extends to the entire Hyderabad Urban.

2. DEFINITIONS: Words and expressions appearing in these bye-laws shall have

the following meaning unless the context otherwise requires.

a. Act: The Andhra Pradesh Mutually Aided Cooperative Societies Act, 1995.

b. Board: The Board of Directors of the Society.

c. General Body: The body of all members of the Society.

d. Members: - means a member of the Society.

e. Registrar: The Registrar within the meaning of the Andhra Pradesh Mutually Aided
Cooperative Societies Act, 1995.

f. Secretary: The person appointed for looking after the day-to-day administration of the
Society.

g. Society: - means ________ House Mutually Aided Coop. House Building Society Ltd.,
Hyderabad.

3. OBJECTIVE OF THE SOCIETY: The objective of the Society is to provide

Housing facilities to the members and infrastructure facilities in accordance with the Principles of
Cooperation as mentioned in the AP MACS Act, 1995.

4. ACTIVITIES AND SERVICES: In furtherance to its objective, the Society

renders the following services

(a) acquire land from Private parties only ;

(b). lay-out the land into plot/flats and get the lay-out approved by the competent authority or
authorities;

(c).develop the land and buildings as per the approved lay-out and plan.

(d). allot plot/flats to members;

(e). undertake construction of houses and buildings for infrastructural facilities;

(f). provide or arrange for short-term, long-term and other types of loans to the members through
Banks with security for the construction of houses;

(g). under take any other service or activity which is incidental and essential for theattainment of
its objectives;

5. MEMBERSHIP : Any individual who has completed (18) years of age and of soundmind and
is a permanent resident of the area of operation of the Society and an employee of
___________________ and also who is committed to the principles of the Society as envisaged in
the bye-laws and by the code of conduct, if any, as may be evolved by the society from time to
time and who is willing to accept responsibilities of membership is eligible to become a full-
pledged member of the Society.

6. DISQUALIFICATIONS FOR MEMBERSHIP :

a. A person who is adjudged by a Court as insolvent or has been sentenced for any offence
involving moral turpitude shall not be eligible for becoming a full-pledged member of the Society.

b. A person who is already a member of any other society with the same or similar object of the
society and who avail himself of the services of such other society shall not be entitled to similar
services by the society.
c. A person whose membership is ceased because of his transferring the plot/flat allotted to him to
another person is not eligible for becoming member of the society again.

d. A person who was expelled from the membership of the society and a period of (3) years has
not elapsed from the date of expulsion is not eligible for becoming a member of the society again.

e. The persons those who are contrary to above and any other condition(s) that may be
Stipulated/imposed by the Government and General Body from time to time shall not be eligible to
be a member of the society.

7. OBTAINING OF MEMBERSHIP – PROCEDURE:

(a). The Board of Directors may admit members provided the society is in a position to provide
services to such members.

(b). A person who has fulfilled the eligibility criteria as specified in these bye-laws may apply for
membership in such form as required and specified by the Board and submit it to the President
who will in turn place it before the Board for approval. The decision in of the Board in this matter is
final subject to the provisions of the Act. The applications for membership shall be disposed within
(90) days from the date of application for membership and the decision together with reasons shall
be communicated to the applicants. On admission, the name of every member shall be entered in
the Admission Register of the society and the member shall be given a photo identity card. The
duplicate identity card shall be kept in the office of the society. The admitted member should remit
Rs 1000/-towards Share-capital, Rs 50/- towards Admission Fees and the cost of plot/flat and the
development charges as decided by the society by a draft or in cash and obtain a receipt from the
society. The member shall pay all the expenditure towards the cost of development of land and
any other as prescribed by the society from time to time.

(c). The membership of the society shall be related to the extent of the land and infrastructure
available or expected to be available. The society shall not admit new members unless the entire
members already enrolled are provided with plot/flat and job.

(d). Any member who got allotted plot/flat as well as admission by furnishing false declaration will
be terminated with forfeiture of the benefits availed from the society including membership
without compensation even at a later date.

8.WITHDRAWAL – CESSATION AND TERMINATION OF MEMBERSHIP:

a) Withdrawal: A member may withdraw his membership by submitting an application after

discharging all the dues outstanding on his account and after satisfying all obligations as a
guarantor.

b) Cessation: The membership of a member shall cease to be a member of the society,

(i). on acquiring the disqualification as per bye-law supra, or

(ii). on becoming defaulter and if the default continuous beyond (90) days,

or (iii).on the member transferring the plot/flat allotted to him to another person, or (iv).on death
or
(v). on expulsion from the society, or

(vi). if it is provided that he obtained membership by making false declaration or by furnishing

incorrect information by him.

c). Termination: The Board shall order for termination of membership. The Board shall give the
member an opportunity to explain his/her case and terminate membership if the explanation is
found not satisfactory.

9. ON WITHDRAWAL/CESSATION/TERMINATION OF MEMBERSHIP :

a). The balance outstanding to the credit of such member, if any, after deducting and dues and
liabilities, shall be paid to him or to his nominee or legal heir in case of death.

b). The Board shall take immediate action to recover the dues outstanding from the member,
irrespective of the original due dates and other conditions, in case of cessation of membership.

c). The plot/flat allotted to such member be allotted to his/her nominee/legal heirs in case of
his/her death, in accordance with the rules business and administration of the society.

d). If the default is in respect of plot/flat cost, the society shall resume the plot/flat allottedand
refund the amount paid by the member.

e). In case of expulsion of a member for the activities detrimental to the interest of the society
may forfeit the amounts standing to their credit in the society.

10. MINIMUM PERFORMANCE OF MEMBERS:

1. Every member shall pay such charges as may be levied by the society to enable it to render the
service expected it.

2. Every member shall attend the General Body meetings and thus take part in the affairs of the
society.

3. Every member shall exercise the right of voting in the election of the Director.

11. SERVICES, THAT THE SOCIETY RENDERS:

a). Acquires land from Private parties.

b). Lays out the land into plot/flats and gets the lay-out approved by the competent authority or
authorities.

c). Develop the land as per the approved lay-out/GHMC plans.

d). Allots plot/flats to its members.

e). Undertake construction of houses.

f). Provides or arranges loans for construction of houses and infrastructure of buildings.
g). Provides amenities required.

h). Undertakes any other service incidental to the achievement of it’s object.

12. CONSEQUENCES OF PERFORMANCE OF A MEMBER BELOW

NORMAL LEVEL:

The members, whose performance is below the normal level as per bye-law No.10, lose their
voting right for one year.

13.RIGHTS OF MEMBERS:

Every member shall have the right,

(a). To avail all or any of the services rendered by the society.

(b). To exercise his vote subject to the restrictions stipulated in the Act and the byelaws.

(c). To receive copy of the annual report and accounts.

(d). To be elected as Director provided that he is eligible to contest in the election.

(e). To a share in the surplus based on his transactions with the society and interest on his share-
capital in the society.

(f). To see his own accounts and obtain a copy on payment.

(g). To see audited statement of accounts, reports on the audit, special audit and inspection and
compliance report thereon and the Act and bye-laws with up-to-date amendments.

(h). To receive copy of the minutes of the General Body meeting.

(i). To have a copy of registered bye-laws of society at cost.

14.LIABILITY OF MEMBERS:

(a). The liability of the members shall be limited to the share capital subscribed by them.

(b). The liability of a past member shall continue for a period to two years from the date on which
he ceased to be a member.

(c). In case, the society is left with deficit in any year, the members are liable to make good the
deficit in proportion to the services they have availed or expected to avail as decided by the
General Body.
15. AMENDMENT TO BYE-LAWS:

The society may amend its bye-laws complying with the provisions of Section 10 of the Act. Any
amendment to the Bye-Laws can be approved by the General Body in case the amendment is
proposed by more than 50% of the members and the same is adopted by 2/3rd majority of the
members present and voting.

16. GENERAL BODY:

The ultimate authority of the society shall vests in its General Body. The General Body shall not
however interfere with the powers of the Board in respect of matters delegated to it as per bye-
laws or by the resolution of the General Body.

The General Body shall deal with the following matters among others--

(a). Election and removal of Directors.

(b). Consideration of –

(i). the long-term perspective plan and budget whenever required.

(ii). the annual operational plan and budget.

(iii). the annual report of activities for being filed with the Registrar.

(c). Appointment and removal of auditors –

(i). auditors’ report and annual audited statements of accounts for being

filed with the Registrar.

(ii). special audit report and enquiry report, if any.

(iii). compliance report relating to Audit, Special Audit and or Enquiry report, if any.

(d). Dispose of surplus funds

(e). Management of deficit

(f). Creation of special reserves and other funds.

(g). Review of Chief Executive Officer’s report on the attendance at meetings by Directors and
review of the business done with the society by Directors.

(h). Review of actual utilization of reserves and other funds.

(i). Remuneration payable to Directors or internal auditors in connection with their duties
in that capacity or their attendance on related meetings.

(j).Constitution, re-constitution and disbandment of representative General Body.

(k).Membership of the society in Federation and other institutions.

(l).Collaboration with other organizations and review of their working.

(m).Amendment to bye-laws.

(n).Expulsion of members.

(o).Dissolution of the society.

(p).Review of the dissent notes recorded in the minutes of the Board meetings.

(q). Any other matters proposed by the Board and requiring decision of the General Body.

(r).The Auditors shall be from the Registered Chartered Accountants or from the registered panel
of auditors of the Cooperation Department.

17. MEETINGS OF THE GENERAL BODY:

a. The Board may at any time convene General Body/ Emergency General Body meeting for
conduct of the business so however that the General Body shall meet at least once in a year.

b. The Board shall convene General Body meeting within (30) days of receipt of requisition signed
by at least one tenth of the members of the society and any such requisition shall contain the
proposed agenda and the reasons why the meeting is felt necessary.

c. The quorum for the General Body meeting shall be one third of the members. If within one hour
the quorum is not found it shall stand for an urgent meeting to another date within seven (7)
days. No separate notice will be necessary for the urgent meeting. If even in the urgent meeting,
if there is no quorum the members present shall constitute the quorum.

d. If any General Body meeting is adjourns for want of quorum, the members present shall
constitute quorum in the reconvened General Body meeting.

e. The Secretary shall give notice of the meeting at least (10) days in advance specifying the time,
date, place and agenda for the meeting.

f. The notice of the General Body shall be by certificate of posting or by giving notice in News
Papers.

g. All issues shall be decided by a majority of votes of the members present and voting. In case of
equality of votes the President shall have a casting vote.

h. It is only the Annual General Body Meeting which shall have the powers to sanction an amount
as per the requirement towards the payment of any bill covering the expenses incurred for
maintenance.

i. The General Body Meeting or Adjourned Annual General Body Meeting shall have the powers to
approve the audited accounts.

j. A special General Body Meeting shall be held only if 45% of the members of the Society give a
notice in writing to the President allowing at-least (15) days time for holding the Special General
Body Meeting. A notice to this effect, with the approval date of the Meeting.

18. BOARD OF DIRECTORS: There shall be a Board of Directors entrust with the Management of
the society in accordance with the provision of the Act and the bye-laws. The Board shall consists
of (11) Directors below-
i. President.

ii. Vice-President.

iii. General Secretary. 5

iv. Joint Secretary.

v. Treasurer.

vi. Executive Members (6). 6

Total 11

The representatives of the tenants may be admitted as Members of the Executive

Committee. However, they shall not have the right to vote.

19. TERM OF BOARD OF DIRECTORS : The term of Board is three years from the date of assuming
charge. Every year (4) Directors shall retire. They shall however be eligible for re-election.

20. ELECTION OF DIRECTORS : At the first election all the Directors are elected at once and their
terms are staggered by drawal of lots specifying different terms, one year, two years and three
years. All the members of the General Body having voting right shall elect Directors by secret
ballot. It shall be the responsibility of the incumbent Board to conduct elections every year
before expiry of the term of the Directors. The Board shall appoint an election officer to conduct
the elections of Directors and office bearers. The election officer shall not be a member of the
society. The election officer shall conduct the elections as per the procedure in vogue. The Board
shall elect office bearers i.e., President, Vice-President, Secretary, Joint Secretary and Treasurer.
Any casual vacancy in the Board shall be filled by cooption by the remaining Directors of the Board
for the remaining term of the Director because of the vacancy arose. If any Director resigns, the
Board shall fill up the vacancy by cooption.

21. MANNER OF EXPULSION/REMOVAL OF DIRECTORS:

The General Body can remove any Director, by giving an opportunity to him/her by giving notice
to explain. Similarly the Board can remove any office bearer. The removal of a Director or an office
bearer shall be through a ‘No Confidence Motion’. Not less than five Directors or not less than 1/3
members of the General Body can send a ‘Notice of No Confidence’ against any office bearer or
any Director to the Secretary who shall convene the Board meeting or the General Body meeting
as the case may be, following the procedure prescribed for such meeting. If the ‘No Confidence
Motion’ is against the Secretary the notice shall be sent to the President, who shall convene the
Board meeting.

22. MEETING OF THE BOARD OF DIRECTORS:

The Board shall meet as frequently as is required to conduct the business of the society.However,
it shall meet at least once in three months.

a) The Secretary with the approval of the President shall issue notice of the meeting atleast
seven days in advance.

b) Quorum of the meeting is six. The quorum for any meeting of Executive Committee shall be
six members eligible to vote. If there is no quorum for any meeting, the meetingshall be
adjourned to another date, which shall not be beyond one week, and if there is no quorum even
for the adjourned meeting, the Directors present shall constitute quorum.

23. POWERS AND DUTIES OF THE BOARD:

a) The Board shall, in accordance with the bye-laws, be authority to Admit members

b) Elect President, Vice-President, Secretary and Treasurer

c) Remove the President, the Vice-President, the Secretary and the Treasurer from office as laid
down under article (22) above.

d)Appoint and remove the paid Chief Executive.

e) Fix staff strength, their scales of pay and allowances.

f) Frame policies concerning,

i). Organization and provision of services to members..

ii). Recruitment and conditions of service of staff and their scales of pay.

iii). Mode of custody and investment of funds.

iv). Manner of keeping of accounts.

v). Monitoring management information system including statutory returns to be filed

vi). Any other matter concerning the performance of the Society.

g. Place the annual report, annual financial statements, annual plan and budget for the approval of
the General Body.

h. Accept and review membership in Cooperative and other Organizations.

i. Consider Audit Report, Special Audit Report, or Inspection Report and their compliance reports
and place them before the General Body.

j. Delegate powers to the Office bearers in addition to those mentioned in the bye-laws and
prescribe the limits for incurring expenditure by Treasurer,

Secretary and President.

k. Specify duties and responsibilities of paid Chief Executive.

l. Call General Body meeting.

m. Enter into contracts on behalf of the Secretary, settle the terms thereof and authorize an officer
or Directors to execute all deeds, agreements and documents.

n. Institute, conduct, defend, compromise or compound all legal proceedings by or against the
society.

o. Authorize the Treasurer or one or more Directors of the Board to endorse, sell, transfer or
otherwise deal with the shares, government or other.

p. Securities on behalf of the society and issue receipts for the amounts received in connection
with the business of the society.

q. Authorize the Treasurer to operate bank accounts severally or jointly with another office bearer
or Directors.

r. Approve the monthly receipts and payments statements and annual accounts for being
presented to the General Body meeting.

s. Accept withdrawal of membership and sanction refund of the share-capital.

t. Accept deposits, loans and grants from members and institutions including government.

u. Sanction advances and loans to members.

v. Appoint Election Officer and fix his remuneration.

w. All issues shall be decided by majority of the votes of the Directors present in the meeting.

24. POWERS OF THE PRESIDENT, VICE-PRESIDENT, SECRETARY, JOINT SECRETARY

ANDTREASURER:

President:

a. Preside over all the meetings of the Board and General Body.

b. Exercise his casting vote when there is equality of votes except in the case of elections.

c. Having general control over all the affairs of the Society and ensure that the Society functions in
accordance with the objects, Principles of Cooperation, byelaws and policy decisions of the Board
and the General Body.

d. The President shall be having over all charge of the Society and the other office bearers shall
function under his/her guidance. The president shall be answerable to the General Body of the
Society.

e. The President shall have the powers to call the meeting of the Executive Committee and of the
General Body.

f. Represent the society in all other organizations and forums or approach to represent the society
in any instance.

g. Take all steps necessary for maintaining high standards of accountability and member
consciousness in the society.

h. He may incur expenditure in emergent cases in consultation with the Secretary pending
approval of Board of Directors up to maximum of Rs. 10,000/- only.
Vice President: The Vice President shall assist the President and shall perform the duties of the
President in absence of the President on considerable reasons.

Secretary: The Secretary shall:

a. Be the Chief Executive of the Society and implement all the decisions of the Board and General
Body and ensure submission of all reports and returns to the authorities concerned.

b. Issue meeting notices as per the provisions of the bye-laws.

c. Carry on the correspondence of the Society and attend to routine and day-to-day work.

d. Be the officer to sue or to be sued on behalf of the society.

e. Ensure good staff management.

f. Appoint the staff with prior approval of the President.

g. The General Secretary shall be responsible for the effective and smooth functioning of the
Society.

h. He/ She shall have the powers to sign all correspondence, demands for maintenance charges,
notices, etc,

Joint Secretary: The Joint Secretary shall assist the General Secretary in the day to day work of
the Society.

Treasurer:

a. Be the custodian of all the properties including monies received by the society.

b. Signs the Cash-book.

c. Ensures that the cash on hand does not exceed the limits prescribed and ensures that all
receipts and payments are carried out through cheques. However, necessary cash transactions
may be accepted with the permission of the President up to a limit of Rs.5000/- only.

d. Ensures that the assets are well managed.

e. Ensures that the records and books of accounts are properly maintained.

f. Ensures that all statements and reports relating to the accounts are properly maintained.

g. Be responsible for the mobilization and utilization of funds.

h. Operates Bank accounts in accordance with the authorization of the Board.

i. Issues, on authorization by the Board, receipts for the monies paid to the society.

j. Makes payments on authorization by the Board.

k. The Treasurer shall be responsible for the effective and proper maintenance of Books of
Accounts for collections, payments receipts, safe custody of monies and/ or valuables.

25. DEALING WITH NON-MEMBERS: The Society does not ordinarily deal with non members.
However, in the interest of the society, if necessity arises the Board shall decide the manner and
terms of such dealing in such a way that it will not act against the provisions of the Act.

26. ELIGIBILITY AND IN-ELIGIBILITY FOR THE BOARD OF DIRECTORS OF THE SOCIETY:

A Director of the Board of the Directors of the Society:

a. Shall have been a voting member of the society for at least two years preceding the year of
election (barring first election in the case of two years. But must be a voting member.)

b. Shall have attended the two annual general meetings immediately preceding the meeting in
which he stands as a Director.

c. Shall not have been penalized under the Act.

d. Shall not have lost the right to vote or right to continue as a Director.

e. A person shall cease to be a Director if he incurs any of the disqualifications mentioned above or
absents himself from the General Body meeting without leave of absence from the President.

f. Further, the Directors of the Board incur disqualification for a period of

Three (3) years for being chosen as Directors and shall be ineligible to

Continue as Directors, if during their term as Directors.

i. They did not conduct election before expiry of their term

ii. They did not conduct the annual general body meeting within six months of closure of the
financial year or a requisitioned meeting of the body within the specified time, or

iii. They did not place their audited accounts for the preceding financial year along with the report
of the auditor before the annual general body meeting.

g. Shall not be a defaulter to the society on the date of notice convening the General Body
meeting in which election will be held.

27. PENALTIES FOR ACTING AGAINST THE INTERESTS OF THE SOCIETY:

Every Director, who is exercising his power or discharging his duties shall act honestly and in good
faith and in the best interest of the society and shall exercise such due care diligence and skill, a
reasonably prudent person would exercise in similar circumstances. Members and employees of
the society, if act against the interests of the society, are liable for penal action. If a person is
guilty of misappropriation, fraud, breach of trust, cheating or another act involving moral
turpitude, resulting in a loss to the cooperative society, he shall be punishable under the
relevant provisions of the Indian Penal Code. The General Body in the case of directors and
members of the society will deal with other offences, while the board shall deal with employees’
offences.
28. LIABILITY OF DIRECTORS AND OFFICE BEARERS:

a. The expenditure incurred in excess of the budget provision shall be made good by the office
bearers or the directors responsible for such expenditure, unless ratified by the General Body.

b. The Directors shall be severally and jointly liable for the loss if any incurred by the society due
to willful neglect or dishonesty on their part.

29. CHIEF EXECUTIVE AND HIS RESPONSIBILITIES:

The Secretary shall be the ex-officio Chief Executive of the Society and his duties and
responsibilities are defined in bye-law No. 24. In case a whole time paid Chief Executive is needed,
the Board is authorized to create the post and fix the remuneration payable to him and also his
duties and responsibilities.

30. DELEGATES TO FEDERATION:

The President is the ex-officio delegate to higher tier cooperatives of federation of which the
society is a member. At any time if he is not able to represent the society in any forum, the Board
shall select another Director for the purpose.

31. RIGHTS OF THE FEDERATION:

The General Body shall while affiliating to a federation or another society shall consider the right
that may be delegated to the federation or the other society.

32. SHARE CAPITAL:

The authorized share capital of the society shall be Rs 5,00,000/- (Rupees Five
Lakhs only) made up of 10 shares of Rs.100/-
each.

33. MAXIMUM CAPITAL A MEMBER CAN HOLD:

Every member shall take ten shares with a face value of Rs.100/-each. No member shall be
allotted additional shares. The society shall issue a share certificate signed by the General
Secretary and President with the seal of the Society to every member.

34. INTEREST ON SHARE CAPITAL:

The rate of interest payable on the paid-up share capital shall not exceed the highest rate paid by
the scheduled banks to their deposits.

35. FUNDS: The society ordinarily obtains funds from the following sources:
1. Share-Capital from members,

2. Admission fee,

3. Loans from Scheduled Banks and other Financial Institutions. The loans obtained by the
Society shall not exceed (10) times it’s paid- up share capital plus the reserve fund.

36. CONSTITUTION OF VARIOUS FUNDS AND THEIR PURPOSES:

The society shall, from its net surpluses, in each year shall allocate the funds as shown below-

Sl.No.

Name of the Fund

Purpose for which it is used

Reserve Fund (25%)

To meet unforeseen losses

Deficit Cover Fund (10%)

To set off business losses

Bad Debt Reserve (10%)

To set off irrecoverable debts

Patronage Rebate Fund (10%)

a). To be distributed to the members in proportion to the business done by them with the Society.

b). To pay interest on the share capital to the members.

Corporate Education Fund (10%)

To be utilized for the education of the members, office bearers and employees and general public
in the principles and techniques of Cooperation both economic and democratic.

6.

Building Fund (10%)

To be utilized for constructions of own building.

Staff Welfare Fund (5%)

To be utilized for the benefit of the staff

Common Good Fund (20%)

To be utilized for the purposes mentioned in Section 2 of the Charitable Endowments Act, 1890.

38. APPOINT38. AP37APPOINTMENT OF AUDITOR:

Every year of the General Body, at the Annual General Body meeting, on the recommendation of
the Board, appoints the Auditor and fixes his remuneration and determines the terms and
conditions. The Auditor shall be a Registered Chartered Accountant or from the approvedpanel of
the Cooperation Department.

38. INTERNAL AUDITORS ;

Internal Auditor or Auditors may be appointed by the Board if required to ensure that all receipts
are properly accounted for and the expenditure is supported by proper authority and budget
provision and to ensure that the Society runs in accordance with the provisions of the Act and bye-
laws. He may be an outsider or a member of the society other than a Director or a staff member.
He may be paid remuneration as determined by the General Body. Internal Auditors shall submit
their reports month by month to the Secretary who will place them before the Board for their
consideration.

39. LIQUIDATION :

In the event of dissolution and liquidation of the society, any funds remaining after fulfillment of
the external liabilities shall be disbursed to the members in proportion to the business done by
each member with the society during the preceding years going back to not more than three years
from the year when the dissolution was sought. Any amount that cannot be distributed in
the above manner may be donated to any cooperative or public society in accordance with the
wishes of the General Body.

40. DISSOLUTION OF THE SOCIETY :

The Society may by a special resolution authorize its own dissolution following the provisions of
Section 39 of the Act. The Cooperative Tribunal may also order dissolution of the Societyon
application from the Registrar or the interested member following the provisions of Section 40 of
the Act.

41. RECORDING OF MINUTES OF MEETING :

Minutes of the meeting of the Board and the General Body shall be recorded in the minute’s book
and signed by the person who chaired the meeting. The minutes shall be communicated to all
persons invited for the meeting within (30) days of the conclusion of the meeting.

42. PURCHASE OF LAND:

a. The Board of Directors shall be competent to take up the following programmes

in the interest of the members of the society.

i. To buy lands from private parties,

ii. To render the lands so purchased fit for habitation,

iii. To lay-out streets, roads and parcel out the lands as house sites,

iv. To sale or lease or otherwise deal with the sites to members or others on such terms
as they may determine; and

v. To provide and maintain facilities for water supply, drainage, lighting and similar
works of common utility.

b. In case the land is acquired from private parties, the society shall, before entering into an
agreement with the land owners, invariably obtained the legal opinion and also the opinion of the
Revenue, Municipal and Town Planning authorities about the title of the land. The society shall also
obtain permission of the General Body before developing or under taking any development
work placing the plans and estimates for the approval of the General Body.

43. ALLOTMENT OF PLOT/FLATS TO MEMBERS:

a). The Society shall maintain a register of applications and enter there in a chronological order of
the particulars of eligible applicants and follow the procedure in the bye-law 7(ii) above or as may
be prescribed by the Board.

b). The Society shall, as far as possible, endeavor to acquire an extent of site sufficient to meet
the entire demand of the members. The society shall sub-divide and demarcate the site into
plot/flats to suit the needs of the applicants after ear-marked the land for the purpose
ofconstruction of buildings for providing infrastructural facilities to the creation of jobs to the un-
employed.
c). When the total number of plot/flats suitable for house construction is equal to the total number
of applications from members, the plot/flats shall be allotted to each member by means of lots
drawn by the Board of Directors at meeting convened for the purpose after due intimation to all
the applicants sufficiently in advance, so that they may have an opportunity to participate and
witness the drawal of lots. Mutual exchange of plot/flats between membersmay be allowed at the
discretion of the Board of Directors. The choice of the applicants for particular plot/flats, shall
however, be considered by the society, if there is no competition for the same.

d). If the total number of plot/flats, excluding plot/flats not suitable for house construction, is not
sufficient to meet the needs of all the applicants for plot/flats, then allotment shall be made in the
order of admission to membership of the applicant or any other method that may be fixed by the
Board. Provided that all such applicants have remitted necessary deposits and are otherwise
eligible for allotment of plot/flats. Among such allottees, lots shall decide the allocation of
plot/flats. All plot/flats which are not suitable for house construction may be disposed of by auction
to members. If the total number of plot/flats, excluding the plot/flats, which are not suitable for
house construction, is more than the number of applicants, the Board may allot the surplus
plot/flats also by auction to the members. The additional realization due to auction shall be utilized
for the common benefits of the members of the layout concerned.

e). The extent of plot/flat or plot/flats allotted to a member by the Society shall be within the
limits prescribed by Government or any authority.

f). Every member to whom a plot/flat has been allotted shall start construction of aresidential
house in accordance with the plans and designs approved by the Society and the local authority
within a period of six months and complete within three years from the date of conveyance of the
plot/flat. If he requires any loan he may however construct the house after the loan is sanctioned
but the application for loan shall be made within a period of two months from the date of
conveyance of the site. In deserving cases where the Board issatisfied extension of time may be
granted, for construction of houses or submission of application for loan.

If a member fails to complete the construction of the house within the period of three years, the
Board may resume the site and allot it to another eligible member. The member, from the site was
resumed, shall be paid back the expenditure incurred by him that shall be evaluated and fixed by
the Board.

g). No member shall be allotted more than one plot/flat.

h). The Society shall execute the sale deed for the plot/flat allotted to a member on payment of its
cost and fees in full. Such costs shall include the cost of the land, developmental charges, legal
fees, registration charges, betterment charges etc. A member who is in default of the land cost
shall pay interest at such rate as may be fixed by the Board on the account of land cost and fees
etc., in arrears in calls from the date of first call. Before the societyexecutes the sale deed, the
member shall also execute an agreement undertaking to pay the society any additional levy that
may be made by the society to meet any such future charges as it may have to incur in connection
with the plot/flat allotted to the member. Every member who is allotted a plot/flat shall pay service
charges at the rate of Rs. /-per square yard per annum for a period of five years from the date of
allotment of plot/flat or till his liabilities are discharged whichever is longer. Provided that
the Board of Management shall have discretion either to levy service charges or not to levy while
taking into consideration the financial position of the society.

i). Transfer of plot/flat to any other member or non-member shall not be permitted by the society

j). Except to all legal heirs by inheritance within 10years from the date of conveyance. For any
compelling reasons, if the member wants to transfer the plot/flat, he shall surrender the same to
the society, which shall pay back to the member, the fees and charges collected from him along
with interest from the date of possession of the plot/flat by the members. The society shall accept
such surrender of the plot/flat and allot to other eligible members,according to seniority and
recover the costs and charges if any for such transfer from the transferor. If any member wants to
transfer the plot/flat within 10 years of possession, the society shall have the first right to
conveyance. No member shall be allowed to transfer his plot/flat without the concurrence of the
Board of Directors and without registering the sale or transfer deed in his favour. Any transfer of
plot/flats in violation of the bye-laws shall be treated as illegal and the transferee shall be treated
as trespasser or encroacher.

44. CONSTRUCTION OF HOUSES:

a. First of all, the society has to take up the construction of buildings for providing infrastructural
facilities and after that in the available land to complete the construction of houses on the interest
of the members as time bound and in a uniform manner as group housing, the Board of
Directors shall undertake the construction of houses through a Private Agency or on their own. The
members concerned shall be required to submit a draft plan of house to be constructed in his/her
plot/flat and to pay the amount to the society in advance the whole of the estimated cost
whether in one lump sum or in such installments as the Board of Directors may prescribe. If a
house is to be constructed out of a loan or loans taken from the banks or any financial agency, the
borrower member

concerned shall execute the necessary bond or bonds and authorize the Board of Directors to draw
the money from the loan sanctioning agency from time to time as the work progresses.

b. All houses, the construction of which is entrusted to the society shall be constructed
according to the plans approved by the Board of Directors.

c. The construction of building for which a loan is given to a member shall be in accordance
with the terms of governing the sanction of loan.

d . Where the Board of Directors arrange for the supply of water, lighting, drainage
and scavenging etc., they may levy such fees as is necessary from members.

45. LOANS:

a. The society may act as a nodal agency between the financial institution and members with
regard to the sanction, payment and disbursement of loans to the members and recovery of loans.
b. Loan shall be given only to members. The Board of Directors shall decide the terms governing
sanction and recovery of loans with reference to the terms prescribed by the financial agency.

46. ACCOUNTS AND RECORDS:

a. The society shall keep and maintain all the records, accounts and documents referred to in
Section 26 of the Act.

b. The Accounting Year (Financial Year) of the society shall be from the 1st of April to the end of
March of the succeeding year.

c. Every year within thirty days of the conduct of the Annual General Body meeting, the society
shall file with the Registrar the returns and other records referred to in Section 34 of the Act.

47. SETTLEMENT OF DISPUTES:

If any dispute touching the constitution, management or business of the society arises –

a. Among members, past members or a person claiming through members and deceased members
or

b. The Society, it’s Board, Director, office bearer or liquidator, past or present or Between the
society or it’s Board and any past Board, any Director, officer bearer or any past Director, past
office bearer or the nominee, heir or legal representative of any deceased Director or deceased
office bearer of the society, Such disputes should be referred to an elders’ council and its decision
shall be binding on the disputing parties, except where one of the parties feels aggrieved by the
process used by the elder’s council to settle the dispute. The elders’council consisting of three
members appointed by the General Body from among its members or others, whose term of office
is, say 3years. The members of the council should be those who are the members of the society
and who are not below 55 years of age and up to 70.

i) Should not have contested for the election to the Board in the previous Elections.

ii) Once a person served on the elders’ council he will not be eligible to contest as a
Director, in the immediate elections.

iii) No canvassing will be permitted for membership of elders’ council.

iv) A member nominated by the Board for being considered to be a member of the
elders’ council should at no time during his membership in the society have lost his right to vote.

v) The General Body will have the right to reject any or all of the names suggested by
the Board.

48. REMOVAL OF DOUBTS:

If there is conflict between the bye-laws and the provisions of the Act, the Act shall prevail over
the bye-laws.
49. TRANSITORY BYE-LAWS:

The Chairman of the Ad-hoc Committee shall convene a meeting of all the promoter members
within (60) days of registration of the society. The promoters shall consider registration expenses
and approve them and elect the Board of Directors, which shall take over the direction of the
affairs of the society.

50. Maintenance charges:

i). All the owners of plot/flats/houses/Apartment through them all the tenants in the
________ HOUSE BUILDING AND CONSTRUCTION MUTUALLY AIDED CO-OPERTIVE SOCIETY LTD.,
situated in Plot/flat No.82, H.No.8-2-624/A/B/1, situated in Road No.10, Banjara Hills, Hyderabad,
Shaikpet Mandal, Telangana. shall pay monthly the quantum of maintenance charges calculated
and as decided by the general body of the society from time to time for the effective maintenance
of the society.

ii). It shall be the responsibility of the plot/flat/house/Apartment owner to pay the quantum of
maintenance charges calculated and as decided by the general body of the society from time to
time for the effective maintenance of the society and extend full co-operation in the maintaining of
the society building and its infrastructure.

iii). In the event of giving the building plot/flat, Apartment house on rent/lease it shall be the
responsibility of the house owner to ensure that not only proper provision is made for this payment
in the Rental/Lease Deed and also to make the occupier (Tenant/Lessee)to admit and accept the
payment by signing in the prescribed form by the society and also obtain No objection from the
society.

iv) In the event of Building all house owners are strictly follow the rules and regulations of the
society from time to time .

v) All house/flat owners are dry their clothes in the terrace floor only (Provision given by the
society) and should not dry their clothes in the Balconies are in the common areas of the building
or any other area.

vi) All house/flat owners are not to keep any of sign boards in front of the flat/house.

vii) All house/flat owners are not to let out their flat/house to run any of commercial activities or
other agencies., etc.,
viii). All house/flat Apartment owners are not to alienate, repair and changes in their plot/flat/
house without consent of the society.

ix). To appoint servants, drivers or any other employee for their individual have to inform to the
society with their respective ID proofs and society permission.

x) That the maintenance charges shall be paid to the treasurer or in the absence to the Secretary
of the Society by obtaining proper receipt for any payment made on or before 5th of each calendar
month in advance and if any flat/flats is vacant the maintenance charges shall be paid.

xi) That a separate register in addition to the Books of Accounts shall be maintained by the
Treasurer of said Society keeping separate pages for each member so as to know the payment
made as well as the due outstanding against each member.

xii) This register shall be reviewed every month during the first week of English calendar month
so as to know as well as to remind the concerned member for payment of dues up to the current
calendar month and proper book should be maintained for such dispatches to show
acknowledgments.

xiii) The maintenance charges shall be in respect of the following items:

i. Watch and Ward.

ii. Maintenance of garden.

iii. Electrification of common spaces.

iv. Water pumps.

v. Electric services connections for common services such as Lighting, Passage and
other common spaces, Transformer, etc., lift boy and lift power bill etc.,

vi. Water connection for municipal water, if main connection is provided by Municipal
Corporation.

vii. Sweeping of internal roads and passages.

viii. Other maintenance.

51. Default:

In case of default in payment of monthly maintenance charges by the plot/flat/house owner to the
society then the executive committee is empowered to levy penalty as decided by it from time to
time and the executive committee shall have full powers to cut off the amenities, if the member
becomes defaulter for three months or more then services to be resumed only after a deposit of
his/her arrears of maintenance charges and penalty amount and contribution equivalent to six
months will be made.

52. That in case any kind of transfer in respect of the Plot/flat the tranferer and Transferee shall
pay the transfer charges to the society as fixed by the Executive Committee from time to time.

53. That the transfer of the said plot/flat/house/Apartment shall obtain No Objection Certificate
from the society prior to sale or transfer in the above said property situated in Road No.10,
Banjara Hills, Hyderabad, Telangana. The transferer and transferee should pay 1 lakh for each
transfer duty to the society and obtain NOC for sale of the said plot/flat/house/Apartment and also
increase with the permission of the members from time to time.

54. That it is the responsibility of the plot/flat/house owner to inform the details of the tenant to
the society by leasing the plot/flat/house to the tenants in the society.

55. The society shall be a corporate body with perpetual succession and common seal and with
powers to hold property to enter into contract to sue and to be sued.

56. RESIGNATION/ REMOVAL: An office bearer may resign from the post by giving a letter in
writing to the Society. In case of Executive Member of Office bearer a letter of resignation shall be
addressed to the President of the Society. In case the President He/She shall address a letter of
resignation to the Society, representing by Vice-President. The Executive Committee shall
nominate the person to act in the place of the person who resigned.

57. Audit of Accounts:

i). Audited accounts must be presented to Annual General Body Meeting for the approval once a
year.

ii). The Bank Account to be opened in any Scheduled / Nationalised Bank which situated at nearest
to the Society office under the signature of the President, General Secretary and Treasurer, but
the account shall be operated by any two of the above three signatories.

CHIEF PROMOTER