Response

A member is not allowed to take mortgage loan from any financial agency without prior permission of the society. If society is not giving any reply to the member regarding permission, then the member can make a complaint to the Registrar under Section 79(2) of The Maharashtra Cooperative Societies’ Act for giving direction to the society. When the member is required to mortgage the flat for purpose of education, health, etc. in such a situation society has to help them by issuing proper certificate required to financial agency.

Chairman, secretary of the society may issue certificate without delay in prescribed format and this matter should be informed to other committee members in the next subsequent meeting of the managing committee. Similarly it should be noted in the mortgage register after receiving Bank letter. If the society has not taken any action on such proposal and not issued certificate, the Registrar has power to appoint competent officer and make an arrangement to give vertificate to financial agency or bank and they would have to consider this NOC.

Member has to give Indemnity Bond to concerned authority. If financial agency or banks inform in writing then it is obligatory to record liability in their name in the register of the housing society.

Reference: Maharashtra Cooperative Societies Act

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LAWAYZ-2023-196