Can a Society Committee Member’s Family Do Real Estate Business in the Same Building?
Understanding the Law: Maharashtra Cooperative Societies Act, 1960
Many societies face a common issue where a committee member’s family member is involved in real estate dealings within the same building. This raises concerns about conflict of interest and unethical advantages. But is it legal? The answer is NO.
According to Section 156B-23(2) of the Maharashtra Cooperative Societies Act, 1960, a committee member’s blood relative cannot conduct real estate business in the same society. Violation of this rule can lead to:
- Immediate dismissal of the committee member.
- Disqualification from contesting elections for the next five years.
Legal Precedents & Deputy Registrar Orders
The Deputy Registrar of Cooperative Societies has already passed multiple orders dismissing committee members whose family members were involved in real estate transactions within the society. If this is happening in your society, you can file a complaint with the Deputy Registrar.
Steps to File a Complaint Against a Committee Member’s Family Member:
- Gather Evidence – Collect proof that the family member is conducting real estate transactions within the society.
- Draft a Formal Complaint – Clearly mention Section 156B-23(2) in your complaint letter.
- Submit to the Deputy Registrar – Attach all necessary documents and evidence.
- Follow Up – Request a hearing or update from the registrar’s office.
How This Affects Society Members
Allowing a committee member’s family to operate a real estate business within the building can lead to:
- Monopoly & Unfair Practices – The committee member may influence society decisions to benefit their relative’s business.
- Tenant & Buyer Manipulation – They can deny NOCs or create unnecessary hurdles to control property sales.
- Higher Commission Fees – Without fair competition, property owners may end up paying higher brokerage.
Know Your Rights & Take Action
If such a violation occurs in your society, you have the right to challenge it legally. The law is on your side. Don’t let power be misused.
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