Statutory legal instrument issued under the State Cooperative Societies Act (e.g., Section 26 of Maharashtra Cooperative Societies Act, 1960 and Delhi Cooperative Societies Act, 2003) certifying a member's share capital holding and exclusive right of occupancy in a specific flat or tenement within a registered housing society
Under Government of Maharashtra Department of Cooperation circulars and bye-law 38, a housing society CANNOT legally demand more than ₹25,000 as a transfer premium from a buyer or seller. Any demand for 1% of property value or 'donations' is illegal under Section 79A of the MCS Act and can be penalized by the Deputy Registrar of Cooperative Societies.
💡 A CHS Share Certificate is a formal negotiable security document issued under the seal of a registered Cooperative Housing Society. It certifies that the flat owner holds a specific number of shares in the society's collective capital and grants the holder the exclusive perpetual right to occupy their designated flat, parking slot, and share in common amenities. For resale properties, the transfer of ownership is legally completed only when the society endorses the transfer on the reverse of this certificate.
Comparing ownership structures across Indian residential communities.
| Parameter | CHS Share Certificate | Registered Sale Deed | Deed of Apartment (Condominium) |
|---|---|---|---|
| Governing Legislation | State Cooperative Societies Act (e.g. MCS Act 1960) | Registration Act 1908 & Transfer of Property Act | State Apartment Ownership Act (e.g. MAOA 1970) |
| Legal Ownership Structure | Society owns the land and building; member owns shares | Conveys legal title and beneficial ownership | Owner owns flat + direct undivided share (UDS) in land |
| Transfer Formalities | Requires Managing Committee approval & endorsement | Registration at Sub-Registrar Office suffices | Transfer deed registered; no society share system |
| Home Loan Mortgage | Bank holds original deed + original share certificate | Bank creates equitable mortgage via title deed | Bank holds registered Deed of Apartment |
Managing Committee must issue the Share Certificate within 6 months of society registration or flat membership admission under statutory society bye-laws.
Nominal share capital fee (typically ₹250 for 5 shares + ₹100 entrance fee); statutory transfer fee capped at maximum ₹25,000 in Maharashtra and nominal administrative charges across other states.
Lawful registered owner of a flat or tenement in a registered Cooperative Housing Society (CHS) who has paid the prescribed share capital (typically 5 to 10 shares of ₹50 each) and entrance fees.
Flat owners in cooperative housing societies proving membership and legal title; property buyers purchasing resale apartments; banks and housing finance corporations requiring original share certificate deposit for home loan mortgages; legal heirs transferring flat ownership upon member's demise.
Complete the purchase by registering the Sale Deed at the Sub-Registrar Office and obtaining the official index-II extract.
Submit a formal transfer application along with buyer's membership form, seller's resignation form, and a certified true copy of the registered deed to the Society Secretary.
Pay the statutory transfer fee (maximum ₹25,000 or state-mandated cap), transfer entrance fee (₹100), and ensure the seller has cleared all monthly maintenance dues.
The Society Managing Committee reviews the application at its monthly meeting (or within 30 days) and approves membership admission under Bye-law 65.
The Chairman and Secretary sign and stamp the reverse of the original Share Certificate, officially entering the buyer's full name, transfer date, and resolution number.
The society enters the buyer's name in the statutory Member Register (Form 'I') and List of Members (Form 'J'), completing full legal recognition.
Transferring society shares upon death follows specific statutory provisions under cooperative laws.
The nominee submits a certified copy of the death certificate along with Form 15 claiming transfer of shares based on the society's nomination register.
The society admits the nominee as a trustee/custodian member; however, full beneficial ownership requires submission of the Legal Heir Certificate, Succession Certificate, or registered Family Settlement.
The society displays a 15-day notice on the society notice board inviting objections from other legal heirs.
If no objections are received, the society executes the transfer endorsement in favor of the legal heirs/nominee and updates the member register.
Physical share certificates cannot be downloaded digitally; if lost or damaged, follow the statutory duplicate certificate procedure.
Lodge an online police report (NCR) stating that the original CHS Share Certificate has been misplaced or lost.
Publish a public notice in one English newspaper and one local vernacular newspaper inviting objections within 15 days.
Furnish an indemnity bond on ₹200/₹500 stamp paper indemnifying the society against any future claims, accompanied by newspaper tearsheets and police NCR.
The Managing Committee passes a resolution at the next General Body / Committee meeting and issues a fresh certificate prominently marked 'DUPLICATE' across its face.
Remedial steps when managing committees refuse cooperation.
| Problem / Grievance | Governing Rule | Recommended Legal Action |
|---|---|---|
| Managing committee refuses membership to a bachelor, single woman, or pet owner | Article 19(1)(e) of Constitution & Model Bye-laws | Such restrictions are unconstitutional and illegal; file a complaint under Section 23 of the Cooperative Societies Act before the Deputy Registrar for deemed membership. |
| Society delaying share transfer beyond the statutory 90-day period | Deemed Admission provision under Cooperative Law | Under Section 22(2) of the MCS Act, if the society fails to communicate a decision within 90 days, the applicant is deemed to have been admitted as a member; obtain confirmation from the Registrar. |
| Previous owner left unpaid society maintenance dues | Bye-law 38 (Transferor liability clearance) | Demand an official Society No Dues Certificate (NDC) before paying the final sale installment to the seller; deduct pending maintenance from the purchase price. |
No. Under statutory model bye-laws and repeated High Court rulings, a housing society cannot arbitrarily refuse membership to a lawful purchaser who has registered a valid sale deed, paid statutory transfer charges, and submitted standard membership forms.
Most nationalized and private banks will refuse to disburse home loans without inspecting or holding the original CHS Share Certificate. If it is lost, you must complete the duplicate certificate process (police NCR, newspaper notices, society resolution) before applying for the loan.
Typically, housing societies issue 5 fully paid-up shares (or 10 shares in some states) of ₹50 each, with an aggregate face value of ₹250 or ₹500, numbered consecutively in the certificate.
No. The Supreme Court in Indrani Wahi v. Registrar of Co-operative Societies (2016) held that transfer of shares to a nominee is merely for administrative convenience. The nominee holds the flat as a trustee for all legal heirs entitled to inherit under succession law.
Statutory enactment governing registration, administration, and membership rights of housing societies in Maharashtra.
Codified framework governing cooperative housing and group housing societies in Delhi.
Official legal instrument issued by a real estate developer under Section 11(4)(b) and Section 17 of the RERA Act, 2016, formally transferring physical possession, keys, and maintenance rights of a completed residential or commercial unit to the buyer upon receipt of the Occupancy Certificate (OC)
Official statutory allotment letter and demand letter issued by State Housing Boards and Urban Development Authorities (DDA Delhi, MHADA, CIDCO, HSVP/HUDA, TNHB, KHB) allocating residential flats or developed plots to lottery-winning citizens across EWS, LIG, MIG, and HIG categories
Legal documents for property transfer
Certificate confirming building is fit for occupation
How to write, sign, witness, register (optional) and store a valid will in India, and what happens after death
Governed by State Cooperative Societies Acts (such as Maharashtra Cooperative Societies Act, 1960 - Chapter XIII-B; Delhi Cooperative Societies Act, 2003) and Model Bye-laws of Housing Societies.
Ministry of Cooperation - Housing Cooperatives →