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Education Funds in Housing Society

The basic objective of the Cooperative Housing Society is to create an environment of democracy, cooperation, equity and solidarity. However, the lack of awareness / knowledge of various rules, regulation, bye-laws and applicable society laws leads to many issues with the housing society. Realising the importance of such an important requirement, our legislator has made a provision in Maharashtra Cooperative Society Act 1960 to impart the education and training for their members, elected representatives, managers and employees so they can contribute effectively to the development of their co-operatives. 

Under Section 68 of Maharashtra Co-operative Societies Act, 1960 and Rule No. 83 of Maharashtra Co-operative Societies Rules, 1961, every society is compulsorily required to pay the amount fixed by state Government as education fund to State Federal Society.

Education Funds Purpose

Education Funds Statutory Liability

As mentioned under section 68 of Maharashtra Co-operative Act, 1960, every society is compulsorily required to pay education fund at such rate as may be prescribed by State Government. The amount shall be paid within three months of the close of the Co-operative year. If the education fund is deliberately not paid by managing committee or concerned members of managing committee of the Society, then they are personally liable to pay the amount of education fund to the Federal Society. Such amount will be recovered as arrears of land revenue as mentions in section 68 (3) of the Act.

Payment of Education Fund

Every housing society is required to pay education fund at following rate.

Earlier, Maharashtra Rajya Sahakari Sangh was conducting the education and training programme but it was not up to the mark and the fund so collected was not sufficient to cater the need of educating the members.  

Therefore, in the 97th Constitutional Amendment Section 24 A was inserted in the Maharashtra Co-operative Societies Act, 1960, Section 24A, which reads as follows;

The payment should be made in name of Maharashtra Rajya Sahakari Sangh Limited.

“24A. (1) Every society shall organise co-operative education and training, for its members, officers and employees through such State federal societies or the State Apex Training Institutes, as the State Government may, by notification in the Official Gazette, specify. Such education and training shall—

(i)    ensure the effective and active participation of the members in the management of the society;

(ii)   groom talented employees for leadership position;

(iii) develop professional skills through co-operative education and training.

 (2) Every member of the committee, whether elected or co-opted, shall undergo such co-operative education and training for such period and at such intervals as may be prescribed.

(3) Every society shall contribute annually towards the education and training fund of the State Federal Societies or State Apex Training Institutes, notified under sub-section (1), at such rates as may be prescribed, and different rates may be prescribed for different societies or classes of societies. “

Collection of Fund from Members

Each member is required to pay Rs. 10/- per month / per unit or as decided by the General Body in accordance with Model bye-laws of the cooperative housing society. Whereas bye-law No 14(d) provides the utilization of Education & Training Fund in accordance with Section 24(A) of the MCS Act as mentioned herein above.