If residence society has not registered under co-operative housing society and recruit committee and chief to develope society in the situation at builder has not submitted society rights to either nagarpalika Or chief of society. The chief of society has collected Rs.15,000/- for society development charge and do not pay any income tax to government so the following situation is legal as per society law?

Detailed Legal Analysis

The situation described raises several legal concerns under the relevant laws governing cooperative housing societies in India, particularly in Gujarat. The actions of the chief of the society and the collection of funds need to be examined carefully in relation to the Gujarat Cooperative Societies Act, 1961.

Here are the key points relevant to your query:

• Registration Requirement: Under Section 4 of the Gujarat Cooperative Societies Act, 1961, for any cooperative society to function legally, it must be registered. If the residence society is not registered, it does not have a legal standing as a society.
• Formation of the Society: The builder is obligated to transfer the ownership of the society to the residents. According to the Maharashtra Ownership of Flats Act, 1963 (which is applicable in many aspects to Gujarat), the builder must convey the rights to the flat owners within a reasonable time. If this is not done, the residents can approach the authorities for intervention.
• Collection of Funds: The collection of Rs. 15,000 for society development charges by the chief of the society raises questions. If the society is unregistered, the chief may not have the authority to collect such charges legally. This could be considered unlawful unless there is a proper agreement or mandate from the residents.
• Income Tax Obligation: According to the Income Tax Act, 1961, any entity that collects income must comply with tax obligations. If the chief of the society is collecting money for development and not filing income tax returns, this could lead to legal repercussions under Sections 139 and 142 of the Income Tax Act for failure to comply with tax regulations.
• Legal Recourse: Residents have several options, including:
• Approaching the Registrar of Cooperative Societies to register the society.
• Taking legal action against the builder for non-compliance with the transfer of ownership.
• Filing a complaint against the chief of the society for unauthorized collection of funds.
• Conclusion: The entire situation seems to be in violation of cooperative laws and regulations. Residents should seek legal advice to understand their rights and the potential for action against the builder and the chief of the society.