You are here

Procedure for Fixation of MCL of the Societies

Delhi Cooperative Housing Finance Society Ltd.
15/16, Janpath Lane, New Delhi - 110 001 TEL: 345583

F. No.20 (160) 83-84/DCHFS Date : 11th June, 1984

To,

All the member societies,

Sub.: Procedure for submission for getting the Maximum Credit Limit of a Cooperative Group Housing Society approved from the Registrar Cooperative Societies, Delhi.

Dear Member,

You are aware that according to Rule 68(2) [iii] of the Delhi Cooperative Societies Rules 1973 to raise money for construction of society’s project by way of loan, a borrowing cooperative society is required to get its Maximum Credit Limit (MCL) fixed under 68 (2) [iii] of the Delhi Cooperative societies Rules, 1973.

In order to facilitate and standardise the procedure for fixation of the Maximum Credit Limit of a Cooperative Group Housing Society, We have devised a procedure for your benefit in consultation with the Registrar Cooperative Societies Delhi, and a copy of the same is enclosed herewith for your information and record. We have also advised the Delhi state Cooperative Union Ltd. to keep these standardised forms ready for your use. 

Sd/-
(Sanat Kaul)
RegistrarCooperative Societies, 
Delhi Admn.Delhi 

Encl. As above

CC. ; Hon. General Secretary.

Delhi state Cooperative Union Ltd.

Procedure to be followed for getting Maximum Credit Limit of aCooperative Group Housing Society to Raise Funds from theDelhi Cooperative Housing Finance Society Ltd.or other Financing Institutions

1. Preliminary Steps.

Get the estimates of the project prepared from the Architect to arrive at the total loan requirement of the society and of the beneficiary members of the society. (Draft Appendix A)

2. Paid up Share of the Borrowing Society.

Every beneficiary member of the primary borrowing society shall have to purchase such number of shares of the primary society which may qualify the society to obtain loan in accordance with the norms laid down under Rule 68 (2) [iii] of the Delhi Cooperative Societies Rules, 1973. According to the said Rule against one share of the value of Rs. 100/- a person is entitled for a loan upto 20 times i.e. Rs. 2000/- Likewise, if the loan requirement of a beneficiary member is Rs.40,000/- he will be required to purchase 20 shares of the value of Rs. 100/- each i.e. shares of worth Rs.2000/- which will include the amount of one share already purchased. The sum total of the shares to be held by individual beneficiary members will make the total share capital of the borrowing society. On the basis of which the Maximum Credit Limit of the said Society will be determined. On receipt of the money for the purchase of these additional shares the Primary Society will allot additional shares to the individual beneficiary members and enter them in the share allotment register.

3. Audit.

Get the upto date audit of the society conducted and attach a copy of the latest audited balance sheet and upto date provisional balance sheet also alongwith application for M.C.L.

4. Placing of the matter of fixation of the M.C.I. before the Managing Committee of the Society. 

One completion of the above formalities, a meeting of the Managing Committee of the Society be convened to make recommendation for the General Body Meeting of the Society to fix the Maximum Credit Limit of the Society in accordance with said Rule 68 (2)[iii] and bye-laws of the Society. Draft of the resolution is at (Appendix-B).

5. Holding of the General Body Meeting of the Society to fix the M.C.L.

A Special General Body Meeting of the Society in accordance with Rules 51 & 56 of the said Rules may be convened, which shall have a specific item of the agenda with regard to the fixation of the Maximum Credit Limit. Draft resolution is given at appendix - C. Ensure that in the said special General Body Meeting there is a quorum as required under Rule 53 of the said Rules i.e. 1/3rd of the members of the society should be present in the meeting. It there is no quorum the meeting shall stand adjourned for one hour and the Special Meeting will be held after one hour on the same place and same day. However no quorum is required for an adjoumed meeting.

6. Papers to be sent to the Registrar while submitting the Application for the fixation of the Maximum Credit Limit.

(i) Application to the Registrar Cooperative Societies for the fixation of the Maximum Credit Limit of the Society (Draft application form attached).

(ii) Certificate from the Architect regarding the cost Estimates of the Project and loan requirements of the members. (Appendix-A).

(iii) Agenda items of the meeting of the Managing Committee alongwith resolution passed in the said meeting recommending the General Body to fix the M.C.L. (Appendix-B).

(iv) Agenda item for the Special General Body Meeting of the society alongwith the certified copy of the resolution passed in the said meeting to fix the M.C.L. (Appendix-C).

(v) Certificate that all additional shares have been allotted and share certificates issued to members. (Appendix-D).

(vi) Up to date Audited Balance sheet and provision upto the time of submission of application. (Appendix-E).

Name of the Society………………………

Address …………………………………...

Date……………………………………… 

The Registrar,
Cooperative Societies, Delhi,
(Group Housing Section)
Court’s Building Sansad Marg, 
New Delhi- 110001.

Sub.: Application for approval of M.C.L. of the ……………………….. ………………………..Cooperative Group Housing Society Ltd.

(Rule 68 of the Delhi Cooperative Societies Rules, 1973)

Dear Sir,

In the special General Body Meeting of the Society held on …………………………… the general body of the society has unanimously resolved to fix the M.C.L. of the society to the order of Rs …………………………… (Rupees ……………………………on the basis of the norms laid down under Rule 68 (2) [iii] of the Delhi Cooperative Rules, 1973. The Position with regard to paid up share capital profits and reserves of the society on the basis of which the said M.C.L. has been fixed is as under:

Paid up share capital 20 times (Rs.)

(i) Paid up share capital on …………………………… and 20 times of it.

(ii) PLUS (+) Accumulate “Reserves” and profits.

Total of (i) + (ii)

This M.C.L. has been fixed to obtain loan from the Delhi Cooperative Housing Finance Corporation Ltd ……………………………………………………………………… and the principal and interest will be secured by mortgage of buildings of the society to be constructed thereon, in favour of the said Finance Corporation. In support of this application for M.C.L. following documents in duplicate are attached.

1. Certificate from Architect regarding cost of project and loan requirement. (Appendix-A)

2. Agenda item of the Managing Committee and resolution recommending M.C.I... to the General Body. (Appendix-B)

3. Agenda item of the Special General Body Meeting and resolution fixing the M.C.L. (Appendix-C)

4. Certificate that all the Shares have been allot: d and Share Certificates issued to the members. (Appendix-D)

5. Audited Balance Sheet and provision Balance Sheet. (Appendix-E)

It is requested that the said M.C.L. of the society may kindly be approved as required under Rule 68(2) [iii] of the Delhi cooperative Societies Rules, 1973.

Yours faithfully,
(Hon. Secretary) Seal
Encl:No. of Encls, containing ……………. Pages 

Appendix A

Certificate to be given by the Architect:

Certificate that as per approved lay-out and building plans of the …………….…………….……………. Cooperative Group Housing society Ltd. the estimated total project cost of society’s …………….…………….……………. project is Rs …………….……………. (Rupees …………….…………….……………. The estimated loan requirements of the society wiI be to the rune of ……………. Rs ……………. ……………. (Rupees…………….…………….…………….)

Date

Signature of the Architect

Seal

Appendix B

Draft of the Agenda item and resolution of the Managing Committee. for its meeting to fix M.C.L. of the Society

Agenda Item (Proposal)

To consider the proposal to recommend to the General Body Meetin~ of the Society regarding the fixation the Maximum Credit of the society obtain loan from the Delhi Cooperative Housing Finance Corporation Ltd. to construct Building of the Society.

Resolution

Resolved unanimously that as per audited accounts of the society upto 30th June, 199.. and provisional Limit accounts upto . . .the paid up share capital, profits & reserve funds of the Society are as under:

(i) Paid up share capital.

(ii) Profits.

(iii) Reserve Fund.

According to Rule 68 (2)[iii] of the Delhi cooperative Societies Rules, 1973, the M.C.L. of the society on the said sum can be fixed at Rs.…………………. (Rupees ………………….……………….). therefore it may be recommended to the General Body Meeting of the society to approve the same in the General Body Meeting of the society to be convened for this purpose on ………………….at ……… 

Appendix C

Agenda item of the Special General Body Meeting and draft of the resolution to be passed therein to fix M.C.L.

To consider the recommendation made by the Managing Committee of the ………………….. Society Ltd. in its meeting held on …………. regarding fixation of the M.C.L. of the Society to the order of Rs (Rupees ………………………………..).

Resolved unanimously that the M.C.L. of the society to the tune of Rs …………….. (Rupees ……………………. )as recommended by the Managing be fixed to obtain loan from the Delhi Cooperative Housing Finance Corp. Ltd against the mortgage of society’s land and building to be constructed thereon. The Hon. Secretary of the society be authorised to send all the relevant papers to the Registrar for this purpose.

*Registrar Cooperative Societies* Delhi be requested to approve the same as required under Rule 68 (1)of the Delhi Cooperative societies Rules 1973.

Appendix D

Certificate by Society regarding issue of share Certificate, Certified that all the members who will require loan and who had applied for additional shares of the society have been allotted shares and share certificates have also been issued to them.

Date: (Name and signature of the Secretary)

Stamp

Appendix E 

(i) Upto date audited balance sheet.

(ii) Provisional balance sheet upto M.C.L. (Date of Application)

Date : (Name & Signature of the Secretary)

Stamp

Last Updated Date :- 22-06-2018

  • National Portal
  • Tender
  • NVSP
  • Digital
  • payment
  • Page last updated on: 21-10-2021