A group of employees from a large company has pooled funds to establish a housing society in Delhi. While some members suggest registering the society under the Societies Registration Act, 1860, others oppose it due to c

If the society is not registered under the Societies Registration Act, 1860, the following major implications arise: No Separate Legal Identity - The society cannot own property, enter contracts, or sue/be sued in its own name. Inability to Open a Bank Account - The society cannot open a bank account in its name, leading to financial transparency issues. Challenges in Property Ownership - Property must be held in individual names, increasing the risk of disputes. No Perpetual Succession - The society lacks statutory recognition, making governance unstable when members change. Ineligibility for Government Grants & Benefits - The society cannot receive government aid, tax exemptions, or financial support. Personal Liability for Members - Members may be personally liable for any legal or financial obligations of the society. While registration involves recurring compliance and expenses, it provides legal protection, operational clarity, and collective rights. If the society remains unregistered, members may face significant legal and operational challenges in managing the property and resolving disputes. Therefore, registration is generally advisable for long-term stability and legal protection.