This could bring a ray of hope for numerous residents who have been struggling to get a proper response for their grievances from the office-bearers of co-operative housing societies (CHS). The committee members of a cooperative housing society (CHS) are accountable to the residents. The CHS secretary may now end up paying through his nose for any poor service rendered to the residents.
According to the new amendment in the Maharashtra Cooperative Societies Act Clause 73 (1 AB), the onus of the housing society lies on the secretary. Section 73 of the Act also states that every member is required to execute an indemnity bond within 15 days of taking charge of the office, acceptance of which makes the committee members accountable for all actions taken on behalf of the society.
In the recent case of senior citizen Madhuri Gujar, the Central Mumbai District Consumer Disputes Redressal Forum slapped the secretary of Chandra Bhuvan Cooperative Housing Society with a fine of Rs. 7000 for not replying to her letter asking for the nomination of an associate membership and deemed it as ‘a deficiency of service and negligence of duty’ under the Consumer Protection Act 2005.
According to the byelaws of the cooperative society, the secretary and the committee members are liable to perform their duties in good faith. Giving her reaction, Manjushri Patwardhan, panel auditor for Maharashtra state, Raigad division says, “There are many cases where the housing society committee members don’t perform their duties on time and harass the residents. It is good that the court is finally taking some action to redress the grievances of the residents instead of turning a blind eye and giving dates every time. Bringing along a monetary fine will ensure the secretary doesn’t get away and does his duty on time or exerts the necessary pressure on the committee members to act collectively. thereby attending to the heap of residents’ complaints that go unattended.”
In most housing societies, committee members are elected without even realising the depth of their responsibility. It is the duty of the secretary to respond to the official correspondence in time and convey his reply to the respective residents. There are cases where the secretary even refuses to acknowledge the receipt of a letter and sends it back to post. The Government is equally flippant about society matters and sometimes going through the registrar also does not yield any results because the officers keep changing.
Flip side of this judgement >>
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May 10th, 2011 at 1:16 pm
Oshiwara Girnar CHS Limited , Bldg No.2 , Oshiwara park , Link Road , Oshiwara , Jogeshwari ( W ) , Mumbai-400102 , is a Society registered under MCS Act 1960 in K w / Andheri Mumbai .I am a member of the said Society . The Managing Committee of the said Society and the Secretary has disbursed a Housing Loan from Society Funds to its Member of Rs 6,00,000/- ( Rs Six Lakhs Only ) in 2007 and earned inerest thereon and benefitted the Society by an income from interest. After various complaints to the Dy. Registrar Co-op Societies Bandra , Mumbai ,the Loan amount is repaid to the Society Funds. None of the officer from the Concerned authority has given any permission to diburse a Loan nor Secretary of the Society has obtained any permission from any authority to disburse a Loan amount. Is this allowed by any of the rule from MCS act 1960 or by any rule in RBI .Is this the Cognisable offence in any manner ? What action should be initiated if it is not allowed ?Pl. suggest or pl. do the needful . Thanking you ! Warm Regards Vijay Bhorkar , Memebr , Flat No. 208 , Oshiwara Girnar CHS Limited , Oshiwara Park , Link Road , Oshiwara , Jogeshwari (W) , Mumbai-400102.
[Reply]
Sagar Reply:
May 29th, 2011 at 10:21 am
Hi Vijay,
Thanks for writing in and apologies for late reply. In my opinion, there is nothing ewrong when a society disburses loan from society funds and charges interest on the same, and uses the proceedings for the benefit of the society. In my opinion, normal Society governing law should be applicable, under which the “loanee” will be responsible for timely payment of the loan and interest. If that does not happen, the society can discuss this in their AGM and take a suitable action against the “loanee”. The actions may vary from strict notices to restricting usage of some of the facilities to restricting usage of the premises, etc. However, this is my opinion and I would suggest you to consult proper lawyer and take appropriate actions.
Thanks again for writing in.
[Reply]