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A Circular To Make All Unco-operative Housing Societies,Become Co-operative Societies In True Sense.

1 January 2012 One Comment

Well here is a New Year message from CHS and RTI Activist Jeby Patel A Circular, for making Un Co-operative Societies….Co-operative Societies In True Sense.

Jeby Patel has been activist who has been working on CHS related issues and has been assisting people by providing ways and circulars which can assist members of Co-operative Housing societies make their societies Co-operative in real sense. enclosed below is an article from him, published previously on RTI Activist website, along with a Circular to assist all CHS Members.



Yes, sounds little cryptic. But this is what we expect for the coming year. The formula to co-operative housing societies is very simple. Just follow the Circular No. gruh / d-3 / housing / soc / takrarnivaran / 10 Co-operative Commissioner and Registrar of Co-operative Societies, Maharashtra State, Pune, Date: 15/03/2010

Zonal Sub Registrar, Co-operative Societies, All
District Deputy Registrar, Co-operative Societies, All
Sub Registrar, Co-operative Societies, CIDCO
Dep. Registrar, Co-operative Societies, MHADA
District Co-operative Housing Federation, All

Sub: Regarding the complaints of the members of the co-operative housing societies in
the State against the Managing Committee / Administrator

1) Letter of Hon. Up-Lokayakta No: uploaa / com / 1205 / 2009 dated te-12,dt 15.06.09
2) GR No.: sagruyo – 2009 / pra.kra.123/14-sa Dt.18.07.09
3) Letter of office of co-operative commissioner no. Gruh / D-3 / u.lo.aa / abhyasgat ni /09 Dt.27.11.09

Following is the Report and recommendations of the study group constituted by Government of Maharashtra on the suggestion of Up Lokayakta vide letter dated 15.06.2009 and headed by the additional Registrar (Recovery and planning), Co-operative Societies, Maharashtra State, Pune, submitted to the office of the Lokayakta on 27.11.2009:

1) Levy of penalty for remaining absent and not participating in elections of
For the purpose of smooth working of the societies, the attendance in the
General Body meetings and also their participation of in the election conducted
by the society is a must. Many members remain absent at the meetings and
elections of the society but they have tendency to complain about the decisions
and resolutions passed in such meetings. To reduce the quantum of such
complaints, the housing societies are advised to inform the members that it is
mandatory and compulsory to remain present at such meetings and elections
arranged by the society. In case any member remains absent for any reasons,
the society shall collect the penalty for such absentee members. The amount
for penalty for such default may be decided in the general body meeting of the
society and levy of such penalty for remaining absent from the meeting should

be mentioned in the Notice and the agenda of the meeting circulated to the
members. The penalty should be levied only after the same is approved and a
decision and a decision is taken in general body meeting of the society in which
proper agenda of such levy of penalty is mentioned.

2) Provision for safety of members:
Many a times, the members do not occupy the flat but the same is given on leave
and license basis to others. The managing committee does not have any details
about the persons occupying the said flat. It also does not have any details of
the security guard and sweepers etc. The managing committee must have such
detailed information for the safety of members. Therefore, it is advised that the
managing committee should keep the computerized records of the occupants,
owners, security guards, weepers and other workers with it. In case the society
does not have computer facility, the same should be kept in a register with all the
details and photograph of such persons.

3) Decision about the day and date of the AGM and managing committee
Most of the complaints received were related to not holding the meetings of the
societies in time. Therefore it is advised that the Notice of the meeting should
be displayed on the notice board of the society. The notice of the general body
meeting should be given to the members at least 30 days before the holding of
the meeting i.e. one month.

4) Regarding the Bond ( M-20):
It is compulsory that all the members of the managing committee should
execute M-20 Bond within 15 days of assuming the office ( now with effect
from 14.01.2011it is 45 days of assuming the office for housing societies) after
declaring the results of the election. Many complaints are received that members
of the committee do not execute the bonds within the stipulated period as per
the provisions of Maharashtra Co-operative Housing Societies Act, 1960 and
advise them to execute the same within the stipulated time.

5) Minutes of the managing committee meetings:
Many complaints are received that the minutes of the managing committee
meetings are not properly recorded and maintained. Many times, minutes
are manipulated by recording the false information. Therefore it is mandatory
to record the minutes of the managing committee meeting before the next
meeting or within one month of holding such meetings. It is mandatory for all the
members of the society to remain present during the general body meetings. In
case for unavoidable circumstances, the members cannot attend the meeting,
the managing committee should be informed well in advance.

6) Accounts of the society:
Very often the complaints are received that the audits are not done within the
time by the managing committee, audit report and accounts are not circulated to

the members and also the inspection of accounts is not made available on the
request made by the members. Considering such complaints, it is advised that
every society should constitute 3 members committee at the society level to hear
and redress the complaints of their members. The committee should constitute
following three members: Chairman or the Secretary of the society who will be
the Chairman of the complaint redressal committee and two members appointed
by the general body of the society in which one should be a female and who
are occupying their flats in the society. The names, telephone number of the
members should be displayed on the notice board. Members have to put their
complaint before this committee. In case, the complaint is not resolved at the
society level through this committee, then the complainant should approach the
concerned registrar about the same and the registrar should hear the complaint
within 15 days and take the necessary action on the same.

7) Machinery for redressal:
Many complaints are received at different levels about the working of co-
operative housing society and members also. It is desirable that these
complaints should be redressed at local level in short period. For this purpose
following process should be adopted. In connection to that it is informed that
the complainant should approach the registrar. The registrar has to take action
regarding this complaint within 45 days of making the complaint; the complainant
has to approach District Deputy Registrar which he has to resolve the issue
within next 45 days by conducting the proper hearing. In case the District Deputy
Registrar fails to take appropriate action against the complaint received with him
within 45 days, the complainant should approach the Divisional Joint Registrar.
The Divisional Joint Registrar to resolve this issue within 60 days by conducting
the hearing of the concerned parties. In case all the above registrars fail to
take appropriate actions against the complaint within the period stipulated, the
complainant may approach the Commissioner for co-operative housing societies
who has to resolve the issue within 60 days.

8) Registration of the Federation of co-operative housing societies at ward
The Federation of co-operative housing societies can be registered at Pune/
Mumbai/Thane/Nasik on the basis of Area Local Management of Mumbai
Municipal Corporation at Prabhag and Taluka levels.

9) Appointment of Administrator:
Due to various complaints regarding the managing committee of the co-operative
society, the Managing Committees are dissolved and the administrators are
appointed by the registrar. But it is seen members have made complaints against
the working administrators. Therefore it is advised that in case the appointment
of administrator is considered to be necessary, the same should be done
from the panel of administrators maintained at the office of the Divisional Joint
Registrar. The list of the names on the panel should be updated before 31st
March every year. One administrator / person should not be for more than three

societies at a time.

10) Audit of the accounts:
Audit of the accounts of the society is not done in time, Audit Reports are not
circulated to the members. The audit report does not contain the mistakes and
malpractices in accounts. Because of the above, mainly complaints are received
and there for following instruction should be strictly adhered to:
A) The CA / auditor should be changed after some stipulated period. Same
auditor should not accept and carry out the audit of the same society
continuously for three years. The audit must be done by departmental auditor
once in five years regularly.
B) There should be review of certain percentage of the audit done by CA /
certified auditor by the departmental auditor and the selection of such review
of audit should be done on rotation system
C) A letter of appointment should be given to the auditor regarding the area of
the audit to be covered and the items to be verified and audited. There should
be a specimen of the audit engagement letter to be given by the society to the
auditor and also the specimen of the audit report also need to be specified in
the appointment letter. The audit summary should contain a) the good things
done by the co-operative housing society b) the unnecessary things done by
the co-operative housing society c) the things done by the society in order to
carry out the responsibilities. Management of societies giving details about
election and AGM and submission of the same to the concerned registrar.

11) To develop the computerized control system:
There is computerization done in every co-operative organization and every
society keeps its’ records in computerized form. So the co-operative housing
society should keep their information in computerized form as it facilitates the
updating of the information. Those co-operative societies which are in position to
run the expenses of the computer and the internet charges on their own should
have computer and internet and should update said information on the state level
portal half yearly basis. Those societies who cannot afford this facility should use
the computers of the Federation and update the said information accordingly.
The rate should be charged for feeding the information online is Rs.200/-per
page. The responsibility to update the information of the society is held with
the federation. It has to inform the registrar about the societies presenting such
information. The arrangement for the computers should be made with help of on
the district level / department level / BOT / bank / federation.

12) Working of AGM / Management Body Meetings:
Many complaints have been received about the co-operative housing societies
viz., the meetings the meeting has not been conducted as per the rules and
regulations of the Co-operative Act, minutes also recorded wrongly, the meetings
are held without the quorum, etc. In relation to these complaints it is advised that:

a) The society should carry out the audio/video shooting of each and every meeting

One Comment »

  • Viswanathan T.P. said:

    It is a well made guidance note. However, one has to be practical and alive to the prevailing situation. Most of the housing societies are per force managed by senior citizens, as younger, able bodied members are either reluctant or do not have time to devote time for the honorary work. The problems faced by those managing housing societies are numerous. After slogging all their working years, they are pushed into this thankless but highly sensitive job. It is time some enterprising management people design a framework to administer societies by agencies which have proper set up. Commissioner of Co-operation should grant statutory recognition to such agencies. Like other professionals, e.g. CAs and practicing secretaries, they should be made answerable to the elected managing committee / members of the society and the co-operative department. Unless these issues are addressed on TOP PRIORITY, life of senior citizens who are pushed into the saddle is going miserable and there sure is going to be a vacuum in society administration.