Perpetually Absent Committee Member
The efficient functioning of the managing committee of a cooperative housing society (CHS/Society) is crucial for ensuring harmonious living conditions for all residents. This committee oversees financial management, addresses member grievances and handles daily operations, functioning like a well-oiled machine.
While core duties include collecting maintenance charges, raising funds, managing reserve funds and ensuring compliance with legal requirements, the committee also addresses member issues, facilitates the organisation of community events, maintains property, supervises service staff, regulates parking and ensures adherence to society rules. Additionally, they execute legal documents, approve audit reports, manage vendor contracts and coordinate elections and general body meetings.
Therefore, when a managing committee fails to carry out its duties or mismanages a housing society, it can have disastrous effects on all residents. With this in mind, this week, I will address the problem of a committee member being perpetually absent from all committee meetings and also another case where multiple violations of the society bye-laws have caused problems for residents.
Committee Member Remains Absent from all Committee Meetings
Question: If an elected managing committee member has not attended any meetings, what action can be taken by the committee members or by residents of the Society?
Answer: If any managing committee (MC) member does not attend three consecutive MC meetings, then his post as MC member automatically gets removed. Other MC members should first issue a notice to the absent MC member asking for the reason for their extended absence from MC meetings. If there is no response from the erring MC member, his post will be considered vacant, and some other resident member can be appointed to his position. If your Society's MC does not want to take any action against the erring MC member, then any member of the Society can make a complaint to the deputy registrar of cooperative societies.
Mismanagement of Society
Question: Our Society is small, with just 24 members, six of whom are commercial shops. For the past several years, the Society has been run by a single person. There are no audited statements of accounts, no general body meetings, no elections, and even the 2014 bye-laws have not been adopted. Most members have given their premises on a leave and licence basis and only eight actually live on the premises.
Under such circumstances, what remedies can be worked out to allow our Society to function properly? I do not want the Society to be put under administration by the sub-registrar. Please advise.
Answer: If your Society is not being managed well, why would you not want to have an administrator investigate and resolve the concerns? I suggest that you raise separate complaints to the deputy registrar of cooperative societies as I have detailed below:
1. The election had not been held since (mention the year when elections were last held).
2. The annual general meeting (AGM) has not been held since (mention the date of the last year AGM was held).
3. Audited balance sheets or accounts statements have not been circulated (mention the last year in which they were circulated).
In this way, you should make three complaints to the deputy registrar (DR) of cooperative societies, against your Society. DR will appoint an authorised officer (administrator) for your Society who will do the necessary investigation into the maladministration of your Society.
NOTE
We will not be answering queries posted in the comments. Only questions sent through the Moneylife Foundation's Legal Helpline will be answered. If you want to seek guidance or ask questions to Mr Shanbhag, kindly send it through Moneylife Foundation's Free Legal Helpline. Here is the link: https://www.moneylife.in/lrc.html#ask-question Calculating Maintenance in a Plot-owners' Society
Question: Our Society consists of 250 bungalows in Pune. Some members have purchased two or more plots and have constructed a single bungalow on them. The agreements do not mention plot numbers (especially when multiple plots are purchased by the same buyer). The maintenance is being calculated based on the units, if even the number of plots owned is more. There is also a disparity in the area occupied by each member, ranging from 1,200sqft (square feet) to 18,000sqft. Can you please advise on whether maintenance is to be calculated reasonably?
Answer: Kindly refer bye-law no. 67, in Society's bye-laws of 2014. There, you will find which items are to be charged based on the area of the land. Bye-law 5 mentions the objects of the Society, which can be modified as per your needs with the permission and approval of your district deputy registrar. You may want to consider doing so after reaching a consensus within your plot-owners' Society.
Disclaimer: The guidance provided in these columns and on our Legal Helpline is on the sole basis of the facts provided by the reader/questioner and does not amount to formal legal advice in any form whatsoever.
(Shirish Shanbhag has an MSc in Organic Chemistry, a Diploma in Higher Education, and a Diploma in French and has completed his LL.B. in first class in 2021. Before his retirement, he was a junior college teacher at Patkar College from July 1980 to May 2012, teaching theoretical and practical chemistry. Post-retirement in 2012, he started providing guidance and counselling to people on several issues, specifically focusing on cooperative housing society-related matters. He has over 30 years of hands-on experience in all matters about housing societies and can provide out-of-box solutions for any practical issue.)
