Is Managing Committee of CHS a Mafia?

By I C Naik

The secret of why the managing committees of cooperative societies (esp. in housing societies) in Maharashtra are at times called MAFIAS is revealed:

1.  “Society” is defined under the amended Section 3(27) of the M. C. S. Act 1960 as under:

“Society  means a co-operative society registered, or deemed to be registered, under this Act  *(which is an autonomous association of persons, united voluntarily to meet their common needs and aspirations through a jointly owned and democratically controlled enterprise and adhering to the co-operative principles and values”;)

*The words in brackets are added by Maharashtra Cooperative Societies (Amendment) Ordinance 2013 with effect from 14 2 2013.

2.  In the Maharashtra Ordinance amending the M. C. S. Act 1960 I did not find any list of “co-operative principles” which I knew the Multi-State Cooperative Societies Act, 2002 has incorporated as listed in the First Schedule attached thereto. I was fascinated by Principle No. 2 reading as under.

No 2. Democratic Member Control

Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and decision making. Elected representatives of these cooperatives are responsible and accountable to their members.

3. Fascinated because in two simple sentences, it beautifully tells everything essential for the membership at large and its management to make huge of success of society. If this one principle is practiced with full honesty in any society, all complaints of so called mafia management and indifferent membership both would disappear and society will progress in leaps and bounds.

4. But Alas, it was no to be…….the Maharashtra cooperative societies are not lucky.

The Commissioner for Cooperation and Registrar, Cooperative Societies (CC & RCS) Maharashtra State, Pune has on the website http://sahakarayukta.maharashtra.gov.in/SITE/Sections/Finance.aspx

Listed out the 7 principles  which guide membership and management of every cooperative society registered in the State of Maharashtra. As I was fascinated with the Principle No. 2, I down-loaded it using the following URL

http://sahakarayukta.maharashtra.gov.in/SITE/Information/principles.aspx

reading as under:

2. Democratic Member Control

Cooperatives are democratic organizations controlled by their members—those who buy the goods or use the services of the cooperative—who actively participate in setting policies and making decisions.

Now look at the aspects critical to the success of cooperative society, in the two sets of Cooperative Principles, (the MSCS and MCS):

1. In a smart move by eliminating the key phrase, in Principle No 2, the management is relieved of a critical management attribute of being “responsible and accountable to their members.”

2. Then I went through all seven principles more than once to see if there is anything for management in any of them. I found none.

3. For society’s indifferent membership I found following phrases of sermons:

a. In Principle 1 : Voluntary and Open Membership

·  People, willing to accept the responsibilities of membership

b.In Principle 2: Democratic Member Control

·  organizations controlled by their members—who actively participate in setting policies and making decisions

c.In Principle 3: Members’ Economic Participation

·  Members democratically control the capital of the cooperative.

d. In Principle 4 Autonomy and Independence

·   Cooperatives are autonomous, self-help organizations controlled by their members.

·  ensure democratic control by the members

And the So called MAFIA Management has a last laugh.

Is this not a justification for providing national level mandates for State Laws governing cooperative societies, though looking unassuming?

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