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Home Cooperative Queries

Advice required regarding CHS rules

Rohit Gupta by Rohit Gupta
June 24, 2014
in Cooperative Queries
7
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Sudipto Basumallick

Dear Sir

I live in a CHS in Navi Mumbai with 125 members. We have a MC which has been doing extremely good work for past 4 years, investing their private time. Their term is scheduled till 2015 March.

However a group of members having some vested interest are always trying to put this MC into trouble by creating issues and promoting groupism.

With this the MC team is so fed up that they want to call a AGM/SGM and resign enmasse. However there is now some rule that existing committees will have to hold on till dec2014. Hence they are not clear what to do ? What happens if they now suddenly resign ? Will our CHS governance go to government ?

Is there any way they can resign and elect a new team ?

Request please let us now the rules clearly.
Thanks in advance.

I C Naik:

The situation you are facing in your cooperative housing society is not an exception neither it is a rule.

The Government of the State of Maharashtra has been flouting the Constitutional Mandate enshrined in the Constitution of India through the Constitution ( 97th Amendment ) Act 2011 (97CAA).  This has created a lot of confusion in the minds of management of cooperative housing societies in the State.  Every society has to try to attend management crisis with lot of patience and many members  who were indifferent to management of the affairs of their cooperative housing societies have to come forward in such situations.

The Maharashtra Cooperative Societies (Amendment) Act 2013 (the Amending Act) has by committing contempt of a Constitutional Mandate by not constituting the SCEA (State Cooperative Election Authority) given indefinite extension to those committees which have surpassed the tenure of 5 years also.[New Sub-Section 4 of Section 166 of the M C S Act 1960].

No cooperative housing society can conduct election now as all election Rules applicable to cooperative housing societies are already superseded by the Maharashtra Co-operative Societies Election to Committee Rules, 2013 issued by the State Government on 20th August 2013.

The Constitutional Mandate bans State to appoint Government employee to manage a cooperative housing society even in grave crisis and the members have to find solutions to any crisis in their management.

In the Amending Act, the State has circumvent this ban by re-christening “the Administrator” as “the Authorized Person” in Section 77A of the M C S Act 1960- an act of abuse of the this term coined under the Constitution ( 97th Amendment ) Act 2011.

If the managing committee resigns en-mass this Authorized Person can send someone to manage your society. So consider that situation with in a group of sincere and well meaning members as to how this Authorized Person can be prevented to send some government officer to manage your society.

I have suggested a course of action in one Thane based society through an answer to 3 questions raised by one frequent visitor to site, namely Mr Shankar Nair which faced exactly the same situation.

Let the whole Committee resign except two members. Within the sincere group by   consensus identify the members ready to join the committee to look after society’s interest. The two members continuing on committee can co-opt the rest and fill up committee. Later these two can also resign and two more can be co-opted. The Committee can be beneficially expanded by co-opting two more members as Expert Committee Members” and two women members if there is none.

Tags: Maharastra\management crisismumbaisocietyTenure
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Comments 7

  1. AB Lal says:
    11 years ago

    I UP the quorum is minimum 5 MC Members, out of total 8. Less than this number no decision can be made.

    I believe let all MC resign in this case, and Administrator be appointed, who will have to be transparent under the RTI and shall be questionable for his actions.

  2. Dilip Trasi says:
    11 years ago

    As per the amended MCS Act 1960, the number of MC members has to be odd in number. From 15 society members to 100, the number of committee members is 11, including women,SC,ST,OBC etc, being 5 in reserved category. The quorum will then be 6. By sec. 127 no meeting can be held and decision taken without a quorum hence co-option by only 2 members is prohibited. Furthermore even with quorum present, only casual co-option is allowed for vacancies created by resignation, death etc. and not by mass resignations. Better alternative is to give names of three members who are not in previous committees and have no allegations against them to the Asstt. Registrar of the concerned ward, who then can u/s 77(A)(1)(b-i) dissolve the minority committee (of 2 members) who have not resigned and appoint the 3 member committee for 6 months to manage the society’s day to day activities till the elections are held under the Authority appointed by the state government.

  3. Vardharajan says:
    11 years ago

    Dear Sir,
    Wanted to know how many Committee Members are required to form a committee of a redevlopment project of 4 Chawls and 159 residents. Also want to know How many people can be their on a Managing committee and can their be Chairmen,Vice Cahirmen,Secatray and Joint Secatary and two treasures since we want to Include atleast two members from each chawl. Can you guide us sir.

  4. Prakash Jain says:
    11 years ago

    What are the rules regarding co-option of members in the Managing Committee? Whether retificaiton/ approval of AGM is required for such co-option? Consequences if such approval is not obtained in the AGM.

  5. binu says:
    11 years ago

    Can society ask No dues certificate from Building for issuing share certificate. There is some dispute with builder regarding maintenance charges & to settle that I understand builder is forcing society not to part with share certificate. Is society has any right to hold my share certificate?

  6. n says:
    11 years ago

    how many members can be co opted ? will they have rights of elected members ?

  7. chandrakant patil says:
    11 years ago

    Ours is a CHS consisting of 40 members.As of now the secretary has resigned and insisting to accept his resignation.He is one among the 5 MC members.Since the members are not forthcoming to become office bearers there is selection and no election formalities are conducted for more than 10 years.The same set of people are working.WE have in Dece 2014 handed over the CHS for redevelopment.

    Under the circumstances wheather the present committee should continue with induction of one member selecte by MC or SGM or wheather election procedure has to be followed even if no nominations or contest is expected?

    Please guide.Pl E mail to me

    Chandrakant Patil

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