Krishnadas Menon
I have a confusion about the maximum penalty a society can impose to a member, ref. bye law 166 Maximum restricted to Rs.5000/-, and refer sub clause A, if AGM/SGM passed a it can charge Rs.5000/- per week for any violation by member awaiting for your reply.
The meeting of the General body of the society may prescribe penalties for different breaches of the byelaws of the society. The Secretary of the society, under instructions from the Committee, shall bring to the notice of the member concerned, the breach/breaches of the bye-law/bye-laws committed by him. If the member persists in continuing the breach/breaches, the Committee shall give the notice to the member to show cause as why the penalty should not be inflicted on him for breach/breaches of the byelaw/bye-laws.
The general body meeting, after considering the say of the member and after giving him hearing, may levy penalty to the extent of maximum consolidated penalty of not more than Rs.5000/- in a particular year.
A) Save except other provision in the Act, the A.G.M./special G.B.M. can penalize a member for committing breaches in his Responsibilities. Such penalty should be reasonable and equal to all such erring members. A.G.M./Special G.B.M. is empowered to frame the penalty amount. The managing committee shall recover such penalties with proper care.
I C Naik
RESPONSE
THE BYE LAWS empower the general body meeting to levy penalty for breach of any of the Bye Laws in a formal manner. There are no common Bye Laws applicable to all cooperative housing societies in Maharashtra. There are three approved Models of the Bye Laws 1984, 2001 and 2009. Latest Model 2013 aligned to the Constitution ( 97th Amendment ) Act 2011 and the Maharashtra Cooperative Societies (Amendment) Act 2013 and the Maharashtra Co-operative Societies Election to Committee Rules, 2013 is in the making and perhaps it has been delayed by Loksabha Elections and ensuing State Elections.
So look up your Bye Laws.
Common procedure is that
1. The general body meeting should approve a Members’ Discipline Table in which probable bad-conduct of members amounting to breach of a specific Bye Law are listed.
2. Penalty amount is prescribed for each bad-conduct.
3. When a member is found to be guilty of a bad conduct is given opportunity in the general body meeting to defend himself
4. Ultimately the general body meeting passes a resolution to levy penalty as prescribed.
As regards the maximum penalty, the Bye Laws can fix a ceiling. For the first time, Model 2009 has fixed a ceiling of ` 1000. Presumably this is in relation to one bad-conduct.
Confusion around Rupees 5000/- is in latest 2013 Model under approval of the Commissioner and Registrar of Cooperative Societies and is posted on http://sahakarayukta.maharashtra.gov.in/SITE/PDF/Rules_Acts_Bylaws/Model_ByeLaws_of_Housing_Cooperative_societies.pdf
As per Bye-Law No 166 there is an annual ceiling prescribed in these words: “to the extent of maximum consolidated penalty of not more than Rs.5000/- in a particular year.”
These Bye Laws when registered as the Bye Laws of your society the Penalty will be enforceable with in this ceiling.
does this mean paying Rs 5000 a member gets licence to anything in a year?