I am a member of Kubera Gulshan Co operative Hsg Society Ltd situated at Pune State of Maharashtra. The Reg N0 of our Soicety is – PNA / PNA(2) / HSG / (TC) 5124 / 2000_2001 Dt 20-12- 2000.
The AGM of our society was held on the 16th Sept 2017. The Auditors Report gave an indication that our Society was Accepting CASH from members after 8th Nov 2016 ie after demonitisation. The Society then deposited the cash in the Bank from 9th Nov 2016 to 15th dec 2016. At the AGM the committee tried giving some explanations which members did not accept. The committee accepted its mistake. The AGM was adjourned to 23rd Sep 2017. The Auditor was present at the adjourned meeting. Now the committee changed its stand completely. They decided to approve the accounts and the majority voted in favour.
Has Managing committee ( MC) done something gravely wrong? Is it a criminal Act ? Or is it something that can be ignored?
Should we report it to some Authority? If Yes Who?
There are many members who feel that the Society should not be held responsible for any wrong doing.
I C Naik
BYE-LAW NO. 144 reads: All payments in excess of Rs. 1,000/- (Rupees one thousand only) shall be made by means of crossed A/c payee’s cheques.
For collections from members only by means of crossed A/c payee’s cheques is not contemplated.
Whether it is a grave wrong by the society under demonetization scheme also depends on amounts involved and nature of credits given to members of cash receipts. If it was only to facilitate members convert unaccounted cash in accounted money the Authorities may take a view and action. The members of the housing society can invoke following provisions to save housing society from its adverse consequences:
- Bye-law No. 136. The members of the Committee shall be jointly and severally liable for making good any loss, which the society may suffer on account of their negligence or omission to perform any of the duties and functions cast on them under the Act, Rules and the bye-laws of the society.
- Section 73[1AB]:
The members of the committee shall be jointly and severally responsible for all the decisions taken by the committee during its term relating to the business of the
society. The members of the committee shall be jointly and severally responsible for all the acts and omissions detrimental to the interest of the society.
Provided that, before fixing any responsibility mentioned above, the Registrar shall inspect the records of the society and decide as to whether the losses incurred by the society are on account of acts or omissions on the part of the members of the committee or on account of any natural calamities, accident or any circumstances control of such members.