Query of Shalini from Mumbai

I stay in Mumbai,Maharashtra

Overview :

I had sent a letter to managing committee(MC) with a request to let me (along with joint owner) at suitable office hours – have a look at the following:

  1. a) Accounts, expenditures and receipts of day to day functioning/transactions for the current FY
  2. b) Committee monthly meeting minutes

Response Received from MC : I can have look at the meeting minutes, however for the day to day transactions – i.e. accounts,expenditures,cashbooks etc – they cited MCS act 32(1) and said that you can only have look at last audited balance sheet, profit and loss account for last FY and not the current FY as that auditing is yet to be done.

Query :

Considering the fact that I am regular payer of maintenance and responsible member of the society –

must have right to see of how society is functioning and making the expenditures and in case if at all there are any gaps/queries I can raise it in timely manner.

Can you provide inputs/direction on how can I proceed further on this – as I strongly believe that each and every member of the society must have the right to inspect the day to day transactions of the society taking prior permission from the committee.

Kindly acknowledge – awaiting response.

I C Naik

Probably the kind of approach you have may be one of 1000 of members of the housing societies.

I suggest you buy a copy of your housing society’s registered bye-laws as certified by the Secretary as true copy and in force on date of certification. It is not free. Copying cost is to be born by the member.

You will find your rights as member among others, in Ch II. ( B ) right of Getting Copy of the Bye-laws, Audit Report & Inspection of Books & Records and getting copies thereof:

Bye-Law No 23.

(a)  A Member shall have right to inspect free of cost books, registers documents etc. as provided in Section 32 (1) of the Act and get copies of the documents as provided under Section 32 (2) of the Act, on payment of the fees prescribed under the bye-law No. 171.

(b) A Member shall be entitled to receive a copy of the Approved Bye-laws, Audit Report of the Society, on payment of charges prescribed thereof

Section 32 – Rights of members to see books, etc.

(1) Every member of a society shall be entitled to inspect, free of cost, at the society’s office during office hours, or any time fixed for the purpose by the society, a copy of the Act, the rules and the by-laws, the last audited annual balance sheet, the profit and loss account, a list of the members of the committee a register of members, the minutes of general meeting, minutes of committee meetings and those portions of the books and records in which his transactions with the society have been recorded.

(2) A society shall furnish to a member, on request in writing and on payment of such fees as may be prescribed there for, a copy of any of the documents mentioned in the foregoing sub-section within one month from the date of payment of such fees.

As far as transactions records are concerned you are entitled to see whether your transactions (Maintenance Payment) with the society have been properly recorded.

I do appreciate your bona fides to raise a signal at a right time if the managing committee was doing anything wrong. The MCS Act 1960 and registered bye-laws have adequate provisions to ensure that managing committee discharges its functions properly. The members of the Committee are giving honourary service and the members must have a confidence in their integrity. Two provisions are worth noting.

Section 731AB reads as :

(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 beyond the control of such members:

Bye-Law No 137 reads :

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.

Section 72 of the Act is a kind of safeguard against member’s interference in day to day matters. It reads as :

Subject to the provisions in this Act and the rules, the final authority of every society shall vest in the general body of members in general meeting, summoned in such a manner as may be specified in the by-laws.

The best way is to contest election on a seats reserved for women members of the society and join the Committee and you will have a full access to every thing as then in real sense you will be responsible for the affairs of the society as per above provisions.

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