In a significant move aimed at reducing disputes and strengthening compliance in cooperative societies, the Registrar Cooperative Societies (RCS), Delhi, has issued three directives relating to co-option of managing committee members, conduct of elections and maintenance of membership records.
The directives, issued by Registrar Cooperative Societies Krishna Kumar Singh under Section 42 of the Delhi Cooperative Societies Act, 2003, are applicable to all cooperative societies registered in Delhi.
Among the three, the directive on co-option is likely to have the widest impact.
The RCS has clarified that while several societies continue to retain provisions for co-option in their bye-laws, such provisions originated under the erstwhile Delhi Cooperative Societies Act, 1972. The Delhi Cooperative Societies Act, 2003 and the Delhi Cooperative Societies Rules, 2007 do not contain any provision permitting co-option of members to managing committees.
Accordingly, societies have been directed to review their bye-laws and initiate amendments wherever provisions are inconsistent with the current Act and Rules. Proposals for registration of amended bye-laws must be submitted to the RCS within 90 days.
The Registrar has further clarified that any co-option carried out in violation of the Act, Rules and the directive shall be treated as “null and void”.
In a separate directive, the RCS has introduced a pre-election verification process aimed at reducing election-related litigation. Cooperative societies will now be required to submit a declaration, along with supporting documents, to the Registrar’s office two months before the expiry of the tenure of their elected managing committees.
The Registrar’s office will examine the documents and accord approval for conduct of elections within 15 days. The directive notes that if societies fail to initiate the election process before the expiry of the committee’s tenure, an administrator may be appointed in accordance with the provisions of the Act to manage the affairs of the society and facilitate elections.
The election-related directive also seeks to address recurring disputes concerning electoral rolls, defaulters’ lists, nomination scrutiny and continuation of expired committees due to prolonged litigation.
The third directive addresses maintenance of membership records. Observing that several societies are not maintaining member registers in the manner prescribed under Rule 28 of the Delhi Cooperative Societies Rules, 2007, the RCS has directed all societies to maintain complete membership records and submit a compliance status report within 30 days.
The Registrar has warned that failure to furnish the required report within the stipulated period may be treated as non-compliance of the directive issued under Section 42 of the Act, and could invite action against the erring managing committee, including proceedings for supersession under Section 37 of the Delhi Cooperative Societies Act, 2003.
According to the Registrar, the directives have been issued to ensure strict compliance with the Delhi Cooperative Societies Act, 2003 and the Delhi Cooperative Societies Rules, 2007, while reducing disputes relating to elections, membership records and the functioning of managing committees.