14 June 2012, Mumbai: If the straws blowing in the wind are any indication, a storm is approaching that will badly hurt the crores of ordinary cooperative housing society (CHS) members living in Maharashtra’s 85,000 societies, while bringing relief to members of managing committees, whose numbers are a mere fraction of these. In his speech, Co-operative Minister Harshvardan Patil, a chief guest at the Housing Melava held yesterday, said that the requirement for managing committees of CHS to compulsorily file M-20 Bonds within 45 days or face automatic dismissal may be removed. Also, provisions for appointing administrators nominated by the cooperatives department for replacing the expelled managing committees may be removed. And last but not least, new rules may be framed to make it easier for the managing committees of housing societies to expel members who were “troublemakers”. These remarks were made in the presence of Chief Minister Prithviraj Chavhan and Deputy CM Ajit Pawar, who appeared to concur with the views of Harshvardhan Patil, and, to the alarm of the RTI Union members present there, indicated that these changes may be only a couple of days away.
To observe 2012 as the International Year of Co-operatives, the Co-operative Dept. of Maharashtra had organised a seminar known as “Housing Melava” on the afternoon of Wednesday afternoon, 13 June, at Shanmukhanand Hall, Matunga. Besides Prithviraj Chavhan, Ajit Pawar and Harshvardan Patil leading bureaucrats like Gautam Chatterjee, Principal Secretary of the Housing Department, Mumbai Municipal Commissioner Sitaram Kunte, Registrar of Cooperatives Seshrao Sangle and officials of the housing and co-operative department were present in large numbers.
There has been constant lobbying pressure in co-operative housing circles and also the ministry of co-operatives to get co-operative housing societies exempted from the ambit of M-20 Bonds ever since the time co-operative housing societies were included and covered under the Act in 2001.
For details on the significance of M-20 Bonds, read http://tinyurl.com/RTI-Union-M20-Bond-Guide
Of over 85,000 co-operative housing societies in Maharashtra, about 50,000 are in Mumbai and Thane alone. Harshvardhan Patil said that the managing committees of these co-operative housing societies were facing problems from a few “troublemakers” in the societies who hindered them. The M-20 Bond is an undertaking given by each managing committee member, that explicitly states, “I shall be jointly and severally responsible for all the decisions taken by the Managing Committee during its term relating to the business of the society and shall be jointly and severally responsible for all the acts and omissions detrimental to the interest of the society as provided in section 73 (1AB) of the act.” In the absence of the M-20 Bond, the MCS Bye Laws are toothless as there is no provision for dismissal of the managing committees.
The need for such an undertaking was felt when the state legislature realized that the Managing Committee members of different Co-operative Societies (including housing societies) were acting in an arbitrary manner. The provision for CHS was introduced to introduce some accountability amongst the members of the managing committee by executing a bond within 45 days of their election after its elections or assuming office, whichever is sooner. If a managing committee member fails to execute the bond within 45 days, then he is deemed to have vacated his office. This provision makes the managing committee more sober and accountable.
Many members of RTI Union were present at this meeting, and were disappointed. RTI Union condemns the proposed move to dilute the existing rules and laws to the advantage of managing committee members, and the great disadvantage of ordinary members who are bullied and harassed into submission. We urge the government to make housing society rules and laws even more stringent so as to enable strict penalties on erring managing committee members.
To get an overview of problems between members and managing committees, read these two articles.
• http://tinyurl.com/CHS-overview
• http://tinyurl.com/CHS-overview2
JB Patel (Jeby)
CHS Activist
jebypatel@gmail.com
Now What about for the Launching of New Co-Op Hsg - Hv to Submit M-20 Bonds or Not Necessary ?
Owner Members Demand from your Managing Committee
The M-20 bond has been signed and submitted to the Deputy Registrar of Cooperative Society.
That every Committee Member complies with:
Member of a Co-operative Housing Society in Maharashtra, who has more than two children is not eligible to be a member of the Managing Committee. This disqualification is applicable only to a member to whom the third child is born after September 7, 2011
Also, if a member is convicted by a Court of Law for any offence involving moral turpitude, that member is not eligible to be elected as a member of the committee unless a period of six years has lapsed since such conviction.
A member who defaults in payment of dues to the society within three months from the date of service of notice in writing is not eligible to be elected as a member of the committee.
As per the Maharashtra Co-operative Society Act 1960 vide Section 73(1AB) every members of Managing Committee of Cooperative Housing Society have to execute the M-20 bond and submit it to the Deputy Registrar of Cooperative Society to make them accountable of their personal responsibility and liability towards the society and its members.
(Bombay High Court – Writ Petition No:457 of 2007) under article 226 of the Constitution of India.
Bye Law No: 136 of the Old Model bye Law and Bye Law no: 138 which lays down that the members of the Managing 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 function cast on them under the Act, Rules and bye laws of the Society.
This response was written after having read about the Mandatory provisions of M20 Bonds. Now I suddenly chanced to come upon the current page which tells us that the said mandatory provision will be done away with. Indeed, what a travesty of justice when even during the days of M20 Bonds, the mg.committee cared two figs for the Society as a whole! Anyway, based on the previous rule about M20 Bonds being mandatory for the Mg.Committee of a coop.housing society: What if the Dy. Registrar doesn’t take any action despite being informed and despite his own officer’s findings? What if the Office Bearers continue to hold AGMS? What if they say that all the documents are with Dy.Registar and they cannot show the documents in the AGM or in the Society’s Office? What if the other members of the Society don’t even object to their continuance despite the fact that major repairs is being done by some two-three office bearers themselves who give the “repair” work to any Tom, Dick and Harry available in the local market? The fraud is major and no procedures have been followed. The height of the absurdity and stupidity of the attendees was such that even when a so-called contractor openly declared on the microphone in one of the AGMs that six lakhs were pocketed by the office bearers after they had written a cheque in his favour and then accompanied him to take the cash. The chairman had then blurted out “Maine akele thodee liyaa hai” before all the attendees. But none pursued the matter. Anyway the story is lond. The fact of the matter is that we need to be guided as to how we can enforce the Mg.Committee and their Gang to follow the procedures without going into the long court-battle. Please help.