Run your society economically

By Mr. Vimal Punmiya, FCA, LLB

In the State of Maharashtra, there are about more than 50,000/- Societies, out of which 50% of them are in the city of Mumbai.

The said Concept of the Co-operative Society has been recognized in last 50 years whereas before the Partition the concept of landlord- tenant was there.

The key role to run the co-op society economically & effectively is to build harmonial relations with a bond of common habit & common usage coupled with the fellow feelings which itself transforms into a new community wherein each is for all & all for each.

Each housing society is like a small body of Municipal Corporation which is formed with the object to maintain Electricity, Water Supply, Maintenance of lift, Security, Cleaning of the premises, Parking, Collection of Garbage, Keeping of various Statutory & Accounting records.

For, a Society to regulate their functions, they have 3 options to which they can adhere to, that is they can either have their Own bye-laws, or they can opt for a Model bye-laws of 1984 or they can adopt New Model bye-laws of 2001.

           The essence of the co-op movement is that the people concerned should themselves look after the management of their affairs including the economic betterment & social welfare.

The members of the society should actively & jointly participate in casting the vote for appointment of the members to the Managing

Committee. They should participate in every General Body meeting & appoint the Managing Committee members who are honest, disciplined, duty conscious, & hard working, especially retired officers of the Army

or Navy are preferred who have all the above aspect in them, & if the Retired Officers or Army Officers, are not residing in the Society, then they can be employed officially as a Manager of the said committee, as the presence of the aforesaid aspects & qualities are essential to run the Society effective & efficiently, as when the members of the managing committee are committed to a task, they can carry out their duty at their best of the abilities. But, if the Army Officer is not there then any member such as Rotarians, JC’s-Giants, can also be appointed.

                   The members of the managing committee should not have the impression that they are the landlords of the Society. Further, they should also not dictate their own terms & conditions or their say in the Society by keeping in mind that they are the respected persons duly appointed by the members of the Society to look after the interest of the members.

               At, the same time the member of the Society should keep in  mind that the Office Bearers who are working honorary for the interest & well being of the Society & its members , therefore the members in addition to the above must co-operate with the managing committee & must pay all the monthly outgoings of the Society in time & also keep in mind that what good they can do for the Society, rather than thinking what good can the Society do for them. 

In addition, to the above, in the Managing Committee, there should be at least one or two lady members be appointed to maintain the due-decorum in the meeting, whereby the meeting would begin & end on time & wherein the lady members can also play an active role in maintaining the cleanliness within the premises of  the Society as most of them are at home for whole-day.

         Further, in addition to the above, to run the society effectively & efficiently, the Managing Committee can also do the following acts, which are as under:

1. a.       Float tender in respect of the repairs & maintenance of the building, which will invariably help in minimizing the cost to be incurred.
2. b.        The Books of the Accounts be updated regularly & can be kept open for inspection for all the members.
3. c.         The Committee members must keep a Complaint book in the committee office, where the members can put their complaints in writing & the committee can attend to the same at the earliest.
4. Last but not the least the members of the managing  committee should organize at least 2 informal meetings by way of a get-together, in a year, on auspicious day such as 26^th January, 15^th August, Holi, Rakshabandhan, Ganesh Festival, Diwali, Christmas, Parsi New Year or Annual General meeting of the Society, with the members of the society followed by a lunch or a dinner which would encourage to build up cordial relations with the members & help in effective functioning of the society.

     More so, the Bye-laws are mere guidelines & does not have a forcibility effect in the Court of law, hence the bye-laws can be amended after passing a proper resolution in respect of the above, in the General Body Meeting  & the same should have a due approval of the Registrar.

    If the Society decides to opt for a New model bye-laws of 2001, then many issues can be sorted out practically which may arise such as:

1. 1.     Uniform bye-laws for residential, commercial & open plot Societies.
2. 2.     Rights of the joint members are recognized.
3. 3.     No objection of Society for Sale & Purchase of flat is not required.
4. 4.     Family includes married daughters.
5. 5.     Structural Audit by penal Architects of Municipal Corporation once in 5 years if building is between 15 to 30 years old & once in 3 years if the building is above 30 years old.

1. 6.     Insurance of earthquake along with Fire Insurance is compulsory.
2. 7.     After the death of a member, the nominee can apply with in 6months. If a nominee applies after a period of 6 months, then an approval of the Registrar is required for the same.
3. 8.     Copy of Pass Book need not be given to the Member.
4. 9.     Sinking Fund amount can be used for the purpose of major repairs of the building after a due approval of Registrar.

10.Committee can spend at a time on repairs up to Rs.25,000/-  if the

members are up to 25, & if the members are between25 to 50,

then amount can be spend up to Rs.50,000/- & up to Rs.1lacs can

be spend if the members are above 51.

11.Committee can spend at a time in cash up to Rs.1500/- if the

members are up to 20, if the members are between 21 to 50, then

Rs.3000/- can be spend in cash at a time & if the members are

above 51, then the amount can be spend up to Rs. 4500/- in cash at

a time.

12.Society can charge non-occupancy charges which being 10% of

service charge after passing a resolution in General Body Meeting

& a due approval of the Registrar.

13. The Transfer premium can be charged up to 2.5% of the

Agreement value of Rs.25,000/- whichever is lower.( No amount

can be charged in the garb of voluntary contribution, Repair Fund,

Donation etc.)

14.Membership can be cancelled with the approval of the  Registrar if the person is not traceable for 7 years or more.

15.The resignation of the office bearers is effective only after handing over of the charge.

16.Auditors can be appointed from the panel of auditors              maintained by the Registrar.

1. The Tenure of the Managing Committee is for a period of 5 years.
2.  The Society has a power to recognize open car parking sold

by the builder.

1. The Society can allot car parking on first come first served basis if      ample space is there otherwise on yearly basis in lot.

1. The repairs of the internal leakage is the responsibility of the member himself. But, if the leakage is from the external parts such as leakage from the slab, beam, coloumn (even in bathrooms) etc. then to repair the same is a responsibility of the Society.
2. The members of the Society can be expelled from the Society with

a prior approval from the Registrar for change of the user without

permission.(The Professional can use 40% of his area for his

professional activities)

22.Commercial Societies can file the recovery suit against their

members under section 101 with the Registrar of the Co-op

Society.

23. The Office bearers of the Society is required to acknowledge every

letter received from the members of the Society.