Category: Co-operative Societies

Main additions & deletions on Model Bye-Laws

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Here is a powerpoint on the main additions and deletions that have been made in the New Model Bye-laws 2013 (as compared to the 2009 version):http://tinyurl.com/Model-Byelaws-Addition-Deletn

Currently, it seems that there is little or no time-pressure on housing societies to adopt these bye-laws. So, this may be a good time to read, understand, circulate and discuss at leisure.

Courtesy : Krishnaraj Rao

Consumer fora can initiate ‘contempt of court’ as well

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Allahabad high court rules that consumer forums can also initiate contempt proceedings

To decide the legal controversy, the HC analyzed the law and its interpretation. The word “court” is not defined under the Act and its meaning would have to be culled out on the basis of various pronouncements by the SC.
In the case of Virendra Kumar Satyawadi v/s State of Punjab, an SC bench considered the characteristics of a court. It held that a court has a duty to decide disputes in a judicial manner and declare the rights of parties in a definitive judgment. Judicial adjudication requires the parties to be heard in support of their claims and to produce evidence. The dispute has to be decided in accordance with law by considering the evidence. An authority or a tribunal would be considered a court only if it fulfils all these attributes.
Going by this definition, even a Returning Officer deciding on the validity of the nomination papers under the Representation of People Act is considered to be a court. Similarly, even an Assistant Registrar under the Cooperative Societies Act is considered to be a court under the Contempt of Courts Act.

Click Here for the full article by Jehangir Gai

Maharashtra Govt. to go slow on Co-operative Law

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“PILs against the amendments are pending before the Bombay HC,” state cooperation minister Harshwardhan Patil told TOI recently. “The Gujarat HC has questioned the 97th constitutional amendment (under which the cooperative society amendments have been drawn up). A joint committee of both houses of Maharashtra legislature is discussing it and should suggest changes. Taking this into account, we will go slow on strict enforcement of the MCS Act amendments,” Patil said.

The problems being faced by members are many and the new rules do not give clarity in the matter.

Click Here to read the full report in Times of India

 

Pay legitimate Transfer Fees, not Donation

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PAY TRANSFER FEES AS PER LAW INSTEAD OF DONATING

The unlawful concept of ‘donation’, employed by the cooperative housing society’s managing committees, to facilitate the transfer of a flat by a CHS member, urgently need to be examined at length, points out GAJANAN KHERGAMKER

Each time, a cooperative housing society member wants to sell his property anywhere in Mumbai, he is bullied into paying up way beyond the officially ‘legal’ transfer fee of a maximum of Rs 25,000. The excess he pays ranges from Rs 5,000, in case of small societies to as high as a few lakhs of rupees, depending on the size, status and level of moral accountability of the society in question.
The cooperative housing societies and their managing committees, charging the fees, are spurred by a skewed sense of logic in their acts of demanding donations. “If a member is getting a good price for his flat, it’s because we’ve collectively maintained the society and the common amenities too. Why then, should the member be reluctant to ‘donate’ something for the society that he’s lived in for years? He pays only voluntarily and as a gesture of goodwill,” is the regular rejoinder of managing committee members ‘charging’ donation fees. Any argument, however illogical, is permissible in a democracy but only in the context of a debate and within socially-approved parameters. The managing committee members have even evolved ways to elbow outgoing members into paying up the excess. In several cases all over the city, society’s managing committee members refuse to provide the no-objection certificate for the purpose of sale and transfer to the outgoing member.

Click Here for the full article

Certain provisions of 97th amendment unconstitutional

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Gujarat High Court on Monday declared certain provisions of the 97th amendment to the Constitution of India, dealing with cooperative societies, as unconstitutional and ordered them to be quashed.
The judgement was passed by Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala acting on a public interest litigation (PIL) filed by Rajendra Shah of Consumer Protection Analytic Committee (CPAC ), claiming that Union of India has no legislative competence to enact Law for co-operative society which is exclusively a state subject under the Constitution of India.

Click Here for the report

Click Here for the judgement

Click Here for some insights and considered views

Training seminar for Co-operative Housing Societies on 28th April

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A new era of co-operation has begun, with professionalism and law-abiding functioning, from Accounting Year 2013-14. It is upto us to take study and understand, and adapt to the new legal changes brought into the co-operative sector by the recently enacted 97th Constitutional Amendment. If we do so, we will reap many benefits in the form of harmonious living and orderly functioning. However, if we neglect to understand the new laws and rules, the consequences can be painful.

Remember, knowledge is power. Also remember, ignorance may be bliss, but when the time comes for punishment, ignorance of the law is not an excuse!

Some changes may still be expected in the amended Maharashtra Co-operative Societies Act, as it is now before a select committee of the State Legislature, to be tabled before legislature in the monsoon session. But as it is, MCS Act stands amended already, and we broadly know the shape of things to come. Therefore, it is crucial to understand and prepare for the changed scenario.

MAHARASHTRA SOCIETIES WELFARE ASSOCIATION (MSWA) HAS ORGANIZED A FULL-DAY BASIC TRAINING PROGRAM IN CHS LAWS i.e. Various implications of 97th Constitutional Amendment, Amended Maharashtra Cooperative Societies Act, and Model Bye-laws

DATE & TIME: Sunday, 28th April, 9.30 am To 6.15 pm.

VENUE: MSWA, A-2/302, Laram Centre, Opp. Platform 6, Andheri West, Mumbai.

WHO MUST ATTEND?

  • Managing committee members of Housing Societies, as they will have to make many adjustments in their style of working due to sweeping changes in the Maharashtra Co-operative Societies (MCS) Act, 1960 and New Model Bye-laws. Henceforth, elections must be held under supervision of the State Co-operatives Election Authority, and statutory returns need to be filed to the Registrar, failing which the managing committee will be disqualified and debarred.
  • Society members with grievances, as they can get speedy relief owing to extension of Right to Information to co-operative societies, and also Grievance Redressal and Dispute Resolution Committee to be appointed. But first, they will have to understand their new rights and duties!
  • Ordinary members & associate members, who are required to actively participate in the society’s affairs, failing which they may forfeit various rights and privileges.
  • Women, who will enjoy two reserved seats on the managing committees, as against one formerly. But they must earn the respect of the men on the managing committee by getting thorough knowledge of the various aspects of running a housing society.
  • Members of scheduled castes, scheduled tribes, etc., who will get three reserved seats – enabling active participation in their society’s governance.
  • Chartered Accountants, Advocates, Tax Practitioners, Society Managers and other professionals, who will play an expanded role in housing societies. They will have fresh avenues for earning by rendering new service, but they must understand their statutory responsibilities and legal liabilities, and also guide the office-bearers. Professionals must have a thorough grip of new laws and rules.

REGISTRATION FEES – Rs 1,900/-per head.

DISCOUNTS:

(i) Two or more members attending from the same society – Rs 1,500/- per head
(ii) Housewives and Retired Persons — Rs 1,300/- per head

(iii) PLUS EARLY-BIRD DISCOUNT: 10% discount on applicable fees for above-mentioned fees if you register on or before 21st April.

Fees are inclusive of lunch, tea and snacks & printed notes i.e. gist of MCS Act & Bye-laws, plus copy of Amended MCS Act & Bye-laws on CD.

FACULTY: Well-known experts & activists on co-operative housing societies, retired officers of co-operation department, etc.

To register, contact Mr Vishal Bamne on 9823911027 or 42551414, or email on mswa.hsg@gmail.com.

TOPICS TO BE COVERED:

  • Historical background of co-operative movement, land owners’ societies & housing societies
  • Objectives & scope of 97th Constitutional Amendment
  • MCS (Amendment) Ordinance 2013
  • New features of amended MCS Act 1960, their Impacts on co-operative enterprises and on housing societies
  • New model bye-laws for CHS, highlights & impacts
  • Positive & negative effects of the recent amendments on various stakeholders
  • Further changes in MCS Act in near future — What is needed, what is likely scenario
  • Members’ rights & responsibilities — active members, associate members, nominal members, etc.
  • Managing committee & office-bearers duties & responsibilities
  • Audit, AGM, Election Authority& Election Rules, filing of Annual Returns & consequences of non-compliance
  • Seat Reservations for Women, SC/ST/OBC etc. – how to implement
  • How to set up Grievance Redressal & Dispute Resolution Committee, and how it will function
  • Forums of redressal for various disputes & grievances outlined in Model Bye-laws e.g. police, consumer court, co-operative court, civil court, office of dy. Registrar – Theory & Practical Realities
  • Importance of people’s participation, how & where to make representations, how to create a public campaign to inform, educate & participate

Warm Regards,

Krish

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