Co-operative Housing Societies in Maharashtra - Responsibilities and accountabilities of its Managing Committee under Form M-20:
Many a times we have seen and might experienced, the rude and profoundly non-co-operative attitude of a Managing Committee members i.e. President, Secretary, Treasurer etc in a CHS towards society members e.g. you want to know the amounts spent for a particular work and the quotations called by your secretary, and the Secretary, treasurer and the President will become furious with you and start a vendetta against you since you dared to know some basic fact about your own CHS to which you are also equally contributing as a member.
In the new amendment Rule 58-A of the Maharashtra Co-operative Societies Rules 1961 as under :
"Every elected member of the Managing Committee shall execute a bond in Form M-20 within fifteen days of his assuming the office. Such bond shall be executed on the stamp paper as provided under the Bombay Stamp Act 1958. The expenditure on stamp paper shall be borne by the society. The Chief Executive Officer / secretary of the society shall receive such bonds and keep them on record of the society and accordingly inform the Registrar within Fifteen days from the formation of the Committee."
Thus the amendment is demanding a that the President, the Secretary and the Treasurer of CHS being members of Executive or Managing Committee must execute an indemnity bond under Form M-20 with in 15 days of taking over the seat and submit the original bond to the Dy. Registrar of CHS and a copy must be kept available on Society’s records.
Under Section 73(1AB) of the Maharashtra Coop Society’s Act, if any member fails to execute the bond under From M-20 then such member seems to have abandoned his seat from MC.
As published in Maharashtra Govt’s official Gazette of 14 Jan 2011 the Amendment of Section 73 of Maharashtra XXIV of 1961 the period of 15 days period for submission of Indemnity Bond on a Rs 200 stamp paper by the Managing Committee of a CHS has been extended to 45 days (in case of CHS, for other societies its same 15 days).
To make sure that besides himself, all the managing committee members execute the bond under M-20 is the duty of the Secretary of the society, thereby the responsibility and accountability of MC is fixed for all the actions taken by the Managing Committee for the CHS.
Although in many of CHS the Secretaries and the MC members work on honorary basis but under the pretext FREE SERVICE TO SOCIET the harassment of fellow members in the society and misuse of power is also equally rampant. The Form M-20 tries to curb this practice by fixing the responsibility and accountability of Managing Committee members.
Basically it is the HONRAR & COURTIOUS duty of the secretary to attend to or at least to respond to the official correspondence of members (residents) but we might have noticed that many a times the power being the Secretary they take the society and the residents at ransom. Simply they take disadvantage of lack of knowledge of the resident of the Maharashtra Co-operative Act.
This page uses Ink lock® technology from 5sl Inc.
Senior Legal Consultant