Dear Sir,
Is it compulsory for the Managing Committee of a Co-op Housing Society in
Maharashtra to sign Bond M-20 under MCS Act and forward to the Dy. Registrar of
Cooperative Societies? We heard there is some change in this procedure recently. -- Anonymous
Reply:
Very recently i.e. in February 2013 the State Govt has brought in a change.
The Bond under Form M-20 by the Managing Committee of a CHS is no more
compulsory. There is an amendment in the Maharashtra Co-op Societies Act 1960
(MCS Act). Under an Ordinance promulgated last month the Maharashtra State Govt
has got rid of MCS Act's Section 73 (1AB) of mandatory Bond under Rule 58-A
[Form M-20]. The said Maharashtra Ordinance II of 2013 (effective 14 Feb 2013) is
available on this website.
The State Govt has proceeded further by replacing it by inserting Section 73-ID Sub-
sections 1 & 2, thereby unexpectedly making the Managing Committee even more
robust.
Although once the said Section 73 (1AB) was challenged under Article 226 of
Constitution of India but Bombay High Court upheld the legislature.
Ibrahim Deshmukh
Legal Consultant
[email protected]
www.law-india.com