Open letter on Managing Committee working and Statutory-compliances.

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December 11, 2017

Dear Colleagues in the Managing Committee,

I am writing this open letter with a great deal of anguish, anger and defiance.

This year our Auditor has in his Audit Report passed such harsh structures on the Managing Committee working that it is a matter of shame for the Committee.

This is the first time that such harsh remarks have been made by any Auditor in the 18 year history of the Society.

For me, it is a tough pill to swallow that the remarks have been made when I am a member of this Managing Committee.

I pride myself for my knowledge about the MCS Act and the byelaws.
I give my advice to many Housing Societies - personally and online and my Sahakarsutra blog has been read my over 50,000 people.
And this catastrophe had to happen in my Committee.

I take it as my personal failure that my Committee people have "purposely and in a planned manner" not contacted or consulted me in the past 2 years. 

I deeply apologize to all fellow members of the Society for a big error in my judgement in selection of people in our panel during the last election.

However, we have been elected to work together and hence I am wanting to refresh a few things for everybody's knowledge.

1) The members of the Managing Committee are 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 functions cast on then under the MCS Act,1960, MCS Rules,1961 and the bye-laws of the society.

**  This year, it was pointed out that the Office bearers had done work worth over 40 lakhs without taking pre and post sanction either of the Managing Committee or the General Body.
** Allegations are also made that some members of the Committee are being clandestinely awarded contracts - in blatant defiance of the byelaws.
** Allegations have been made that some office bearers were "defaulters" when they became office bearer in April this year and some committee members are still defaulters..

* If members start questioning seriously, as per the above mentioned byelaw, the committee will be in trouble for acts of a few individuals.

2) The quorum for a Committee Meeting shall be “3/4/5/6/10 members of the Committee. 

3) * It shall not be competent for the Committee to transact any business unless there is the quorum at the time of consideration of "every item"  on the agenda of the meeting of the Committee. 

**  By this measure, practically every decision le by the Managing Committee since April 2016 to date, shall be deemed null and void, as there has never been a quorum as required in (3) above.

** I think that Managing Committee members should live up to their commitment to Society, or else, resign if (a) they can't give time or (b) if they don't have knowledge, they are wilfully not consulting other fellow members and are not able to manage things properly. Otherwise, it is a great disservice we are doing to the Society.

** Another area I want to highlight is that there is a vacancy in the Managing Committee since the last 18 months. Not filling up the vacancy is again open breach of byelaws.

I am attaching herewith certain Statutory compliances that are mandatory for the Committee.
Just refresh your mind and answer to your own mind - are we as a Committee alive, aware and acting responsibly to the mandate given by the people.

My mind says No.

Regards,

Dayanand Nene
Member, Saket Managing Committee.

Annexure:

The Statutory Compliances introduced by 97th Constitutional Amendment and subsequent amendments to the Maharashtra State Co-Op.Act of 1960 , Co-Op.Housing Societies, in my opinion ,are aimed to be at par with any other body corporate in India. 

The responsibilities cast on the managing committee and the office bearers for smooth functioning of the Co-Op.Housing Society makes it a challenging job for those at the helm of affairs due to the time that they can devote to the activities of the society taking
care of their own personal and professional responsibilities and also to some extent because of the lack of knowledge or unawareness of the various provisions of the Act,Rules and Bye laws of the Maharashtra Co-Op.Societies Act, 1960 and also the provisions of other allied Acts like Income Tax & Service Tax mainly..
The effort has been made to list down some of the important provisons that a Housing Society needs to take care wrt “AAAMIO” i.e Accounts, Audit , AGM ,Mandatory Returns, Income Tax Returns filing and submission of Audit Rectification report in “O” form .

AAAMIO Deadlines:
A- Accounts to be finalized with 45 days from the close of the Co-op.year i,e.15th May.
A- Audit to be completed within 4 months from the close of the Co-Op.year ie.31st July.
A- AGM to be conducted on or before 30th September.
M-Mandatory Returns u/s 79(1A) & (1B) to be uploaded with Dept.of Co-operation by 30th Sept & 31st
October respectively
I- Inocme Tax returns to be filed by each and every Co-Op.Housing Society by 30th Sept.
O-Audit Rectification report in form “O” to be submitted to the office of the Registrar by the society within three months from the date of submission of the audit report .

I’m a Proud Committee member and My Sweet Responsibilities towards my CHS:
 Mandatory adoption of Model Bye laws of 2014 at the earliest.

 Classify the members’ portfolio in Active and Non-Active by 31st March and intimate the Non-
Active member of his classification by 30th of April in Form W.

 The Audited Accounts alongwith the report of the Auditor first needs to be approved in the
Managing committee meeting.
 The status of rectification or compliances to the Audit report needs to be placed in the AGM.
 The Statutory Auditor needs to be appointed should be a Panel Auditor and should be appointed
by General Body. The Statutory Auditor needs to be appointed only for the current year.
 The same Statutory Auditor should not be appointed for a period of more than three
consecutive years.
 The consent in writing needs to be obtained from the Statutory Auditor appointed by the AGM within one month from his appointment.
 The society needs to register itself with website of Department of Co-operation before
uploading the mandatory returns( www.mahasahakar.maharashtra.gov.in)
 The mandatory returns giving various details such as Annual Report, Audited Accounts,
Ammendments to Bye laws if any, Disposal of surplus if any decided in AGM, Due date of
forthcoming elections etc.needs to be uploaded in form Y on or before 30th Sept.
 Upload the Details of the Statutory Auditor alongwith his written consent within one month
from the date of AGM i.e.latest by 31st October.
 The Audit Rectification Report in form O needs to be submitted by the CHS within 3 months from the date of the submission of the Audit Report.

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