Society cannot charge or demand money / donation for the Cultural/Festival Expenses from their members/residents.

[Extract of letter written on 23/10/17]

​Dear Saketians,

Read the following carefully. It is going to have a impact on our society from now on.

Post the 2014 amendments to the byelaws, Society cannot charge or demand money / donation for the Cultural/Festival Expenses from their members/residents. 

The Society cannot implement such Resolution in AGM / SGM and put burden of contributing any money on all the members including the members who are not interested to participate, even though such Resolutions are passed.

For Social, Cultural or Recreational activities; Society should use the Reserve Fund as described in Byelaw 147(b)iii, iv and utilise it as indicated in Byelaw 5(d).

Byelaw 147(a) After providing for the interest upon any loans and deposits and after making such other deductions as required under Section 65(1) and 66 of the MCS Act 1960 and Rule 49A of MCS Rules 1961, twenty five percent (25%) of the net profit of all the business carried on by or on account of the Society, shall be placed at the credit of the RESERVE FUND of the Society.

Byelaw 147(b) The remaining seventy five percent (75%) of the net profit of the Society shall be utilised as provided under Rule 50, 51, 52, 53 of MCS Rule 1961.

Byelaw 147(b)iii To allocate to a Common Welfare Fund, such part of the profit as the Annual Meeting of the General Body may determine, to be utilised in furtherance of Byelaw 147(b) iv the objects specified in the bye-law No. 5(d).

Byelaw 5(d) To undertake and provide for, on its own account or jointly with a cooperative or Other Institution Social, Cultural or Recreational activities.

Voluntary Donations / voluntary contribution from members are acceptable.
Society can take sponsorship to conduct such events as per Byelaw 5(d).

Society can fix the number of events /festival as per the National / State Government rules. Two important events are Republic Day & Independence Day. Rest events/ festival can be decided and approved in GBM.

Non Occupancy charges.

As per byelaw, NOC charges of 10% on the service charges of the Monthly maintenance component will be applicable on the rental flats. (eg: if your monthly maintenance charge is Rs:1000/-; service charge component , say may be Rs:500/-; so NOC is 10% of the service charge; ie: Rs:50/- ; so your monthly maintenance cost will be Rs:1050/- for rented flat)

As per byelaw, Welfare fund is to be created from the PROFITS.
Byelaw 147(b)iii To allocate to a Common Welfare Fund, such part of the profit as the Annual Meeting of the General Body may determine. 

Byelaw gives the method of generating funds: 

( A ) Raising of Funds

Byelaw-7: The funds of the Society may be raised in one or more of the following ways:
Modes of raising the funds of the society are 

a. by entrance fees,
b. by issue of shares,
c. by loans and subsidies,
d. by deposits,
e. by voluntary donations, (but not from Transferor and Transferee)
f. by contributions towards cost of building or buildings,
g. by fee on transfer of shares, along with the occupancy right,
assignment
h. by premium on transfer of occupancy right over the flats,
i. by corpus fund from Promoter Builder
j. by any other mode permitted under these bye-laws,
k. by way of statutory requirements.
l. by way of non-occupancy charges, leasing / hiring of open spaces
m. by way of corpus fund, in case of redevelopment

No Donations should be taken without permission of the Charity Commissioner.

Any housing society found collecting donations for Ganpati & Navaratra festivities, without a permission from the charity commissioner's offices, may face heavy penalties. 

The permission can be sought in person at the charity commissioner's office, or can be applied for online. 

From now on, for Ganpati & Navaratra, the Cooperation department wants to make sure that all the housing societies acquire the requisite permission. 

This year, “for the Ganesh festivities, 10 housing societies have been served notices, and one even faces a penalty of Rs 10,000, for not intimating the office and for not taking permission un der Section 41C of the Maharashtra Public Trust Act".

The permission form requires the society to specify the amounts collected and spent, and even the overall audit report of the society must be furnished. Moreover, 10% of the revenue collected should be given to some educational or medical charity , or be utilized to fill up potholes on roads nearby .

This is for your information.

Regards,

Dayanand Nene

Member, Saket Managing Committee.