Complaint against Saket CHS Ltd. Managing Committee and Dy Registrar's observations

DDR response to the various issues raised by me. I stand vindicated on all major issues.

June 2, 2019

The Dy. Registrar of co-operative Societies,

Thane City,

Thane..

cc: The Dy Registrar, Thane District ; Cooperation Commissioner, Pune.

Dear Sir,

Kind Attention: Shri Vishal Jadhavar

First of all I welcome you to your new assignment - Dy, Registrar of Cooperative Societies, Thane City and wish you all the best in the new assignment and promise all cooperation from our side.

This letter is in continuation of my earlier letter dated May 6, 2019 sent to you on the same subject.

It is said that if anyone commits a mistake once - it is a mistake. If it is repeated a second time, it is callousness. However, a mistake repeated again and again reveals that the said person or organization has got scant respect for following the law and its provisions and are hell bent on breaking the legal provisions which govern them as they feel that they are above law or that our system has so many weaknesses in it that nobody can do anything to them.

The story about Saket CHSL, Thane is similar to this saying.

I have been writing - complaining to your office since 2016-17 about the various lapses in the functioning of the said society. I must have emailed and delivered by hand at least 50 letters to you complaining about the society office bearers, from time to time.

However, since - for reasons best known to you - you have let off the society office bearers with light warnings and dealt with them with kid gloves - the office bearers have got emboldened and continue to break law with impunity, insult and ignore fellow members of the Managing Committee.

Only once, you did issue the society office bearers a notice under Section 102 but later again let them off with a warning.

This time - on March 30th, 2019, the office bearers held a Managing Committee meeting wherein, the Chairman and Secretary expressed their desire to resign from their posts.

[ I have already emailed to you the circular regarding that MC meeting].

The agenda of the meeting circulated did not specifically mention that they intended to hold an election of the new office bearers in the same meeting.

Still, without giving proper and adequate notice, they elected new office bearers from themselves - when the actual legal provision is that they should have written to you and requested you to depute your officer to conduct new election for the posts, as our society has more than 600 members.

This fact was known to them - as they have been holding such election every year on rotational basis - and I have been complaining to your office regularly about the same.

In fact, last year, the then Dy. Registrar had reprimanded our office bearers and had forced them to hold the election again - in front of the Election Officer.

So, they knew that the same procedure was to be adopted but they did not do this and fraudulently held the election and then after that - they assumed office the next day.

Subsequently informed our bankers - by sending fake resolutions for change of signatories, when in the said Managing Committee meeting or any other meeting till today, this matter of changing signatories was never discussed nor was it ever on the agenda nor was any resolution to that effect being passed.

These office bearers have now started operating this account also.

I have complained to Saraswat Bank authorities about the same and am awaiting their reply. ( Copy of that complaint has already been sent to you).

This is a gross violation of the Election rules of the State Election Authority and sort of forgery with the bank authorities.

I will now detail for your information again, the various violations being done by the office bearers of the society for past 3 years.

Bye Law No 111. Management of the Society to vest in the Committee

The Management of the affairs of the Society shall vest in the Committee duly constituted in accordance with the provisions of the Act, the Rules and the Bye-laws of the Society.

However in Saket, this has never been the case. Office bearers have been doing what they want - bypassing the Managing committee members. In fact, the arrogant office bearers have tried to prevent certain members - including me - of the Managing committee from even entering society office - which is totally illegal.

They do not give any access to any papers of the society to members of the Managing committee.

All decisions are taken arbitrarily by 3/4 persons without consulting other members of the Managing Committee.

Spending 46 lakhs without taking proper approval or sanction of the managing committee in 2016-17 [complaint was made to your office then]. writing off Rs. 7 lakhs from the society accounts, without assigning any reason to members - these are 2 glarng examples of their mismanagement.

Bye Law No 114. Strength of the Committee

The Committee shall consist of *11 / 13 / 15 / 17 / 19 Members of the Society. This strength includes the reservation of seats as provided under section 73B and 73C of the Act.
Note: *The strength of the managing committee and strength of the quorum for conducting the meeting would be as under:-

No of Members of the Society	Strength of the Managing Committee						Quorum for Meeting *
	General	Reserved				Total
	General	Women	SC/ST	OBC	VJ/NT/SBC	Total
101 to 200	8	2	1	1	1	13	7
201 to 300	10	2	1	1	1	15	8
301 to 500	12	2	1	1	1	17	9
510 and above	14	2	1	1	1	19	10

*Quorum for the Meeting will be simple majority of the existing Committee Members - LOA should not be treated as being present.

This provision has been violated by the Saket Managing committee from the past 3 years. If a reality check is done - there was never any quorum in 90% of the Managing Committee meetings and hence, all decisions of the Managing Committee are null and void in the past 3 years.

Bye Law No 115. Election of the Committee

Bye Law No 115(a)

Election of all the Members of the Committee shall be held once in 5 years, before the expiry of its term, in accordance with the provisions of Sec 73- CB of the Act and the Rules / procedure framed there under. It shall be the duty of the Committee to intimate to the State Election Authority for holding of its election before expiry of its term. On failure the Committee Members shall cease to hold office after expiry of its term, and attract action by the Registrar under section 77 A.

This provision has been violated by the Saket Managing Committee by asking office bearers to resign every year. They then hold elections of office bearers without seeking permission or informing the State Election Authority.

Bye Law No 116. Prohibition against being interested in the Society

No Officer of the Society shall have any interest, directly or indirectly, otherwise than as such officer: (a) In any contract made with the Society.(b) In any property sold or purchased by the Society. (c) In any other transaction of the Society, except as investment made in or loan taken from the Society for provision of residential accommodation by the Society to any paid employee of the Society.

This provision has been violated by the Saket Managing Committee with impunity in the past 3 years. The Office bearers have given Contract work to even the Secretary and Managing committee member - by manipulating and still continue to do so.

Society members have protested against this in the annual General meeting - minutes of which are available and have been sent to your office in the past.

One other member of the Committee is a Estate Broker and conducts her business in the society.

Bye Law No 117. Disqualification for being elected on the Committee

Bye Law No 117(a)

he / she has been convicted of the offence, involving moral turpitude, unless the period of six years has elapsed since his conviction ;

Bye Law No 117(b)

he / has defaults the payment of dues to the Society, within three months from the date of service of notice in writing, served either by hand delivery or by registered post, demanding the payment of dues ;

This provision has been violated by the Office bearers of the Saket Managing committee in the past 3 years. I have made repeated complaints about the same to the Dy. Registrar's Office when the incident had taken place - I had even pointed out the law that such members are 'deemed to be members of the committee' but the then Officer let them off with a warning - or under political pressure.

Bye Law No 119(a) Cessation of a Member of the Committee.

A person shall cease to be the Member of the Committee, if:

i.	he has incurred any of the disqualifications mentioned under the byelaw No. 117 or ;
ii.	he has failed to attend any three consecutive monthly meetings of the Committee, without leave of absence. This provision has been violated by the Saket Managing Committee with impunity. Infact, they have given Leave of Absence for 1 year / 6 months. My letter / complaint about the same is already given to you and am awaiting reply.

Bye Law No 119(b) Intimation of Cessation of Membership of the Committee.

If a Member of the Committee attracts any of the disqualifications under the bye-law no. 119 (1), the Committee shall record the fact in the minutes of its meeting and the Secretary of the Society shall inform the Member and Registrar accordingly. Such Member shall cease to be the Member of Managing Committee on the order of the Registrar

This provision has been violated by the Saket Managing Committee. and in 2017-18, the main office bearers have gone out of the way in shielding the defaulters. i have complained about this to the Dy. Registrar Office and am awaiting justice.

Bye Law No 123. Custody of the records of the Society

All records of the Society shall be kept at its premises, convenient to the secretary, with the approval of the Committee of the Society.

This provision has been violated by the Office bearers, who are selectively keeping certain records at their residences and not showing them to other MC members even on request - when it is in fact their right to see them.

One such record is the file pertaining to application made to TMC regarding the Occupation certificate. The papers about the same are not available in the society office even on demand - and over and above, they have made a payment of Rs. 50,000/- to somebody for some matter regarding OC.

Bye Law No 124. Outgoing Chairman to handover charge to new Chairman

When the new Committee is elected, the Secretary of the outgoing committee shall prepare the list of papers and property of the Society in his custody and hand over the charge thereof to the outgoing Chairman. The retiring Chairman shall hand over the charge of the office of the Committee and all papers and property of the Society, in his possession to the Chairman of the new Committee, as per provisions contained in Section 160 of the MCS Act 1960.
Note : The word ‘Paper’ used in this bye–laws and any other bye-laws shall mean all and / or any items mentioned in the bye-laws nos.141 and 142, and data / information in digital form.

This provision has been violated by the Saket Managing Committee throughout the past 3 years. Nothing of what is required by the law has been followed even once.

Bye Law No 125(b) Tenure of Office of Office Bearers

The Officer of the Society shall hold office for the period of 5 years from the date on which he is elected to be the Chairman as the case may be the Secretary and Treasurer but not beyond the expiry of term of the Committee.

This provision has been repeatedly violated by the Office bearers of the Saket Managing Committee - they rotate office bearers every year.

Bye Law No 126. Quorum must for Committee Meetings

The Committee meeting shall be normally held in the premises of the Society. The quorum for Committee Meeting shall be as mentioned in Bye-law No. 113. 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.

As mentioned earlier, this provision has been repeatedly violated by the Saket MC in the past 3 years and there is no quorum in 90% of the meetings.

Bye Law No 131(d) Resignation of Office Bearers when to accept

The Committee may accept the resignation of the office of the Chairman/Secretary/Treasurer only after it is satisfied that the Chairman or as the case may be the Secretary or Treasurer of the Society has brought up to date the work entrusted to him and has produced the entire papers and property of the Society, in his possession, before the Committee.

This has been violated by the Saket Managing Committee, every year for past 3 years.

Bye Law No 137. Joint and Several liabilities of Committee Members

The Members of the Committee shall be jointly and severally responsible for all the decisions taken by the committee during its term relating to the business of the Society. The Members of the committee shall be jointly and severally responsible for all the acts and omissions detrimental to the interest of the Society.

This has been totally violated by the Office bearers in the past 3 years. They feel society is their fiefdom and behave accordingly and spend money without any proper discussion, approval. I have complained about this to the Dy. Registrar Office and await justice.

Bye Law No 138. Powers, function and duties of the committee

Subject to the bye - law 111 the Committee shall exercise the powers and discharge the functions and duties as mentioned hereunder

Sr. No.	Items of the powers, functions and duties	The bye-law no. under which the Power, Function of duty falls
1	To consider acceptance of deposits from Members and raising of funds	11
2	To consider and recommend to the meeting of the general body, the rates of contribution	13 (a) and 13 (c)
3	To consider all matter relating to the creation, investment and utilization of the Repairs & maintenance, Reserve Fund and Sinking Fund. [Violation - our Statutory Auditors have commented on this repeatedly]	12(i) and (ii) 14 (a) (b) and (c) 15
4	To consider and decide the resignations received form Member, Associate Members & Nominal Members.	27 to 30
5	To ensure that nomination and revocations thereof are recorded in the minutes of the committee.	33
6	To take action on the report of the Secretary on inspection of the Flats. [ This is never followed]	47(b)
7	To take action on cases of cessation of Membership, including associate and nominal Membership	59
8	To consider and decide the applications for various purposes received by the Society[Violation - no letter is ever answered and members who seek reply are rudely insulted]	163
9	To consider and decide the applications for various purposes received by the Society	163
10	To fix the rate of insurance premium in respect of commercial use of flats.	67 (a) (xi)
11	To fix in respect of every flat the Society's charges on the basis of the proportion laid down under the bye-law 69 (a)	67(b)
12	To review the position of recovery of the charges due to the Society from Members and to initiate action against defaulted charges of the Society	70
13	To verify compliance of the provisions relating to charging of interest in defaulted charges of the Society	69
14	To authorise a Member of the Committee to attest deed of conveyance, share certificates and any other documents to which the seal of the Society is affixed.- [ Violation - no such thing has been done, New Share certificates are being issued in a faulty manner and inspite of telling them the correct procedure they do not listen]	73
15	To issue letters of allotment of flats to those who have purchased flats from the Promoter (Builder)	75
16	To make available papers of the Society for perusal if asked for by the Members[Violation - no papers are made available even on request]	23
17	To ensure holding of every annual meeting of the general body are kept on the agenda of the meeting	94
18	To ensure that all matters required to be considered at an annual meeting of the general body are kept on the agenda of the meeting	94
19	To call a special meeting of the general body when required	95
20	To arrange for election of a new Committee prior to the expiry of the period of the existing committee	115
21	To ensure that after elections new committee is duly constituted	118
22	To elect office - bearers of the Society	125
23	To ensure that a meeting of the committee is held once in a month	127
24	to fill in vacancies of the Committee [Violation - vacancy has not been filled for 3 years]	128
25	To consider resignation of a Member of the committee	130
26	To consider resignation of an office bearer of the Society	131
27	To obtain securities form the paid employees of the Society	146
28	To approve the audit rectification reports of statutory and internal audits and to forward them to the authorities concerned	152
29	To execute deed of conveyance of the land and building / buildings thereon. [ Violation - Inaction - no effort is being made in this direction, inspite of repeated letters written by me to them and even our Statutory auditor having pointed out in their Reports]	153
30	To take steps to maintain the property of the Society in good condition and to carry out repairs to it and renewals thereof	155 and 158
31	To Insure the property of the Society	159
32	To suggest to the general body meeting the rates of penalties for breaches of bye-laws and to issue show cause notices [Violation]	165
33	To regulate operation of the lift of the Society	167
34	To suggest to the meeting of the general body the games to be allowed to be played in the compound of the Society	168
35	To consider and decide any other matters provided under the MCS Act 1960, the MCS Rules 1961 and the Bye-laws of the Society, but not expressly indicated hereinabove	77 to 84
36	To regulate parking in the Society. as per provisions of the law. [Violation - no Parking Policy is in place. Members were given parking in 2007 - still continue to enjoy the same for a paltry amount of Rs. 1000/- per anum, and even when there is a huge waiting list]	78 to 85
37	To ensure that the Society is affiliated to Housing Federation and its subscription is regularly paid.	6
38	To take the decision on the complaint application in the Managing Committee Meeting and inform the concerned Member of its decision accordingly.	173
39	To enter into contract with the Architect of the Society. [Violation - no effort has been done in this regard.]	157(f)

Most recent and most important

1) There was a major mishap to the Overhead Water tank of C2 building of our society, in the night of March 9, 2019.

2) About 30 % of the external plaster of the OHWT collapsed without any provocation - a very serious matter.

3) Next day some people of the building met me and expressed their concerns about the condition of the building and asked to help in the matter. I told them that I will try to get information about the structural stability of the building.

4) As per the DCR rules of the TMC, it is a norm that in case of any major damage to the building or major repairs in the society, one has to inform the Corporation.

5) Accordingly I informed the Corporation via email and requested them to depute their Engineers and check that things are not serious in C2.

6) The TMC officials came to inspect the next day but were intercepted and sent off by one office bearer and Manager of the society. However the society office bearer did not know that they had visited the C 2 building before they met them.

7) I informed the TMC out of serious concern about the well-being of the building and its residents.

8) TMC has now written that the society should conduct a fresh Structural Audit of C 2 and if any repairs are required then do the same immediately and inform the Corporation.

9) However, instead of following the advice of TMC, the office bearers are resisting doing a fresh Structural Audit and have submitted a fake report to the Corporation.

God forbid, nothing bad should happen - but such is the irresponsible, callous and deplorable attitude of the office bearers towards the safety of fellow residents.

Considering all this repeated violations, I wish to state that the society office bearers are thoroughly incompetent to run the society affairs. They seem to be mismanaging them intentionally and with wrong intent.

In view of all this, it is my earnest appeal (for the 51st time), to dismiss this Managing committee and appoint a Administrator on the society and hold fresh elections subsequently, after the cooling period.

Regards,

Dayanand Nene

Member, Saket Managing Committee

Post the hearing of July 30, 2019, the DY. Registrar has given this reply. He has agreed on most of my contentions but said that we will give one chance to the society to make amends.