Illegal collection of Event Charges by the society

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July 20, 2019

The Secretary,
Saket CHS LTD.,
Thane West

CC: The Dy Registrar of Co-op Societies,
Thane City.
- for information and keeping you in the loop.

Sir,

While perusing my half yearly bill, I find that there is an item by name of " Event Charges" which the society is collecting.

On questioning, I was told that this is actually Cultural Charges under a new name.
This collection is illegal and violation of the byelaws and should be stopped immediately.
Basically, I don't know who started this when the AGM last year not to collect it.

The law states:

If we try to find out authority of the managing committee to demand funds to run the society i.e, to maintain property and provide amenities and services, we have to go through Bye-Law No. 67 TO 72 in Chapter VIII. LEVY OF CHARGES OF THE SOCIETY.
Bye-Law No 69(b) carries a mandate that “The committee shall fix in respect of every flat the society charges on the basis laid down under the bye-laws-law No. 69 (a)”
If we browse through the list of items of society charges including Contribution to Funds (Repair Fund and Sinking Fund), we do not come across any item under which
“Charges/fund for functions and welfare of the society” can be clubbed so that we can collect that from the members as a compulsory charge.
One can argue that there is a non-specific head of item of “the society charges”
namely item No. (xiv) “Any other charges : As may be decided by the general body of the society at its meeting.”
But before naming one item namely “Charges/fund for functions and welfare of the society” under (xiv) “Any other charges : As may be decided by the general body of the society at its meeting.” we will have to ensure that there is nothing in the Bye Laws that touches “upon welfare of the society”
With open mind we have to look at two other Bye Laws namely Bye-Law No 5(d) and Bye-Law No 149(b)(iii).
Bye-Law No 5(d) “To undertake and provide for, on its own account or jointly with a co-operative institution, social, cultural or recreational activities” Bye-Law No 149(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 utilized in furtherance of the objects specified in the bye-law No. 5(d).”
Combined reading of the two clauses cited above provide an answer that voluntary welfare activities cannot be undertaken by calling upon members to make a compulsory contribution.
Hence, immediately stop demanding this illegal contribution.

Regards,
Dayanand Nene
Member, Saket Managing Committee

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