Recovery of Society money from Office-bearers' and /or MC members who have squandered them.

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October 23, 2018

The Chairman /Secretary,
Saket CHSL,
Thane.

CC: The Dy. Registrar of Cooperative societies’, Thane City
  • For information.

Dear Sirs,

Bye-Law no 138 of the new Model Bye-Laws, reads as under:-
“The members of the Committee shall be 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 them under the Act, Rules and Bye-laws of the Society.”
I draw your attention to 3 specific cases where the society has incurred a loss due to the careless and ambivalent attitude of the Office bearers:
  1. Payment made to Sanjay Tupe & Co.
M/s. Sanjay Tupe & Co. Had hidden from society the fact that they were not on the government panel of auditors' and therefore their audit was rejected. This resulted in a loss of Rs. 60,000/- to the society.
Also, they were given the task of reconciliation of old accounts for which they were paid Rs. 1,50,000/-, but they didn't complete the work.
Cumulatively the society lost Rs. 2,10,0000/- on their account.         
  1. Payment made to Kaustubh & Co.
M/s. Kaustubh & Co. Were given the task of writing the society accounts for 2016-17 and were paid a sum of Rs. 90,000/- for the same.
They left the job half way without completing the accounts.
I have written to the Managing Committee on two occasions requesting them to write letters to both – Tupe & Kaustubh to refund the society the amount of Rs. 3 lakhs, paid to them.
However, the Office bearers have refused to write even a letter.
  1. Payment made to TMC Architect in May 2018.
Without asking or informing the Managing Committee, the Office bearers have paid an amount of Rs. 50,000/- to an Architect of TMC for copying the original plans of the society to submit to TMC for OC purposes.
TMC has rejected that plan – now who should be held responsible for the loss of Rs. 50,000/- paid without any sanction, permission or approval?
I hereby suggest that you invoke the provisions of Byelaw no. 138 given above and make the people who took the decisions accountable and answerable.
I also request you to recover the cumulative amount of Rs. 3 lakhs from the office bearers whose careless attitude has caused this loss to society.

Regards,


Dayanand Nene
Member, Saket Managing Committee.

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