In our cooperative housing society in Mumbai, Managing Committee failed to submit audited accounts, audit report, budget, etc in the AGM held on 16.09.2016. Along with the AGM Notice, secretary of the MC has sent unsigned “provisional accounts”. Can Deputy registrar terminate the MC and appoint a group of 5 members as administrates ? If your answer is in affirmative then under which section of Maharashtra Cooperative Society act he can do so and what will be the procedure ?
I C Naik
Placing Audited Annual financial statements, audit report, budget, etc in AGM with in 6 months after the close of evompliance.ery cooperative year is now a Constitutional mandate for every State Cooperative Law has to provide and monitor strictly as laid down in detail under AA 243ZM and 243ZN] inserted in the Constitution of India vide the Constitution (97th Amendment ) Act 2011.
I recommend you to glance through these Articles here http://indiacode.nic.in/coiweb/amend/amend97.pdf
Section 75 of the MCS Act 1960 lays down this requirement and consequences of any failure of a person responsible to ensure its compliance.
http://bombayhighcourt.nic.in/libweb/acts/1961.24.pdf If it does not open in one attempt do not give up easily.
Rule 62(2) of the MCR 1961 also provide that “A copy of the audited balance sheet and the audited profit and loss account and a copy of the report of the committee under sub-section (4) of section 75 shall be displayed on the notice board of the society by affixing at least fourteen days before the date fixed for the annual general body meeting.”
Sub-sections 4 & 5 of this Section provides an answer to your question. You can read the full text on above URL (highly recommended) and hence they are summarized as under:
- At every annual general body meeting the audited balance sheet, the audited profit and loss account audit report, budget, etc shall be placed for adoption.
- In case of default the Registrar has a power to make an order and declare a responsible officer or member of the committee disqualifying for continue on the Committee up to a maximum of five years after hearing him.
Dismissal of a Committee and Appointment of Administrator(s) in the Society not receiving financial support is banned under the Constitution (97th Amendment ) Act 2011 vide Article 243ZL (v) Proviso 1].
Vacancy caused on account of such disqualification is a casual vacancy to be filled in as per Rule 74 of Maharashtra Co-operative Societies (Election to Committee) Rules, 2014/
- Casual vacancies how to be filled in.— In the event of vacancy occurring on account of death, resignation, disqualification or….. Read further on
http://bombayhighcourt.nic.in/libweb/rules/MahCoOpSocyElectiontoCommitteeRules2014.pdf
The Deputy Registrar should know about this failure after 30th September Article 243ZP as per 97CAA directly mandates that “ Every co-operative society shall file returns, within six months of the close of every financial year …… which is also provided under Section 79 partly modified to align it with the above Article. Faiure to file the return has similar consequences as failure you have narrated. THE DEPUTY REGISTRAR is very unlikely to take any steps on his own because it is not a mandate to the Deputy Registrar to so. The Sections do not provide for a complaint by members procedures etc, because the Governments want members to be bold enough to take on the delinquent committees A political compulsion of the Party in the Government.
So some members preferably 20% members of the total voters’ strength make a written complaint. The Committee will threaten the complainants to resign and in that contemplation be ready to take up the responsibility to undertake the management of the Society.