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State to audit account books of 199 societies

The financial records of 199 cooperative housing societies, where administrators were appointed after their committees were dissolved, will be audited.

mumbai Updated: Mar 22, 2011 01:17 IST
HT Correspondent

The financial records of 199 cooperative housing societies, where administrators were appointed after their committees were dissolved, will be audited.

Minister of state for cooperatives Prakash Solanke made this announcement in the state legislative council on Monday.

The state government appoints administrators for housing societies after their committees are dissolved either because of financial issues or are unable to submit the mandatory indemnity bonds.

Member of legislative council (MLC) Deepak Sawant, who alleged corruption in cases where administrators were appointed, said: “There is a common complaint that the administrators… use money from the society’s kitty. They are supposed to ensure that the new society is formed in the next six months.”

The indemnity bond, also called M-20 form, is an undertaking given by all committee members for being answerable and responsible for decisions taken on behalf of all members of the society.

Sawant cited the case of a cooperative housing society in Bhandup where the administrator had withdrawn Rs40,000 from the society accounts.

Solanke clarified that the administrator is usually a government official from the cooperative society department and, at times, a retired official. But due to lack of staff, the state also appointed lawyers or chartered accountants. “But, in the Bhandup case we found that the administrator was not at fault,” he said.

MLC Prakash Binsale suggested that the government could consider forming a three-member team from the society, who could act as administrator. “Those who were not involved in the previous committee could be involved so that there could be a sense of belonging and minimisation of frauds,” Binsale added.

Solanke said the state government would consider the suggestion.

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