Hsg society members ousted for delaying AGM, audit

Society members accused the managing committee of negligence, maladministration and delaying redevelopment-related decisions. They also raised issues concerning governance failures and lack of transparency

Mumbai: The Registrar of Cooperative Societies, R North Division, has disqualified three office-bearers of Borivali Jankalyan Cooperative Housing Society for failing to conduct annual general meetings for the financial years 2022-23 and 2023-24 within the prescribed timelines and for not appointing auditors or submitting audit reports as required by law.

Hsg society members ousted for delaying AGM, audit

Society members led by complainant Devendra Chiplunkar and represented by advocate Sunil Sakhrani accused the managing committee of negligence, maladministration and delaying redevelopment-related decisions. The complainants also raised issues concerning governance failures and lack of transparency.

The order, passed on April 24 under section 75(5) of the Maharashtra Cooperative Society Act 1960, disqualified chairman Namrata Sankhe, secretary Sudhakar Chavan and treasurer Laxman Malekar from being part of the managing committee and contesting committee elections in the society for the remainder of the current term and the subsequent two years. The registrar, however, withdrew proceedings against the remaining committee members, citing lack of direct responsibility.

Society members further alleged that the committee denied access to society records, ignored resolutions passed during a special general body meeting and attempted to pressure residents into withdrawing complaints. They also allegedly misused the society’s letterhead to obtain unauthorised signatures and failed to implement decisions regarding appointment of a new project management consultant and advocate.

The managing committee denied all allegations, arguing the complaint was baseless and lacked evidence. They contended that the matter should have been adjudicated before the cooperative court rather than through supervisory proceedings initiated by the registrar’s office. They also argued that delays were caused by administrative difficulties rather than deliberate misconduct.

According to the registrar’s findings, an inspection conducted under section 89(A) of the law revealed multiple irregularities, including delayed AGMs, lack of proper notices and agendas for meetings, failure to maintain records, delayed audit appointments and incomplete financial disclosures. The inspection concluded that these lapses violated sections 75 and 79 (1-A) of the Maharashtra Cooperative Societies Act and Maharashtra Cooperative Society Rules, 1961.

The registrar observed that the failures adversely affected transparency and governance within the society and restricted members’ rights to access statutory information. While acknowledging the respondents’ claim that the lapses occurred in good faith amid administrative challenges, the order held that the chairman, secretary and treasurer were primarily responsible for fulfilling statutory duties related to meetings and audits.

The registrar’s order highlighted that statutory compliance by co-operative housing societies is essential to ensure transparency, accountability and protection of members’ interests.

Referring to a Bombay High Court precedent, the registrar stated that liability under section 75(5) must be assigned only to office-bearers directly responsible for statutory compliance. The order distinguished serious regulatory violations from procedural lapses and concluded that failure in conducting AGMs and audits constituted substantive breaches warranting disqualification.