Marol society’s managing committee dismissed over administrative lapses

An administrator has been appointed to audit the accounts of the L&T Group of Companies Employees Cooperative Housing Society, also known as Vijay Nagar, for financial irregularities

Mumbai: The deputy district registrar (DDR) of the K East ward has dismissed the managing committee of a cooperative housing society in Marol for certain administrative lapses, including appointing authorised signatories other than the chairperson, secretary, and treasurer to operate its bank account.

Mumbai, India - Sep 04, 2023 : The Powai police spotedÊin a NG Complex housing society in Marol for murdering a trainee Air Hostess living in the building, in Mumbai, India, Monday, Sep 04, 2023. (Photo by Vijay Bate/HT Photo)

According to an April 7 order passed by the DDR of the K-East ward, Sanjay Gadepatil, an administrator has been appointed to audit the accounts of the L&T Group of Companies Employees Cooperative Housing Society, also known as Vijay Nagar, for financial irregularities.

The order stated that the “inspection report has found several administrative and other serious lapses by the managing committee. A show cause notice has been issued to the managing committee.”

Vijay Nagar has 490 flats in 31 ground-plus-three-storey buildings. According to a complaint filed with the DDR by three residents, to decentralise the day-to-day management of these buildings, the society had appointed 11 unit secretaries, one for every three buildings.

The DDR’s office then conducted an investigation and submitted an inspection report, based on which action was initiated against the society. Among the lapses found was the managing committee’s premature withdrawal of fixed deposits to conduct major repairs in the society.

Approval for the contractor’s appointment, premature withdrawal, and expenditure was made without securing approval from the general body, which is required as per Section 83 of the Maharashtra Cooperative Society Act, 1960, the inspection report said. It added that there had been a loss to the society’s financial resources, but it could not ascertain the amount of such a loss.

The DDR also found it unusual and outside the managing committee’s legal ambit to allow 11 bank accounts to be operated jointly by any two members. The committee had a resolution approved for managing the 11 bank accounts, which the DDR struck down, citing a lack of such provisions in the Act or bylaws. Only the chairperson, secretary and treasurer are authorised signatories to operate a society’s bank account, it said.

Going by the merits of the case and after hearing the complainant and the managing committee members, DDR Gadepatil ordered the dismissal of the managing committee and the appointment of an administrator to course-correct the society’s functioning.