Call us now on +91 9019830840 to get best offer!

Impact on changed election rules for housing societies across Maharashtra

Maharashtra Society Act, 1960 was amended on 14th February, 2013, for the 97th time and was publicized recently. The recent changes has both positive & negative impact on co-operative housing societies all across the city of Mumbai and state of Maharashtra.

The most significant points which may impact Housing Societies and its members are as follows:-

  1. Authority will be given to the active members of the society. Non-active members cannot participate in the decision-making process.
  2. Sleeping members can be expelled or required to become active; this right is with the co-operative societies.
  3. Active members will now function as ‘Authorised Officer’ or ‘Interim Committee’ and thus administrators cannot be appointed henceforth for most co-operative societies.
  4. Apex Co-operatives would provide adequate and regular education and training to groom fresh leaders.
  5. Managing Committee have to attend regular training at least once in their tenure of five years. Ignorance will not be allowed.
  6. A Grievance Redressal Committee will be set up in order to solve internal differences.
  7. Co-operative society’s court to encourage negotiations and win-win compromise situations to discourage litigations so that Co-operative society’s court can give attention to important matters.
  8. Modern methods of management, record keeping, etc and also seek professional help for CHS management.
  9. Fraud and FIR’s will have to be reported by the auditors, registrars, etc hence strengthening the audit function in co-operative societies. In every AGM it will be mandatory for the auditor to present audit findings during every meeting. If they don’t, auditors will be disqualified.
  10. Fine and prison sentences have been considerably increased for penalties and offences.
  11. Disqualified members cannot contest elections for a term of five years.
  12. Elections will now be closely monitored by the State Election Authority therefore eliminating bullying of retaining power by token elections in co-operative housing societies.
  13. Members with less than 100 people in a housing society cannot conduct elections on their own.
  14. An associate member is eligible to be a part of the managing committee. As per Rule Section 2 (19) of the Maharashtra Cooperative Societies Act says an associate member jointly holds a share of the society with others, but whose name is not first in the share certificate. Rule 56M of the Maharashtra Cooperative Societies Rules, 1961, and Section 2 (19) (b) of the Maharashtra Cooperative Societies Act, 1960, state an associate member can vote and participate in elections but cannot become an office-bearer of the society where his name appears as an associate member in the society register.Provided that, in case of joint or associated member only the member whose name stand first in the share certificate shall be eligible to be nominated as candidate for election.
  15. A stipulated deadline of June 30, for conducting elections for all societies which were due in the last two years.
  16. Number of nominees of each co-operative society has been set to maximum of 21 members.
  17. Every housing society has to conduct yearly audits and every AGM of co-operative society has the right to appoint an auditor for conducting a financial audit.
  18. The state government would be appointing an election authority to supervise in housing societies with members exceeding 100.
  19. Before an election at the general body meeting has to make sure to conduct elections under secret ballot.
  20. If a member wishes to vote, residents have to make sure their membership formalities and dues are clear; only then he/she is eligible to vote.
  21. If a nomination is rejected; a candidate will get one month to move his/her case to the registrar for justice.

Hence, there have been amendments that affect the functioning of co-operative housing societies. Let us all educate ourselves with the new amendments and utilize our co-operative legal structure.

391 thoughts on “Impact on changed election rules for housing societies across Maharashtra

  • Hello Rajeev,
    Correcting my question
    One confusion on ‘associate member’ which is still remains.
    My father nominated 50% share to me and 50%my mother. After his death I did full transfer to my Mother as she was feeling insecure. In this case by going through your blog and QA, below I understand below and let me know if I am wrong.
    1) I can become an associate member by submitting the associate member form & Rs. 100 fee
    2) With above my name can be added as ‘associate member on share certificate
    3) I can attend meetings and give my vote
    4) I can be a member of MC or contest to election by submitting 10A

  • Our Society has 101 members and We have election in last year in Feb 2017 and 11 members are elected as committee members. but the new committee elected include chairman, Secretary and Treasury are enforcing their authority with other committee members and they are not called for any meetings, even last month a big rukus has happened in our society and 7 elected members has resigned also out 101 society members 55 has signed a documents to remove newly elected committee due to their irrational behavior and financial misconduct. what should we do the remove the new committee the chairman and Secretary and Treasury are not ready to resign.

    • Since our of 11 member 7 members have already resigned the Managing Commutee has come in minoriy and can not function. Suggest all these 7 members can write to Registrar about their resignation and request for appointment of administrator. After the appointment of administrator, it will be his duty to conduct the fresh election for the society.

  • Hi,
    Our Society has about 500 Flats of 1BHK,2BHK,row houses and bungalows.Plus about 75 shops.The shops are in a different Wing at the entry to the Society. The Society is proposing to charge the same maintenance to all the units (which they might be correct in doing so).
    But they are charging the same maintenance charges to all the shops also ,despite the fact that most of the facilities like club-house,internal lights,internal roads,security,internal parking etc are not used by the Shops.Besides that, the Society also spends more than Rs.3 lakhs per month to procure tanker water for the residents which is included in the maintenance,which is not used by the shops excepts for 4 common bathrooms for all the shops.There is no lift in the said shops’ Wing also, so there is not much of electricity consumption for this Wing.
    Can we as a Wing(or individually) dispute this equal charge that the Society is levying on the Commercial units? Rgrds.

    • Dear Essen,
      Society is correct in terms of collecting equal maintenance from all the members since all the members have a right to use & enjoy the benifits of common space / facilities along with other members. If we have to go with your logic that there are no lift in shops and hence the shops owners should noty pay the maintenance then in that case the member staying on ground floor will also not pay as he never uses the lift. The fact remain same that in case if any member is required to meet other members in same wing and or in other wing they will be using the elevators and hence the cost of its use and maintenance should be collected equally. The same goes with the society common lighting / security etc. With regard to the Water charges, the same needs to be collected consider the no. of taps provided in each shop / flats. If there is no tap in shop then that member is not liable to pay any water charges. Hence it would not be advisable to raise any dispute on Equall Maintenance charges, whereas you can certainly make your representation on water charges. To know more click the link Common Maintenance Charges

      • Thank you very much for your reply.
        It is agreed about equal maintenance since it is as per HC ruling.But doesn’t a ground floor person use almost all the rest of the facilities that the others of the same building also enjoy.This includes the internal roads,lights,club house,gym,security,water inlets,cleaning etc on a 24 hour basis.They stay there and utilise these to the fullest with some minor variations.
        Whereas being shops and offices,none of the owners of the Commercial Wing(which is seperate) enjoy the same facilities.Wasn’t there some rule about a seperate wing being charged in accordance to the facilities provided specific to the wing.Can a seperate Commercial Wing be forced to partake in the facilities which none of them will or can enjoy.Can we not form our own pool of expenses and share it accordingly.
        (It’s like going to a restaurant and sitting at seperate tables and ordering different foods.The ground floor person is sitting at the same table which is in the a/c section where wine and continental dish is being served and is just ordering a seperate dish ,so has to share equally when the bill arrives irrespective of the fact that his dish is cheaper. But we are sitting at a seperate table in a seperate section and consuming normal food.Can we be forced to pay equally for something which we did not consume just because we entered the restaurant together and happen to be friends).
        This is the majority forcing a smaller section just because of a small loophole and taking advantage of it.Can’t we take this issue up in the court of law ,especially if we can prove that we are a seperate commercial wing and the facilities utilised and provided to us is not in accordance to what is being charged to us?
        Rgrds

  • We have firmed new committee members, Our treasurer have 3 kids after year 2000, 2 twins born and 1 total 3 kids, Is he eligible to be a treasurer.

    • Dear Mr. Shaikh

      I presume that the committee was formed before 2000 wherein he was elected as treasurer. This restriction was imposed after 3rd amendment in Maharashtra Co-operative Societies (Third Amendment) Act, 2001 hence in view of this he cannot be dis-qualified as he was elected before this amendment. For more clarity, please read below provision;

      As per Sub Section (e) (vii) of Section 73FF (Disqualification for membership of committee) of THE MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 1961

      (vii) has more than two children:

      Provided that, a person having more than two children on the date of commencement of the Maharashtra Co-operative Societies (Third Amendment) Act, 2001 (hereinafter in this clause referred to as “the date of such commencement”),shall not be disqualified under this clause so long as the number of children he had on the date of such commencement does not increase:

      Provided further that, a child or more than one child born in a single delivery within the period of one year from the date of such commencement shall not be taken into consideration for the purpose of disqualification mentioned in this clause.

      Explanation. — For the purposes of this clause.–

      (a) where a couple has only one child on or after the date of such commencement, any number of children born out of a single subsequent delivery shall be deemed to be one entity;

      (b) “child” does not include an adopted child or children.

  • Dear Sir,
    I would like to know currently MC is vaild till Jan 2019. The MC was doing well i.e. calling AGM, calling SPGM on urgent basis to discuss and solve issues which need urgently actions, complition of every year audit etcc.. All members are happy with working MC. But now suddenly problem come that along with secretary and other 2 committe members got job transfer to other state. discsssed this matter all members and all given opinion that only add new members to MC to fill vacent places and existing chairman, tresaureer and other members remain as it is and this will continue for next 5years period. Is it possible to this change in MC with permission of all members by passing in special general body meeting?

    • Co-option is not allowed to fill any vacant position. You will have to call for election as per the new election rules else the cooptrd members can be consider as illegal and the registrar can dismiss the committee.

    • No. As per the new rules you can not co opt the member to fill the vacancy. You are required to inform the Registrar to conduct the election for the open position. Else the Registrar will have and option to dismiss the MC and disqualufy them for 5 year.

  • Hi Rajeev,
    We are Society of 160 members, our New Managing committee was elected in 2014 by Registrar, there after 2 members resigned and committee co-opted 2 new members in place of them without informing Society members or Registrar office, thereafter again 3 members resigned and also in last AGM 2 committee members were asked to removed from the committee by society members as one was not paying maintenance charges and second oen has rented his flat and he is staying in other area and hardly attending committee meeting. So currently there are only 4 legal MC members remaining but still MC don’t want to have fresh election for new Managing committee neither they r informing Registrar about the same. Kindly suggest what can be done.

  • Hello Rajeev,

    We are a society of about 88 members. We want to conduct proper elections, and we want to know if voting through email, or SMS, or WhatsApp is permitted if there are proper witnesses to it? If yes, does the existing committee need to declare it in the announcement for fresh elections? We have another couple of questions. Is it possible to have a call with you? Looking forward to your reply.

  • I am the Resident/Owner of Classic Harmony CHS Ltd kamothe, wanted few clarification as mentioned below:
    I am a Resident/Owner of Classic Harmony CHS Ltd kamothe, wanted few clarification as mentioned below:
    Q-1) Our society comprises of 11 MC members ( Males), 7 MC members list are updated with registrar and 5 nos are not. In that, the MC committee elected Chairman from the 5 members who are not registered with the registrar, signing all the papers and taking the society decisions as per his convenience and comfort, is it the right process?
    Q-2) Is there any provision wherein, Chairman (Elected in AGM), Secretary (Opted for Resignation) and Treasurer can take decision and impose to entire society members without involving any of the MC members.
    Q-3) Putting Hole with core cutter in Beam is allowed for Mounting AC.

  • I am a Resident/Owner of Classic Harmony CHS Ltd kamothe, wanted few clarification as mentioned below:
    Q-1) Our society comprises of 11 MC members ( Males), 7 MC members list are updated with registrar and 4 nos are not. In that, the MC committee elected Chairman from the 4 members who are not registered with the registrar, signing all the papers and taking the society decisions as per his convenience and comfort, is it the right process?
    Q-2) Is there any provision wherein, Chairman (Elected in AGM), Secretary (Opted for Resignation) and Treasurer can take decision and impose to entire society members without involving any of the MC members.
    Q-3) Putting Hole with core cutter in Beam is allowed for Mounting AC by passing wire through that hole?

  • Rajeev ji,
    I have been reading your replies to queries and find them very clear and precise and helpful.
    Recently our society is getting a PNG pipeline. For members to get connection, the form required owner ship documents in the form of electicity bill/ Society maintenance bill or letter from the society.
    One of the residents(who is not a member) who is staying for over 10 years in their relatives flat approached the secretary of the society for issuing a letter that they are staying in the flat for over 10 years. The idea behind it was to use this letter to get the gas connection in their name and not on the owners name.
    Due to their relationship with the committee members, some committee members were in favour of issuing a letter to this non member.
    My query is :1) is the chairman/ secretary obliged to respond to a non member ? 2) can the society issue any such letter to a non member , which will be used as a ownership proof to get the PNG connection without a written permission (NOC)of the Member.
    This particular resident is obviously having some dispute with the member and obviously unable to approach the member. As the form states that if they wish to get the connection in their name, they need to get an NOC from the owner.The Chairman has refused to issue the letter. Many members including some committee members think it is ok to give a letter without the permission of the owner (member). Look forward to your views. Thanks

    • Thanks for your kind word and sorry for my delayed response.

      There is no harm in issuing a letter stating that he has been staying in the said flat from “XYZ”… Such documents are not enough to prove the ownership. It’s like we give the letter for passport etc… so technically what you are doing is just certifying and confirming that he is staying in the same flat for past 10 years and not confirming that he is the ownership. Along with such documents they will also ask the copy of maintenance bill, electricity bill etc.. which I am sure will be in the name of owner..

  • Hi
    Our society is newly getting formed. Builder is handing over d society , so v had a new committee formed.
    My query is, my father has a shop in the same society n im his daughter who is running the shop. So can my father give me authority letter to be 1 of the committee member of the society.
    On the basis of that authority letter can I actively participate in society meetings.
    Thanks

  • Our housing society held elections without informing SCEA ie existing MC announced elections and elected themselves. Is it legal to hold such elections? Can criminal complaint filed with police by a member or SCEA can initiate criminal proceedings?

    • Yes! Its not only illegal but all the decisions taken by such committee would be null and void. The registrat will have the power to dimiss the managing committee and apoint administrator.

  • Hi Sir, I am Amit, treasurer in my society. Our society is going for elections. Just wanted to know that is it necessary that entire MC should be involved in deciding the date for election or Secretary can take decision on committee’s behalf and inform the same to returning office. Thanks.

    • Such power are vested with the Secretay. I would suggest to take a decision after holding a meeting of managing committee.

  • I am secretary of a housing society inBorivali Mumbaiwith 14 members.Our treasurer has resigned from his post as MC member.One of the MC member has died.I want to fill these two MC posts and fill treasurer post as well.Please suggest the procedure.

  • If member having more than 3 children can contest election and be a part of Managing committee Member

    • Refer below provision of THE MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 1961, any member having more that 2 children is not eligible to contest the election.

      2I(d- 1) If he has more than two children:
      Provided that, a person having more than two children on the date of commencement of
      the Maharashtra Co-operative Societies (Third Amendment) Act, 2001 (hereinafter in
      this clause referred to as “the date of such commencement”), shall not be disqualified
      under this clause so long as the number of children he has on the date of such
      commencement does not increase:
      Provided further that, a child or more than one child born in a single delivery within the
      period of one year from the date of such commencement sh all not be taken into
      consideration for the purpose of disqualification mentioned in this clause.
      Explanation.– For the purposes of this clause.–
      (i) where a couple has only one child on or after the date of such commencement, any
      number of children born out of a single subsequent delivery shall be deemed to be one
      entity;
      (ii) “child” does not include an adopted child or children; (e) if he so disqualified by or
      under any other provision of this Act.

  • Our Society has registered in March 2015 which had hand over in June 2016, but till date we haven’t got our share certificate, rather committee members not did anything and not followed any rule of given bye-laws. Now they start the election process which will held in 15th July 2018. Shall we vote without having our share certificate? Please advise.

    • Dear Prashant,

      I suggest that all the member should participate in the election process not only by giving their vote but right candidate should also contest the election so that you can have an effective & dedicated Managing Committee.

  • I have 3 queries.
    Elections were held 3 years ago is our society & are valid for 5 years.
    Now 1 committee member & secretary have resigned due to health issues. Can the committee :-
    1. co-opt new member without informing the registrar & members. Is it correct & legal & pl state the act / rule

    2. Can new secretary be appointed from the exhisting committee members or can Associate member be appointed as secretary. Is it valid

    With regard to the above queries pl confirm whether registrar has to be informed about the resignations
    & can the committee co-opt new member in the absence of fresh election / voting. Also pl let us know
    the rules / procedure for appointing new members as per the Act.

    • As per the existing bye-laws / election rules, you can not co-opt the members in case of vacancy. You are required to inform the Registrar for conducting the election to fill the vacant position.

  • Hello sir,
    Can the chairman’s seat be kept vacant for more than 2 months or can the secretary be the chairman as well as secretary for more than six months. ( The chairman of our CHS expired in Jan 2018…. Since then there’s no chairman)

  • Hello, i am secretary of sejal park society of dahisar residence, this year AGM we have decided, who one have 2 nos, 4 wheelar, tha one of not to park in society premises, as bye laws, 1 flat 1 car. Another one member have, 4 wheelar tempo, which is t permits, but we are allowed to park inside the premises, 2 car person sayz if you remove t permit tempo, then I will remove my second car. Please suggest which step i will take, regards, vilas Panchal

    • The parking is for the resident to park their personal car / bikes and not the commercial vehicles unless decided by AGM.

  • Dear Sir,
    I understand that there is an ordinance regarding Co-operative Housing Society elections, request your clarification on the matter.

    Below is the extract of the ordinance;
    Housing societies with less than 200 members will no longer need to approach the Authority to conduct elections. While housing societies in Maharashtra having less than 200 members will now be able to hold their elections in the annual general meeting every five years.

    Refer below link;

    https://indianexpress.com/article/cities/mumbai/maharashtra-housing-societies-can-conduct-elections-on-their-own-but-government-tightens-noose-around-violators-5285520/

    • To my understanding and best of my knowledge the bill has been waiting for the final approval of Governor’s approval. Till then the we have to go with the current provisions.

    • The subject changes has been approved by the Maharashtra cabinet and the same is now pending for Governor’s approval. After his approval a notification in this regard will be published to make it effective, till then we are required to follow the existing provisions.

  • Dear Sir
    As i undersatand, the managing committee needs GB approval for collection of any fund or change in the service charges/repair and maintenance fund. However, our Mc has just taken a decision of change in repair and maintenance and has been collecting it for the last 6months. However, they god it approved in last GB. Is a post- facto approval from GB is legal and acceptable.

    • Yes! Some of the decision may required immediate action which can be regularize in subsequent AGM. Ideally the MC would have called an SAGM / EAGM to finalize but since members have not objected it may be considered as need of the hr. which was subsequently approved by the AGM.

Leave a Reply

Your email address will not be published. Required fields are marked *