It’s important for the Managing Committee of the Hosing Society to keep them self updated on the various compliance requirements as listed below.
Is it mandatory to adopt Model Bye-laws?
Yes. In accordance with the 97th constitutional amendment 2013, it is must for the housing society to adopt the Model bye-laws in your society. You may download the application form www.mysocietyclub.com to adopt the new model bye-laws.
M-20 bonds for committee members are no longer required.
According the state government circular G.R. CSL number – 2012/PK402/15-S, the provision of Mandatory signing of M–20 Bond by Members of Managing Committee has been abolished effective from 06.09.2012.
Is it correct to disconnect essential services of defaulters for unpaid dues by the Managing Committee?
No! Essential services like electricity, supply of water etc. of defaulter members cannot be disconnected by the Managing Committee / Office-bearer and / or the society manage on account of nonpayment of society’s due or any billing dispute. In case of such disconnection, the aggrieved member can file a criminal complaint then the person(s) found guilty for such disconnection of essential service(s) can be punished with imprisonment which can extend up to a period of three months and/or fine. It is advisable to follow the recovery process as defined.
Is it possible to offer some discount / rebate to members for advance payment of maintenance / prompt payment of dues?
The society bye-laws do not have any such provision to grant any rebate / discount to the members for advance payment of the maintenance bill / prompt payment. In case such benefits has been extended to the members can considered to be a violation of the bye-laws.
What precaution managing committee should take before transfer of flats?
Traditional it was a not a practice in many society to check and ascertain if the stamp duty is paid as per market value on the agreement of the incoming members or not since the same was not mandatory. However as per the new model bye-laws 38(e)(iv), society can refuse the transfer, if stamp duty is not paid as per market value, as listed in the ready-reckoner. It is advisable that all incoming members should pay stamp duty as per true market value of their flats / property as this will help the society to expedite deemed conveyance or conveyance process with builders in future.
As per section 30 of the Bombay Stamp Act, 1958, the stamp duty will have to be paid by purchase, hence it is advisable that at the time of re-sale of the flats / property both buyer and purchaser decide and agree on the payment of the stamp duty as per the ready-reckoner.
What are the Key Financial reporting / other compliance required for Housing Societies?
- Last date for getting books of account audited is four months after the close of financial year 31st July of every year.
- Last date for holding AGM is 30th September. No extension will be granted for postponing AGM after 30th September. If Society fails to conduct AGM within due date, Registrar will have the authority to conduct AGM
- As per amended Section 75 of MCS Act, Auditor cannot be appointed for 3 consecutive years.
- It is mandatory that every CHS must file its Annual Report and Audited Accounts with the Registrars Office, maximum by 30 Sep (Section 147 of Model by-laws). Otherwise, you can file for an extension justifying the reasons for the same.
- The Audit Rectification Report must be submitted with the prescribed ‘O’ form within 3 months of date of audit report to the Auditor and Registering authority.
- The State Cooperative Election Authority must compulsorily be informed at least six months before the expiry of the present committee’s term of office. Failure to inform will disqualify them from contesting the elections.
- Elections within 6 months in the case of managing committee being suspended. In case the managing committee is superseded for any default of theirs, and administrator/authorized officer is appointed by the Registrar, elections must be compulsorily held within six months, and control must be returned to the society members.
- Every Society has to form Grievances Settlement and Redressal Committee to deal with the grievances of the members and the society, relating to its business & management. The Grievances Settlement and Redressal Committee should be formed in AGM. The said committee should consist of 3 active members & shall be other than Managing Committee members.
- Societies are mandated to adopt modern methods and technologies for management, record keeping, compliance with deadlines, statutory requirements etc. For this, they are encouraged to appoint professionals as “functional directors” and “expert directors”.
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