As cooperative housing societies (CHSs) grow in size and complexity, the issues member residents encounter often extend beyond routine maintenance and internal disputes. Problems can arise when multiple Societies share common amenities, when property transactions fall through or when managing committees fail to comply with statutory requirements. This week’s questions highlight three such situations that demand clarity on legal processes, accountability and the remedies available to members.
Governance & Complaint Process for Apex Committees of Multiple Societies
Question: I am residing in a complex with four different registered housing societies. They have formed an apex committee under a partnership agreement to manage common area expenses such as common security, clubhouse, garden, festival activities and common electricity.
1. What rules apply to such a committee formed under the Partnership Act?
2. Whom should we approach if there are internal issues and one of the Societies refuses to pay its share of common area expenses?
3. Due to the lack of funds, they have stopped security at our main gate. Who is responsible for this and to whom should we complain?
Answer: Two or more cooperative housing societies may form a joint committee under Section 20 of the Maharashtra Co-operative Societies (MCS) Act, 1960.
For this:
1. Each Society must pass a general body resolution with a three-fourths majority,
2. All members must receive 10 days’ clear written notice of the meeting, and
3. The partnership must have prior approval of the registrar of cooperative societies.
This partnership is governed only by the MCS Act. The Indian Partnership Act does not apply.
Such an apex or joint committee can manage only the common facilities shared by all Societies, such as security, clubhouse, garden, electricity and internal roads. Each society remains responsible for the maintenance of its own buildings.
You may begin by formally notifying the apex committee, with a copy to your Society’s secretary, demanding that security services at the main gate be restored without delay and ensuring the communication is properly documented. At the same time, seek an urgent joint meeting of all societies to pass a resolution reinstating security and addressing the funding shortfall, ensuring that the discussion and decisions are recorded in the minutes.
If there is no corrective action within the next day or two and the absence of security creates an immediate safety concern, you should approach the local police and file a complaint.
Should the issue remain unresolved after a week or so, the matter should then be escalated to the deputy or registrar of cooperative societies through a detailed written complaint supported by relevant records such as the apex agreement, meeting minutes, notices issued and evidence of non-payment.
Since you had mentioned a partnership agreement, we assume it is registered with the registrar of partnership firms. In this case, you need to file a complaint with the registrar of partnership firms.
Recovering Token Amount after Cancelling a Property Deal
Question: After initial due diligence, discussion and a plot visit, I paid a token amount of ₹45,000 for a plot in Sawantwadi. However, when finalising the deal, I found the builder and seller unwilling to change some agreement clauses and insisting that part of the payment be made in cash (which was never mentioned earlier). Since the deal was not progressing and based on the advice of their company executive, I cancelled the deal by sending a letter.
I am now asking for the refund, but the builder and seller have been delaying it for over four months since cancellation. The token amount was said to be non-refundable (but this was not stated in any legal document) and he is not outright denying payment either. What options do I have to recover this refund amount from the builder and seller?
Answer: Take up the matter with the district consumer dispute redressal commission (DCDRC) of your district. The DCDRC for the Sindhudurga district, which includes Sawantwadi, is located in Kudal. Phone No. 02362-228825, email:
[email protected]. You can also register your complaint online on the e-filing portal of the department of consumer affairs. Here is the web address
https://e-jagriti.gov.in/
If you are not conversant with filing a complaint, do an online search to understand the procedure. Read blogs on the Consumer Protection Act, where the method of filing a consumer complaint is properly explained.
If you have a letter of offer and you have paid the money by a crossed cheque, you do not have to worry. You will receive your money back, including interest, even if the builder claims the amount is non-refundable. In the consumer forum, you can also claim compensation for mental harassment and litigation charges.
You do not need to hire a lawyer. Since you know all the facts of your case, you can file the complaint and argue it before the CCRF yourself.
Handling Non-compliance in Audit Approvals and Registrar Notices
Question: The previous managing committee of our CHS does not cooperate or provide clarifications on queries raised by members regarding the audited financial accounts for the last three years. As a result, the audited reports for those years could not be approved at the annual general meeting (AGM). As the timelines for submitting the audited reports and AGM resolutions were not met, the present managing committee is now facing the consequences. We have also received a notice from the deputy registrar regarding the delay which invites penal action and punishment. How should we deal with this issue? Please guide.
Answer: With a photocopy of the deputy registrar’s letter, write a complaint to the deputy registrar, including all the points you have mentioned in your message. In your complaint, request the deputy registrar to dissolve the existing managing committee and appoint an authorised officer (AO/administrator) for your Society.
The AO will complete the incomplete accounting work of your CHS, along with any other pending tasks of the Society and then conduct elections for a new managing committee.
NOTE
We will not be answering queries posted in the comments. Only questions sent through the Moneylife Foundation's Legal Helpline will be answered. If you want to seek guidance or ask questions to Mr Shanbhag, kindly send it through Moneylife Foundation's Free Legal Helpline. Here is the link: https://www.moneylife.in/lrc.html#ask-question
Disclaimer: The guidance provided in these columns and on our Legal Helpline is on the sole basis of the facts provided by the reader/questioner and does not amount to formal legal advice in any form whatsoever.
(Shirish Shanbhag has an MSc in Organic Chemistry, a Diploma in Higher Education, and a Diploma in French and has completed his LL.B. in first class in 2021. Before his retirement, he was a junior college teacher at Patkar College from July 1980 to May 2012, teaching theoretical and practical chemistry. Post-retirement in 2012, he started providing guidance and counselling to people on several issues, specifically focusing on cooperative housing society-related matters. He has over 30 years of hands-on experience in all matters about housing societies and can provide out-of-box solutions for any practical issue.)
