Cooperative housing societies are expected to function transparently and in the best interests of their members. However, mismanagement, lack of accountability and failure to follow due process often lead to conflicts and legal troubles. This week, I will address pressing concerns ranging from missing share certificates and unauthorised leasing to prolonged inaction by administrators and financial mismanagement.
If you are facing similar issues, knowing your rights and the correct course of action can make all the difference. Here are some key queries from Society members and expert guidance on how to resolve them.
Delayed Action and Communication from the Appointed Administrator ;
Question: The managing committee of our cooperative housing society (CHS/the Society) was dismissed by the deputy registrar of cooperative societies (DRCS) in 2022. However, the secretary never handed over the Society's records to the authorised officer. The DRCS informed me that since the handover did not take place, the tehsildar and executive magistrate office in Borivali west was directed to retrieve the records with the help of the senior police station officer and transfer them to the authorised officer.
Three years have passed and repeated reminders to the DRCS have not yielded any results. Meanwhile, the dismissed secretary has been appointing a chairman and treasurer for the Society and is even engaging in redevelopment discussions with other buildings. What action can be taken in this situation?
Answer: You have not mentioned your specific status in the matter, the number of Society members involved, the orders passed so far, or under what circumstances the secretary is still functioning.
Given the delay and lack of response, the most effective course of action would be to submit an administrative appeal to the commissioner of cooperation and registrar of cooperative societies, Maharashtra, located on the second floor of the New Central Building, Ambedkar Wellesley Road, Pune. This may yield better results than following the regular procedure.
Separately, you can also file an application under the Right to Information (RTI) Act to the registrar of cooperative societies in Mumbai. You can seek information like a copy of the entire file related to your Society, file notings, and action taken report, if any.
Chairman Misplaced Original Share Certificate
Question: The chairman of my Society misplaced my share certificate before transferring it into my name. He denies this, but I have proof that I submitted the certificate to him. What should be my next step to resolve this issue without filing a first information report (FIR)?
Answer: In such a situation, the standard procedure involves lodging a police complaint, publishing a public notice in a widely circulated local newspaper and then having the Society issue a duplicate share certificate.
However, if you have documentary proof that the Society or its managing committee officially acknowledged receipt of your original share certificate, the Society is responsible for bearing the costs associated with issuing a duplicate share certificate.
Leasing a Flat That Is Yet To Be Transferred to Legal Heirs
Question: A registered nominee in our Society has requested permission and a letter from the Society to register a lease agreement for a flat that has not yet been transferred to the legal heirs. Is this allowed?
Answer: You have not specified the location of the Society building. Assuming the property is in Maharashtra and in the absence of details regarding the lease agreement, the nominee's request should be rejected if they have not been conferred provisional membership by the Society. A nominee can rent out the flat only after completing the required procedure to become a provisional member. Additionally, the contents of the lease agreement are crucial in determining the next steps.
Outstanding Demand for Property Taxes
Question: Our housing Society has been collecting property taxes since 1996, but we recently received a notice demanding Rs7 lakh in outstanding dues. With missing records in the Society, the situation lacks clarity and transparency. Who is responsible for this, and what should a member do to resolve the issue?
Answer: Based on the given facts, the current managing committee can initiate criminal or civil proceedings against the responsible committee members from that period. This should be done in consultation with an expert while also considering clearing the outstanding amount to avoid further penalties. A member's role in such matters is minimal.
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.)
