Housing societies apply to replace single administrators with threemember panels to run society affairs
October 4th, 2023
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Two years ago, an administrator at Aayushi housing society in Mulund transferred the membership of
a few owners without the general body's consent, which led to loud ruckus on the premises.
Recently, an administrator at Mrignayani Apartments in Andheri awarded a major repair and
maintenance contract worth lakhs without the general body’s go-ahead, forcing the members to lodge
a formal complaint.
Then, at Andheri's Atharva society, the administrator withdrew cash under different heads, allegedly
committing major financial irregularities.
Now, a government advisory asking for the appointment of an administrative panel of three, including
two from within the society, has clipped the wings of these administrators appointed by the registrar.
These administrators, being the sole authority, at times become autocratic while driving society
decisions.
As the new government circular recommends a panel, a large number of housing societies have
applied to get one in place of a single administrator.
"There are around 700 housing societies in the Mumbai Metropolitan Region which have
administrators appointed by the registrar who run the affairs. Now, following the circular, a sizable,
15-20% of societies in each ward are coming forward with a demand for a panel of three, including the
administrator.
Despite having no authority, in many cases, it was found that administrators had interfered in policy
decisions and embezzled society funds without the knowledge of the general body. The cooperatives
department had received hundreds of complaints against administrators' wrongdoings," said Ramesh
Prabhu, president of Maharashtra Societies Welfare Association.
The state cooperatives department’s recent advisory has clearly stated that administrators will no
longer have the authority to make policy decisions or handle major repairs and redevelopment on
behalf of a society. Instead, a panel consisting of the administrator and two additional society members
will be appointed to oversee routine administrative tasks and jointly operate society bank accounts.
Housing experts say this circular will bring much-needed control, accountability and transparency in
around a thousand societies in Maharashtra that are currently managed by administrators due to
internal disputes within society committees.
The circular was issued by cooperatives commissioner Anil Kawade after the government received a
letter from the deputy Lokayukta to devise new guidelines to effectively deal with numerous
complaints regarding the working of cooperative housing societies under the administrator’s rule. A
three-member study group was formed, which submitted its report to the Lokayukta in November
2019, leading to the new circular.
In the case of complaints and misdemeanor by the managing committee members, the cooperative
housing society (CHS) registrar has the power to dissolve the incumbent managing committee officebearers and appoint an administrator to handle the day-to-day management. However, after complaints
about administrators favouring a scrapped managing committee or compromising their autonomous
functioning, the commissioner has given these directives. The panel will have to be renewed every
year.
“If the registrars are convinced that it is necessary to appoint an administrator to the said institution,
they should appoint the person on the panel prepared by the divisional joint registrar office as the
administrator. A three-member administrative board should be appointed preferably. Out of which at
least one member should be a member of the organization and one member should be on the panel
constituted by the office of the divisional joint registrar, cooperative societies. Renewal of roll on the
panel will be required before 31st March every year," stated the circular.
The circular also said cooperative housing societies should change auditors from time to time and a
certified chartered accountant can conduct the annual audit only for three consecutive years. Similarly,
members not attending meetings but complaining about the proceedings should approach the
cooperative's court and get their complaints resolved instead of approaching the registrar.
All society information must be computerised, including that of tenants, security and cleaning staff,
and minutes of the meeting should be ready in a month or at least before the next meeting. Setting up
an advisory committee to take care of grievances is mandatory, the circular stated.
Source: realty.economictimes.indiatimes.com
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