Chsguru Answers Archive Pack 8

ChsGuru Answers

Answers to your queries on Co-operative Law as posted in Free Query’s* section on

Can a MC charge a defaulting member Interest as well as penalty. As the bye laws permits only 21% interest. Also is it compulsory for MC to issue bills for the maintenance, when we have full-fledged staff to do this job. Thank you very much. It’s very appreciable that your site attends to so many problems of the MC as well as members. Good service to public in general.
Mathew Saldanha. Dream City Nashik,
 Off. Pune-Nashik Road, Near Dwarkha, Nashik.
The Society can levy simple interest at maximum twenty one percent per annum or at such lower rate as may be fixed by the General Body of the society, on the outstanding dues to the Society, from the date the amount was due, till full and final payment by the Member, there is no provision to charge compound interest or any other penalty or fines. Further as per the Bye-laws it is the duty of the Secretary of the Society, to prepare bills/ demand notice in respect of the charges of the Society payable by Members.
One of the Members expired he had nominated his Son and Daughter as Nominees. They have not complied with the requirement of Bye-law 34 of the model bye laws. Son expired recently, now his wife as a legal heir has written to the society restraining the society from issuing NOC for in favour of the sister. The Matter is in the court now. As a society can we raise bills in name of the late deceased members and take 50% from both the first Nominee and the legal heir of the second Nominee. Please advice.
Sandeep S. Khot.,
J. P. Road, Near Sport Complex, Andheri West, Mumbai.
The Society cannot raise bills in the name of deceased member, the society should ideally raise Bills in the name of Occupant, whosoever is presently occupying the said Flat, be it the Nominee or the Wife.
I live in this flat for past 4 years, No AGM has been held and there are no records shown of money used in building maintenance. What can I do?
Vinit Patel., Sagar Complex,
Saibaba Nagar, Borivali West, Mumbai - 400 092.
This is not only unacceptable but also in violation of the Law. The AGM has to be held once is every year on or before 30th September as per Section 75 of the Maharashtra Co-operative Societies Act and the annual report of the managing committee with the statement of the accounts etc., have to be circulated to all members of the society. You should immediately take-up this matter with the Office of the Deputy Registrar of the Co-operative societies for necessary action, the Registrar not only have powers to direct the Office bearers but also fine them & debar them from the Committee. To know the office of your Assistant/ Deputy Registrar visit our page: Address & Jurisdiction of the Registrar of Co-operative Societies.
Can a mother nominate her son for her share of the flat jointly held with the same son and allow him 100% share after her death and can he nominate his wife for the full 100% after his death.
Neeta Kumar, Sai Nagar, Vasai West,
Thane, Maharashtra - 401202.
Yes, a member can nominate any person as per his wish, including the joint/ associate members/ Co-owners as Nominee. A member of the society may, by writing under his hand, in the prescribed form, Nominate a person or persons to whom the whole or part of the shares and/ or interest of the member in the capital/ property of the society shall be transferred in the event of his/ her death.
Kindly let me know what is the limit of expenditure office bearers have without approval of General Body for repairs and other emergency expenditure with reference to the Law?
Rajesh Thakare, Dayanand Garden,
Wanworie, Pune - 411 040.
As per Model Bye-laws 158 the Committee shall be competent to incur expenditure on the repairs and maintenance of the society's property once in a financial year, the onetime expenditure does not exceed:
Upto 25 members: Rs. 25.000/-
26 to 50 members Rs. 50,000/-
51 and above Up to Rs. 1,00,000/-
As per model Bye-laws of Co-op Societies, what are the rules for signing a cheque?
Ramesh Kamthe, Harmony,
Pratiksha Nagar, Sion, Mumbai - 400 022.
As per model Bye-laws applicable to Co-operative Housing Societies the cheques shall be signed by the Secretary jointly with the Chairman or Treasurer.

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