Maharashtra: Few takers for dispute redress mechanism in co-op societies

The intent of the circular was to set up an alternative dispute redress mechanism within cooperative societies, to tackle unresolved issues. Representation Pic

The five-month-old government circular which aims to resolve the disputes within cooperative housing societies has found few takers. The intent of the circular dated May 4, 2023, was to set up an alternative dispute redress mechanism within cooperative societies, to tackle unresolved issues by society office-bearers, within 45 days by an advisory committee.

According to housing experts, adopting the circular is important as it is often the personal egos and ignorance of law that contribute to the disputes, which if unresolved, turn chronic and derail the principles of cooperation within the societies. CA Ramesh Prabhu, founder chairman of Maharashtra Societies Welfare Association (MahaSEWA) said, "I have not come across a single society that has formed the advisory committee, as stated in the circular. I am of the view that it should be mandated for the housing societies to adopt the circular in its new bye-laws."

Prabhu said that the auditors should incorporate such non-compliance in the audit report. "The registrars should issue necessary directions under section 154B-27 to societies to form the committee. The housing federation should also educate and empower the society to form advisory committees, at the earliest," said Prabhu.

‘Reluctance to share power'

Prabhu said, "In many societies, the committee members don't want to be answerable and are reluctant to share power, as it may create a parallel power center in the society. The grievances committee provision, after making its appearance in an ordinance in 2013, was deleted in the Act, owing to objections raised by the societies." Implementation of the circular will be the best solution in line with the Mediation Act of the union government, he said.

Constitutional provision

Advocate Floyd Gracias, Supreme Court counsel, said, "From a Constitutional law perspective, our Constitution has made provisions for the effective functioning of cooperatives and the facilitation of the cooperative moment, for the benefit of citizens and the society at large. However, the same should not disturb the individual rights of members to privacy, safety and shelter, all enshrined in Articles 19 (1) and 21 of the Constitution." Floyd said that the spirit of cooperation is stifled when dissenting individuals or groups hold the society to ransom and also when societies harass the dissenters.

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Expert speak

Advocate Shreeprasad Parab, expert, director, State Housing Federation said, "It is ignorance of law and personal ego which causes disputes in cooperative societies. The members of the society need to be educated either through the state government or housing federations or through the co-operative society itself, about the cooperative principles and also law concerned and this circular is a step towards this direction by the cooperative department," said Parab.

Whom to approach

Bye-Law No. 174 prescribes the authorities for disputes such as...

>> General Body - First approach of all members for various issues in administration of the society.

>> Cooperative Registrar - Issues such as membership, non-issuance of share certificate, non occupancy charges, excess transfer premium, non-supply of documents, misappropriation of funds, recovery of dues, deemed conveyance, etc.

>> Co-operative Court - Parking, elections, unlawful resolutions, repairs, leakages, etc.

>> Civil Court - Redevelopment issues, conveyance deed issues, etc.

>> Police - Nuisance, threats, assault, etc.

>> Municipal Corporation - Illegal construction, structural problems, change of user, inadequate water supply, etc.

>> District Housing Federations - Help desk to guide all members.

Source - State Housing Federation

Salient features of the circular

1) Society members who do not participate in society AGM and society election will have to approach cooperative court instead of cooperative registrar, with any grievance pertaining to the AGM or election.

2) Security and safety of members of society: Society is mandated to maintain separate records of house maids, security guards and tenants, and also keep their identification documents like aadhar, PAN and residential proof.

3) Writing and maintaining minutes of committee meetings: It is mandated to make such minutes of committee meetings within a month from commencement of the meeting or before the next committee meeting, whichever is earlier.

4) Formation of dispute redressal committee: Every society should appoint a five member expert committee, who will address issues, which remain unresolved by the society officer bearers, within forty five days of receiving such a complaint.

5) Instead of directly appointing an administrator for a society, hereafter the registrar will appoint a three member committee composed of an administrator from the panel and other two members from the society, other than the existing committee members.

6) It is now mandatory to hire society managers, who have successfully completed the society managerial training course, and are certified by the respective district housing federation.

According to Advocate Parab, Section 72 of the Maharashtra Co-operative Societies Act, 1960 states that "Subject to the provisions in this Act and the rules, the final authority of every society shall vest in the general body of members in general meeting, summoned in such a manner as may be specified in the bye-laws"

Example - 1) if 51% of the members say that the Society's building shall be painted with white colour and 49% of the members say that it shall be painted with yellow colour then the 49% minority shall abide by the decision of 51% majority and the building shall be painted completely by white colour only and not 51% white and 49% yellow. 2) if 99% or 100% of the members decide to skip the election process and keep the existing committee forever, then such decisions are not as per the provisions of the act, rules and bye-laws and are therefore void.

I-Me-Myself Syndrome

Dr Bharat Vatwani, a Ramon Magsaysay Award winner and psychiatrist said, "The rising aspirations and the decreasing frustration tolerance across all levels of Indian society have led to an exacerbation of the I-Me-Myself Syndrome. And to maintain these erroneously arrived at foundations of this part-self, part-society inculcated I-Me-Myself Syndrome has become the end all and be all point of human existence. Very non-productive and tragic, but such are the fallouts of the modern attitudes from within this new age modern world of ours, leaving to dust the words of Tagore - Where the world has not been broken up into fragments by narrow domestic walls, into that Heaven of Freedom, my Father, let my Country awake..."