The work stopped last year when PMC Bank which had their account, was in trouble; residents are worried whether repairs will be completed before monsoon when the lockdown is lifted
Kashinath Rokade, secretary of Shiv Sneh Co-operative Housing Society said they are waiting for the lockdown to be called off for repairs to begin again. Pics/Pradeep Dhivar
The Shiv Sneh Co-operative Housing Society in Pratiksha Nagar, Sion, has been dealt another blow as the much-needed building repair work has come to a halt twice in past few months. The repairs initially came to a halt last September, when the Punjab and Maharashtra Co-operative Bank (PMC) found itself in trouble. The society had R85 lakh in its Sion branch, which they haven't received yet. In March, when the society once again started the repair work using funds from their other bank account, it had to be stopped due to the lockdown over the COVID-19 spread as Pratiksha Nagar is in the red zone. Now with the work pending, the residents are worried about their fate this monsoon.
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Kashinath Rokade, secretary of the society said, "We have been told that pre-monsoon work can be started, but are awaiting for the lockdown to be called off after May 17, and the contractor has assured us he will get the waterproofing done within two to three weeks, with some interior work. The painting of exterior building can be done post monsoon."
The 166 (flat and commercial shop) owners attached to the four wings (A,B,C,D) of the building were all set to abide by the structural consultants audit report and promptly floated bids calling in for tenders, which took almost four to five months of hard work starting February 2019. Finally they zeroed in on the contractor, M/s Viswakarma Civil Constructions, Kalwa, Thane and selected them to carry out repairs, civil work including waterproofing and painting work for a total consideration of approximately R52 lakh, as per their tender, explained society chairman Mahesh Adate.
Rokade showing the state of the repairs in October 2019
Repairs were on
Adate added, "The building was to undergo repairs for the first time since it was handed over to the society by MHADA in 2008 and since then office bearers were collecting repair funds under monthly maintenance of approximately R1,800 from members. A huge corpus of nearly R85 lakh, in the form of Fixed Deposits and other savings, were in the society's name with the PMC, Sion branch."
The society had even issued work order to M/s Viswakarma paying an advance of R5 lakh, as against the contract signed. Since August 15, the scaffoldings were put across the building structures, and work of removing old plaster was in process. As per the contract the entire work was to be completed within four months time period.
Adate added, "Most of the occupants in the building (nearly 80 percent) are working class people which include senior citizens, who have been residing her for over a decade."
According to Adate, MHADA had issued a lottery for this MIG (Middle Income Group) way back in 2005 for a consideration of R10 lakh - R11 lakh including stamp duty and registration, where each flat is around 450 sq feet carpet and commercial outlets allotted admeasuring 150-160 sq feet (Carpet). In 2008, MHADA handed over the building to the society and since then the society has been collecting funds for repairs.
PMC scam shocking
Adate said, "We were taken by surprise, when we learnt about the abrupt directives from RBI putting restrictions on PMC bank. We had to arrange for funds, as the contractor had already sent a letter seeking clearance of additional fund for carrying out the work, and we were left in the lurch."
When asked why the society does not have any other bank account, besides the one with PMC bank and Maharashtra Co-operative Bank, the society office bearers said, "We have always been told that under the Maharashtra Cooperative Societies Act, housing societies should mandatorily have accounts only with co-operative banks, hence we abided by the rules. Also our society accountant had no problem banking with PMC, everything was going on smoothly, till last week."
When informed that society accounts can be opened in nationalised banks too, they said, "We are ready to open a new account with a nationalised bank, provided PMC transfers all our society funds there."
When asked how they will finish the remaining payment, Adate added, "We will have to start taking contributions from members. Also we have not got any response to the legal notice issued to PMC Bank on behalf of our society. We may contemplate taking the matter to the consumer court against PMC Bank."
He said that nearly 25 societies in Pratiksha Nagar have deposited money with PMC bank and the whole figure may be in crores of rupees.
Expert speak
Senior property lawyer Vinod Sampat said, "The Reserve Bank of India has been forced to take drastic action against PMC bank, this will result in a financial cut to be taken by each of the societies who had deposited their funds. As far as legal action by the affected cooperative society against PMC bank goes, I am afraid that the provisions of the banking regulation act will supersede it and the financial losses, being caused to it (the society)."
"The need of the day is that harsh laws be framed, whereby doing a wrongful act is made as a deterrent to persons who fail to perform their duty with criminal intent. Punishment should be awarded by courts in a short span of time in such financial frauds, so that a strong message is sent out. The law should not remain a paper tiger," he added.
Rs 85 lakh
What the society's account in PMC Bank holds
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