Kenneth Saldanha, Author at

There are several confusing and interchangeable terms as far as the finance mechanisms of sustaining a housing society are concerned. Once you decide to become a homeowner, you’d be introduced to concepts like Corpus Fund, Sinking Fund, and Hybrid Maintenance Calculation, among others. It’s not a point of concern because everything a housing society spends is well accounted for and highly regulated by the managing committee.

What is corpus fund in housing societies?

In general terms, Corpus Fund meaning can be referred to as a capital fund; an amount kept aside for an organization/entity to operate, exist and maintain itself. These funds are not meant to be utilized for the attainment of any objectives and are accrued through voluntary contributions.

With respect to corpus fund for apartment, it’s the responsibility of the developer to collect the corpus fund in order to maintain the amenities and facilities. In other words, it’s a lump sum amount collected (think of it as a pre-paid maintenance charge) from the home buyer for maintenance purposes and is not included in the total sale amount of the property. Not the corpus fund but the interest generated on the amount can be actually utilized by the developer for the aforementioned maintenance expenses. However, once the housing society or the apartment association is formed, the developer has to hand over the corpus fund to the managing committee. For further permanent upkeep, residents pay a maintenance charge to the MC on a monthly, quarterly or annual basis on a calculation method decided unanimously.

How is the corpus fund generated in housing societies?

At the time of the property sale, every buyer of the apartment/ home contributes his share of a predetermined amount, which collectively forms the Corpus Fund. The builder hands over the finished product to the buyer usually within two years’ time if the property is under construction. Thus a considerable amount is collected from the buyer to take care of expenses over a long period of time.

What is the corpus fund used for?

The developer uses the interest or dividend generated from the Corpus Fund to pay a facility management and supervision agency which takes care of amenities, common areas, light bill, servicing, cleaning, etc. The builder cannot use the interest generated from the Corpus Fund for any other purposes.

What do the bye-laws say about the society corpus fund?

Model bye-laws of Maharashtra clearly state that a minimum of Rs 10,000 to a maximum of Rs 25,000 premium on the transfer of property rights can be charged. But these come into effect once the society is formed; mostly builders calculate corpus fund on sq feet basis and the amount can be well over Rs 1 lakh. Once the housing society is duly formed, the Corpus Fund amount can also be transferred to the Sinking Fund which is used for major repairs, reconstruction, structural addition or redevelopment. Many societies prefer to collect a big amount of corpus funds from every owner and from the interest generated, they maintain the amenities for decades, only charging the owners for additional repairs and replacements. The general body of the society can form its own rules and regulations with regards to the amount, its investment and its utilization. If a homeowner needs clarity on this fund and its specific use, he can obtain a copy of the bye-laws from the society’s office and demand to see the annual financial report of the society.

How should the developer handover the corpus fund?

A Corpus Fund must never be misused or embezzled by the builder or any third party for their own benefit. A detailed expense accrual with signatures and stamp has to be produced by the builder during the handover process so that the homeowners are aware of how the Corpus Fund was utilized. These expenses are registered in the annual balance sheet as well so that all residents have access to the records. Transparency regarding the corpus fund is crucial as it changes hands throughout the life cycle of the residence.

What if the developer refuses to return the corpus fund?

Send a legal notice to the builder and if that doesn’t work, file a complaint in the consumer court as well as RERA. It’s a civil case, not to be disposed of in the criminal court. Note that the corpus fund amount cannot be paid in installments by the builder. The same redressal can be sought if the builder has misused the Corpus Fund and refuses to account for the monies swindled from the owners.

Before you sign the dotted line, make sure you have gained clarity from the builder about how much money he aims to collect as a corpus fund and be sure to understand every line item from the proposed utilization format of the fund amount. Better beware today than to be surprised tomorrow.

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What is a cooperative society audit?

The Co-operative Housing society is no doubt an autonomous and self-reliant endeavor. However, once every year, it is subject to the scrutiny of an outside agency to have its financial statements audited. For this purpose, it hires the services of financial experts per government laws. Annual account audit of a co-operative housing society is mandated by the Constitution of India. The model bye-laws state that it is the responsibility of the Managing Committee to do an Accounts Audit within a period of six months from the closure of the financial year and before the Notice of Annual General Body Meeting.

Procedure to conduct an audit of cooperative society?

The first step is to appoint a Statutory Auditor from the panel of Auditors approved by the State Government or an experienced Chartered Accountant who holds a Certificate in Cooperative Audit issued by a recognized authority. However, the chosen Auditor is not allowed to be retained for more than two consecutive years. The selection of the Auditor is to be done by the Managing Committee at a General Body Meeting. At the same time, a society may select an Internal Auditor from within the society/committee (if they find it necessary).

The Auditor has to be financially compensated by the society, thus his fees have to be paid by the statutory scale of compensation decided by the Registrar with respect to the type of society.

The Secretary of the society is required to furnish all the necessary documents included but not limited to, ledgers, cashbooks, register of members, a record of shares/debentures, minutes book of the society’s meetings, receipts and payments of income and expenditure, financial statements, profit-loss balance sheets, and any other documents needed by the internal as well as Statutory Auditor.

Housing society audit checklist

The Auditors checks for audit of housing society are as follows:

Irregularities, misstatements in the accounts of the society
Specifics of any anomalies, misappropriation of funds, embezzlement, or fraud found in the
account statements of the society.
Studying the financial transactions such as loan, investment, borrowings, lending of the funds by the society and examine the interest paid and received along with the related agreements
Physically inspecting the assets of the society
Ensuring the society’s financial dealings are in accordance with the Co-operative Society Act

The Auditor takes stock of the amount defected, investigates how anomalies were caused and prescribes ways to fix the problem. He also highlights the impact of account irregularities (if any) and their impact on the overall financial statement. The audit is presented to the society and forwarded to the Registrar, who then submits it to the State Government every year.

What happens after the society accounts audit is completed?

After receiving the Audit Reports from the internal and external auditors, the Secretary is required to prepare draft audit rectification reports which include comments, objections, suggestions, corrections, clarifications on the Accounts Audit report and present the rectification report to the Managing Committee for approval in the next general body meeting. The audit rectification has to be completed within three months from the date the Accounts Audit was handed over. The same audit rectification report is submitted to the Registrar and to the members of the society at the Annual General Body Meeting.

If the Managing Committee of the society fails to submit the audit rectification report to the Registrar, it is considered a constitutional offence and is subject to punitive measures. The Registrar maintains a detailed list of all registered co-operative housing societies district-wise and has a record of all societies that have not conducted their Accounts Audit. The Registrar is also responsible for coordinating between the Auditor and the societies to ensure the entire procedure is finished on time.

Why should you conduct an accounts audit with due diligence?

As a responsible member of the Managing Committee, you are required to maintain immaculate financial accounts of the society’s income and expenses. The Secretary is responsible for keeping a record of all receipts, bills and expense accounts for the entire year and store them in a secure place for the Accounts Audit.

If any malfeasance, deliberate or unintentional, is found by the Auditor, it affects the financial framework of the entire society and could cause a serious impact on the members’ financial well-being. Not getting your Accounts Audit done efficiently as per the mandated procedure makes your society non-compliant in the eyes of the government, leading to further action, which could be easily avoided with a timely Accounts Audit.

To aid residents of the co-operative society, who are in most cases laymen coming together to create community living and may not be experts in finance and accounting laws, the government has laid down above mentioned directives which are necessary for every society to follow earnestly.

Now that you have a general idea about how Accounts Audits are performed, let’s take a deep dive in the technical and operational details of a housing society’s Accounts Audits.

What are the provisions (exact verbiage) for audit as per Section 17 of the Co-operative Society Act, 1912?

Audit.—(1) The Registrar shall audit or cause to be audited by some person authorised by him by general or special order in writing in this behalf the accounts of every registered society once at least in every year.

(2) The audit under sub-section (1) shall include an examination of overdue debts, if any, and a valuation of the assets and liabilities of the society.

(3) The Registrar, the Collector or any person authorised by general or special order in writing in this behalf by the Registrar shall at all times have access to all the books, accounts, papers and securities of a society, and every officer of the society shall furnish such information in regard to the transactions and working of the society as the person making such inspection may be required.

What are the qualifications of an auditor?

The Auditor can be a government-certified Chartered Accountant (within the meaning of the Chartered Accountant Act-1949).

Apart from that,

A professional who has earned a government Diploma in Co-operative Accounts or in Cooperation and Accountancy
Any auditor who has previously served as an auditor in the government’s Cooperative Departments.

Appointment of the auditor

The Registrar of Cooperative Societies appoints the Auditor who conducts the audit and submits a report to the Registrar and the society.

Society has to bear the expenses of the Audit and pay as per the mandated rates determined by the government. (Appointment procedure described in detail above).

The housing society upon selection of the Auditor from the government panel should send an official request in writing to him, requesting his eligibility, availability, and Panel No. The Auditor in question is expected to accept or deny officially along with his Panel No.

Rights of an auditor

As per Section 17 of the Cooperative Societies Act,

“The Registrar, the Collector or any person authorised by general or special order in writing in this behalf by the Registrar shall at all times have access to all the books, accounts, papers and securities of a society, and every officer of the society shall furnish such information in regard to the transactions and working of the society as the person making such inspection may require.”

On a more general note, a housing society should make sure the Auditor is provided with clean, comfortable and quiet surroundings to operate from within the premises and should be given the necessary help while performing physical audits of assets.

Duties of an auditor

He should have in-depth understanding and knowledge of society bye-laws and the Cooperative Society Act 1912. He should:

Check membership registers to ascertain the number of shares held by each member.
Know the power of society’s officers with respect to who’s in charge of advancing, borrowing loans and investment (one or more appointees).
With respect to loans, the auditor should check loan agreements (whether the society is the borrower or the lender), interest due with the loan repayment cycle, actual interest received and repaid amount received and tally it up.
Check if loans given to members are according to the legal compliance and rules passed within the society in writing and that loans given to non members are done after receiving permission from the Registrar.
Any Cooperative Bank loans received are within the limit
Be well versed in physical inspection of society’s assets with different inspection techniques required as per society.
He should also check the following:
Profit and Loss statements
Balance sheets
Income and expense statements, income tax return filing, with applicable GST and other cuts applicable as per the Income Tax Act and Cooperative Societies Act audit cash book, bank book, receipts and payments of financial transactions throughout the year.

In legal terms, according to the government directives,

An auditor has to inquire ,

(a) Whether The loans and advances made by the co-operative society are properly secured and are not prejudicial to the interest of the co-operative society or its members.

(b) Whether The transactions of the co-operative society are not prejudicial to the interest of the co-operative society.

(c) Whether personal expenses have been charged to revenue account.

(d) Whether the position as stated in the account books and the balance sheet of the co-operative society is correct, regular and not misleading. And

(e) Whether any special issue referred for enquiry by Reserve bank or National Bank duly enquired into and reported to the concerned.

Bookkeeping and financial record keeping

According to section 43 (h), the State Government is liable to make rules to, “prescribe the accounts and books to be kept by a society and provide for the audit of such accounts and the charges, if any, to be made for such audit, and for the periodical publication of a balance-sheet showing the assets and liabilities of a society”,

Generally, the following are inspected:

List of bank accounts
General Ledgers
Trial Balance
Stock and Asset Register
Shares and Debentures Register, Loan Registers
Minutes of Meetings books
Property Registers
Audit objections and records
Payroll reports
Vendor payments
Copies of legal documents

The main features of a co-operative society audit

According to the government,

Adherence to Co-operative Principles
Observance of provisions of Act, Rules and bye-laws
Valuation of assets and Liabilities and Verification of Cash Balance and Securities.
Verification of balances of Depositors and Creditors.
Examination of overdue debts and classification of bad debts.
Personal verification of members and examination of their pass books.
Discussion of draft audit report with Managing Committee.
Audit classification of society;
Examination of the working and other prescribed particulars of the society.

Special features of cooperative society audits

1. Overdue debts

The examination of overdue debts has to be carried out and categorised going back from six months to five years as well as those overdue above five years, classify them in categories and include them in it in his final report.

Auditors should assess the bad debt situation of the society and check the relevant provisions to see if they’re applicable in their situation.

2. Overdue interest

Any overdue interest should be excluded while calculating the profits of the society.

3. Asset & liability valuation

While the main intention of the Auditor is to confirm that assets and liabilities are appearing in the balance sheet exhibiting their proper and correct value. However, valuation models can be applied as per the general accounting rules and no special mention in the law that states otherwise.

Top 15 FAQ for society audit, reports, and format

What does the Auditor check regarding Co-operative Principles and the intended compliance?

The Auditor is liable to check if society follows the primary principles of Co-operative Societies of democratic control and voluntary responsibility. Even though it may not be profitable, the Auditor can discern whether it’s in alignment with the true purpose of its inception.

What is the rule regarding certification of bad debts?

Rules applicable in various States mandate that no bad debts can be written off unless the Auditor certifies them as bad debts. If not, the MC can proceed as they fit.

When is Member Register (apart from checking other mandated details) and Passbook Verification done?

Necessary for exercising extra caution in rural areas or where most residents are illiterate or senior citizens.

What’s an Audit Classification of the Society?

The Auditor is required to classify the class of the society (A,B, C,D,E as per the marks given on different criteria fixed by the district/state Registrar). If any dispute is found by the society in the classification, they can raise a complaint at the Registrar’s Office.

What happens when the Auditor finds a red flag?

If any malfeasance, anomaly, or special case of cases of non-compliance, the Auditor should make a report and present it to the Registrar, who should then take the necessary action.

What are the auditor fees?

Varies from districts to states, however, here’s a sample from the government of Maharashtra rates :-

Within the Corporation area and cantonment areas, Rs.36/- per member

Municipal Towns – Rs.24 per member

Village/Panchayat level – Rs.12 per member

What are the different types of Cooperative Audits?

(a) Concurrent Audit:

Under concurrent audit, audit is concurrent with the period of maintenance of accounts and the auditor engaged on audit continuously throughout the year. This type of audit is generally adopted in big institutions, State Level and Apex Bodies, District Co-operatives Central Banks, Central Stores, Sugar Mills, Spinning Mills etc., having large volume of business and huge daily transactions. Concurrent audit is conducted by Departmental Auditors and the cost thereof is borne by the societies concerned. Auditors conducting concurrent audit have to furnish Concurrent Audit Report to the Societies concerned periodically in the manner prescribed by the Director of Co-operative Audit so as to facilitate the management to rectify the defects well before the issue of final audit report.

(b) Interim Audit:

Interim Audit is conducted before Final Audit. It facilitates early completion of Final Audit. It also helps the staff to rectify the irregularities mentioned in the interim audit report. It ensure prompt action on the part of the management for rectification of errors pointed out in the interim audit report. Interim Audit Report has to be submitted for the period concerned with the summary of defects, if any.

Test Audit is conducted with a view to testing the correctness of Final Audit done by an Auditor. All the societies are not test audited during the year. Only a certain percentage is taken up for test audit. The objective of Test Audit is to check the efficiency of audit staff, to find out the mistakes committed by them and to ensure correct and efficient audit. Test audit is conducted by the superior officers in the presence of the Auditor who has conducted a test Audit. Test Audit is conducted in order to ascertain whether the auditor has done the audit correctly or not. While selecting societies for test audit care should be taken to select only those with considerable transactions. In the case of societies with heavy transactions it is sufficient if one month’s transactions are test-audited. The effectiveness of Test Audit depends, to a good extent, on careful selection of societies If test audit of a society discloses serious defects, the work of the concerned auditor should be examined in-depth by test auditing more societies audited by such auditors.

d) Final audit:

Final Audit is the statutory annual audit. It is taken up after the end of the financial or trading period, after the accounts are closed and are prepared. It includes a complete examination of all books of accounts, verification of cash and bank balances and securities, verification of assets and liabilities and examination of overdue debts. Final Audit brings to light the extent to which the society has been able to improve the economic conditions of its members. Apart from assessing the financial position of the society, final audit should aim at finding out the extent to which the society has been able to achieve its specified goals.

The audit report should indicate, inter alia, the details of assets and liabilities, over dues, bad and doubtful debts, confirmations received from creditors and debtors and details of the suspense account. A defects sheet enumerating the various defects relating to contravention of the Act, Rules and Bye-laws, misappropriation, un-authorized payments etc., should accompany the audit report. The auditor should also furnish a certificate in the prescribed form indicating the state of accounts and affairs of the society.

Is there a discussion post-audit?

The Managing Committee can discuss the report after the Auditor hands it over. Any mistakes and irregularities can be discussed and the report can only be finalised once the MC approves of it.

What is the investment rule according to the Bye-laws?

A housing society must have its own bye-laws signed and sealed by the Registrar responsible for approving any amendments. A society can only:

Invest or deposit in a government bank /co-operative bank in securities, bonds, or other forms of investment as specified in Section 20 of the Indian Trust Act.
In the shares of any other registered society – Any other bank approved by the Registrar for specific purpose or exception and any other financial institutions mentioned in State-specific Cooperative Societies rules.

What are the Audit dates?

Book of accounts should be handed over within 15 days from the finalisation to the auditor i.e. 1st June.

The audit shall be completed within 4 months from the end of the financial year i.s. by 31st July. [S.81 and Rule 69]

What are the forms?

Form 1 and Form 27/28. Part I of the Auditor’s Report contains the general remarks on the society’s functioning (including the reports aforementioned) and part II points out the errors and irregularities.

What are the Restrictions on Cooperative Societies with respect to financial transactions?

Restrictions on shareholding – the total authorised capital gets divided in individual shares at Rs50 each. According to Section 5 in the Co-operative Societies Act, 1912

Restrictions on interest of member of society with limited liability and a share capital.—Where the liability of the members of a society is limited by shares, no member other than a registered society shall—

(a) hold more than such portion of the share capital of the society, subject to a maximum of one-fifth, as may be prescribed by the rules; or

(b) have or claim any interest in the shares of the society exceeding one thousand rupees.

Restrictions on Transfer of Share – a member cannot transfer his shares a) unless he has held them for a year, and b) the transfer is made to the society or one of its members.

What are the restrictions on loans?

A registered society shall not make a loan to any person other than a member: Provided that, with the general or special sanction of the Registrar, a registered society may make loans to another registered society.

Save with the sanction of the Registrar, a society with unlimited liability shall not lend money on the security of movable property.

By general or special order, the [State Government] may prohibit or restrict the lending of money on mortgage of immovable property by any registered society or class of registered societies.

What are the limitations on borrowings by society with limited liability?

Usually, Cooperative Societies Acts state that “Twenty times the paid-up share capital plus accumulated reserves and profits provided the repayment of principal and interest is secured by mortgage or pledge of tangible assets and securities.”

What are the restrictions on borrowings?

As per the Cooperative Society Act, Section 30, ” A registered society shall receive deposits and loans from persons who are not members only to such extent and under such conditions as may be prescribed by the rules orby-laws.”

What should the housing society do with its profits?

What are the provisions for Reserve Fund, Contribution to Charitable Funds and Distribution of Profit?

According to Section 33,

At least one-fourth (25%) should be invested in a Reserve Fund once the society becomes profitable.
After that, 10% can be donated to a charitable cause.
The rest can be distributed as profit, dividend can be shared among members but it should not exceed 6.25%.

Note: In the case of a society with unlimited liability no distribution of profits shall be made without the general or special order of the State Government.

What are the core duties of the managing committee?

Table of content

Once the registration and selection of the first committee have taken place, the regular functions of the MC include monetary transactions, daily management, obligatory membership servicing and compliance with the laws.

1. Financial Management

Deposit all the monies received by the society to the bank/depository and issue receipts to the payers.
To keep a record of member’s contributions towards maintenance, reparation, common funds, etc, to bring to the Secretary’s notice any late payments or consistently defaulted payments, and to implement a functional due collection procedure that the Secretary/committee members can follow.
Pay all the vendors, service providers, etc through cheques, bills of exchange, etc. by being the signatory of the cheques or (transferer of online payments).
Reconcile member’s ledgers, passbooks, statements, bills received from depositors with respect to the general accounts ledgers and have them reconciled annually too.
To compute maintenance charges, parking charges, premium payable by the transferor, and to compute the contribution amount of the members in any other charges, verify dues by members and interest payable by defaulters.
Create a financial transaction policy when paying the vendors and creditors petty cash policy for internal expenses, cash withdrawal policy, etc to be followed by the MC

2. Duties towards the members

To consider and decide resignations from members/office-bearers and record nominations and revocations that may follow after;
To issue allotment letters of flats once a member buys them and make available to members the papers of the society;
To take required action once a membership ends;
To refund shares and associated interest if and when due in case they have been acquired by the society;
To review complaints registered by the members and take necessary actions to resolve them;
To organize events, festivals and special days to encourage camaraderie and friendships among the members.

3. Operational duties

To authorize a Committee member to attest any document that bears the seal of the society, such as lease agreements, deed of conveyance, share certificates, etc.
To look after the lift operations, manage and instruct service staff about their duties and take care of their compensations and accommodation (if any).
To maintain, inspect the property of the society and carry out renovations, repairs as and when needed.
To review and finalise vendor applications for services needed in the society, e.g. produce stalls, dry cleaning services, etc.
To regulate parking
To supervise compliance of bye-laws and society rules by the members and suggest fines or penalties in case if a consistent breach is found
To review the Secretary’s report on inspection of flats
To hold election of a new committee in a timely manner, to elect new office-bearers, consider their resignations and replacements
To organise and recommend general body meetings and hold annual/special general body meetings
To hold a Committee meeting at least once a month

4. Executive duties

To execute a deed of conveyance of the land and building/s;
To approve the audit rectification reports of statutory and internal audits and to forward them to the authorities concerned;
To scrutinise tenders received for construction work and to submit the same along with the committee’s report to the meeting of the General Body and to enter into a contract with the contractor;
To enter into a contract with the Architect of the society in case of redevelopment;
To ensure that the Society is affiliated to Housing Federation and its subscription is regularly paid.

What are the duties of the Chairman?

When the managing committee is elected, the Chairman is at the helm of all affairs for five years and is expected to keep a watch over all activities of the Committee. The chair is accountable and answerable for any malfunction during his term and has the final decision power in all matters. Here’s what the chair does:

He presides over all the meetings of the Committee, determines the quorum and reviews the agenda of every meeting beforehand.
He has the power to allow or bar any issue from being included in the meeting agenda but like a democracy, he has to have a reason for doing so.
When it comes to voting, if there is an equal number of votes for or against a matter, the Chair decides to cast a decisive vote, i.e he has two votes.
He is the Signatory for bank operations out of joint authority.
He is the final authority on ballot decisions, expenditure approvals, acceptance of procedural decisions, committee nominations, proxy attendees in a meeting, and disciplinary actions.
The Chair is responsible for initiating community building activities and maintaining a healthy and progressive environment in a co-operative.

What are the duties of Secretary of housing society?

Society Secretary duties come with responsibilities that can sometimes seem daunting, but once you get to the brass tacks, the role is quite rewarding and engaging.

1. Record-keeping

The role of a Secretary of housing societies is to maintain immaculately the accounts, records and registers of the society, including the Cash Book, Ledgers, Sinking Fund/Investment Register, Audit Register, Nomination Register and The Minutes Book.

Additionally, he is in charge of membership files, plans of construction, bank account statements, society statement of accounts, annual reports, election documents, vouchers for expenses, member applications/complaints, among others.

2. Organizational activities

The Secretary is responsible for organizing meetings and recording the minutes.
He must liaise between the Chair and members with respect to the meeting agendas, check the quorum and ensure that the items on the agenda are carried out completely.
He must issue share certificates to the members on time, deal with resignations, expulsions, and cessations of memberships.
He must carry out the conduct of election thoroughly in the manner prescribed in the bye-laws.
He should produce records of the Society before different authorities concerned with the working of the Society with the consent of the Chairman.
He must bring to the committee’s notice any breach of the rules/laws or default cases and be present at disciplinary hearings.
He must finalise the accounts of the preceding year, prepare the receipts and payments Statement, the Income and Expenditure Statement for the year and the Balance Sheet as at the close of the year.
He is responsible for the functioning, recruitment and compensation of the service staff, including watchmen, lift-operators, cleaning crew, vendors, etc.

3. Communication & correspondence

The Secretary must issue notices and agenda of all meetings of the general body and the committee.
He must issue a letter of allotment of flats, prepare and issue demand notices/bills for payment to the Society’s charges, issue a notice of repairs to be carried out in flats.
He is in charge of all types of communication and applications received by the society from members, vendors and be the go-between for the committee and the members.
He deals with communication with the authorities, including correspondence with the Co-Operative Registrar, correspondence on common electric supply, property taxes including Non-agricultural taxes.
The Secretary must inspect the property of the Society and visit flats for inspection after prior notice to the members.

Even though running a co-operative can be a challenging task,it is by no means insurmountable. A well-integrated and proactive MC is the key to a thriving co-operative.

Roles and duties of a Treasurer in a housing society

1. Financial Management

The Treasurer is required to:

Deposit all the monies received by the society to the bank/depository and issue receipts to the payers.
To keep a record of member’s contributions towards maintenance, reparation, common funds, etc, to bring to the Secretary’s notice any late payments or consistently defaulted payments, and to implement a functional due collection procedure that the Secretary/committee members can follow.
Pay all the vendors, service providers, etc through cheques, bills of exchange, etc. by being the signatory of the cheques or (transferer of online payments).
Reconcile member’s ledgers, passbooks, statements, bills received from depositors with respect to the general accounts ledgers and have them reconciled annually too.
To compute maintenance charges, parking charges, premium payable by the transferor, and to compute the contribution amount of the members in any other charges, verify dues by members and interest payable by defaulters.
Create a financial transaction policy when paying the vendors and creditors petty cash policy for internal expenses, cash withdrawal policy, etc to be followed by the MC

2. Budgeting

To prepare an annual budget for the society
Prepare the budget for an ongoing or future activity, such as festival celebrations, repair, renovation, etc.
To prepare a revised financial forecast based on the actual expenses on a project or for the overall year

3. Accounting/Book-keeping

To open and manage the society’s bank account
Keep a detailed and true account of all of society’s financial transactions
To manage and make timely entries in all account books, manage cash flow, securities, vouchers, receipts, invoices counterfoils, bank statements.
To ensure that petty cash doesn’t go over Rs 5000 and any amount over Rs 1500 is paid by cheque
To maintain audit memos and prepare audit rectification reports in response
To produce society’s accounts before the external Accounts Auditor
To prepare monthly, annual account statements and the society’s profit loss balance sheet
To make available any financial records that members want to inspect and to also produce the same for the Registrar, Managing Committee or other government authorities

4. Asset Management/Investment

To ensure that there is an updated inventory and financial maintenance/reparation records of all fixed and moveable assets of the society
To compute insurance on assets and pay regular premiums
To advise the Managing Committee on where and how to invest profits or surplus and alternatively create investment guidelines/policies keeping in mind the suitability of the investment with respect to the society’s needs, considering risk factors, society’s financial capacity, and calculating ROI effectively

5. Fundraising

Recommend and create fundraising strategies for the society
To set forth rules and regulations on how the funds should be utilised
Ensure compliance of fund utilisation as predetermined by policy/plan, observe and report any wrongdoing to the Managing Committee

6. Compliance

To ensure that the society is compliant with the guidelines of the financial institutions such as co-operative, nationalised banks as well as RBI
To stringently review and adhere to any legal, contractual, or builder-related compliances that impact society’s funds and financial management
To be well-versed with the society bye-laws so as to be compliant with internal or external rules that directly affect financial undertakings by members, vendors, or the society

A treasurer is also allowed to appoint a sub-committee of accountants or finance experts from within the society and supervise their work, however, he remains answerable to the managing committee eventually.

The apartment management committee of a housing co-operative is its nerve centre, steering the society towards a wholesome, efficient and harmonious existence. Whether it is financial management, member grievances or day-to-day affairs, the apartment management committee has to run like a well-oiled machine to create the best living conditions for the residents.

We have put together a comprehensive guide with checklists in this article so that you can be well-informed and prepared for the myriad roles you may have to assume as part of the MC.

What are the core duties of the managing committee?

1. Financial Management

Deposit all the monies received by the society to the bank/depository and issue receipts to the payers.
To keep a record of member’s contributions towards maintenance, reparation, common funds, etc, to bring to the Secretary’s notice any late payments or consistently defaulted payments, and to implement a functional due collection procedure that the Secretary/committee members can follow.
Pay all the vendors, service providers, etc through cheques, bills of exchange, etc. by being the signatory of the cheques or (transferer of online payments).
Reconcile member’s ledgers, passbooks, statements, bills received from depositors with respect to the general accounts ledgers and have them reconciled annually too.
To compute maintenance charges, parking charges, premium payable by the transferor, and to compute the contribution amount of the members in any other charges, verify dues by members and interest payable by defaulters.
Create a financial transaction policy when paying the vendors and creditors petty cash policy for internal expenses, cash withdrawal policy, etc to be followed by the MC

2. Duties towards the members

To consider and decide resignations from members/office-bearers and record nominations and revocations that may follow after;
To issue allotment letters of flats once a member buys them and make available to members the papers of the society;
To take required action once a membership ends;
To refund shares and associated interest if and when due in case they have been acquired by the society;
To review complaints registered by the members and take necessary actions to resolve them;
To organize events, festivals and special days to encourage camaraderie and friendships among the members.

3. Operational duties

To authorize a Committee member to attest any document that bears the seal of the society, such as lease agreements, deed of conveyance, share certificates, etc.
To look after the lift operations, manage and instruct service staff about their duties and take care of their compensations and accommodation (if any).
To maintain, inspect the property of the society and carry out renovations, repairs as and when needed.
To review and finalise vendor applications for services needed in the society, e.g. produce stalls, dry cleaning services, etc.
To regulate parking
To supervise compliance of bye-laws and society rules by the members and suggest fines or penalties in case if a consistent breach is found
To review the Secretary’s report on inspection of flats
To hold election of a new committee in a timely manner, to elect new office-bearers, consider their resignations and replacements
To organise and recommend general body meetings and hold annual/special general body meetings
To hold a Committee meeting at least once a month

4. Executive duties

To execute a deed of conveyance of the land and building/s;
To approve the audit rectification reports of statutory and internal audits and to forward them to the authorities concerned;
To scrutinise tenders received for construction work and to submit the same along with the committee’s report to the meeting of the General Body and to enter into a contract with the contractor;
To enter into a contract with the Architect of the society in case of redevelopment;
To ensure that the Society is affiliated to Housing Federation and its subscription is regularly paid.

What are the duties of the Chairman?

He presides over all the meetings of the Committee, determines the quorum and reviews the agenda of every meeting beforehand.
He has the power to allow or bar any issue from being included in the meeting agenda but like a democracy, he has to have a reason for doing so.
When it comes to voting, if there is an equal number of votes for or against a matter, the Chair decides to cast a decisive vote, i.e he has two votes.
He is the Signatory for bank operations out of joint authority.
He is the final authority on ballot decisions, expenditure approvals, acceptance of procedural decisions, committee nominations, proxy attendees in a meeting, and disciplinary actions.
The Chair is responsible for initiating community building activities and maintaining a healthy and progressive environment in a co-operative.

What are the duties of Secretary of housing society?

Society Secretary duties come with responsibilities that can sometimes seem daunting, but once you get to the brass tacks, the role is quite rewarding and engaging.

1. Record-keeping

2. Organizational activities

The Secretary is responsible for organizing meetings and recording the minutes.
He must liaise between the Chair and members with respect to the meeting agendas, check the quorum and ensure that the items on the agenda are carried out completely.
He must issue share certificates to the members on time, deal with resignations, expulsions, and cessations of memberships.
He must carry out the conduct of election thoroughly in the manner prescribed in the bye-laws.
He should produce records of the Society before different authorities concerned with the working of the Society with the consent of the Chairman.
He must bring to the committee’s notice any breach of the rules/laws or default cases and be present at disciplinary hearings.
He must finalise the accounts of the preceding year, prepare the receipts and payments Statement, the Income and Expenditure Statement for the year and the Balance Sheet as at the close of the year.
He is responsible for the functioning, recruitment and compensation of the service staff, including watchmen, lift-operators, cleaning crew, vendors, etc.

3. Communication & correspondence

The Secretary must issue notices and agenda of all meetings of the general body and the committee.
He must issue a letter of allotment of flats, prepare and issue demand notices/bills for payment to the Society’s charges, issue a notice of repairs to be carried out in flats.
He is in charge of all types of communication and applications received by the society from members, vendors and be the go-between for the committee and the members.
He deals with communication with the authorities, including correspondence with the Co-Operative Registrar, correspondence on common electric supply, property taxes including Non-agricultural taxes.
The Secretary must inspect the property of the Society and visit flats for inspection after prior notice to the members.

Even though running a co-operative can be a challenging task,it is by no means insurmountable. A well-integrated and proactive MC is the key to a thriving co-operative.

Roles and duties of a Treasurer in a housing society

1. Financial Management

The Treasurer is required to:

Deposit all the monies received by the society to the bank/depository and issue receipts to the payers.
To keep a record of member’s contributions towards maintenance, reparation, common funds, etc, to bring to the Secretary’s notice any late payments or consistently defaulted payments, and to implement a functional due collection procedure that the Secretary/committee members can follow.
Pay all the vendors, service providers, etc through cheques, bills of exchange, etc. by being the signatory of the cheques or (transferer of online payments).
Reconcile member’s ledgers, passbooks, statements, bills received from depositors with respect to the general accounts ledgers and have them reconciled annually too.
To compute maintenance charges, parking charges, premium payable by the transferor, and to compute the contribution amount of the members in any other charges, verify dues by members and interest payable by defaulters.
Create a financial transaction policy when paying the vendors and creditors petty cash policy for internal expenses, cash withdrawal policy, etc to be followed by the MC

2. Budgeting

To prepare an annual budget for the society
Prepare the budget for an ongoing or future activity, such as festival celebrations, repair, renovation, etc.
To prepare a revised financial forecast based on the actual expenses on a project or for the overall year

3. Accounting/Book-keeping

To open and manage the society’s bank account
Keep a detailed and true account of all of society’s financial transactions
To manage and make timely entries in all account books, manage cash flow, securities, vouchers, receipts, invoices counterfoils, bank statements.
To ensure that petty cash doesn’t go over Rs 5000 and any amount over Rs 1500 is paid by cheque
To maintain audit memos and prepare audit rectification reports in response
To produce society’s accounts before the external Accounts Auditor
To prepare monthly, annual account statements and the society’s profit loss balance sheet
To make available any financial records that members want to inspect and to also produce the same for the Registrar, Managing Committee or other government authorities

4. Asset Management/Investment

To ensure that there is an updated inventory and financial maintenance/reparation records of all fixed and moveable assets of the society
To compute insurance on assets and pay regular premiums
To advise the Managing Committee on where and how to invest profits or surplus and alternatively create investment guidelines/policies keeping in mind the suitability of the investment with respect to the society’s needs, considering risk factors, society’s financial capacity, and calculating ROI effectively

5. Fundraising

Recommend and create fundraising strategies for the society
To set forth rules and regulations on how the funds should be utilised
Ensure compliance of fund utilisation as predetermined by policy/plan, observe and report any wrongdoing to the Managing Committee

6. Compliance

To ensure that the society is compliant with the guidelines of the financial institutions such as co-operative, nationalised banks as well as RBI
To stringently review and adhere to any legal, contractual, or builder-related compliances that impact society’s funds and financial management
To be well-versed with the society bye-laws so as to be compliant with internal or external rules that directly affect financial undertakings by members, vendors, or the society

Moving to a new city is common. People move for jobs. Some people transit from rental to own. Moving is usually time-consuming and tiring from one location to another. It is a complex undertaking, especially with bags and luggage making relocation exhausting. Packing, transporting, and unpacking are arduous jobs. All of these services are availed at a cost. You will be required to devote both time and money towards packers and movers charges.

You can optimize moving costs using a packers and movers cost calculator that pre-estimates costs or packers and movers charges.

Packers and movers cost calculator: Getting a Head Start on Your Moving Costs!!!

Regardless of the cause of your relocation, packers, and movers are there to assist you. Knowing the packers and movers cost estimate for your move makes planning easier. You may do so today with their handy “Cost Calculator” feature. By supplying all relevant moving-related information, you will be able to determine the budget.

As a comprehensive reference, the packers and movers cost calculator makes the planning and organization of your forthcoming relocation more accessible and cost-effective. Packers and movers cost calculator helps customers before, during, and after relocation.

What is the meaning of a moving cost calculator?

People considering a move wonder how much they should set aside for packers and movers prices. Although each moving business has its criteria for evaluating the cost of a relocation, a relocating cost calculator provides individuals with a reasonable estimate of the probable cost of their move. This online resource informs users of moving firms’ most recent pricing trends and enables them to proceed more prudently. Using these calculators, users may estimate packer and mover costs and determine whether to use a moving company or DIY.

Features of the packers and movers price estimator

The new packers and movers cost calculator offers fantastic features.

It uses the Location and Destination tabs to calculate the distance between your present position and your desired destination.
Some moving cost calculators let you pick a route.
The size of the relocation affects moving costs.
It helps identify difficulties or concerns in the moving process.
With a specific company, you will receive a detailed moving estimate.

Benefits of online packers and movers cost calculator

Using packers and movers cost calculator online has given several advantages in addition to providing clients with an idea of their packers and movers cost estimate.

1. Advantages for packing and moving companies

Reduces expenditures on visiting customers’ homes to inspect moving goods
Minimizes the expense and time of personally handling the migration
Customers are more satisfied since they can understand what it would cost them to move.
Accurate relocation cost estimates attract more consumers.

2. Advantages for customers

These calculators provide 5-minute moving cost estimates.
Last-minute movers can quickly decide if they need a moving firm.
It helps to find a competent, affordable moving provider.
This program estimates the final relocation ram estimates the final relocation cost.

How to estimate moving costs?

Let’s see how these packers and movers prices add up when moving locally (within the city).

1. Household goods

The volume of household items determines the moving truck. Trucks are 14 to 18 feet long. Packer and movers charges range from 1,000 to 3,500 INR depending on the number of visits.

2. Packing

When the transit period is less than 1 to 2 hours, the likelihood of products being damaged is relatively low in local movements.

Typically, only fragile things, such as electronics and dishware, are wrapped in paper and packaged into cardboard boxes. This sort of packaging costs roughly 1000 to 3500 INR.

Depending on the amount of packing material utilized, furniture and other objects may incur additional fees for packaging.

3. Human resources

These people will take care of your possessions—packing, loading, unpacking. Professionals charge 400-500 INR per person. A one BHK flat may take two persons and cost 800 to 1000 INR. A 2 BHK flat may require four persons and cost between 1600 and 2000 INR, whereas a 3 BHK home might cost between 2000 and 2500 INR.

4. Extras

These services are entirely optional for the client. Electronics aren’t assembled or disassembled by movers, but they can arrange for an electrician on moving day. For AC assembly and disassembly, an electrician charges 1500 to 1800 INR. Geyser mounting can cost anywhere from 400 to 500 INR, much like mounting an LCD or LED TV will cost the same.

5. Physical involvement of staff

When there’s no elevator for more than 50 meters between the truck and your house, or when you need to use a rope, you’ll have to do a lot of physical work. Packers and movers fees might be increased by 500 to 1000 INR.

6. Shifting timings: Optional

When moving, consider the City’s automobile mobility restrictions. Large vehicles aren’t allowed in the City between 8 in the morning to 12 noon and 4 in the evening to 9 pm. If you need to shift between these times, you may be charged 600 INR.

7. Tips

Tipping the shifting workers is optional, but people do it as a token of thanks. Tips usually are 50 to 100 INR per person.

8. Local moving costs

After assessing over 6000 local house shifting quotations from reliable packers and movers, counting client experiences, household safety, and staff quality, these are the mean rates of packers and movers prices based on house type.

The transport, packing, and labour costs for moving a one-bedroom, one-bathroom, standard-sized household equal to 3,500, 4,500, and 3,500 INR, respectively, for 11,500 INR.

Transport, packaging, and labour for a 2 BHK family cost 3500, 6500, and 5000 INR, totalling 15,000 INR.

The shipping, packaging, and labour costs for a 3 BHK home are 4000, 7500, and 8000 INR, totalling 19,500 INR.

Additional services, physical activity, shift schedules, and tips cost 1500-1800, 500-1000, 600, and 500 INR. Add these to get the final packers and movers fee.

Distance is another element in movers’ fees. One to 10 km doesn’t make a significant difference in the Packers and movers cost estimate because logistic costs are the same. Moving to a new city will modify your Packers and movers cost estimate due to a shared vehicle. Distance between cities, kind of vehicle utilized, and time spent will determine the price of your house relocation.

9. Vehicle type: Shared or dedicated truck?

If you choose a shared truck, 2 to 3 homes will share it. Delivery may take longer, but the costs are affordable.

A dedicated truck is best for speedy delivery or not sharing the truck. It will cost an extra 5000 to 15,000 INR depending on the distance.
Transportation will cost >50%.

10. Packing

The roads in India are terrible. Goods are damaged during transit. Glass, electronics, furniture, and tableware must be packed carefully. Quantity and quality of packing are far higher than local moving.

Standard products cost 3000–8000 INR. Unique artefacts might cost up to 10000 INR.

It accounts for about 30% of the total cost.

11. Unpacking

Long-haul movers don’t unpack at the destination. Few pan-India sellers unload at destination cities charging additional fees for this. It can cost 1000 to 4000 INR. Packing, loading, unloading, and unpacking cost 20-25%.

12. Taxes

The vehicle crosses borders and state highways. Therefore, tolls affect your transit cost. Few states impose octroi.

13. Insurance

Non-local moves should always be insured. With our country’s road accident record, we recommend using insurance to insure your valuables, if not your entire home. It’s 3% of stated goods worth. Most movers require insurance.

14. Optional storage

It may so happen that a customer may not be able to discover the new address. Packers and movers provide day-by-day free storage for up to 15 days and charge INR 100-250 for additional days.

Additional services, gratuities, service taxes, and docket fees are optional.

15. Long-haul moving rates

Local pricing is dynamic. Many factors affect the costs of long-distance relocation. Long hauls in shared trucks cost 12,000 to 25,000 INR, whereas direct trucks cost 24,000 to 32,000 INR. These averages include taxes. Insurance and automobile transport aren’t included.

16. Brand value raises costs by another 30% to 40%

If you don’t want a famous brand but want excellent pre and after-customer assistance and tracking, it will cost you 10% extra.

There is a lot of disarray among our consumers regarding the moving business pricing difference. And they have a hard time picking dependable packers for their purposes.

Entering end-to-end locations, move size, move date, etc., will calculate the cost of transfer and packers and movers prices. Moving becomes so much easier with packers and movers cost estimate using a packers and movers cost calculator.

A housing society functions under a framework of meetings, goals, tasks and agendas, much like a corporate office. Societies hold general body meetings (including special and annual general body meetings) for various reasons, in order to plan the administrative affairs of the society, to keep the members apprised of the society’s financial balance sheets, to conduct and hold the society elections, to review defaulted dues by members, and to discuss any relevant or imposing matters that society faces in the course of its being.

As the name suggests, a special general body meeting is called for undertaking meeting of society on a particular agenda or topic. Some reasons for calling special general body meetings are election awareness, redevelopment or reparation plans, important communication from government authorities, grave misconduct issues, among others. At the SGM, any business, other than the one mentioned as the agenda of the meeting is NOT discussed.

Why should you attend a special general body meeting?

A circular on the notice board may seem unappealing or unnecessary for those of us who have busy lives and packed schedules. But notice for general body meetings are held to address critical issues that need your immediate attention and participation. Any matter that you consider worth your time may be on the agenda; for example, societies may need to carry out urgent repairs within the premises, upgrade their CCTV equipment after a suspicious incident, install new amenities for the betterment of the members, hold emergency replacements of office bearers, raise funds for emergencies not payable by the sinking fund. You’d want to stay up-to-date with such developments and not be at a loss when such changes may ultimately affect you directly, or indirectly. It is recommended that you regularly check your notice board for updates and decide your involvement in the agenda.

Guidelines for calling a special general body meeting for co-operative society

If you think that a circular on your society’s notice board with a date, time and agenda is enough to conduct an SGM, you’d be wrong. There are mandatory steps and rules for a special general body meeting that involve precise communication on behalf of the Managing Committee. Let’s delve a little deeper.

1. Who can you call a special general body meeting? What is the timeframe?

SGM can be called at any time at the behest of the Chairman or by the decision of the majority of the Committee, within one month of the date of the official request in writing signed by at least 1/5th of the Members of the Society. Within seven days of receipt, the Secretary of the society should fix the date, time and place for the special general body meeting of a housing society. 5 day’s notice of the meeting shall be given to all the members of the Society. The notice period of these special general body meetings may be even shorter in case of dire emergencies. However, in any case, the agenda should be clearly mentioned in the circular to the members.

2. What is the quorum (minimum number of members required) for a special general body meeting?

Model bye-laws state that the quorum is 2/3rd of the total number of members of the Society or 20, whichever is less.

3. Who conducts the SGM?

The Chairman is in charge of the proceedings, however, in his absence, the members are free to elect one person from among themselves. Every member is allowed one vote (in case the agenda requires voting).

4. Can a special general body meeting be adjourned, reconvened or postponed?

In case the required quorum is not present within half an hour of the specified time, the meeting can be rearranged at a later hour on the same day. It can be postponed to a later date as well, but cannot be called again before 7 days of the original date and must be called within 30 days of the original date. The same timeframe applies if the quorum is present and all goes well but the members are unable to conclude the meeting or arrive at a decision on that specific day.

5. What if the special general body meeting does not take place in spite of notice?

If the person responsible for calling the SGM fails to conduct the meeting, the Registrar has the right to disqualify or penalise him. The Registrar then holds the authority to appoint a person to duly carry out the meeting. The Registrar’s intervention is mandated in the law and is called for when the agenda is highly critical or mandatory. In the case of regular housing societies, such situations rarely arise where legal intervention or action may be necessary.

6. Who keeps a record of what happens at a special general body meeting?

Every general body meeting (including SGM) has to be recorded. The managing committee (specifically the Secretary or any other person appointed to draft minutes) is responsible for finalising the draft minutes within 3 months and circulate the draft minutes amongst all the members of the society within 15 days of the meeting. Upon receiving the minutes draft, the members have 15 days to respond with observations if they have any. If not, at a subsequent meeting, the committee prepares the final minutes and records them in the minutes book.

How do special general body meetings help your society to function better?

In collaborative endeavours such as a housing society, all members are considered valuable and treated as indispensable. Keeping members apprised of the important updates, decisions and developments regarding the workings of the society is the primary duty of a managing committee. In fact, a housing society is the finest example of a democratic process that is truly for the people, by the people and of the people.

This undertaking does not serve its highest purpose if the members are disinterested or uninvolved in its practices. SGMs are essential events that are held only when an issue requires complete and undivided attention from the residents as well as the managing committee. To help societies thrive, to promulgate the ideals of transparency and accountability and to quickly and intensely resolve impending dangers, special general body meetings are not only necessary but also highly effective. While as model residents, you should be willing to participate and get involved in SGMs, as part of an effective managing committee you should be prompt to suggest SGMs in order to resolve any issues that take precedence and need urgently addressed.

How does a Society finance itself? How does it screen potential members? Why does it bill its members maintenance charges? Where and when does the member voice his concerns or opinions?

These questions must have popped in your head time and again as a member of a housing society. Look no further than the inconspicuous little book of ‘ Society Bye laws ”.

What are bylaws for a housing society?

Society Bye-laws are rules formed by residential societies to self-regulate their activities and to control the actions of its members. Housing society bye laws are provided and approved by higher authorities (government bodies, legislative authorities). Society Laws could vary from one state to another in their particulars, yet the basic framework and nomenclature remain the same. Let’s briefly explore distinctive categories for each component of the functioning of a society. These are broad categories that cover every aspect of housing society rules and regulations, be it holding a meeting, issuing shares to members, collecting dues from them, conducting Elections, allotting parking spaces or putting out a circular on the notice board.

Purpose of housing society bye-laws

The managing committee of an Apartment Owners Association (or Residents Welfare Association) must have bye-laws in order to ensure adequate upkeep of the apartment building and to swiftly and effectively address the problems residents encounter. Escaping the problems is difficult. Convincing the society to accept the chosen laws and regulations is a challenging endeavour. A set of regulations known as the bye-laws provides a solution to all associated problems. The bye-laws are adopted by each apartment building as soon as it registers. The bye-laws are regarded as the apartment complex’s constitution and regulate how it operates on a daily basis.

Why should you know about the model housing society bye-laws?

The answer to any question you have about the functioning of your society can be found in the model bye-laws of housing society . They may seem verbose or cumbersome, but they should be on your ‘essential reading list’ as they are your ‘set in stone’ legal chaperones that cannot be refuted by any society under any circumstances. As part of a society, you’d be remiss if you are not aware of your basic rights and duties, your society’s foundational policies, its management and the guidelines that dictate its decisions. A lot of homeowners harbour an approach of ‘we’ll cross that bridge when we get to it’ with respect to the rules of a society, thinking all is accomplished once they have occupied their residence inside it. Be that as it may, to avoid being misinformed or manipulated by dishonest committee members, to stop the violation of your rights, or simply to be aware of the workings of the community you’re part of, familiarising yourself with model bye-laws of housing society is necessary. Cooperative society bye-laws are easily available online to peruse in your own time. Otherwise, as a member you have the right to ask for a copy from your society.

List of housing society bye-laws

1. Preliminary- name and address

This section informs us about the procedure for naming, change in name, classification, address change procedure and exhibiting the Name Board of the society.

2. Interpretations

The meaning of the nomenclature, i.e the exact definition of commonly used terms (common areas, sinking fund, active member) is given so as to legally distinguish common usage of words in the context of a housing co-operative.

3. Area of operation, objectives, affiliation

To define the locality of the society within a municipality and to define the main objects of the society as well as declare it as Member of the Co-op Housing Federation of the District / Ward / Taluka, the District Central Co-operative Bank of the district.

4. Raising of funds and their utilisation

Cooperative society bye-laws lay down rules on modes of raising money such as issuing shares, taking loans, voluntary donations & deposits, etc. and explains how to issue shares to members and limit of liability for the society. The ways in which the funds are utilised are also described, such as reserve fund, repair and maintenance, emergency fund and training fund.

5. Rights & duties of a member

This section describes the eligibility, conditions, and procedure of obtaining membership in a society distinguishes between active, non-active, associate, and nominal members. The rights of members elaborated under bye-laws of the society include the right to inspect records, get a copy of RWA bye-laws, right to Occupation of Residence, conditions for and acceptance of Resignation by Members, procedure for Nomination by a Member and its revocation / revision, procedure and requisite documents for Transfer of Shares and interest from a member to another in the Capital/Property of the Society, Transfer of Shares and interest of the deceased Member, and rules on Exchange and Sub-letting of residences.

6. Responsibilities and liabilities of members

This section details the duties of the member, including applying for permission to make additions and alterations in a flat, allowing examination of flats and report about repairs, not to cause inconvenience to other members. It also entails the grounds for expulsion from the society and its procedure, circumstances under which a person ceases to be a member and the follow-up action taken by the society, rules on holding multiple flats, liability limited of members to unpaid amount on shares.

7. Society charges

Bye-laws of society describe the composition and break-up of the society charges, including Property Taxes, Water Charges, Common Electricity Charges, contribution to Repairs and Maintenance Fund, expenses on Repairs. Operation and Maintenance of the lifts contribution to the Sinking Fund, Service Charges, Car Parking Charges, Interest on the defaulted charges, Repayment of the Loan, Installment and Interest, Non-occupancy Charges, Insurance Charges, Lease/Rent, Non-agricultural Tax, Education and Training Fund, Election Fund, and any other charges.

8. Duties and powers of the society

These are rules specific to the common seal and incorporation of the society as holding the power to acquire, hold and dispose of the property, to enter into contracts and other legal proceedings. It also pertains to having a charge on the shares and/or interest of a Member, policy for allotment of flats and cancellation of flats, handing over possession of flats, society’s duty to carry out Structural Audit, allotment of parking lots and its restrictions, marking of parking lots and their eligibility, along with payment of charges for parking of vehicles.

9. General meetings (first general meeting, annual general meeting & special general meeting)

This section gives detailed and specific rules on how to conduct society meetings, including general, annual and special body meetings. Rules regarding the agenda of the first general meeting, the duties of provisional committee and its handover to newly elected committee, the functions of the annual general body meeting, rules for special general body meeting, period of notice and quorum of a general body meeting, voting rights of members, recording of the minutes of meeting, holding of the adjourned General Body Meeting, among others are explicitly stated.

10. Management of society affairs

Rules under this category include opening up of bank account for operations, strength (in numbers) of the Managing Committee, guidelines for Election, First Meeting of new committee, duration of holding office, conditions for cessation of membership of the Committee, and Resignation of Committee Member/Office bearer. There are detailed lists of all the required functions of the Managing Committee, Chairman and Secretary of the society.

11. Book-keeping

Detailed lists of maintaining books of accounts, records and registers are specified, including but not limited to cash books, ledgers, Sinking Fund, Investment, Nomination, Loan Registers, Minutes Books, Applications for membership, resignations, correspondences received from within the society or from external agencies related to property tax, conveyance, electricity, vouchers and counterfoils of share certificates and issued cheques, periodical statement of accounts, audit memos, election papers, service staff payment records.

12. Profit distribution

Rules on how to distribute funds (after paying interest on loans/deposits and after making such other deductions) are prescribed clearly in the bylaws of the cooperative society . The allocation includes a percentage of the amount to be deposited in the Reserve Fund, in dividends of shares to shareholders, compensation paid to office-bearers, and towards Common Welfare Fund.

13. Writing off dues

This section prescribes the conditions under which the Society is allowed to write off its irrecoverable charges due from the members, the expenses incurred on recovery and the accumulated losses.

14. Society accounts audit

The basic procedure for conducting an annual financial audit of the society is described in detail, including the appointment of a registered Auditor/CA, the timeframe to conduct the audit and the steps for completing an Audit Rectification Report before Annual General Meeting.

15. Conveyance, redevelopment and repair/maintenance

This section gives details of getting the deed conveyance under society’s name through an advocate and proceeds to list rules on renovation and repair. Member’s contributions towards repair are stated, along with the procedure of inviting tenders from architects/ developers, and a step-by-step guide to the entire redevelopment process is given. Guidelines on emergency planning schemes, disaster management and response machinery are prescribed as well.

16. Other miscellaneous matters

Minor yet important rules regarding day-to-day operational activities are mentioned in the bye-laws of residential society . These include sending and displaying notices on general meetings and their resolutions, how to fix the Notice Board and what to display on it, penalty amounts for member breaches against the society, regulating the services, amenities as per members’ convenience, fixing timings and rules for use of common areas such as parks, staircases, etc, making available spaces for members to install solar energy electrical systems, making copies of the documents required by the members and the charge per page.

17. Committee redressal of member complaints

Based on the complaint type, the society bye-laws give a list of relevant authorities to approach. They describe the types of complaints handled at the Society’s General Body Meeting. Other than that a variety of complaints are handled by the Registrar, Co-operative Court, Civil Court, Municipal Corporation/Local Authority, Police or the District/State Federation, depending on the nature of the grievance.

Differences between old & new housing society bylaws

Do I have to adopt a new set of housing society bylaws if my society is newly registered? True, your society would adhere to the old model bylaws. If it was previously registered, the year is 2009. Bye-laws have been newly modified following the 97th Constitutional Amendment and the MCS Amendment Ordinance, 2013. This includes cash on hand limits, active member provisions and duties, maintenance rates, AGM, society election tenets, and so on.

Several MCs look for the procedure for adopting new bylaws, while others simply look for bylaw amendments.