• Utilisation of funds by management committee

1 Can Society break Fixed deposits and use the same without approval of general body . Secretary claims to have approval of only management committee.
2 Can chairperson, secretary, treasurer refuse to answer emails seeking financial documents claiming their role is voluntary and hence have no time .
3. Can flats on ground floor be denied voting rights when work is undertaken for higher floors . Eg : chajja built using society funds
Asked 1 year ago in Civil Law

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7 Answers

1) AGM can break fixed deposits after obtaining approval of AGM only .

 

2) emails have to be replied to 

 

3) ground floor members have voting rights for work being done e on higher floors 

Ajay Sethi
Advocate, Mumbai
97467 Answers
7880 Consultations

1.  The corpus funds include the fixed deposits.

For utilising the corpus funds towrds major tasks involving society's renovation or any other subject, the management committee cannot take independent decision, they have to refer the matter before the members through a general or special meeting.

The issue if really serious and involves great substantial  financial expenses, then the approval of the general body by a resolution passed in this regard is essential

T Kalaiselvan
Advocate, Vellore
87666 Answers
2353 Consultations

The answer to all the above questions are No and it’s illegal to do so 

Prashant Nayak
Advocate, Mumbai
32837 Answers
209 Consultations

  1. Managing Committe can utilize funds of society including fds for the welfare of society & routine work, without seeking approval of the general body at the AGM. However, initiating any major new work requires approval of majority out of all the members at the AGM. Any such work initiated without such approval is blatantly illegal. 
  2. The office bearers though honorary are legally bound to respond to any queries by any member, if called during reasonable hours. The society office needs to have some working hours where any member can seek queries. Providing inspection of financial records & copies if demanded, at the cost of the member too is obligatory. However, the MC or any of the office bearers of a housing society aren't subject to RTI. 
  3. No member whatsoever, be it ground floor or any other floor, can be denied voting rights on any issue whatsoever. Such denial is blatant illegality. 
  4. By whatever is explained in 1,2 & 3, it should be clear to you that many irregularities and illegalities are going on in your society. You must seek legal remedies. You can either move the cooperative court or consumer forum. Which forum would be most suitable can best be adviced to you, only after exhaustive consultation session with you. 
  5. I extend by legal services not just for such consultation, but also to take up your litigation to it's logical conclusion. 
  6. You need to visit me for such consultation. 
  7. ९८२०८९७८८४ (nine eight two zero eight nine seven eight eight four) 

Netra Mohanchandra Pant
Advocate, Navi Mumbai
1587 Answers
5 Consultations

1. Society Executive Committee can encash FDs for valid cause if it has been so empowered by the Bye Laws of the Society.

 

2. Vague and repeated letters on the same ccuse which has already been answered earlier can be ignored by the office bearers. 

 

3. Voting for what? Which work? If it is for seeking opinion about works which are required for all other floors excepting ground floor,then opinion of ground floor residents may not be required. However, hardly such incidence occurs.


1. No, I have not assumed that your letters are vague. I have informed that the office bearers can avoid answering vague and/or repeat letters. Had you informed what letter you had written, then I would have answered accordingly. I have answered your specific question specifically without being informed about the matter of your latter.

 

2. In your instant case, the4 Society is bound to provide you the documents/answers sought for by you.

 

3. Being dissatisfied, you can very well raise the matter in your GB Meeting and/or lodge complaint to your Registrar of Societies praying for appointment of Receiver for your Society. 

 

Krishna Kishore Ganguly
Advocate, Kolkata
27512 Answers
726 Consultations

  1. Breaking of FD is major financial decision, it cannot be done without approval of GB.
  2. A member is entitled to seek and get information of every rupee spend by Society.
  3. Under no circumstances a member can be denied right to vote, it is violation of fundamental right.
  4. Submit a complaint the Deputy Registrar of Societies and seek audit of accounts by auditor appointed by him.

Ravi Shinde
Advocate, Hyderabad
4385 Answers
42 Consultations

  1. Fixed deposits can only be broken with the approval of the Annual General Meeting (AGM).

  2. Responses are required for emails.

  3. Voting rights for work conducted on higher floors are granted to members on the ground floor.

Anik Miu
Advocate, Bangalore
10371 Answers
121 Consultations

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