Removal of Chairman, Secretary, and Treasurer of a Bavdhan Co-Operative Housing Society by Deputy Registrar, Pune

I represented  members of Chandraneel Co operative Housing Society Ltd., Bavdhan Khurd, Pune, in proceedings initiated before the Office of the Deputy Registrar, Co operative Societies, Pune City (1), Pune, under Section 75(5) and Section 82 of the Maharashtra Co operative Societies Act, 1960.

Being the top cooperative housing society lawyer in Pune, the applicants approached me after serious concerns were raised regarding the functioning of the managing committee of the society. The members alleged repeated non compliance with statutory obligations by the Chairman, Secretary, and Treasurer of the society. The issues included non submission of annual working reports, failure to submit audit reports and audit rectification reports, lack of transparency regarding elections, non approval of budgets, and failure to provide statutory information to society members.

An application was filed before the Deputy Registrar seeking inquiry and action against the concerned office bearers.

During the proceedings, notices were issued by the Deputy Registrar to the society. Initially, despite receipt of notices, no one appeared on behalf of the respondent society, following which fresh notices were issued by the authority. Thereafter, the Chairman, Secretary, Treasurer, and committee members appeared before the authority and filed their written submissions.

On behalf of the applicants, I presented arguments regarding prolonged audit non compliance, failure to conduct proper statutory procedures, violation of audit related provisions under the Maharashtra Co-Operative Societies Act, and irregularities in the functioning of the managing committee.

The respondent society attempted to justify the delay in audits by stating that audit reports from 2013 to 2024 were being completed together. However, during the proceedings, it became evident that statutory requirements relating to audit rectification reports and compliance obligations had not been properly followed.

The applicants also raised concerns regarding improper election procedures, lack of transparency in committee functioning, and failure to communicate important information to society members.

After hearing both parties and examining the documents placed on record, the Deputy Registrar observed that audit reports for multiple years were prepared after substantial delay and that the office bearers had failed to properly comply with statutory duties under the Maharashtra Co-Operative Societies Act, 1960 and the society bye laws.

The authority further observed that the office bearers had defaulted in complying with provisions relating to audit rectification and statutory governance obligations.

Finally, exercising powers under Section 154B 23(3) of the Maharashtra Co-Operative Societies Act, 1960, the Deputy Registrar passed an order removing the Chairman , Secretary , and Treasurer from their committee positions and disqualified them from holding office or contesting committee positions for a period of one year.

This matter highlights the importance of accountability and statutory compliance in co-operative housing societies. It also demonstrates that society members can seek legal remedies when managing committees fail to discharge their legal duties in accordance with the Maharashtra Co-operative Societies Act, 1960.