Overview of changed Legislative Scenario for CHS housing societies. It is yet to be ratified by the State Legislature, or it will lapse within six months. The amended Act defines a new authority i.e. State Co-operative Election Commissioner, who will now supervise and conduct the elections of all co-operatives in Maharashtra. It creates a new distinction between members – “Active� and “Non Active�, and creates mechanisms to enable Active members, and disenfranchise and expel persistently non-active members. It also specifies reservation of a minimum of 5 seats in all co-operative elections for SC/ST/OBC/ VJ and women on the managing committees of all societies. It seeks to limit the role and tenure of administrators in all co-operatives. It ! ! auditors, and mandates them to register FIRs (First Information Reports) in case of fraud, misappropriation, etc. It also defines a more dominant role for the office of the Registrar of Co-operatives, with powers to impose stiff $ from contesting the next term.
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Amendment of Maharashtra Co-operative Housing Society (CHS) Model Bye-Laws in March, 2013
These Model Bye-Laws were framed by the office of the State Registrar of Co-operatives, and all housing societies in Maharashtra are required to hold a Special General Body Meeting and adopt them before 30th April, 2013. It gives a bigger role to the General Body visà -vis the Managing Committee, and also visà -vis individual members. The General Body can now impose larger penalties, and participate to a greater extent in the society’s management. Although the amendments in the Constitution are well-intentioned, their interpretation in the MCS Act and the Maharashtra Housing Bye-laws makes one wonder whether autonomy is being given, or whether the existing autonomy of
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co-operative housing societies is being encroached by the State Co-operation Department. Some seemingly well-intentioned sections and bye-laws are likely to produce undesirable side-effects on the peaceful functioning of housing societies. They may cause rifts and divisions between members, and give rise to bitter disputes. Below, we will look at these legislations in greater detail, including amended articles of the Constitution, amended sections of the MCS Act and amended bye-laws of the co-operative housing societies. But first, let us acquaint ourselves with the history and background of this sector as a whole.
Historical Background Co-operative society is a business model to undertake an economic activity to serve its members who are also its owners. It is a people enterprise where like-minded people volunteer to take up a commercial activity for self help and mutual help. Co-operative businesses can be started by persons of limited means to share scarce resources, income and growth. This business model empowers economically and socially weaker sections of society to uplift themselves. Defined as “an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise�, co-operatives follow certain broad values other than those associated purely with profit making. Need for profitability is balanced by the needs of the members and the wider interest of the community. The cornerstones of co-operative behaviour are self-help, democracy, equality, equity and solidarity. Voluntary and open membership, democratic control, economic participation, autonomy, training and information and concern for community are the overarching features by which the co-operatives put their values into practice.
The Chamber's Journal April 2013
SS-VI-2