Adopt new model bye laws

 

Ours is a biggest CHS in western suburban- Malad (East) with 35 buildings and 569 members. It is more than 40 years old. Our members want to go for redevelopment of our buildings. But unfortunately, we have not yet adopted model bye laws due to several reasons. Few members are not in favour of it and want to stick to our own old bye laws, which is out dated. I am of the opinion, that in order to get the co-operation of deputy registrar and for successful redevelopment, it is advisable to adopt the model bye laws- 2009 with certain modifications in line with our old bye laws. Kindly advise

1) Is adopting model bye laws and redevelopment directly related?

2) Can deputy registrar force housing societies to adopt model bye laws?

The co-operative societies including co-operative housing societies have to function as per the provisions of Maharashtra Co-operative Societies Act, 1960, MCS Rules, 1961, circulars and notification issued by the government from time to time and as per the provisions of bye laws. If any provision of bye laws are contrary to the provisions of MCS Act, rules and notification, the provisions as provided in the MCS Act, rules and notification will be applicable to the societies. The bye laws are revised from time to time considering the changes made in the MCS Act, rules and notifications and the co-operative department advises the societies to adopt them. Thus, it is always advisable to adopt the new bye laws, so that the members also will be updated with the provisions of law and the disputes will be reduced. The adoption of bye laws and redevelopment are not directly related. Whether you adopt new bye laws or not, the redevelopment has to be done as per the government notification dated January 3, 2009 issued under section 79A of the MCS Act, 1960.
On February 14, 2013, the government has notified Maharashtra Co-operative Societies (amendment) Ordinance, 2013, making a major amendment in the MCS Act, 1960 as per 97th constitutional amendment. It has been specified in section 13 and 14 of the MCS Act, 1960, that the registrar can direct the societies to adopt new bye laws which are consistent with the provisions of MCS Act, rules and notification. Thus, every housing society or other societies will be directed by the registrar to adopt the new model bye laws, similar to the provisions made in the 97th constitutional amendment directing the state government to amend their respective state laws.

We are told that now societies are given autonomous status. The registrar and the government cannot interfere in the functioning of the societies. M-20 bonds are removed. The managing committee cannot be removed and administrator can be appointed. I wanted to know whether for redevelopment, housing societies are required to follow the directions issued under section 79A of the MCS Act, 1960 like inviting the registrar, appointing the project management consultants, inviting the tenders, etc.?
Autonomous status is within the provisions of Maharashtra Co-operative Societies Act, 1960 or the amendment done from time to time. As per section 79A of the MCS Act, 1960, the government still has a power to issue any direction for better working of the societies. Since redevelopment notification of January 3, 2009 is issued under section 79A of the MCS Act, 1960 and that section has not been deleted or amended as per Maharashtra Co-operative Societies (Amendment) Ordinance, 2013, the notification is binding on all the societies whether they have adopted new bye-laws or not, if they are planning to undertake redevelopment.
When the representatives from deputy registrar office are invited in the general body meeting of the housing societies when the developer has to be selected, the representative of registrar has no power to influence the decision of the societies. He comes there as only observer and supervise the proceedings of the general body meeting.
Even though the registrar cannot appoint an administrator, he has a power to disqualify few committee members or entire committee, who are responsible for mishandling the affairs of the society. In such cases, the registrar will constitute an interim committee of active members of the societies, other than disqualified members of the committee, who will function till the proper election is conducted by the State Co-operative Election Authority and hand over the affairs to the newly elected committee.
Even though M-20 has been removed, the new law has prescribed various responsibilities on the committee such as holding annual general body meeting, completing accounts and audit, filing annual return, etc. within 6 months of the close of financial year.