How to Contest Elections to the Managing Committee of a Housing Society

Real Estate and Property Law Housing Society Law

Posted by Aditya Pratap on 09 May 24

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Introduction:

The Maharashtra Co-operative Societies Act, 1960, lays down the legal framework for the governance and regulation of co-operative societies in the state of Maharashtra, India. This landmark legislation provides a comprehensive set of rules and regulations governing the establishment, management, and dissolution of various types of co-operative societies, including housing societies.

The Act outlines the eligibility criteria for committee members, the nomination process, scrutiny of nominations, conduct of elections, and resolution of disputes arising from the election process. By adhering to the provisions of the Act, housing societies can uphold principles of transparency, accountability, and fairness in their governance structures.

Understanding the Maharashtra Co-operative Societies Act, 1960, is essential for members of housing societies, managing committees, and other stakeholders involved in the cooperative movement in Maharashtra. Compliance with the Act ensures the smooth functioning of housing societies and promotes the interests of their members while fostering the cooperative spirit envisioned by the legislation.

 

Initial Stage for Elections of Members of Committee:

As per Section 73CB. Under this amendment, the State Election Authority gained election powers in Cooperative Societies. However, the Mumbai District Co-operative Housing Federation raised concerns to the State Government, suggesting that implementing these provisions might pose significant challenges to small Co-operative Housing Societies. They proposed giving precedence to Model bye-laws and their prescribed election rules until further notice. Upon society registration, the chief promoter/builder promoter is obligated to organize the first statutory general meeting within three months, primarily focusing on forming a provisional committee until regular management committee elections are held.

Election Candidature of a Member, Proposer, and Seconder in arrears of the society:

As per By-law No. 118, a member who has outstanding dues to the society beyond 90 days as of the scrutiny of nomination papers cannot be deemed eligible to run for election.

However, in the case of the proposer and seconder member of the society they retain the right to nominate any candidate, regardless of their own outstanding dues to the society. Even there are no such restrictions on the members to propose or second the candidature. They are privileged with N-number of opportunities to propose and the second candidature.

Election Procedure:

a) Firstly, The Managing Committee should initiate the initial procedures at least three months before the election date. Additionally, as per by-law No. 115 (Rule No. 2.1), the composition of the managing committee will be established.

b) He Act, Rules, and Model bye-laws now incorporate potential disqualification criteria for any member seeking election to the management committee. This prevents individuals from standing for election solely based on their interest in the services rendered to the society.

c) Considering all members with outstanding society dues, they are required to be severed within three months of receiving a written notice demanding payment. If dues remain unpaid by the nomination filing and scrutiny dates, the nomination is presumed invalid.

d) Furthermore, an associate member cannot run for election without presenting the No Objection Certificate (NOC) from the original member.

e) Once the elections get over the Secretary of the preceding society committee must transfer responsibilities to the newly elected committee.

f) According to Section 73(IAB) of the Maharashtra Co-operative Societies Act, 1960 and Rule 58A of the Maharashtra Cooperative Societies Rule 1961, every elected committee member must, within 15 days of assuming office, create a bond using Form M-20 on a stamp paper worth Rs. 200, with society bearing the expenses. Failure to do so results in the member's removal. The Secretary keeps these bonds in the society's records and informs the Registrar within 15 days of the committee's formation. For Co-operative Housing Societies, bond execution requirement was waived by notification order No. CSL 2012/CR- 402/15-C dated September 06, 2012.

Management of the Society for Election:

The responsibility for overseeing the society's operations lies with the committee, formed in accordance with the Maharashtra Co-operative Societies Act, 1960, the Maharashtra Co-operative Societies Rules, 1961, and the society's by-laws.

Under  By-law No. 115 of the Maharashtra Co-op Societies Act 1960., the committee's composition now mandates the inclusion of at least one woman member, as specified in Section 73(BBB) of the Maharashtra Co-operative Societies Act, 1960. However, if a woman is unavailable or unwilling to serve, her reserved seat may be filled by another member. Model by-law No. 115 outlines the committee's structure based on the society's membership numbers, incorporating the reserved seats for women members as mandated by Section 73 BBB of the Act.

The selection process for the Managing Committee (MC) as outlined in By-law No. 116:

a) The election of all Managing Committee members occurs every five years in adherence to Election Regulations. Retiring committee members are eligible for re-election. If the paid-up share capital exceeds 10,000, voting must be conducted through secret ballot.

b) The election for all members of the Managing Committee takes place every five years, following the Election Regulations attached to the Model by-laws. Retiring committee members retain eligibility for re-election. The elected committee serves a term of five years.

c) According to Model by-law No. 116(b), if there are insufficient valid nominations to fill the entire Committee, the General Body meeting will fill the vacancies through election. If, during the General Body meeting, the required number of Committee members cannot be elected, the existing Committee members are authorized to fill the vacancies through co-option, even if they do not form a quorum, overriding the provisions of by-law No. 127 regarding the quorum.

Conclusion:

In the Indian state of Maharashtra, a comprehensive legislative framework governing the creation, operation, and administration of co-operative societies is represented by the Maharashtra Co-operative Societies Act, 1960. Of all the provisions it contains, Section 76 is especially important because it describes how cooperative societies hold committee member elections.

By carefully outlining the guidelines and protocols for the election process, Section 76 guarantees that members are fairly represented in the governance of their societies. This section describes the procedures that must be followed to protect democratic values and ensure accountability and transparency throughout the election process, from the selection of presiding officers to the announcement of results.

Effective governance and democratic participation are promoted by cooperative societies through their adherence to the provisions of Section 76 and other pertinent sections of the Maharashtra Co-operative Societies Act. Adherence to the legislation not only guarantees the seamless operation of cooperative societies but also strengthens the cooperative spirit intended by the act, ultimately fostering the socio-economic advancement of communities throughout Maharashtra.