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EXPULSION OF MEMBERS FROM HOUSING SOCIETIES

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, and its corresponding rules establish the legal structure for cooperative housing societies in Maharashtra, India. One crucial area addressed in this legislation is the expulsion of members from these societies, which is governed by specific provisions outlined in the Act and its associated rules.

Under these regulations, cooperative housing societies are granted the authority to expel members in certain situations, usually when a member breaches the society's bylaws, behaves inappropriately, or neglects their duties towards the society. The procedures for expulsion are elaborately defined to ensure fairness and openness.

General Grounds of Expulsion:

A Member may be expelled from the Membership of the Society, if such Member:

1) Non-payment of Dues:

Consistent failure to meet financial obligations, like dues and maintenance charges, can lead to expulsion from the society. Non-payment strains resources, undermines equity among members, and jeopardizes long-term sustainability. It also risks legal repercussions and challenges community standards. Expulsion upholds the society's integrity and ensures members fulfil responsibilities.

2) Violation of Society Bylaws:

Repeated violations of a society's bylaws, rules, or regulations may lead to expulsion. Instances involve unauthorized modifications to real estate, unauthorized subleasing, or involvement in illegal activities. Such acts infringe upon property rights, upset community peace, and jeopardize public safety.

Expulsion protects the norms of the community, guaranteeing that rules are followed and maintaining peace within the group. It emphasizes how crucial it is to uphold property rights and social values to promote a safe and harmonious environment in society.

3) Fraudulent Practices:

If a society member is found to have engaged in fraudulent activity, such as theft of funds or record-keeping fraud, he may be expelled. Such acts destroy confidence, compromise the integrity of finances, and harm the welfare of the community.

Elimination preserves moral principles, guaranteeing responsibility and safeguarding the resources of the community. It prevents dishonest behaviour, preserving the community's finances and good name. Expulsion serves as a reminder of the value of honesty and openness in society's interactions by holding individuals accountable for dishonest behaviour.

4) Misconduct or Anti-social Behaviour:

Constantly engaging in antisocial behaviour that is harmful to the community and its members, such as harassing others, causing property damage, or causing disturbances, may justify expulsion. Such conduct reduces the standard of communal living and damages the bond between communities.

Expulsion preserves the norms of the community, guaranteeing a peaceful setting where participants feel safe and appreciated. It protects the welfare of society and its members by acting as a disincentive to wrongdoing. Expulsion serves as a means of reinforcing the ideals of mutual respect, accountability, and thoughtfulness within society by eliminating those who participate in destructive acts on a regular basis.

5) Failure to Fulfill Obligations:

Expulsion may be caused by a continuous failure to uphold social commitments, such as cooperation with the management committee, attendance at meetings, or maintenance participation. Such carelessness interferes with group maintenance, decision-making, and general operation. Expulsion ensures equitable participation among members by upholding the values of accountability and active engagement.

It illustrates how crucial cooperation and teamwork are to the well-being of society. Expulsion maintains the effectiveness and cohesiveness required for the society to function well by eliminating members who are habitually non-contributing, encouraging a sense of responsibility and dedication among its participants.
6) Legal Violations:

A member may face expulsion if convicted of a criminal offense or found to have breached the law in a manner detrimental to society's reputation. This measure safeguards the society's integrity and upholds its values; ensuring members abide by legal and ethical standards.

Laws related Expulsion of Members:

a) Section 35: Expulsion of members

Under the Section 35 of the Maharashtra Cooperative Societies Act 1960, A Society may expel a Member for actions "which are detrimental to the interest or proper working of the Society" by resolution approved [by a majority of not less than three-fourths] of the voting Members present at a General Body Meeting called for that purpose.

No Resolution shall be effective unless the Registrar approves it, and no Resolution shall be valid unless the Member in question is given the chance to state his case before the General Body.

b) Rule No 28:

Under the Rules No. 28 of the Maharashtra Cooperative Societies Rules 1961, Any members who consistently fail to pay dues, violate the bylaws regarding the sales of their produce through the society or other matters pertaining to their dealings with the organization, or who, in the committee's opinion, bring disrepute to the organization or engage in other actions that are detrimental to the organization's interests or proper operation may be expelled from the organization in accordance with the provisions of Section 35(1). A member's shares may be forfeited if they are expelled from the organization.

c) Rule No 29: Procedure for expulsion of members

Rule No 29(1) Any member of a society who proposes to present a resolution for the expulsion of another member must notify the society's chairman in writing.

The consideration of the resolution will be included in the agenda for the next general meeting after the committee decides to bring it forward or after receiving notice.

notice of the resolution will be sent to the member who is the target of the resolution, asking him to attend the meeting, which will take place not earlier than one month from the date of the notice, and provide justification for not being expelled from the general body of members.

The general body of members will next consider the resolution after hearing from the member if he is present, and after considering any written representation he may have sent.

Rule No 29(2) a resolution passed in accordance with sub-rule (1) that is forwarded to the Registrar or otherwise brought to his attention may be reviewed by the Registrar, who may then approve it and notify the member in question as well as the society after conducting any necessary inquiries. The resolution will go into force on the day it is approved.

d) Decision-Making Body:

The decision to expel a member is usually made by the managing committee or the general body of the society, subject to the rules outlined in the Act and the bylaws of the organization.

This decision varies based on the particular rules specified by the regulating laws and the internal policies set by the community, guaranteeing compliance with legal and procedural criteria.

e) Appeals Process:

Expelled members may challenge the decision through the official appeals process. Usually, the member has to file a formal appeal with a higher authority in the cooperative structure, like the Registrar of Cooperative Societies or an appellate authority. This body examines the matter, takes into account any fresh information, and makes a decision. The appeals process preserves the concepts of justice in cooperative organizations by guaranteeing equity and providing a channel for resolving complaints.

Conclusion:

The Maharashtra Co-operative Societies Act of 1961, alongside its accompanying Rules of 1964, delineates the expulsion process for members within housing societies. Grounds for expulsion range from non-payment of dues to violations of society bylaws and fraudulent conduct. The expulsion procedure typically involves issuing notices, conducting hearings, and reaching decisions by either the general body or the managing committee. Ensuring procedural integrity and compliance with legal provisions are paramount in safeguarding the transparency and credibility of housing societies in Maharashtra.

 

Expulsion of a person from a Housing Society has serious ramifications.

Aditya Pratap ~Aditya Pratap