Our Flat Owners Association was formed in 1980 comprising of 80 HIG ,240 MIG-1, 224 MIG-2 and 336 LIG . Total 880 Flats. In the Memorandum of Association , There is provision of electing 24 Governing Board of Managers as follows : 5 from HIG, 8 from MIG-1 , 5 from MIG-2 and 6 from LIG. Thus 13 members from HIG&MIG 1 and 11 from MIG 2 &LIG. If proportionate representation was taken then there should be 2 from HIG, 7 from MIG 1 , 6 from MIG 2 and 9 from LIG. Thus there should be 9 representatives from HIG&MIG-1 and 15 representatives from MIG-2&LIG.Nobody has raised dispute till date. After retirement in 2015, I have now come to stay .Mutation is done in my name. The total money collected by way of maintenance charges from MIG 1 and LIG flat owners together is higher than HIG and MIG 1 every year. So it does not make sense to have more representatives from HIG&MIG-1. After going through the Balance sheets .I found that the individual monthly subscription collected by way of maintenance has 3 components ,1). Actual maintenance charges 2) Common Maintenance Charges. 3) Exp for Annual Durga Puja and Kali Puja etc. Also I noticed the following irregularities which are otherwise not explicit but remain buried in the balance sheet.1) Although the actual maintenance charges of Flat owner per month of LIG&MIG-2 are both lower than HIG &MIG 1 and break up is shown separately in the Balance sheet every year since inception.The maintenance charges are increased every 2 to 3 years since 2015 at a flat rate of RS 50/-for all categories of flat on the plea that salaries will have to be increased and excess balance will be used for Durga Puja. 2) Maintenance expenditure was suddenly so high in some years that HIG& MIG-1 maintenance subscription made by flat owners was inadequate & shortage was met from maintenance charges collected from LIG &MIG 2 also Durga Puja expenses were sourced from Interest from FD.3) The Govt in 2015 approved extension of Flats as land was available.The association collected Fixed amounts on the plea that several works will have to be taken up Viz cable shifting sewage. Shifting etc. These works did not materialize and major amount running into 95 Lakhs is in Bank.In most years association has arranged extravagant Puja and sourced funds from FD interest w.r.t HIG& MIG1 Flats. 4) It is passed in the GBM in May 2023 that income& expenditure statement will be merged for all categories henceforth. The association will continue to suppress the LIG and MIG-2 categories with impunity with help of merged income and expenditure statement and approved consolidated budget every year. They will require no justification for increase of maintenance charges at flat rate and also past years since 2015 or earlier. Kindly let me know how I should proceed to change the composition of the Board of Managers and bring the offender's to book without making any enemies and going to the courts.
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Audited accounts would reflect there has been any misappropriation of funds by the association
2) if funds have been collected of 95 lakhs and money is lying in banks ask association in AGM to refund excess money collected from members or adjust it against maintenance bills
3) similarly for Durga Puja x amount should be fixed for expenses .
4) you should complain to registrar and seek appointment of administrator if there is misappropriation of funds
For any change/amendment in the Memorandum of Association (MOA) and/or Bye-Laws of any Cooperative Housing Society, a member has to point out the flaws or the need for change etc, in at the General Body meeting or otherwise by writing to the Managing Committee (Board of Managers, in your case). The MC may consider the suggestion and initiate the process of the amending the MOA or Bye-Laws. A member may also approach the Registrar or Asst Registrar, to issue directions to the MC of the Society to consider the suggestion to rectify the legal flaw, if any. Lastly, a member may approach the Court of Law for directions to the Society. All this is a legal right of the members and I dont think it will invite the wrath of the MC etc.
Resolution should be passed by governing body and general body meeting to the effect of change be also passed. As such there is no way to book offenders without making any enemies and that too without going to the courts. Every such penal action by governing body would obviously annoy offenders. What is your authority to take action or to carry change? Are you president of governing body? If you donot have authority then you being individual member can bring resolution in governing body meeting.
That can’t be possible if needed you need to approach court in above circumstance
If there is any misappropriation o funds or embezzlement of accounts you may note down the issues and gather like minded people by educating them about the said irregularities that continue in the association for decades.
Besides the funds found to accumulated in huge volumes and not being spent on the occasions, instead additional funds are sought from members for puja or any other event is not justified acts of the association.
You can raise the issue in the general meeting and try to bring a resolution on the proposed changes, if the acts of irregularities still continue then you may lodge a complaint with the deputy registrar abut this..
Dear Client,
If there is any misappropriation of funds or embezzlement of accounts in the association, you can take the following steps:
It is important to remember that misappropriation of funds or embezzlement is a serious crime. If you believe that these crimes are happening, you should not hesitate to take action. By following the steps above, you can help to protect the association's assets and ensure that its funds are used for their intended purpose.
