Provisional Managing Committee taking decision to spend Rs 30 L PM without calling a General Body
Property Based in Andheri West, Mumbai
The residential complex, Adani western Heights got its OC in December 2018. A provisional managing committee (PMC) was appointed in August, 2019 after an election for a period of 1 year. My question 1 is: The builder had an ongoing maintenance/housekeeping contract with a Contractor 'A', which was due to expire in February, 2020 for which the society was paying approximately Rs 48 Lacs PM for various maintenance activities. The PMC took a decision to remove the Contractor 'A' and give the contract to a contractor 'B' at a recurring expenditure of Rs. 30 Lacs PM without calling for an SGM. The PMC simply emailed their decision to the members with some rationale stating that the new contract would save the society about Rs 18 Lacs PM, but with about 40 less manpower deployed by contractor 'B' as compared to contractor 'A'. When questioned why the PMC didn't call an SGM to discuss their plan and tenders to change the contractor 'A', they (the PMC) simply state that the the bye-law rule 157 is for one time repair and expenditure, but the decision to spend Rs 30 Lacs PM by the PMC was a routine, recurring expenditure which is not covered by rule 157. Hence, they are not bound to call the SGM. The question I have is; was the PMC authorized to take this mammoth decision of Rs 30 Lacs PM, which has massive financial & administrative consequences for the residents, without referring to the SGM?
My 2nd question is: The SGM also took another decision to award a recurring contract of about Rs 1 Lac to an IT vendor for offering app based society automation services. was the PMC authorized to take this decision of Rs 1Lac PM which also has security consequences for the residents? The 3rd question is: The builder had let out some common areas for a saloon and a juice bar during his tenure. The PMC during its short tenure changed the contracts without calling the SGM. Was the PMC authorized to do so without calling a SGM?