Can an auditor be debarred
I am based in Ahmedabad, Gujarat.
I am an owner and occupant of a house in KAMALNAYAN BUNGLOWS at Ahmedabad.
As per the sale deed and other documents, the bunglows are treated and considered as individually owned houses and the common facilities such as garden, club house etc are also owned jointly by all members and NOT by the society.
To provide services such as - water supply, maintenance of common garden
inside road, security etc the owners of Kamalnayan bunglows had formed a society called KAMALNAYANCO OP HOUSING SERVICE SOCIETY LIMITED and got it registered with the District Registrar (Rural) Ahmedabad in the year 2008 and obtained the certificate of registration. The bye-laws of the society was also approved by the District Registrar,
As per the bye-laws each member who owns a house in KAMALNAYAN BUNGLOWS can hold 5 shares of Rs 50 each.
As per the approved bye laws, this service society is not allowed to generate funds by way of overcharging share transfer fee or development fund.
However, during the last financial year they had charged one member who had bought a house in the society under resale Rs 3,00,000/- towards share transfer fee and development fund.
During the current year they had collected from two new members Rs. 3,00,000
each (totaling Rs 6,00,000).
On the basis of the clarification sought by me, the District Registrar of Co Op
Societies Ahmedabad had given written instructions to this society NOT to accept
any amount other than what is approved in the bye-laws. As per bye laws, the share transfer
fee payable is only Rs. 500 and the entrance fee is Rs. 5, totaling Rs. 505/-.
However, the society is not willing to follow the approved bye laws and the written instructions from the Registrar.
The Auditor of the society is approving the society accounts and issuing his report without considering the bye laws or the instructions from the Registrar.
Under these circumstances, I seek your valuable guidance as to what action I can take against the society and the auditor in particular for the negligence and cheating the newly joined members.
Your valuable guidance will help me to proceed further in the matter.