Saturday, 18 May 2013

RTI Act - Applicability to Cooperative Societies

RTI Act - Applicability to Cooperative Societies
Analysis on: RTI ACT for Cooperative Society, Applicability?
In general anticipation of atleast a consolation relief, scores of Society members and related activists have been consistently yearning for the Coop. Societies to come within the ambit of the Right to Information Act.
CONTRARY to the increasing yearning:
01.Direct application of "Right To Information Act", CAN-NEVER-EVER be applicable to Non-Aided Coop. Societies of any kind (including Housing Societies). Coop. Society is a group of members, means OF the members, BY the members, FOR the members, ONLY.
REASON: The office-bearer of a Non-Aided Coop. Society “CANNOT” be classified as a “Public Information Officer” (u/s 2(l)), simply because they are not within the pay ambit defined for “Public Information Officer”, which further means that a “Public Information Officer”, must mandatorily be a Public servant or a Govt. Servant (refer section 20(2), who must be drawing Salary from the Public coffers, which in any case cannot be stated /defined for a office-bearer of a Coop. Society.
02. Applicability of "Right To Information Act", to the Cooperative Society’s is wishful thinking (flying Horses). However, selective information from a Cooperative Society can be obtained by making an RTI Application u/s 2(f) to the competent Public / Govt. Servant (example: to the Deputy / Assistant Registrar of Cooperatives), since he alone is bound by law (as a State PIO) to obtain relevant documents from the coop. Society AND THEN provide it to the RTI applicant.
Quote u/s 2(f): [Information relating to any private body which can be accessed by a public authority under any other law for the time being in force]
a) NOTE: Such procurable information under RTI, would only be in the nature of documents relating to the Society Registration & Membership details, the Audited Balance-Sheet, the registered Bye-Laws, the minute books of the Managing Committee meetings, the minute books of the General Body meetings and so on. BUT to the exclusion of any further documents concerning the Society’s business.
b) NOTE: U/s 32 of the MCS Act, 1960, “restrictions” are already in place for providing information about its own members to other members in the same Society, leave aside providing information to non-members (means the Public). The provisions of the RTI Act, would not be able to supersede the established “autonomous provisions” of the MCS Act, and on the contrary would be contrary to the established provisions of the MCS Act.c) For obtaining any & all (information) copies of the various records & registers of the Society, other legal options have to be adopted.
03. Scores of Coop. Society members and related activists are being mislead by some self-glorifiers, that the office-bearer of a Coop. Society, has become a “Public authority" u/s 2(h), just simply because now the Coop. Society has become a “self government established /constituted under the Constitution (97th Amendment) and/or under the State Legislature”, WHEREAS to the contrary, a “Public Authority” can only be a person who is a Public / Govt. servant, which is mandatory. In the case of a Coop. Society, its office-bearers CAN NEVER be classified as a Public / Govt. servant.
NOTE: The Gujarat High Court has declared on 22-04-2013, that “Articles 243ZH to 243ZT" of the 97th Constitutional amendment are “ultra vires”. These articles were SPECIFICALLY & SPECIALLY related to the Coop. Society’s. The MCS (Amendment) Ordinance, 2013, of 15-02-2013 is based on Constitution [97th amendment] Act, 2011, making it as infructuous.
04. A non-aided Coop. Society is not liable to answer ANYBODY (to the exclusion of its own members), for the profit / loss earned OR on the admission /rejections of memberships OR making expenses for the Society OR any other business (under MCS Act) of the Society. The decision of a autonomous Coop. Society is challengeable selectively /alternatively before the Coop. Registrar and/or before the Coop. Court.
05. WHO IS A "Public Authority u/s 2(h)" of the RTI Act.
a) A Public Authority is mandatorily a Public servant or a Govt. Servant (u/s 20(2) and should necessarily be drawing Salary from the Public coffers.
b)The senior most officer of the relevant Public /Govt. dept., appoints a competent officer for the "additional" post of "Public Information Officer (PIO)" (u/s 2(l), for the purposes of RTI Act, who is classified as a "State PIO", meaning he works for the particular State of India.
c) The PIO (u/s 2(l), is mandatorily a Public /Govt. Servant, mandatorily drawing his salary from the Public coffers alongwith the relevant pay benefits, holidays, retirement benefits and so on.
d) A PIO cannot be honorary or a voluntary Public /Govt. servant, simply because there is no such provision under the present laws, for a “Public /Govt. servant” to work without Salary & other retirement benefits.
e) The RTI-PIO, mandatorily being a “Public /Govt. servant” and drawing Salary from the “Public Coffers” CANNOT hold any “office of profit”, which in turn means that he cannot conduct any Business or join any other private job, till he remains a Public servant or a Govt. Servant.
f) Presently no Public servant or Govt. servant is designated as a stand-alone Public-Information-Officer. A PIO is logically a person holding an additional post apart from his usual post. By example a PSU bank manager, is a PIO for his branch, which means the bank manager is a Bank-Manager cum PIO. The Appellate authority, mandatorily has to be next in rank (u/s 19(1)), and in a PSU bank it is generally the Deputy General Manager who holds multiple positions viz. Deputy General Manager cum (&) Appellate Authority (RTI). Here the "Public Authority u/s 2(h), too would be the Deputy General Manager cum Appellate Authority (RTI)
g) Information under RTI, can be sought from Public / Govt. Dept., for any periods, even for the previous 30 years. Records have to be mandatorily maintained, preserved and/or reconstructed by the departments PIO. The PIO is liable to provide correct information on time and in the format it is sought for. Refusal /Failure of which, the PIO can be subject to “departmental disciplinary action” u/s 20(2) & imposition of “penalty upto 25,000/-“ u/s 20(1).
h) NOTE: Disciplinary action against the PIO, is possible under the "Service Rules" applicable to the PIO as provided for u/s 20(2), which reinforces the fact that the PIO has “mandatorily” to be “Public / Govt. servant” and the “Code of Conduct of services rules”, is applicable to the State PIO.i) The PIO is liable under The “Public Records Act, 1993", to maintain, preserve and/or reconstruct the missing / mutilated public documents.
06.WHY a Coop Society CANNOT appoint an RTI-PIO:
a) The office-bearers of a Coop. Society cannot be defined as a "Public /Govt. servant", hence do not derive authority to appoint a "Public Authority u/s 2(h) .OR. a PIO u/s 2(l)". ONLY & ONLY a "Public / Govt. servant", derives the lawful authority to appoint an "Public Authority u/s 2(h) or a PIO u/s 2(l)".
b) The office-bearers of a Coop. Society, cannot draw Salary from the Public coffers alongwith the relevant pay & retirement benefits and so on, simply because they are not classified as a "Public /Govt. servant".
c) The office-bearers of a Coop. Society have to mandatorily work as "Honorary Workers", (means without Salary) simply because under the provisions of the MCS Act, Rules & Bye-Laws, there is simply no provision for payment of Salary, pay benefits, holidays, retirement benefits and so on. In exceptional events & subject to various parameters & subject to "income over expenditure", a token "Honorarium fees", MAY be given to the office-bearers of a Coop. Society. Honorarium Fees are not defined as Salaries.
d) “Code of Conduct of services rules”, DO NOT apply to the office-bearers of a Coop. Society, simply because they CAN hold any “office of profit”, which in turn means that they CAN conduct any Business or join any other private job, since they are not a Public / Govt. Servant. Hence nobody can be appointed as a PIO of a Coop. Society, which means that RTI Act cannot be made applicable to a Coop. Society.
e) IF AT ALL, a Coop. Society were to appoint an PIO, THEN it would have to be from the "duly constituted" Mg.Committee itself AND NOT from the members of the General Body, due to authoritive hurdles and due to the fact that only the Secretary is liable for safe-keeping and assessing the Society records. IF a Society Secretary is made the PIO (u/s 2(l), THEN the Appellate Authority (u/s 2(h) would be the Society Chairman, which by default would mean & result in gross failure of the RTI movement in a Coop. Society, given the evidently consistent gross Apathy, Ignorance, Arrogance, Ego being cultivated in Coop. Societies.
f) Under the various parameters prescribed under the provisions of the MCS Act, Rules & Bye-Laws, a Coop. Society is bound to preserve its records for a maximum of 10 years, to the exclusion of the Society Registration documents, the Share Certificate Books, the various registers pertaining to its members, the various minute books pertaining to Mg. Committee and General Body meetings, which are to be preserved life-long, in its original state.
g) The Officer-Bearers of a Coop. Society has no authority to reconstruct any Society records & registers, without the express approval of Society General Body and the Final directions of the Coop. Registrar, failure of which it will be termed as “Fraud & Forgery”. The “Public Records Act, 1993” will not be applicable to Coop. Society’s. The members records & registers of a Coop. Society are held in a Fiduciary-in-Confidence u/s 8(1)(e), the information-disclosure of the same would not warrant any larger public interest.h) The Officer-Bearers of a Coop. Society, not being a Public / Govt. servant, cannot be penalized upto 25000/- u/s 20(1), for Refusal /Failure to provide Information and neither can be subject to “departmental disciplinary action” u/s 20(2). IF the PIO is a office-bearer of a Coop. society, THEN the penalty upto 25000/- (u/s 20(1)), cannot be recovered, simply because the office-bearer of a coop society work on honorary basis and further the said penalty amount cannot be recovered from the Coop. Society Coffers (i.e. members funds), THUS “jinxing” the provisions u/s 20(1) & 20(2) of the RTI Act.i) On an average the gross yearly salary for a “Public /Govt. servant” is approx. 300,000/- per annum, specifically for a person who could be competent enough to be designated as a PIO (RTI) cum regular post. Similarly for an Appellate Authority (RTI) cum regular post, the average gross yearly salary for a “Public /Govt. servant” is approx. 500,000/- per annum, for a person who could be competent enough to be designated as a Appellate Authority (RTI) cum regular post.
NOTE: A Coop. Society does not have any “Public Coffer” to afford around Ten Lakhs annually, to pay such PIO & Appellate Authority, leave aside the decade-old pending expenses of repairing & painting the society buildings. This being further so when the Coop. Society maybe a small Society with only 20 members, wherein logically the Society cannot annually spend around Ten Lakhs to pay as Salary to the PIO and the Appellate Authority.
07. BUMPER INTROSPECTION:
a) IT would be infructuous to imagine that the Govt. would designate a PIO for each Coop. Society, especially so when the Govt. wants the Coop. Society to function on Autonomous mode, without the interference of the Govt. & other persons with vested interests.
b) IT would be a further gross misconception to imagine that the Govt. would pay the salaries of the PIO’s that would be required to be designated for each Coop. Society.
08. INSTANT INFALLIBLE SOLUTION:
a) Depending on the State Governments inclination towards upholding the Cooperative Movement, AND under the powers vested u/s 157 & 158 of the MCS Act, the State Govt. may depute a dedicated "visiting PIO", from the Coop. Dept., to each Coop. Society, on "fee-recoverable basis" from the coop. society, who would authoritively access the Society records & registers (u/s 80(3), 81, 83, 84, 89A) & provide all the relevant information to the RTI Applicant.
b)The next-in-rank, means the "Appellate Authority" under RTI Act, would obviously be the Deputy Registrar of the ward, who would obviously be forced to sit-up from his apathy-chair, to uphold the Coop. Movement, using his Suo-Moto powers /authority, to rectify the defect shown by his own departments PIO.
c) This OBIVOUSY would instantly truncate out ALL the consistent gross Apathy, Ignorance, Arrogance, Ego being cultivated in Coop. Societies, besides disciplining the over-all needs & discontent of the Society members.d) This could also alleviate unemployment, which is over 40% of the gross population of any State. The educated unemployed would be more than happy and the Registrar could delegate his authority to a "authorized officer" who would be appointed as the PIO (under delegated authority), whose fees would be recoverable from the Coop. Society, since the so appointed "Authorised Officer cum PIO" would be covered as a Public Servant u/s 21 of the Indian Penal Code.

Source Courtsey:-Hemant Agarwal (Legal Consultants)

Thursday, 2 May 2013

INDEMNITY BOND to be given by the member for civil repairing work / Alteration work in the flat


                                               ON STAMP PAPER OF RS. 200/-

   INDEMNITY BOND
[To be given by the member for civil repairing work / Alteration work in the flat. ]


 I/We ______ son/daughter of______ Age___ residing at the _____ Indian inhabitant , state as under:

I/ We  ______ residing at _____ , who was the member of the ____ Co-operative Housing Society Ltd., having address at ___

I/We   ______  holding the Share Certificate No. ___ for ten paid up shares Rupees Fifty each, bearing Distinctive number from____ to ____ [both inclusive].

I/We ______ holding the Flat No. ____ on ____ floor, admeasuring ___ Sq. Meters in the building of the Society, known / Numbered as _____ constructed on the plot of land bearing No. _____ at _____.

 I/We have made application for civil repairing work / alteration work in our flat of the said Society and for that we have submitted the Plan copy / Drawing copy of our Architect /Inter Designer.

I/We undertake that we will carry repair/alteration work as per plan given to the Society. I/We also undertake that we will  also take necessary permission from Municipal Corporation /Municipal Council  through our Architect /Inter Designer. If any change in the plan we inform the Society as well Municipal Corporation /Municipal Council as  in written.

I/We also undertake that due to this repair/alteration work any damage OR leakage occurs in neighboring flat i.e. Flat which is above, below , left & right in our flat we will repair it to our cost and keep the Society indemnified to it. I/We also undertake that at the time of resale of the flat we inform the new Buyer regarding this Indemnity & undertaking for civil repair / alteration work.

 I/We hereby Indemnify and keep indemnified and harmless the said Society and its any of the office-bearers against any claim, demand, suit or other legal proceedings by Any other persons, Municipal Corporation /Municipal Council, Any semi Government Office or Government Office , claiming lawfully and/or equitably,  I/We further declare and Undertake to bear all expenses, cost, charges in respect of any such claim, demand, suit and/or legal proceedings which may be filed by any other persons, Municipal Corporation /Municipal Council , Any semi Government Office or Government Office , either lawfully and/or equitable.

I/We am/are conscious of the fact that the Society will give the permission of civil repair/alteration work on the basis of this indemnity and undertaking.

I/We make this declaration solemnly, believing the same to be true and having faith therein

Solemnly declared at ____ by the within named & photo                           Signature of Flat Owner’s / Applicant .

1         ____
2         ____




On this _____ day of _____20                                            Before Me


                                                                                              [Notary / Magistrate ]


Witness:-

  1. Signature:-
Name:-
Address:-

2.   Signature:-
Name:-
Address:-                                                                                                     

Thursday, 25 April 2013

Constitutional (97th Amendment) Act: Declared Ultra Vires by Gujarat HC


Gujarat HC order vs MCS (Amendment) Ordinance, 2013

01. Constitutional (97th Amendment) Act 2011, incorporated definition articles namely 243-ZH to 243-ZT, on 12-01-2012. The Parliament gave the States one full year to make appropriate amendments to its Cooperative Acts.

02. MCS (Amendment) Ordinance, 2013, was promulgated on 14-02-2013, and is BASED on the Constitutional (97th Amendment) articles namely 243-ZH to  243-ZT. The Maharashtra State Govt., could not amend the MCS Act of 1960 within this one full year, hence the Maharashtra Governor had to issue the aforesaid ordinance, keeping in line with the directions of the Parliament.

03. The MCS (Amendment) Ordinance, 2013, amended certain sections of the MCS Act, based and in-line with the definition-article namely 243-ZH to 243-ZT (as per the Constitutional - 97th Amendment)

THE BUMPER SPOILER:

04. Gujarat High Court, in Writ Petition (PIL) no. 166 of 2012, vide its order dated 22-04-2013, has declared the Constitution [97th amendment] Act, 2011 as ultra vires of the Constitution of India. SPECIFICALLY & SPECIALLY DECLARING THAT "Articles 243ZH to 243ZT is ultra vires".

a) Ultra-Vires means a “law-debilitating-virus” that declares something as "Null & Void"

b) Ultra-Vires, in context also means that the MCS (Amendment) Ordinance, 2013, of 15-02-2013 is also "Null & Void", since the Maharashtra ordinance was based on Constitution [97th amendment] Act, 2011 (more specifically on definition-articles namely 243-ZH to 243-ZT)

c) The Hon. Judges have REFUSED to grant "STAY on the OPERATION of the its Judgment", which means that the judgment is effective with immediate effect and would continue to be effective TILL the Supreme Court decides otherwise.

d) EFFECTIVELY, the above means that the Gujarat High Court judgment, is effective for entire India (all States), unless & until the Supreme Court decides otherwise.

CONSOLATION-in-CHIEF:

AFTER-EFFECTS (i.e. Spiking a spanner in the wheel)

a) The BAN of Govt. Administrator, in Housing / General Societies is not applicable any more, hence power of Registrar u/s 78 stands restored by default and An administrator can be now appointed. (Due to article no. 243-ZL,now declared as Null & void)

b) AGM has to be held on 14th Aug (or by 14 Nov), instead of 30th September (due to article no. 243-ZN, now declared as null & void)

c) Reservations for SC / ST / other categories, is gone (article no. 243-ZJ)

d) Concept of Active / Passive members, is gone (due to article now. 243-ZO)

e) An election that was mandatory to be held by State Co-operative Election Authority, is null & Void (due to article no. 243-ZK)

f) Auditors special & specific powers, is gone (article no. 243-ZM)

g) Co-operative education & training for members, is gone (article no. 243-ZN)

h) Concept of Expert and Functional Directors, is gone (article no. 243-ZJ)

i) Much hyped new Bye-Laws, as formulated by the Coop. Registrars, need not be adopted since such new bye-laws were based on MCS (Amendment) Ordinance, 2013, which in turn was based on definition-articles namely 243-ZH to 243-ZT (Constitution [97th amendment] Act, 2011), which is now declared as "Ultra Vires". Therefore any adopted bye-law based on the said Constitution [97th amendment] Act, 2011, is also "Null & Void".

IF you pay various taxes, THEN INTROSPECT on this:

a) WHEN the Maharashtra Govt., takes more than one year to make simple amendments in the MCS Act as per the Constitutional (97th Amendment) Act 2011, THEN how the Govt. expects the scores of Society Mg. Committee's to function with vigour and as per the MCS Act, leave aside the reluctances in the signing of the erstwhile M-20 Bonds .OR. holding AGM on time .OR.conducting Accounts & Audit on time .OR. resisting from Misappropriation of members funds, besides scores of burning issues like Dictatorial Functioning,Harassments of ordinary members and so on...., which is evident from the consistent scores of litigations before the Registrar's office and in the Coop.Courts.

b) Apathy, Ignorance, Arrogance, Ego is the bane of Cooperative Society’s.

Saturday, 20 April 2013

SERVANT PASS APPLICATION.



 Date:-                                                                                                                            photo of                                                                                                                                       
To,                                                                                                                                  servant
The Secretary
                                                                                                                                        
                                             Application to issue/renewal of servant pass
Sir,
I/We _________________________________ Owner/tenant Of Flat No. ________ Building _________ wish to employ Mr./Mrs./Ms _______________________________ as Full/Part time house Maids/driver/car cleaner with effect from______________ is  working on my/our flat from ________.
Particulars are as follows:
        (a)     Name:_________________________________ (b) Age ______ (c) Sex- M/F    
        (d) Married   Yes/No
(e) Religion_______________ (f) Height____________ (g) Built ____________
(h) Contact No. ______

Native Place Address (Mandatory):
....................................................................................................................................................................................................................................................................................................................
Local Address/ Known Relatives: ……………………………………………………………………………………………………………..…

I/We request to you to please issue/renew the Security/Entry pass for the period of __________ months.

I/We undertake to do the police Verification of my/our house maids/driver/car cleaner with the local police station and submit the photo copy of the police verification to the Society Office. I/We Undertake the responsibility of registration of my/our Servant/s with Department of Labor Government of Maharashtra as safe camphor is my/our OR ours Servant/s.

I/We hereby indemnify and keep indemnified the said society and its office-bearers against any claim demand, suit or other legal proceeding between us and said servant/s and also indemnify and keep Indemnified the said society and its officer-bearers against any damage/ losses done by my/our servant/s to any member or to Society in any manner. I/We undertake to bear all expenses, cost, and charges in respect of damage/losses, claim, demand, suit and/or legal proceedings which may be filed by society member / my servant/s or Society.   

I/We also know that as per the Juvenile Workers Act, 1986, it is prohibited to employ child labor in household work and other works and as per the provisions of the said Act.


Signed by
(Owner/Tenant)
Mr./Mrs. _______________
Flat No.

Note: Issuing pass for the tenant’s servants will be done by submitting the valid tenancy Records only.
Pass Will be issued on producing the following documents
1.       Application from owner/tenant
2.       Police versification obtained from the resident
                        3.     Address & ID proof of servant

Friday, 12 April 2013

Fire Audit of Housing Society

As per Maharashtra Fire Prevention and Life Safety Mcasures  Act 2006  every society who has more than G+4 floor and install the fire fighting equipment in the society  has to conduct Fire Audit in every Six months as per Sec 3 [1]. It is the responsibility  of Managing Committee to conduct the fire Audit of society  from Licensed Agency approve under Sec 12 of this Act.

As per Maharashtra Fire Prevention and Life Safety Mcasures  Rule 2009 4 [02] the society has to  submit the Certificate to the concern Municipal Cooperation / Municipal council / Concern Authority.  The format of the certificate is as follows


Tuesday, 9 April 2013

Common Seal of Housing Society.


Incidentally, most of the societies with whom i have interacted are not aware of this "Common Seal " and use their round rubber stamp as a "Common Seal" on the Share Certificate , Conveyance Deed  & other important document. So I think to give you an idea about this with "Common Seal" image and its use. 

As per Old Model Bye-Laws [2009] Bye-Laws No. 73,74  &  New Model Bye-Laws [2013] Bye-laws No 73,74  "Common Seal" use and their custodian is Secretary of the society. 

The Image of Common Seal stamp and its print/effect on Share Certificate or on another paper. 




  • The "Common Seal" is the one made of brass metal disk, which leaves a raised depression imprint of the society name & registration number. There is no ink involved in it. 
  • It is hardly used, except for imprinting on the original or duplicate Share Certificate , Sinking Fund Certificate and Conveyance Deed. 
  • Without "Common Seal", the Share Certificate , Sinking Fund Certificate has no Legal standing.
  • The preparing cost of "Common Seal" is approx. Rs. 500/- and is classified as an Asset of the Housing Society.
  • Authority letter on the Society letter head with round stamp is required to prepared "Common Seal". Else one can be held for forgery and fraud.
  • The "Common Seal" imprint specimen is to be registered with the area Deputy Registrar's Office. Registering the "Common Seal" of the Society means, typing a covering letter to the registrar informing him about the "Common Seal" as per the specimen of the seal imprint on the society letter head itself, and taking his/her acknowledgement for the society's record purpose. 
  • This has to do before the Share Certificate are issued.
  •  There is no specific form or fees to be paid for this.
  • It is a criminal offense to use the "Common Seal " of a society by unauthorized persons, i.e. Other then Secretary of Society. 
  • "Common Seal" is to be surrendered to the Deputy Registrar's Office when the CHS is dissolved or de-registered for any reason. The Deputy Registrar may also seize the "Common Seal" of the Society signifying that the society is now under the control of the Government. 
  • If the "Common Seal"is lost or damaged, appropriate police complaint has to be registered. A secretary has to file an Indemnity Bond on Rs. 200/- stamp paper with the society pass appropriate MC resolution ratify the same in GB Meeting with proper notice & agenda and publish a newspaper notice in 2 newspapers. And prepare the new "Common Seal" and follow the above step to register the "Common Seal" in Dupety Registrar's Office.