Maharashtra's new advisory promotes accountability in housing society administration

In recent years, there have been instances of administrators in housing societies in Mumbai overstepping their authority, causing disputes and financial irregularities. These administrators, appointed by the registrar, have made unilateral decisions without the consent of the general body of residents. To address these issues and bring greater accountability, transparency, and control, a government advisory now recommends the formation of an administrative panel consisting of three members, including two from within the society.
This new advisory comes in response to a growing number of complaints against administrators who have acted independently in making policy decisions and managing finances without consulting the general body of residents. Ramesh Prabhu, the president of the Maharashtra Societies Welfare Association, has stated that the cooperatives department has received numerous complaints regarding the misconduct of administrators.
The recent circular from the state cooperatives department explicitly states that administrators will no longer have the authority to make policy decisions or handle major repairs and redevelopment on behalf of housing societies. Instead, a panel comprising an administrator and two additional society members will be appointed to oversee routine administrative tasks and jointly manage society bank accounts.
Housing experts believe that this circular will bring much-needed control and transparency to around a thousand housing societies in Maharashtra currently managed by administrators due to internal disputes within society committees.
The circular was issued by Cooperatives Commissioner Anil Kawade in response to a letter from the Deputy Lokayukta, urging the government to establish new guidelines to address complaints related to the management of cooperative housing societies under administrators. A three-member study group was formed, and their report led to the issuance of the new circular in November 2019.
In cases of complaints and misconduct by managing committee members, the CHS registrar has the authority to dissolve the incumbent managing committee and appoint an administrator to handle day-to-day management. However, concerns arose when administrators were seen favouring dissolved committees or compromising their independence, leading to the directives contained in this circular.
The circular emphasizes the need for administrators to be appointed from a panel prepared by the divisional joint registrar office, preferably as part of a three-member administrative board. This panel will require annual renewal.
Additionally, the circular encourages cooperative housing societies to change auditors periodically, limiting a certified chartered accountant's annual audit service to three consecutive years. It also advises members with grievances about meeting proceedings to seek resolution through the cooperative's court rather than approaching the registrar.
Furthermore, the circular promotes the computerization of all society information, including tenant details and staff records, and stipulates that meeting minutes should be available within a month or before the next meeting. It mandates the establishment of an advisory committee to address grievances effectively.
In summary, the new government advisory in Maharashtra recommends the establishment of administrative panels for housing societies to improve governance, transparency, and accountability. These panels are expected to prevent unilateral decisions by administrators and provide residents with a say in policy matters, thus fostering a more cooperative and harmonious living environment.

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