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Society collects huge amounts for luxury works

By: Vinod Sampat  

All your issues regarding housing societies -- your neighbour creating unnecessary trouble in society decisions, or your problems with the secretary -- answered by our expert

Can a society charge huge amounts in name of major repair, but spend on non-repair and maintenance type luxury works and put undue burden on some members without getting AGM's approval? -- Kumar
Society can collect amounts on the basis of resolutions passed at the general body meetings of the society.
A member has a right to ask questions to the office bearers. If majority at the general body meeting takes a decision, the same is binding on the members.

If you feel that the expenses are of luxurious nature you have every right to call for a special general body meeting after getting support of one fifth of the total number of members of the society and pass resolutions giving directions to the managing committee to act in a particular manner.

You also have a right to approach the co-operative court and seek a stay on the activities of the managing committee pertaining to the expenses being incurred by them.

If the court finds substance in the submissions made by you they may grant an ad interim injunction. Personally I am of the view that if the managing committee members are collecting funds under one head and spending on other items then it is not correct on the part of the managing committee members.

Can a society transfer a flat in HUF's (Hindu Undivided family) name? If not, what can be done if flat is already transferred in HUF's name? -- Hitesh
The person who can be a member of the society should be from the list as mentioned in the bye-laws.

Individual firm, Private Limited or such other category of persons as mentioned in model bye-law no. 17(a) are eligible to be members of a co-operative society. If one pursues the said list HUF is not included.

The reason could be that on the demise of the Karta of the HUF there could be complications as to who will succeed the HUF. Also nomination cannot be filed by the HUF. Here I may add that the Gujarat High Court has in one of their judgment held that HUF is an extension of individual and therefore HUF can be a member of the co-operative society.

(Having regards to the complexities of the facts, parties should recheck the advice with their lawyers. The paper or the persons giving the information are in no way liable for the answers given to the readers.)

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