97th amendment act triggers red alert for Maharashtra housing societies

The recent modification in the MCS (Maharashtra Co-operative Societies) Act 1960 includes some serious implications for the housing colonies in the state. According to the recent summon of the 97th Constitutional amendment, the States are required to correct the laws as an attempt to make the co-operative housing societies completely autonomous and self-governing.

The recent changes in the MCS Act intervene with the fundamental rights of the residents of co-operative housing societies and hampers their autonomy. Change in the new amendment can only take place if the managing committees and residents of housing societies take their plea to the state legislature before the ordinance is authorized in the budget session.

Another major issue related to the new amendment is that there are no specific reservation for ST/SC, NT and other backward classes. Residents of reserved categories cannot fill the vacancy if they are not the members of the society.

97th MCS Amendment

The MCS Act of 1960 has been modified from 16th Feb 2013 and is levied on more than 2.46 lakh co-operative housing bodies in the state of Maharashtra. The proposed amendments include:

• Each member of co-operative housing societies must be present in at least one General Body Meeting in five years and must use the services as mentioned by the By-laws of the society. Failing to do such will make the particular member as non-active and he/she will not be allowed to vote.
• The selected Management Committee members will hold the position for a period of five years only
• More than 21 members should not comprise the Management committee, out of which 2 seats will be reserved for the women class, 1 will be reserved for tribes and Vimukta Jati, 1 for SC and 1 for all Backward classes.
• The State Co-operative Election Authority will not be commissioned by the State Government for controlling the readiness of the electoral rolls.
• After the end of the financial year, within six months, the General Body Meeting must be held

Impact of the amendment
The proposed changes in the amendment has called for a meeting with the representative of the housing societies. The amendment is aimed to empower only the active members of the housing societies, and non-active members will not be allowed to take part in the decision making.

Few additional impacts of the amendment includes:

• The new modification in the MCS act will also empower the co-operative societies to discharge a dormant member
• Active members can only be appointed as authorized administrators for co-operative housing societies
• Daily training and education for the particular leaders of the housing societies via Apex co-operatives
• It is a mandate for the Managing Committee to take part in regular training at least once in every consecutive five years.
• Internal problems should be resolved only via Grievance Redressal Committee
• Professional aid from CHS management should be taken for record keeping
• Audit process should be strengthened
• Disqualified MC members will be prohibited to take part in contest for 5 years

People living in co-operative housing societies directly become its members.Without being a member of the society, one cannot buy a flat in that particular housing complex. The flat owners/members of the co-operative housing society, elect a managing committee to administer the garden area, building, water supply, compound etc.

The recent changes in the MCS Act 1960, is mainly designed to check the rising corruption, state interference and politics in the Co-operative societies. Co-operative housing societies and business enterprises are two different things. The benchmark set by the government to administer a cooperative enterprise and co-operative housing society should not be same.