Cooperative Societies Act: Check voting rights of non-members, say experts

There are instances where the associate member does not co-operate with the principal member, experts warn. File pic/Shadab Khan

Rights of associate members in a cooperative housing society have always been an issue of concern. A recent amendment in the Cooperative Societies Act has become a matter of debate among housing activists and legal brains, due to objections to the voting rights given in it to associate members who otherwise have no right over property. As instances of senior citizens' property rights being misused by associate members have come to light in recent years, they are calling for state government intervention to look into grey areas.

Advocate Shreeprasad Parab, expert director, State Housing Federation said, "The concept of associate member in housing societies was introduced for administration of flats belonging to members who are not able to participate in the affairs of the society due to their illness, old age, stay abroad, etc. Appointing an associate member to participate in the General Body Meeting would safeguard the member from being classified as Non-Active Member. After March 2019, a new chapter (new Section 154B) was inserted in the Maharashtra Co-operative Societies Act, 1960, which has taken away the concept of active and non-active members for housing societies."

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"The new chapter has also introduced a new definition of associate member which reads as - husband, wife, father, mother, brother, sister, son, daughter, son-in-law, daughter-in-law, nephew, niece - a person duly admitted to membership of a housing society on written recommendation of a member to exercise his rights and duties with his written prior consent and on payment of a nominal fees of Rs 100, and whose name does not stand in the share certificate," he said.

Concern area

Parab added, "The rights of many senior citizen members of housing societies are vulnerable, if financial frauds are committed by associate members. The registrar fixes liability after the inquiry of financial fraud and attaches the property of the members for recovery of such amounts from the society. So housing federations propose that the state should be concerned about provisions that can be incorporated in the Act, Rules and Bye laws for protection of the rights of the housing society and the original members. Hence the government should consider all pros and cons to protect the interest of original flat owners, and safeguard their rights."

According to Ramesh Prabhu, founder chairman of MahaSEWA, "Many times the member gives consent for an associate member to contest and on becoming a committee member, the member is not allowed to attend the meeting or vote. The present consent for associate member is creating more damage than serving the purpose for which it is introduced. It was introduced to assist the functioning of the society where only members are allowed to participate and where senior citizens are not able to attend the meeting. The misuse of provisions of associate member now needs to be re-examined and appropriate provisions need to be included to safeguard the interest of senior citizens."

Expert's view

Advocate Vinod Sampat, founder and president of Flat Users Residents Welfare Association, said, "Many times informal power is commanded by associate members. Once the name is on the share certificate, even if one wants to sell the flat, the banker and/or prospective purchaser insists on the consent of the associate member. Moreover, if the associate member son stays with his father and if the said flat has to be sold, on account of his name being on the share certificate, the son may have leverage. There are instances where the associate member does not co-operate with the principal member," Sampat said.

"Considering these facts, I would like to advise the persons making an heir as an associate member, to take a letter from him/her stating that he/she will not have right to the property as an associate member. The best thing for the member to do is to execute a will as well as have a family arrangement so that there is a lasting solution among family members on the demise of the member," Sampat concluded.