Housing Society Its Crime & Punishments

Housing Society Its Crime & Punishments

• Category: Administration
• Date 12-05-2025

Housing Society Its Crime & Punishments

The Maharashtra Co-operative Societies Act, 1960 (MCS Act) and the Maharashtra Co-operative Societies Rules, 1961 govern the functioning of co-operative societies in Maharashtra, including housing societies. These laws also prescribe penalties and offenses relating to mismanagement, fraud, and other crimes.

Below is a detailed overview of the offenses and penalties as per the MCS Act, 1960 and the Rules, 1961, especially relevant to co-operative housing societies:

CHAPTER XIII – OFFENSES AND PENALTIES (MCS Act 1960)

1. Section 146: Offenses

This section lists out acts considered as offenses if committed by any member, officer, or employee of a co-operative society:

Examples of Offenses:

• Falsification of records (registers, returns, accounts, etc.)

• Failure to hand over charge of books, cash, or property after ceasing office

• Willful furnishing of false information

• Destruction, tampering, or alteration of records

• Failure to produce books/documents for inspection or audit

• Willful disobedience to lawful orders or requisitions from Registrar or authorized officers

2. Section 147: Punishment for Offenses

• Imprisonment up to 3 years, or

• Fine up to ₹5,000, or

• Both, depending on the gravity and nature of the offense.

Note: If the offense involves financial fraud or embezzlement, the penalty may include repayment with interest and stricter criminal prosecution under the Indian Penal Code (IPC).

3. Section 147A: Penalty for Non-compliance

• For non-compliance with audit, inspection, or inquiry, a fine of ₹5,000, and in case of continuing default, ₹100 per day.

4. Section 148: Cognizance by Court

No court can take cognizance of an offense unless:

• The complaint is made by the Registrar, or

• The authorized officer, or

• With previous sanction of the Registrar.

5. Section 149: Compounding of Offenses

Certain offenses may be compounded (settled) by paying fines as decided by the Registrar, especially if they are technical or procedural in nature.

COMMON CRIMES IN CO-OPERATIVE HOUSING SOCIETIES

MCS RULES, 1961: Relevant Rules

Rule 60: Annual General Body Meeting (AGM)

Failure to hold AGM within prescribed time is actionable by Registrar. The Registrar can:

• Convene the meeting directly,

• Disqualify office bearers.

Rule 69 To 74 : Audit Procedures

Societies must submit financial records for audit. Non-compliance invites:

• Penalty under Section 147A

• Possible deregistration

REMEDIES FOR MEMBERS

If a member suspects illegal activity, the following steps can be taken:

1. File a complaint with the Registrar (u/s 91 or 148)

2. Seek inspection/audit of records (u/s 81 or 83)

3. Approach the Co-operative Court for dispute resolution

4. File an RTI (if society is under audit or public funding)

5. File an FIR if there is financial fraud (IPC sections apply)

EXAMPLES OF REAL CASES:

1. Office-bearer not handing over documents post-election

   • Penalty under Sec 146(c)

   • Can be forced by Registrar to comply

2. Management Committee refusing to show audit reports

   • Sec 81 and 147A apply

   • Penalized ₹5,000 + ₹100 per day

3. Fake minutes of AGM presented to Registrar

   • Sec 146(a), 146(b) and 147 – considered criminal forgery

COMPLIANCE CHECKLIST FOR SOCIETIES

• AGM conducted on time

• Annual returns submitted

• Proper election of committee under State Election Authority

• Audited financials submitted

• Registers and records maintained as per rules

• No arbitrary rejection of membership applications

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To
The Deputy Registrar,
Office of the Co-operative Societies,
[Address of the Registrar’s Office]
[City], Maharashtra

Subject: Complaint against Office Bearers of [Society Name], Reg. No. [XXXX], under MCS Act, 1960 for [brief reason]

Respected Sir/Madam,

I, [Your Full Name], am a member and resident of [Society Name], situated at [Full Address]. I wish to bring to your attention serious violations and offenses being committed by the Managing Committee of the above-named society.

Details of Complaint:

1. Society Name: [Full name of the Co-operative Housing Society]

2. Registration No.: [Society’s registration number]

3. Complainant’s Flat No. & Membership No.: [Details]

4. Respondents: [President/Secretary/Treasurer or full committee, as applicable]

Nature of Offense:

[Select as applicable or mention multiple points]

• Misappropriation of society funds without member approval.

• Tampering with records and minutes of meetings.

• Refusal to show audited accounts or allow inspection of books (Sec 81, 83).

• Illegal denial of membership rights to flat buyers.

• Failure to call AGM or provide statutory returns (Sec 75, Rule 60).

• Failure to handover charge after completion of tenure (Sec 146(c)).

Relief Sought:

I respectfully request your office to:

• Investigate the above violations under Sections 81, 83, 91, 146, 147 of the MCS Act, 1960.

• Take penal action against the concerned office bearers.

• Direct the society to produce books and records for inspection.

• Appoint an authorized officer to conduct a Special Audit if required.

• Ensure compliance with the provisions of the MCS Act and Rules.

I am enclosing herewith:

1. Copies of correspondence made with the society.

2. Evidence/documents supporting my complaint (if any).

3. Copy of my ID proof and society membership certificate.

I request urgent and strict action in this matter in the interest of justice and transparent functioning of the society.

Thanking you,
Yours faithfully,
[Your Name]
[Flat No.], [Society Name]
[Phone Number]
[Email Address]
[Date]

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Common IPC Sections Applicable in Co-operative Housing Society Frauds

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Last updated: 12/05/2025

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