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Deepak (Sr. Software Engg.)     28 August 2024

Maintenance fund used for festival celebration.

Dear Respected Members,

Our's is co-operative housing society. Committee members are celebrating festivals by using maintenance fund collected. 

Is it legally allowed to use the maintenance fund collected for festival celebration?

Regards,

Deepak



Learning

 10 Replies

P. Venu (Advocate)     28 August 2024

Who has approved the expenditure - the Managing Committee or the General Body? What is the legal  provision under which the expenditure was approved? Was it prior approval or post-facto?

kavksatyanarayana (subregistrar/supdt.(retired))     28 August 2024

Is the expenditure clause regarding festival functions mentioned in the rules and regulations of your society's bylaws?

T. Kalaiselvan, Advocate (Advocate)     28 August 2024

First of all the celebration of festivals inside the complex itself is not a legally approved activity until and unless it has been permitted by a resolution in the general or extra meeting of the association.

The expenses towards the festival celebrations being taken from the monthly maintenance amount is absolutely unlawful and against the bylaws as well as the prevailing law of the land.

You can make a complaint against  the office bearers for misappropriation and misuse of society funds with the deputy registrar of cooperative societies, it will be viewed very seriously. 

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Deepak (Sr. Software Engg.)     29 August 2024

Dear Respected Members, 

Thank you so much for your valuable advice. 

Regards, Deepak

T. Kalaiselvan, Advocate (Advocate)     29 August 2024

You are welcome for your appreciations.......

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     03 September 2024

According to the byelaws of a Society funds are collected from members for specific items of expenditure. Expenditure specifically for festivals may not mentioned. But many byelaws include re-creational and similar activities without specifying the source of funds. Some societies organise celebrations such as on Indepence Day, Republic Day, New Years Day, Annual get together etc. You may not be interested in it. But if the expenditure involved is not excessive allow them instead of being a recluse and a joy-killer. If one strictly follows the law life will be miserable.

P. Venu (Advocate)     03 September 2024

Any celebration is an ordinary activity which every one or group has a right to celebrate. Any bye-law or condition cannot interfere with such a right unless restricted or regulated by a law having the force of law.

Bye-laws adopted by a Housing Society can are no force of law save to the extent supported by the Law i.e. the provisions of the Cooperative Society Act in force in the State.

All the members can insist is that the expenditure be duly approved by the Managing Committee if so empowered or by the General Body.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     03 September 2024

In many Societies families reside behind closed doors and one will not know even who is one's own neighbour. Most members do not even attend general meetings and the meetings do not get the necessary quorum. If occasional get-togethers are arranged the residents and their families come to know to each other, life becomes joyful and worth living. If there is an emergency in one house, one can call his neighbours for help. In our building there is a Whatsup group of all residents. There are some unsocial joy-killers also.

Deepak (Sr. Software Engg.)     04 September 2024

Dear Respected Members,

Thanks a lot for the reply and your valuable guidance.

Still have basic concern, how monthly maintenance charges fund as collected for maintaining the society will be used for enjoyment, celebration. As per the head 'Maintenance Charges', must be used for maintaining the society. How by-laws/resolution passed will allow maintenance fund to be used for enjoyment, celebration.

Regards,

Deepak 

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     06 September 2024

The Society must be preparing audited annual accounts and sending to each and every member before the AGM. You also must be receiving a copy. Normally 15 days' notice is given for the AGM. It may be different for your society. You have 15 days to examine the accounts. You look for the expenditure on the festivities in the account. You look for any commends by the auditor also. If it is not given or you do not agree with what is given, you write a letter to the Managing Committee asking for it and to present it at the AGM. In our society such questions should come to the MC at least 3 days before the meeting. I do not know about your society. The MC should reply your question under agenda for consideration and passing of the accounts. Then the accounts will be put to vote for passing. If you are not satisfied you vote against. If you alone vote 'No" and all others vote 'Yes' the accounts will be passed and that will be the end. If you want you can complain to the Registrar against the MC and against the Auditor.

You can canvas with other members before the meeting to vote No along with you. Most members do not even care to attend the meeting and the meeting does not get the quorum. If there is no quorum the MC can adjourn the meeting and the adjourned meeting need not have quorum. Good Luck.

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