Missapropriation of funds my members of the managing committ

yes, dear it is very much possible according to the law 

you can see the law and also check d form "o".

What Advocate Darshan Singh says is only half the story. After submission of  Form:”O”, Rule 73 says that the Registrar should satisfy himself (that the explanation given is genuine and the documents submitted are bona fide). It goes without saying that the Registrar should issue an order to that effect. Has the Registrar issued any such order on the submission of Form: O?  If any member is not satisfied with the Registrar’s order, he can appeal against it. He has also the right to get copies of all the relevant documents, including Form: “O” and the order of the Registrar

(The words in parenthesis are mine)

Thax for the reply ,

As per section 82 of the M.C.S. Act it clearly states that rectification can be done within 3 months from the audit against thmentioned by the remarks mentioned by the Auditor but in this case the Govt. Auditor in his RE-AUDIT report has mentioned discrepencies of misappropriation of funds by the members of the managing Committee of Rs.1,30,760/- for the audit period of 2008/2009.

So can rectification done after the mistrakes found in RE-AUDIT after 3 years.

And as per reply given by Dr. MPS Ramani the Rgistrar has not till date given any order in satisfaction of Form "O" submitted by the members of the managing Committee.

Pls Reply

Thx

Lakdawala

Section 82 applies both to the audit and re-audit, if any. I have reproduced Rule 73 below. It clearly says "the rectifications and remedies to the satisfaction of the Registrar".

 73. Form of Rectification Report: On receipt of an order, directing a society or its officers to rectify the defects and remedy the irregularities, issued by the Registrar under Section 82 and on receipt of an order under Section 87, the society shall, subject to the provisions of subsection (2) and (3) of Section 87, submit to the Registrar a rectification report in Form ‘O’. The society shall continue to submit such rectification reports to the Registrar till all the defects are rectified or the irregularities are remedied to the satisfaction of the Registrar.

 Actually whatever information given in Form ‘O’ and the accompanying documents should have been given/produced to the original auditor or at least to the re-auditor.  The Registrar should expressly state whether he is satisfied or not with good reasoning. Otherwise what meaning the process and procedures of audit, re-audit and submission of Form “O” has? This is just a matter of common-sense. The member can ascertain, with evidence, from the Society what the Registrar did after receipt of Form “O”. If the Society does not give, he can apply to the Registrar himself. If the Registrar also keeps quiet, the member can apply under RTI. The public information officer for RTI is the Deputy Registrar of the concerned Ward

Thx Dr. MPS Ramani. All clear.

God Bless

Previously accounts used to be maintained manually and one of the statutory requirements was to maintain a daily cash register. The receipts and payments by cash or cheque should be recorded in the register on a daily basis. Now with computerization many Societies have dispensed with the cash register. But still they have to maintain a petty cash register. Receipt of cash in the petty cash register will be withdrawal from the Bank and entry in the cash register should tally with the withdrawal recorded in the bank pass-book. Expenses will be small cash payments for various things such as sweeper’s salary, postage, bus or taxi fare, small purchase of stationery etc. All receipts (by cash or cheque) should be credited to bank account only. They cannot be directly used to meet expenditures. All large payments should be by cheque only and hence there will be debit entry in bank pass-book with date. There are prescribed limits for payment by cash and cash that can be maintained in the Society’s imprest. When accounts are computerized the bank pass-book will replace the daily case register in manual accounting. If the Society has produced receipts for Rs.1, 30,760/-. All receipted payments should be reflected in the petty cash register, if they are small amounts and in the bank pass-book if they are large amounts. In the Petty Cash Register particulars of the payee and the purpose should have been stated.  In the case bank entries, if the payee’s name is not given in the pass-bank itself, one can get it and even a Xerox copy of the cancelled checks from the Bank on payment of prescribed service charges, if any. The auditor should tally all entries in the petty cash register and bank pass-book with postings in other account books such as ledgers either directly or through journal and the receipts should tally with account books in all particulars.. What were the comments of the auditor on the missing Rs.1.30,760/-? Did he say that only receipts were missing and proper entries were there in the account books or did he say everything was missing? Any educated person can check the accounts following what I have written above. One need not have to be a Chartered Account. This is plain common sense.

Dear Dr.MPS Ramani.

The Govt. Auditor in his RE-AUDIT report has made a remark to the Dy.Registrar that the deficiency of the amount Rs.1,30,760/- should be recovered from the members of the managing Committee as "Recovery Certificate" hence it is very clear that everything was missing only expences entries were done without any evidence.

Thx

What is the Dy. Registrar doing? Is he sitting pretty on Form “O” submitted by the Managing Committee? Or has he certified that everything is OK with the management of the Society? How old is your Society? As per Model Byelaws only up to Rs.1000/- can be paid in cash. If the limit is same in your Society, there should be at least 132 cash payments and receipts. As it is not likely, the Managing Committee will have to show evidence of bank transaction around the dates of the receipts. So, if they have done anything wrong, it is not difficult to catch them.  The Dy. Registrar also can be asked the same question. Receipts can be misplaced, but there can be no excuse for the absence of bank entries. It is also necessary to examine who were the payees and what for were the payments. Apart from recovery there can also be criminal action.

The Dy.Registrar has till date ont yet replied to the members of the managing Committee about Form "O:. Our society is 3 years old and 21 members so minimum cash can be paid as per bye-law is Rs.3000 and there are no bank entries that definately means that the expences are manipulated and I have already initiated criminal proceedings against U/s 403 , 406 , 408 and 420 of I.P.C. and an F.I.R. has already been registered.

Thx

Lakdawala 

Implicate the Dy. Registrar also.