Mumbai: Relief for small housing societies

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More than 50,000 housing societies in Mumbai, and the rest of Maharashtra, with fewer than 50 members, will now be allowed to have their managing committee elected, without needing to fill the mandated reserved category posts. The State Housing Department revised its earlier circular dated January 3, 2024, wherein they had initially brought down the minimum number of committee members from 11 to 5, and had only kept one seat for candidates from the open category and the remaining four seats were reserved (SC/ST, OBC, VJNT and woman candidate).

After the mid-day's report and housing activists including the state housing federation, expressing their anguish, the housing department was forced to issue a new circular on February 28, wherein they removed all reserved seats, other than two seats reserved for women (irrespective of caste/creed/religion) and five members from the general category for all societies, across MMR and the state.

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Advocate Shreeprasad Parab

"Small societies, which were struggling to have their managing committee appointed due to the non-availability of reserved category members, were handled by the administrator, and flat owners were at their mercy. This will bring an end to such a practice," said a housing federation official.

Much-needed relief

Thanking mid-day for raising the concern of the common man, State Housing Federation, Expert Director, Advocate Shreeprasad Parab said, "The latest circular brings in the much-needed relief to societies with less than 50 members. At present Maharashtra has 1.25 lakh registered housing societies of which Mumbai and MMR has around 65 per cent to 70 per cent of the societies registered (fewer than 250 and more than 250 members)."

No reserved category for less than 50 members housing society According to the February 28 government resolution, housing societies with fewer than 50 members no longer need reserved category seats. Now, there are 7 seats needed: 2 reserved for women and 5 for the general category. If no women contest, only 5 seats will be filled. A minimum of 3 members is required for meetings.

Administrator

Older societies often struggle to form a full managing committee, leading to the appointment of an external administrator. Without this new circular, administrators could misuse their power, making decisions without transparency and fairness, and residents would have no say in important matters like repairs or redevelopment.

Can elect its own MC

"The latest circular is not less than a revolutionary directive for cooperative housing societies with less than 50 members, as most of these societies will be able to decide for themselves," advocate Parab said.

Welcome move

CA Ramesh Prabhu from MahaSEWA welcomed the change, saying, "This is a welcome move, as per the MCS Act 1960, even with five members instead of mandatory 11 members, a cooperative housing society can be registered.

In a cooperative housing society, it is difficult to get candidates under the reserved category, even if such candidates are available, they may or may not contest the election, and thereby the post would remain vacant and there was no provision under the law to fill such reserved vacancy, with other general category members. As per the act, minimum 2/3rd members need to be elected to constitute the committee and as these post remains vacant, in a smaller society with less than 50 members, the Cooperative Societies Registrar is compelled to appoint an Administrator, who would man the society for rest of the period, thereby derailing the very foundation of cooperative moment, as the existing members had no say in the decisions of the administrator and most of the time such decision were arbitrary."

Widen circular

Prabhu noted, "The new circular allows for a committee with just three members. It should apply to larger socities too, up to 250 members. Reserved category members could still join as additional members if they wish to contest elections."

The state federation raised two issues

. Constitution of Committee: According to Section 154B-19(2) of the MCS Act, 1960, the committee is formed when more than two-thirds of its members have been elected. If two-thirds is a fraction, it's rounded up.

. Reserved Seats: Section 154B-22 of the MCS Act 1960 states that until reserved category members are elected, those seats won't count for the committee's strength or the quorum for meetings.

. Advocate Parab concluded that if reserved seats are unavailable or not filled, the committee will be formed with more than two-thirds of the general category seats, as per Bye-Law No. 114.