Society office-bearers disqualified for violating norms and overcharging transfer fees

In a recent development, the office-bearers of Shantiniketan Air India co-operative housing society have been disqualified and barred from contesting elections for the next five years. They were disqualified because they had reportedly failed to reimburse the money they had collected in excess of Rs 25,000 in transfer fees, which is against the rules. The office-bearers may be charged with extortion under the Indian Penal Code because this is a crime.

The society, which has bungalows and towers, is occupied by celebrities and corporate honchos. The society office-bearers were instructed by the deputy registrar of cooperative societies to refund the excess money they had taken in when transferring a flat, but they failed to do so. According to the government's directive under Section 79A of the Maharashtra Cooperative Societies Act of 1960, the society is not permitted to collect transfer costs that are higher than Rs 25,000.

Societies recoup the extra money under the guise of donations, society major repairs, welfare, etc., which is a bad practice because it generates income and lowers maintenance costs. Two society members complained to the deputy registrar of cooperative societies on May 16, 2022, claiming that the office holders had on several occasions sought additional sums as infrastructure costs in order to transfer the shares.

Nitin Dahibhate, deputy registrar for K West division, recently issued an order stating that the office-holders were carrying out their responsibilities in violation of the society's approved bylaws as well as the MCS Act and Rules. The deputy registrar issued a show-cause notice to the office-bearers and fixed hearings, but they remained absent. The deputy registrar decreed that the office-bearers are prohibited from being re-elected as members of any committee for one term of the committee since they disobeyed the earlier instructions.

The disqualification was imposed as a punishment for the office-bearers' failure to comply with the earlier directions of the registrar, and for imposing illegal fees. The disqualification will prevent them from holding any office in the society for five years. The office-bearers did not comment on the matter.