NEWS

Laws Pertaining to AGM of Housing Societies in Maharashtra

Oct 07, 2022

The bye-laws in Maharashtra prescribe rules for the deadline for holding AGMs, the quorum for such meetings and the business that can be transacted, as well as penalties for members who fail to attend

Every housing society has to adopt bye-laws, for its management and administration. The government of Maharashtra has provided model bye-laws, which can be adopted with or without changes by societies. These bye-laws also cover the rules pertaining to annual general body meetings of the societies.

AGM dates extended till December 2022

All the co-operative society’s audit dates are extended till October 31, 2022 and the AGM dates are extended till December 31, 2022 as per state government order dated September 29,2022. This move will give relief to more than 65,000 housing societies in the Mumbai Metropolitan Region (MMR).

AGM can be held till March 2022

Housing societies in Maharashtra can now hold their AGM till March 2022. Also, there is an extension in the deadline for the managing committee to transact budget and appoint an auditor for the next fiscal year, while taking a decision on the budgeted balance left in the audited accounts.

The state cooperatives commissioner had recommended this extension because only 20% of the societies had their audits and budgets ready, owing to the restrictions placed till August 31,2021, because of the COVID-19 pandemic. Additionally, housing societies can hold elections within six months from September 2021 – i.e., till March 15, 2022.

Time limit for holding the AGM and minimum notice period

As per the model bye-laws for cooperative housing societies in Maharashtra, every housing society has to hold an annual general meeting (AGM) of the society, every year, before 30th September. It is the responsibility of the committee of the housing society, to ensure that the AGM is held within the prescribed period. The notice for convening the AGM, has to be signed by the secretary of the society. The AGM of the society cannot be convened unless a notice of 14 days is given to the members. While computing the 14 days, the date on which the notice is issued and the date of the meeting shall be excluded. Once an AGM is called, it cannot be treated as invalid, unless an order declaring the meeting as such is passed by the cooperative court.

Interest from co-operative bank exempt for housing societies in Mumbai: ITAT

Interest from investments made in co-operative banks would be exempt in the hand of co-operative housing societies in Mumbai, the Income-tax Tribunal (ITAT), Mumbai Bench has ruled. As it is, Section 80P (2)(d) of the income tax act says that in case of any income of a co-operative housing society made by way of interest or dividend with any other co-operative housing society, the entire income is allowed as deduction. However, in the past few years, the income tac department has been adopting a contrary stance.

COVID-19 impact: AGM to go online

As an exception and in a much-needed relief to over 2 lakh cooperative bodies, including housing societies, in Maharashtra, the state cabinet chaired by chief minister Uddhav Thackeray had given its approval to extend the time for holding the AGM up to March 31, 2021. This came in the wake of the Coronavirus pandemic, which made it impossible to conduct the AGM by September 30, 2020. Now, the Maharashtra government in a revised notification, issued on March 23, 2021, has allowed all cooperative housing societies to conduct online AGMs till December 31, 2021. This is the second extension given by the state. The audit report can be finalised by the end of December, until further notice.

Source: housing.com