Transparency and accountability are core principles in the functioning of cooperative housing societies. Members have a legal right to access certain documents, including audited balance sheets, and the managing committee is duty-bound to comply with such requests. When a member formally requests access to these records and the society fails to provide them, it is not merely a lapse in good governance—it is a legal offence.
Legal Right to Access Audited Financial Statements
Under Section 154B-8(2) of the Maharashtra Co-operative Societies (MCS) Act, every member of a cooperative housing society has the right to inspect and obtain copies of specific records, including:
- Audited balance sheets,
- Income and expenditure statements,
- Audit reports,
- Any other record or document relating to the affairs of the society.
A member can submit a written request along with the prescribed fees, if any, for obtaining these documents.
What Happens if the Committee Does Not Comply?
If the managing committee fails to provide the requested documents within 45 days of receiving the request, they can be held legally liable.
The following legal provisions apply:
Section 146 and 147 of the MCS Act:
These sections provide for penalties against society office-bearers or managing committee members for failure to comply with the provisions of the Act or for disobeying lawful requests from members.
Section 154B-8(2):
Specifically outlines a member’s right to access society records and the committee’s obligation to provide them.
Penalties for Non-compliance
If the committee fails to comply:
- A fine of ₹100 per day is levied after the 45-day period.
- The maximum fine can extend up to ₹5,000.
- The officers or past officers of the society—including the secretary and chairman—can be held personally liable for the non-compliance.
Steps a Member Can Take
- Submit a written request to the society’s secretary and chairman, specifying the documents needed.
- Offer to pay prescribed copying charges, if any.
- If no response is received within 45 days, file a formal complaint with the Registrar of Cooperative Societies.
- Attach a copy of the written request and proof of submission to strengthen your complaint.
Why Transparency Matters
Regular access to financial records allows members to:
- Verify how maintenance funds and sinking funds are being used.
- Ensure the society is filing returns and complying with audit requirements.
- Detect and raise early warnings about financial mismanagement or misuse of funds.
A transparent managing committee builds trust and participation among members.
Conclusion
Yes, it is an offence under the MCS Act if the managing committee fails to provide audited balance sheets and related financial documents upon written request. Such non-compliance is punishable with daily fines and can lead to disciplinary action by the Registrar. Members are encouraged to know their rights and take proper legal steps to enforce transparency and accountability in society affairs.
