In Maharashtra, housing societies are governed by the Maharashtra Cooperative Societies Act, 1960 (MCS Act) and the rules framed under it, including the MCS (Election to Committee) Rules, 2014. One of the most crucial aspects of cooperative housing society governance is the valid appointment of the Managing Committee (MC). Many societies unknowingly run afoul of the law by appointing committee members without following the proper committee elections process. This article outlines what societies must do to comply with the law and regularize their Managing Committee if it has not been elected as per the prescribed rules.
Understanding the Legal Requirements for Committee Elections
Under the MCS (Election to Committee) Rules, 2014, every cooperative housing society with more than 100 members must hold elections through a State Cooperative Election Authority (SCEA). For societies with fewer than 100 members, the election must still be held under the supervision of a Returning Officer, who cannot be a member of the society and must be appointed as per the rules.
Key compliance points include:
- Elections must be held before the expiry of the existing committee’s term (five years).
- Proper notice of election, member eligibility verification, nomination, scrutiny, and voting must be followed as per Rule 5 to 10 of the Election Rules.
- Record of the election process must be filed with the Registrar of Cooperative Societies.
Common Mistakes Made by Societies
- Appointing committee members during the AGM without following the election process
- Failing to appoint a qualified Returning Officer
- Not conducting elections after the expiry of the five-year term
- Continuing with an MC without renewing it legally through elections
Consequences of Non-Compliance
An auditor is required to report any irregularity in the constitution of the Managing Committee in their audit report. This report is submitted to the Registrar of Cooperative Societies, who may initiate action under Section 77A of the MCS Act. Under this section, the registrar can:
- Dissolve the existing committee
- Appoint an authorized officer or a 3-member committee from among the society members to manage the affairs
- Permit the existing committee to handle only routine matters until elections are held
Steps to Regularize the Managing Committee
- Hold Pending AGMs and File Returns: Ensure that Annual General Body Meetings are conducted for all pending years and file relevant returns (Form M-20 bond, Form I, Audit Reports, etc.) with the registrar.
- Communicate with the Registrar: Write to the registrar acknowledging the irregularity and offering to dissolve the current committee and conduct fresh elections.
- Call for General Body Meeting: Place the resignation of the current committee before the General Body. As per Bye-law 131(e), resignations are valid only after being accepted in the General Body Meeting.
- Conduct Elections: Appoint a Returning Officer as per Rule 5 of the MCS Election Rules and conduct elections transparently.
- File Post-Election Returns: Once the election is completed, file the list of elected members and other prescribed documents with the Registrar.
Why Compliance Matters
Following the proper election procedure is not just a legal formality—it ensures transparency, fair representation, and accountability in the functioning of the society. A validly elected committee is empowered to take decisions, manage finances, and represent the society in legal matters. An invalid committee can lead to disputes, loss of credibility, and even freezing of bank accounts or legal action.
Conclusion
All cooperative housing societies must be aware of and strictly follow the provisions of the MCS (Election to Committee) Rules. Regularizing the Managing Committee through a proper election process is essential for the legal and smooth functioning of the society. Societies that have missed the legal process should act immediately by informing the registrar, dissolving the irregular committee, and conducting elections as per the prescribed norms.
