effect of not signing Indemnity bond by managing cmtee
AJIT KAWATKAR
(Querist) 20 October 2010
This query is : Resolved
this is concern with co-op hsg scty. in mumbai.
signining of INDEMNITY BOND by cmtee. is mandatory since 2000 but the cmtee in office since 1998 & continued till 2008 has not signed the BOND,The Auditor in his reported MANY ADEVERSE REMARKS such as *NOT CUTTING TDS on various contracts ; *Charging COMPOUND INT. to some & SIMPLE to OYHERS; *UNDERTAKING STUCTURAL REPAIRS WITHOUT APPOINTING ARCHI/STRU ENG. & spending 6-1 Lacs; *Investment of SINKING FUND for SHORT TERM. *Q'ble vouchers etc.
ON the basis of this AGM DIS-APPROVED the A/C 2006-07-08 & requested to get it RE-AUDITED.The new cmtee is in touch with the REGISTRAR for this with poor response.
my Q.is since the previous cmtee. has NOT SIGNED INDEMNITY BOND is it not correct that ALL DEEDS of the CMTEE;especially financial;. becomes INVALID/ILLIGAL?If yes ;is it possible to recover the AMOUNT SPENT by them by legal means/order of registrar?
ur guidance is highly appreciated!
s.subramanian
(Expert) 20 October 2010
The action against the committee should be based on valid and concrete evidence of financial irregularities. Merely non signing of the indemnity bond alone cannot be a ground for proceeding against them or making their actions illegal and invalid.If you have any material evidence to prove financial irregularities lodge a criminal complaint against them under Sec.406 and 409 of IPC.
