Inactive member of chs mumbai due to non attendance of agm

Dhiraj Solanki (Querist) 25 July 2023 This query is : Resolved
My father is owing a Flat in Mumbai and has been paying regular dues and maintenance and there is noting outstanding. My father is now a NRI and resides with me in UK for the last 6-7years and is therefore unable to attend AGM. For the last 3 years the society is charging AGM absentism fee of Rs.500/- and even though we had disputed we are paying so that there is no disturbance and conflict.

In the past my father had requested the secretary to conduct AGM online so that he can participate in the meeting, the secretary has refused to conduct online AGM and have given reasons that he cannot do that as he does not have facilities and does not want to conduct online AGM.

Recently, there is an AGM going to take place in which he is going to pass the resolution to render those members as "Inactive" members who have not attended AGM for the last 3 years. If this happens it will have lot detrimental effects on membership of our flat as my father will be rendered as "Inactive".

Please can you therefore advise any solution for this as we have no issues attending AGM online and have clearly communicated to him as since we are abroad it is not possible to attend AGM, however the secretary is not conducting AGM online and now wants to misuse the MSC Act law to render us as inactive and is also charging absentism fee.

Can you therefore advise on this and if there is any legal action we can take or some solution to this and what options are available.

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An NRI father living in the UK is facing the threat of being declared an 'inactive' member of his Mumbai housing society due to non-attendance at the Annual General Meeting (AGM). Despite paying dues and offering to participate online, the society secretary refuses to conduct virtual AGMs. The society plans to pass a resolution to render members inactive after three consecutive AGM absences, which could have detrimental effects on the flat ownership. The individual is seeking advice on how to compel the society to conduct online AGMs or legally challenge the decision to declare his father inactive.

kavksatyanarayana (Expert) 25 July 2023
It will be mentioned usually in most bylaws that "as per bylaws if any member is absent continuously for a consecutive period of 3 years will be liable to be terminated from membership". And online AGM also will not be available.

Dhiraj Solanki (Querist) 25 July 2023
Sir, I already know what you have mentioned above, my question is what to do if someone is unable to attend AGM because he is living abroad, my father is ready to join AGM online, the questions is not about refusing to attend AGM it is only that person cannot physically be present in meetings. Is the society obliged to have a online AGM or not ? so that those members who cannot attend physically can participate online. How can someone travel from abroad every year just to attend a meeting. There are so many AGM of multi national companies held online now-a-days and also there are so many NRI and OCI living abroad having properties in India, if this rules are applied there will not be any foreign investment in India in realty side. I am sure there must be some answer or solution to this. Please can you look in to it and advise some remedy.

kavksatyanarayana (Expert) 25 July 2023
It is only CHS. No such bylaws.

Dhiraj Solanki (Querist) 25 July 2023
Please if you can advise any remedy etc.

kavksatyanarayana (Expert) 25 July 2023
sorry, let us see other experts' views.

Dhiraj Solanki (Querist) 25 July 2023
ok, waiting for responses from other experts

Isaac Gabriel (Expert) 26 July 2023
Attendance rules you have mentioned relates to committed members and for Annual General body, no such rules for the members.Further, the bylaws, could be amended to enable the society to conduct online General boys Meeting.

Dhiraj Solanki (Querist) 26 July 2023
But the secretary is not ready to do online AGM and due to which members staying abroad cannot participate in meetings and due to non attendance he will use the Bye law clause to render Member as inactive. How can a member compel the secretary or legally dispute the secretary's action of rendering member inactive when that member is ready to join online AGM and the secretary not conducting AGM online and making him inactive. The solution required is to either compel secretary to conduct online AGM so that member can attend or legally dispute/challenge secretary's decision to render member inactive due to society's inefficiency or incapability to co-operate and conduct AGM online.

kavksatyanarayana (Expert) 26 July 2023
If bylaws are amended in the AGM with the majority to conduct online AGM. But there is no provision in the bylaws. Why are you very particular about it when you are abroad and your father is with you?

Dhiraj Solanki (Querist) 26 July 2023
I am particular because I don't want my father to loose his active membership and my further concerns is if my father remains inactive for long time, what will the society do to our Flat etc and i don't want any legal dispute in future or any litigation and only if it is a last resort.

kavksatyanarayana (Expert) 26 July 2023
As long as your falt is there in your father's/your name, the membership will not end. But he is not there for more than 3 years, he cannot elect as an EC member.

Dhiraj Solanki (Querist) 26 July 2023
Please can you send me the link where I can download the latest Bye Laws covering any recent amendments of 2023 and which states "if any member is absent continuously for a consecutive period of 3 YEARS will be liable to be terminated from membership"

T. Kalaiselvan, Advocate (Expert) 27 July 2023
You have not stated that if you have written to the society about this and have a copy of the letter sent to the society in this regard?
If there is no facility in the society to conduct virtual meeting through online mode or any other social media mode, then you cannot compel the society because the law is common for all the members.
If the society declares your father as inactive member what is the loss he is going to suffer?
Non-Active Member means a person who is not participating in the activities of the Society and is a Life time Member. A non-active member has the right to vote on the Society's affairs at a general meeting.
This new order has been welcomed by housing activists on the grounds that attending GB meetings is voluntary and should not become a yardstick of members being declared inactive.
The Maharashtra government has dropped the provision of “inactive member” who were barred from casting votes and contesting housing society elections. This was in reference to the amendment carried out in 2018 where the government mandated that any member who has not attended five consecutive general body (GB) meetings be declared “inactive member”.
Recently, the Maharashtra law and Judiciary department has carried out amendment in section 26 of the Maharashtra Cooperative Societies Act, 1960. It said that “in respect of the elections of societies to be conducted on or before 31st March 2022, all the members of the society shall be eligible for voting unless otherwise ineligible for voting”.

This new order has been welcomed by housing activists on the grounds that attending GB meetings is voluntary and should not become a yardstick of members being declared inactive.

“If citizens are allowed to contest as well as cast votes in our parliamentary democracy irrespective of their record of public service or their history of taking part in voting, then why is there discrimination with housing society members,
Societies are taking the same maintenance amount from all members irrespective of their participation in GB meetings. Then all should be allowed to exercise their franchise in the society elections.”

Housing activists said since all members contribute to the maintenance of the building, it was unfair to debar them.
Therefore your father can issue a legal notice to the secretary of the society about this and take necessary action through consumer forum to eradicate this menace because the office bearer who will be coming succeeding the present also will indulge in same type torturous activities against the persons who were not able to attend the meeting.
But please be aware that the society cannot say that you are not the owner of the flat for any reason.

Dhiraj Solanki (Querist) 27 July 2023
Thank you Sir, your response is really appreciated.

P. Venu (Expert) 10 February 2025
The provisions of Model Byelaw reveal that classification as a 'non-active' is just transient and there is no inherent disadvantage in view of the provisions of Bylaw No. 22(f) -
"Active Members
Bye Law No 22(c) A Member shall be termed as an 'Active Member' if he / she fulfill the following conditions: viz.
i. He / She has attended at least One General Body Meeting in previous consecutive period of five years,
ii. He / She has purchased and owns Flat / Unit in the Society, and
iii. He / She has paid the Society Maintenance Service and other charges regularly
Bye Law No 22(d) A Member who is not an 'Active Member' shall be 'Non-Active Member'.
Bye Law No 22(e) Society shall classify the Members as 'Active' or ‘Non-Active' Member at the close of every financial year.
i. Society shall communicate to every Non-Active Member about his classification, within a period of 30 days from 31st March of every year as prescribed under these By-laws as per Appendix No. 30 [FORM J-1]
ii. In case of a dispute about classification of a Member being Active or Non-Active, an appeal shall lie with the Registrar within a period of 60 days from the date of communication of such classification.
Non-Active Members
Bye Law No 22(f) A 'Non Active Member' can be reclassified as 'Active Member' from the date he satisfies the conditions laid down under Byelaw no. 22(c)."

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