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Prakash Ananthaiya   17 October 2021

Apartment association is not ready to share the detailed expense

I am one of the owner in the apartment, in today meeting I have requested to share the daily expense details, one of the committe member said the daily expense book is opne for all, anytime I can see the book, then immediately the presisdent deny his statement and told me that he is not ready to share the detailed expense. How can we approach this issue ? Please suggest.

Read more at: https://www.lawyersclubindia.com/experts/Flat-association-dispute--467771.asp#


 10 Replies

G.L.N. Prasad (Retired employee.)     18 October 2021

As a member, you have every right to inspect all books, issue simple notice to President demanding for production of such expenditure records for inspection at...............on and state clearly that you will be constrained to approach forum for remedy if the legitimate right of a member is denied arbitrarily by a president.

Make a copy to Sub-registrar and request him to direct President suitably.

M V Gupta (Advocate)     18 October 2021

Apply to the Secretary of the Association for inspection of the books of account for the specified period and on such inspection, you need extracts of the account, apply for issue of certified copies of the relevant portion of the accounts and pay costs of such copies at the rates prescribed in the bye-laws. If the Secretary refuses to allow inspection of the records or provide certified copies, you may file a complaint with the Dy Registrar of Coop societies.

Prakash Ananthaiya   18 October 2021

Thanks for reply,

I have requested by email as well as in the meeting, there was no reply to my email about 2 weeks, so I have attended the meeting and requested, the president and secretary both denied to produce the expediture book. 


President says, only the audited report which has high level head one level of breakup will be shared, but at this high level I wont be able to inspect the detailed transaction, it is available only at the detailed expenditure book.

Please help me how to book the complaint with Dy Registrar of Coop societies.

P. Venu (Advocate)     18 October 2021

Has this issue been noted in the minutes? Please verify.

Prakash Ananthaiya   18 October 2021

No sir, they have not created minutes for this meeting. They stoped minutes of meeting long back. I have asked orally many times for minutes but they simply laugh and no answer. I felt very difficult for each communication. Other owners also have same concern with the existing MC 

Dr J C Vashista (Lawyer)     19 October 2021

The management is bound to share accounts.

Prakash Ananthaiya   19 October 2021

Yes Sir, they are nto giving sir, When I just started seeing the book, the apartment manager have snatched the book form me without any respect. I felt very bad and thought let me approach legal way. As suggested by M V Gupta Adovocate sir, I have sent complaint to Deputy director of housing, they have infomred me will take action. Please let me know sir if there is any other chnnel also, I will try all the channels.

P. Venu (Advocate)     19 October 2021

The members need to take the initiative to streamline the functioning of the Managing Committee either by convening a special General Body or through legal action.

Dr J C Vashista (Lawyer)     20 October 2021

Ask some more members to join your group and proceed as per law through a local lawyer.

You did not disclosed whether the apartments are a cooperative society or builders floors or some MC/ association (RWA) is functioning for its upkeep and maintenance who are reluctant to put up accounts of public money. 

MPS RAMANI (Scientist/Engineer)     20 October 2021

The manner in which the accounts and other matters are disclosed to members and what the member can do if it is not done would very much depend on whether the Association is registered and under which law of the State the Association is registered. The laws regarding registration of Residents' Association differ from State to State. You have to give here the following informaion.

1. In which State are you?    2. Is your association registered?  3. If it is registered under which Act of the State  is it registered? There are Acts like Co-operative Societies Act, Flat ownership Act etc.  There is also the Societies Registration Act. But it is a very weak Act.

There are various ways of maintenance of accounts of expenses. The first one is the cash book in which daily income and expenditures are recorded. With computerisation and remote operation and inspection of accounts through internet, this practice is done away with by most Societies. There will be a petty cash register for small cash expenses and income

Then there are many account ledgers. Most of them will be in computer.

Members have a right to inspect all or any of these accounts. Also annual accounts and balance sheets have got to be audited and audited accounts sent to members. But what action a member can take,  if the association office bearers refuse to disclose the accounts, will depend on the State and the law of the State under which the Association is registered


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