Mrs . Shanta Rani (Housewife) 28 August 2023

Can funds collected for conveyance be used for another purpose?

Can funds collected for conveyance of a CHSL land, by the society, be used for another purpose?

If yes, please quote the Bye-law number ( Mumbai jurisdiction)

And if No, at what rate of interest do they have to return the unutilised collected amount to the members?

Quick Summary

This discussion explores whether funds collected by a Cooperative Housing Society (CHSL) in Mumbai for land conveyance can be used for other purposes. It questions the legality of diverting these funds and asks for relevant bye-law numbers. If funds are misused, the thread also inquires about the interest rate at which the unutilised amount must be returned to members, as societies are not meant to profit.

2 Replies

Sidhhi 28 August 2023

For diverting funds for purpose other than what was decided amounts to fraud by MC and must be objected by the members beside lodging complaints with dy registrar and police.

Mrs . Shanta Rani (Housewife) 06 September 2023

Thank you Sir for your reply.

In case, the MC decides to return the amount at what rate of interest are they expected to return the initial amount paid by the members as CHSL are not expected to make profit.