AR 02 August 2022

Cooperative society not utilizing building repair fund & sinking fund for its intended purpose

I have two questions 1. Cooperative housing society is charging extra from its members for major building repair despite having adequate funds for the exact same purpose in their books. They have invested it in low interest earning bank deposits (FD) and majority of members are in favor of not breaking the FD except me as my reason is why collect the funds in first place if the ultimate intention is not to utilize it for its intended purpose. Isn't it a case of misappropriation of funds? 2. Society has raised monthly charges towards building repair fund significantly which I think is arbitrary and when I asked for Architect's valuation certificate upon which charges are based. Secretary ignored my request stating decision was made unanimously in AGM.

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Quick Summary

This discussion explores concerns about a cooperative housing society charging members for building repairs while holding substantial, unused repair and sinking funds. The member questions the purpose of collecting these funds if they are not used, suggesting potential misappropriation. The advice given is to approach the registrar of co-operative housing societies if the managing committee ignores objections, noting that societies must maintain these funds and can invest them in low-risk options like FDs.

2 Replies

SHIRISH PAWAR, 7738990900 (Advocate) 02 August 2022

Hello,

If the managing committee is ignoring the objections raised by you then you can approach the registrar of co. op. hsg. society and file your complaint. Society has to charge the sinking fund and building repair fund from members even if it is un-used for a long time.

Sidhhi 02 August 2022

Please be informed 1) Coop Societies can't invest in high risk avenues and are required to opt for FDs only.
2) Sinking fund/Repair funds necessary to undertake extensive repairs of buildings. 3) If a resolution is unanimously passed to increase monthly charges that too is necessary given rising cost of common utilities and salaries of security gaurds etc. You alone can't fight with society MC and may invite harassment.