Misuse of society fund without gb permission what to do next

What kind of registration is it with MHADA? Under which law comes the audit requirements of the Society. Who is the auditor of the Society? Did you talk to him? Are annual general body meetings held regularly and audited statement of accounts presented?

My society is registered with MHADA and situated in MHADA zone. we have open plot type society,s Byelaws of 1984. we have not yet adopted latest society's byelaws. we are cover under MCS act,1960.society is having regular Auditing and helding regular AGM. Kindly guide.

Since how long is your Secretary doing this? Have those accounts been audited after the expenditure was incurred or annual report and audit are yet to come? Under what head was the expenditure on beautification? Most probably it would have been under repairs. If so the source of funds for the repairs would have been the Repairs Fund. Members contribute to the Repairs Fund on a fixed basis, which is not directly related to the actual expenditure in a particular year.  In the annual balance sheet the position of repairs fund at the end of the previous year and one year before that, would be shown. Details of expenditure and income are not shown. Hence whether the auditor has scritinized the expenditures will not be explicit from the audited balance sheet.

If the expenditures were for a past year for which accounts had already been audited and approved by the General Body, you can ask the Secretary to give you details of the expenditure on repairs including the beautification. The amounts would have been spent as payments to petty and larger contractors. Get the details of contracts and the related payments. If you find contracts and/or payments of more than Rs.25000/- ask the Secretary to show the General Body resolutions giving prior approvals for the expenditure.

If the accounts are yet to be submitted at the Annual General Meeting to be held in 2012 you can ask the same questions now. If it is not given to you with or without an excuse, warn the Secretary with copy to the statutory auditor that the General Body will not pass the annual accounts unless satisfactory reply was given. If there is a general feeling amoung members the same way as you feel. canvas among members and ensure that the Accounts are not passed at the AGM.

If you find any difficulty in proceeding as above please let me know.