rejection of audited financial documents in the housing society AGM

The posting suggests deeper issues. How is it that rejection of the audited report renders the MC unfit to continue in office.

Dear learned sir

Therefore I need your valuable option left for MC of housing society

Thanks 

If the audit report was rejected by the general body meeting then the association has to get it re-audited or to invoke the provisons of the bylaws in this regard.

Proper accounts need to be maintained and presented before the members for their approval in the Annual General Body Meeting. Therefore, the accounts need to be properly audited before 31 st July of every year as per the provisions of the Act.

If there is no response from the MC members to explain the observations and if any irregularities found then the matter can be taken up with the registrar of societies too.

Many thanks sir for valuable legal advice. 

So the MC cannot step down due to rejection of the accounts by the AGM members 

Best regards 

Respected sir

Actually the MC put up the audited financial report for 22-23 for voting after discussions and the resolution was defeated by 33 votes as against 16 votes 

Please advise accordingly 

Thank you in advance 

Best regards 

What were the reasons for rejection of audited balance sheet of the Society, has to be introspected by MC and initiate suitable remedial / corrective / rectification action(s) on those issues, which cannot be presumed and obliged by experts on this platform.

Was it that the auditor gave an unfavourable audit report or that the accounts were defective but the auditor gave a favourable audit report?

In the former case the MC should be given a chance to correct the accounts, the accounts re-audited and submitted again to a re-convened general meeting. In the latter case the accounts should be re-audited by another auditor after correcting the defects in the account. It the accounts are beyond correction the matter should be reported to the Registrar. It is for the Registrar to decide whether the Managing Committee should be dismissed. All these are cumbersome and never works in practice. What action should be taken would depend on the seriousness of the problem. The registrars and the so called approved auditors are not knowledgeble. They scratch each other's back.

Many thanks learned Sir for your valuable information

Best regards 

You are welcome for your appreciations