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venkat   02 August 2020

Resident welfare association

Hello,

I am president of a residents association. in recent GBM a rule was passed that EC members can use maintenance funds collected from residents for their personal use / can take the money as gift for the service we have done to the society. Is that acceptable will there be any problem ?

 



 11 Replies

kavksatyanarayana (subregistrar/supdt.(retired))     02 August 2020

No.  Society funds cannot be used/spent for personal purposes under any circumstances.  It will be against to the Societies Act.

SHIRISH PAWAR, 7738990900 (Advocate)     02 August 2020

Hello,

Society funds cannot be given to other for personal use.

venkat   02 August 2020

i and my team are just taking the money as a gift for our services to the society and whoever in the colony asks me for clarification i am isolating them and making them apologize.  

G.L.N. Prasad (Retired employee.)     03 August 2020

This is authoritarian, and any complaints to the Registrar of societies may involve you in problems, as no decision contrary to the statute can hold good even it is passed unanimously in GBM.

venkat   03 August 2020

Sir, there are excess funds what we collected from the society as part of maintenance. can't we use that money and builder collected corpus fund and we get interest amount on that amount. do we have to return the interest amount back to the society ?

G.L.N. Prasad (Retired employee.)     03 August 2020

It is the society's money where is the question of returning to some other or pocketing that amount if there is surplus amount conduct Independence day or Vinayaka Chaturthi etc., and use the surplus money for common benefit and enjoyment.  Reduce maintenance so that everyone can enjoy it.  It is not great management but exploitation if excess maintenance is being collected.   The corpus fund is mainly for unforeseen events like an additional bore, getting water tanker during scarcity, building maintenance with periodical color wash etc.   Because there are excess funds, by taxing too much from residents or because owners are obedient, trusted President, and obliging society, that should never be taken as lenience.  Stand as an example for straightforwardness and good maintenance of society with honesty.

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     03 August 2020

society funds means it is public property. EVery thing must go through rules as per society act. Take help from the Registrar of societies. 

venkat   03 August 2020

some residents are saying money laundering because there are times when we keep the maintenance money in somebody's house as we could not deposit the money into the societies back account. is it wrong ?

P. Venu (Advocate)     03 August 2020

Prima facie, you are Law unto yourself and wish to remain so. It is beyond the competence of this Forum to provide you any suggestion that would safeguard your status. Any suggestion from this platform could be based on legal elements only.

G.L.N. Prasad (Retired employee.)     03 August 2020

Third query: some residents are saying money laundering because there are times when we keep the maintenance money in somebody's house as we could not deposit the money into the societies back account. is it wrong ?

Members can not judge which is right and which is wrong as circumstances determine such allegation . The amounts collected should be deposited in Society's Bank account as earlier as possible.  Now when the amounts can be transferred electronically not transferring such amount in time may be a reasonable allegation, and if there is a delay, the amount must be kept in some other third party's custody to avoid such problems.  (Ex: President/Secretary and not treasurer)
 

 

Dr J C Vashista (Lawyer)     03 August 2020

Originally posted by : venkat
Hello,

I am president of a residents association. in recent GBM a rule was passed that EC members can use maintenance funds collected from residents for their personal use / can take the money as gift for the service we have done to the society. Is that acceptable will there be any problem ?

 

You have stated, inter alia, "....EC members can use maintenance funds collected from residents for their personal use..." are you sure ?

Presumably your aim to contest the election of President of your RWA purposely, is it ???


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