Maharashtra Co-operative Societies (Amendment) Ordinance, 2019

The Maharashtra Co-operative Societies Act, 1960 (Mah. XXIV of 1961), governs all the co-operative societies having different objects, classifications and sub-classifications. The provisions of the said Act regulates the management aspect of the co-operative societies and protects the interest of its members. Among all co-operative societies governed by the provisions of the said Act, the co-operative housing societies are largest in number being around 50% of the total societies in the State. At present, even though the affairs of the co-operative housing societies are distinct and peculiar, they are regulated in the same manner as per the general provisions of the said Act, as applicable for all other co-operative societies, such as Co-operative Sugar Factories, District Central Co-operative Banks, Co-operative Spinning Mills, etc. The uniform application of the provisions of the said Act, despite of the uniqueness of the co-operative housing societies, was creating problems and was inadequate to address all the affairs of the co-operative housing societies. This lead to large number of disputes and litigation and thus creates hurdles in smooth functioning of the co-operative housing societies. In this view of the scenario, an urgent need was felt to provide a separate Chapter to cater to the specific requirements of the co-operative housing societies. Therefore a separate Chapter providing for regulation of co-operative housing societies, was inserted in the said Act. The proposed Chapter, among other things, has caterred primarily to the issues of the co-operative housing societies viz. members and their rights, management of societies, audit, enquiry and inspection, settlement of disputes, liquidation, elections of societies, recovery of claims, etc. 2. In the then present dispensation, considerable delay is caused in approval and appointment of Returning Officer and Assistant Returning Officer for conducting elections of co-operative housing societies. To avoid this delay and to ensure timely elections, it is proposed to amend sub-section (11) of section 73CB of the said Act, suitably, by taking the power to the State Government to prescribe by rules the procedure for speedy holding of such elections. 3. The provisions related to recovery of dues or arrears from members are proposed to be deleted from the general provisions meant for all societies in sub-section (1) of section 101 so as to provide relevant provisions in this regard in the proposed Chapter XIIIB. 4. Section 152 is proposed to be amended suitably, for providing appeals against the orders passed under sub-sections (1) and (3) of section 154B of the proposed Chapter. The incorporation of the above-mentioned provisions alongwith other then proposed provisions, would help the members of the societies in the understanding of their rights and liabilities, thereby enabling a more congenial governance environment within the co-operative housing societies. The clarity in the various proposed provisions has minimized the disputes and result in enhancing the efficiency of the authorities dealing with the affairs of the co-operative housing societies. Similarly, the simplified mechanism proposed for elections has drastically reduced the election related disputes in the otherwise resource crunched co-operative housing societies. 5. To achieve the above objectives, the Maharashtra Co-operative Societies (Third Amendment) Ordinance, 2018 (Mah. Ord. XXV of 2018) was promulgated by the Governor of Maharashtra on the 30th October 2018 and the Maharashtra Co-operative Societies (Third Amendment) Bill, 2018 (L. A. Bill No. LXX of 2018) to convert the said Ordinance was introduced in the Maharashtra Legislative Assembly on the 22nd November 2018. The said Bill is pending in the Maharashtra Legislative Assembly. With a view to ensure that the said provisions are effected immediately, it is considered expedient to amend the Maharashtra Co-operative Societies Act, 1960 (Mah. XXIV of 1961), urgently. 6. As both Houses of the State Legislature are not in session and the Governor of Maharashtra is satisfied that circumstances exist which render it necessary for him to take immediate action further to amend the Maharashtra Co-operative Societies Act, 1960 (Mah. XXIV of 1961), for the purposes aforesaid, this Ordinance is promulgated. Mumbai, C . VIDYASAGAR RAO, Dated the 9th March 2019. Governor of Maharashtra. By order and in the name of the Governor of Maharashtra, DINESH KUMAR JAIN, Chief Secretary to Government.