Necessity of M-20 Bond
3 weeks ago
In a co-operative housing society after election and first committee meeting the elected members have to execute Form M-20 which is an undertaking given by each Managing Committee Member within 45 days of his assuming the Office of the Society and subsequently inform the Deputy Registrar's office. The member who fails to execute such a bond within the specified period shall be deemed to have vacated his office as a member of the committee. Bombay High Court too has upheld this MCS Act provision. On this basis can we give a letter to Registrar requesting to dissolve the existing committee for not following Rules and Regulations laid down
A.Dear Client,
According to Rule 58-A of Maharashtra Co-operative Societies Act, it is mandatory for the Members of the Managing Committee to file the indemnity bonds in Form M-20 within 45 days of their election. If the committee fails or ignores to execute the bond within the specified period, then it shall be deemed to have vacated his office as a member of the committee and could be prosecuted for serious offences. In the said situation, you can inform about the non-compliance with mandatory provision of the Act to the Registrar or Deputy Registrar of Cooperative Societies and request them to take appropriate in the matter.
Hope it helps.
Thank you.
According to Rule 58-A of Maharashtra Co-operative Societies Act, it is mandatory for the Members of the Managing Committee to file the indemnity bonds in Form M-20 within 45 days of their election. If the committee fails or ignores to execute the bond within the specified period, then it shall be deemed to have vacated his office as a member of the committee and could be prosecuted for serious offences. In the said situation, you can inform about the non-compliance with mandatory provision of the Act to the Registrar or Deputy Registrar of Cooperative Societies and request them to take appropriate in the matter.
Hope it helps.
Thank you.
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A.Dear Client,
The M-20 Bond, previously mandatory for managing committee members of cooperative housing societies in Maharashtra, was scrapped in 2012 but reintroduced in 2021. It serves as an indemnity towards society affairs, and non-compliance could lead to prosecution for serious offenses. Under the Maharashtra Co-operative Societies Act, 1960, all elected managing committee members are now required to execute a bond jointly and severally responsible for the committee's decisions. Failure to do so results in automatic vacation of the member's office. If elected members fail to comply, informing the Registrar or Deputy Registrar of Cooperative Societies is advised for necessary action.
The M-20 Bond, previously mandatory for managing committee members of cooperative housing societies in Maharashtra, was scrapped in 2012 but reintroduced in 2021. It serves as an indemnity towards society affairs, and non-compliance could lead to prosecution for serious offenses. Under the Maharashtra Co-operative Societies Act, 1960, all elected managing committee members are now required to execute a bond jointly and severally responsible for the committee's decisions. Failure to do so results in automatic vacation of the member's office. If elected members fail to comply, informing the Registrar or Deputy Registrar of Cooperative Societies is advised for necessary action.
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A.Dear Client,
The M-20 Bond was an undertaking given by each Managing Committee Member within 45 days of his assuming the Office of the Society. By implication, any person who signed Society Documents without signing an M-20 bond on assuming the Office of the Society was liable for prosecution for serious crimes including fraud, cheating, misrepresentation and forgery. On 6th Sept 2012 the then Government of Maharashtra scrapped the mandatory M20 bonds for society Managing Committee after resuming office which was reintroduced in 2021. Actually, the Bonds were in the form of indemnity towards society affairs and there were criminal offenses imposed for non-compliance. The Maharashtra government in January 2021 notified that all elected members of the managing committee (MC) of cooperative housing societies established under the Maharashtra Co-operative Societies Act, 1960, have to execute a bond holding them ‘jointly and severally’ responsible for all the decisions the committee takes. Under the MCS (Amendment) Rules, 2002, a new form, M-20, has been inserted, whereby elected members of the managing committee have to declare they are jointly and severally responsible for all the acts and omissions detrimental to the interests of the society. If the committee member fails to execute the bond within the specified period, then such member shall be deemed to have vacated his office as a member of the Committee. This provision has been given effect by Section 73(1AB) of the MCS Act,1960. In view of the above proposition of law, you may collectively inform the non-compliance with mandatory provision of the Act by the elected members of the Society to the Registrar or Dy. Registrar of Cooperative Societies for taking necessary action in the matter.
The M-20 Bond was an undertaking given by each Managing Committee Member within 45 days of his assuming the Office of the Society. By implication, any person who signed Society Documents without signing an M-20 bond on assuming the Office of the Society was liable for prosecution for serious crimes including fraud, cheating, misrepresentation and forgery. On 6th Sept 2012 the then Government of Maharashtra scrapped the mandatory M20 bonds for society Managing Committee after resuming office which was reintroduced in 2021. Actually, the Bonds were in the form of indemnity towards society affairs and there were criminal offenses imposed for non-compliance. The Maharashtra government in January 2021 notified that all elected members of the managing committee (MC) of cooperative housing societies established under the Maharashtra Co-operative Societies Act, 1960, have to execute a bond holding them ‘jointly and severally’ responsible for all the decisions the committee takes. Under the MCS (Amendment) Rules, 2002, a new form, M-20, has been inserted, whereby elected members of the managing committee have to declare they are jointly and severally responsible for all the acts and omissions detrimental to the interests of the society. If the committee member fails to execute the bond within the specified period, then such member shall be deemed to have vacated his office as a member of the Committee. This provision has been given effect by Section 73(1AB) of the MCS Act,1960. In view of the above proposition of law, you may collectively inform the non-compliance with mandatory provision of the Act by the elected members of the Society to the Registrar or Dy. Registrar of Cooperative Societies for taking necessary action in the matter.
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A.Dear Sir,
Yes, there is no concession in law if rules are mandatory and if anybody violates then the prescribed authority may dissolve the existing committee.
Yes, there is no concession in law if rules are mandatory and if anybody violates then the prescribed authority may dissolve the existing committee.
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