Dear Client,
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 Bond, 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 required to be executed within 15 days of assuming office. 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. Such bond shall be executed on the stamp paper as provided under the Bombay Stamp Act 1958. The expenditure on stamp paper shall be borne by the society. 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 specimen copy of form M20 Bond is given below -
Form 'M-20'
See Rule 4(1)1 of the MCS Rules, 1961

I, Shri/Smt ...................................................................................................... age ....................... resident of ..................................................................................... have been elected on the Managing Committee of. ................................................................. ................................................................................... Society for the period

I have assumed office from ........................................................................

I declare today i.e. ............................................................. that I shall be Jointly and severally responsible for all the decisions taken by the committee during its term relating to the business of the Society and shall be jointly and severally responsible for all the acts and omissions detrimental to the interest of the Society, as provided in section 73(1AB) of the MCS Act, 1961.

Seal of the Society Signature of Managing Committee Members.

Date:
Place :

Signature of Witness (Secretary/Chief Executive Officer)