ACHS Mumbai

Dear Client,
The Maharashtra government in January 2021 notified that all elected members of the managing committee (MC) of cooperative housing societies established and registered 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. So, non-execution of the M20 Bond by the members of MC shall be deemed vacated the office who can neither execute any redevelopment agreement nor engage themselves in any activities of the Society and can face legal consequences once reported to the Registrar or Dy. Registrar of the Cooperative Societies.