Complaints by some members can't warrant probe into housing society's finances: Bombay HC
The court made the observation while quashing an order passed by a deputy registrar initiating an inquiry into a housing society in Mumbai's Kurla.
The Bombay High Court recently ruled that complaints from a few disgruntled members of a housing society cannot be grounds for initiating an inquiry into the society's financial affairs. This decision came after the court dismissed an order by a deputy registrar to investigate the financial conditions of the Kurla Kamgar Cooperative Housing Society (KKCHS) based on complaints from just two members.
Section 83 of the Maharashtra Co-operative Societies (MCS) Act states that an inquiry can only be initiated by the registrar "suo motu" (on his own) or on receiving a complaint from "not less than one-fifth of the capacity of members." The court emphasized that the purpose of this provision is to prevent a situation where just one or two disgruntled members can initiate an inquiry, but rather, it requires the support of a majority, specifically one-fifth of the members.
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