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Expulsion of a Member in Co-Operative Housing Society

Expulsion of a Member in a Co-operative Housing Society is an extreme measure and most Societies consider it their last resort. When everything else fails to set things right, expulsion of the concerned Member is considered the only way out.

If extreme need arises for expulsion of a Member, the Law and Procedure be strictly followed as laid down in Section 35 of Maharashtra Co-operative Societies Act 1960, Rules 28, 29 of the Maharashtra Co-operative Societies Rule 1961 read with Bye-laws No.51 to 56 of Model Bye-laws.

Grounds of Expulsion of a Member:-

A Member may be expelled from the Membership of the Society, if such Member:

* The acts of the Member are detrimental to the interest or proper working of the Society

* Has persistently failed to pay the charges, dues to the Society

* Has willfully deceived the Society by giving false information,

* Has used his flat for immoral purposes or misused it for illegal purposes habitually,

* Has been in habit of committing breaches of any of the provisions of the Bye-Laws of the Society, which, in the opinion of the Committee are of serious nature,

* Has furnished false information or omitted to furnish the material information to the Registering Authority at the time of Registration of the Society.

A Society may, by Resolution passed [by a majority of not less than three-fourths] of the Members entitled to vote who are present at a General Body Meeting held for the purpose, expel a Member for acts ‘which are detrimental to the interest or proper working of the Society’. No Resolution shall be valid, unless the Member concerned is given an opportunity of representing his case to the General Body and no Resolution shall be effective unless it is approved by the Registrar.

Effect of Expulsion on Membership of the Society:-

The Member, duly expelled from Membership of the Society, shall cease to be the Member of the Society, with effect from the date on which the Resolution of expulsion from the Membership of the Society is approved by the Registrar of Co-op. Societies.

Handing Over of Flat:

The Member who has been duly expelled from the Membership of the Society, shall not be entitled to continue in occupation of his flat and he shall arrange to hand over peaceful and vacant possession of his flat to the Secretary of the Society within such period as the Managing Committee may allow. On his failure to do so, he shall be liable to be evicted from his flat.

Readmission to Membership:-

No Member of the Society, who has been expelled from the membership, shall be eligible for readmission to membership in the Society, until expiry of the period of one year from the date of his expulsion, provided that on the recommendation of the General Body of the Society, the expelled Member may be readmitted to its membership, as a special case before the expiry of the period of one year with the prior permission of the Registrar of Co-operative Societies.

Considering that the basic duty of a Cooperative Housing Society Member is to safeguard the interests of the Society and any Member whose actions are detrimental to the interests of the Society can be expelled.

The process of expulsion is a fair one, where both parties i.e. the Managing Committee and the Member likely to be affected, are given an opportunity to express their points of view. If the Managing Committee of a Cooperative Housing Society decides to expel a Member from the membership of the Society, a Resolution needs to be passed to that effect; the topic must be included in the Agenda of the next General Meeting.

The Member who is likely to be affected must be given a minimum one-month notice to remain present at the General Meeting or then make a written submission to Show-Cause why he should not be expelled. Only then can the General Body proceed to consider the Resolution for expulsion of the Member.

This Resolution, however, needs to be supported by not less than 3/4 of the Members entitled to vote and present at the General Meeting and once the Resolution is passed, it needs to be forwarded to the Registering Authority for approval.

While considering the Resolution, the Registrar examines whether the Society has complied with the necessary formalities. And then, whatever the Registrar’s decision – Approval or Refusal – is communicated to the Member and the Cooperative Housing Society.

Expulsion of the Member is the severest form of punishment and it often implies the Member’s way out from the Cooperative Housing Society for good.

Case Laws:-

V. Shreenivasan V/s. State of Maha. (2003 (3) Maha Law Journal 189)  

Satishchandra V/s. Registrar of Co-op Society, Delhi (1994 (4) SCC 302)
Vijay Ramji Pawar V/s. Girna Sahakari Kharkhana (1986 Mh.L.J. 314)
Mayurdhwaji Co-operative Housing Soceity Limited (1998 6 SCC 39)