Audit rectification reports must go to the general body — disqualification upheld

The facts

The petitioners were the Chairman and Secretary of Majestique Aqua Phase 1 Co-operative Housing Society Ltd., Fursungi, Pune. On a complaint by members of the society, on 10 October 2025 the Deputy Registrar, Co-operative Societies, Pune City (4), issued them a show cause notice for failing to place the audit rectification reports for 2021-22, 2022-23 and 2023-24 before the general body.

By order dated 18 August 2026, the Deputy Registrar disqualified them under Section 75(5) of the Maharashtra Co-operative Societies Act, 1960 for six months. Their Revision Application No. 332 of 2026 was rejected by the Divisional Joint Registrar, Pune Division, on 29 September 2026. They then filed Writ Petition No. 13934 of 2026.

The arguments and what the High Court held

• “The reports were filed with the Registrar.” The petitioners relied on acknowledgments from the Deputy Registrar’s office. The Court noted that every acknowledgment was dated after September of the year, showing the reports were prepared after the AGM. There was also no positive statement, either in the reply to the show cause notice or in the revision, that the reports had been placed before the general body. It was in fact admitted that the reports for 2021-22 to 2024-25 had not been placed before it.
• “Disqualification is a drastic step, used only where there is no reasonable excuse.” The petitioners had not raised any reasonable excuse before the Deputy Registrar, so no question of adjudicating one arose.
• “Section 75(5) requires individual notices.” The show cause notice was issued to the Chairman and Secretary, and both participated in the proceedings. Fresh individual notices were therefore not necessary.

Given the admitted failure, and since the disqualification was limited to six months, the Court found no infirmity in the orders of the Deputy Registrar and the Divisional Joint Registrar. The writ petition was rejected.

How the matter moved

• 10 October 2025Show cause noticeDeputy Registrar, Pune City (4): audit rectification reports for 2021-22 to 2023-24 not placed before the general body.
• 18 August 2026Disqualification for six monthsChairman and Secretary disqualified under Section 75(5).
• 29 September 2026Revision rejectedDivisional Joint Registrar, Pune Division, rejects Revision No. 332 of 2026.
• 16 October 2026Bombay High Court rejects the writ petitionWP No. 13934 of 2026: no infirmity in the orders below.

Why it matters for societies

Every year the society’s auditor points out defects, and the committee must prepare an audit rectification report saying what has been done about them. Section 75 requires the committee to place that report before the annual general meeting, so that members can see how the defects were dealt with. Sending it to the Registrar’s office later in the year is not a substitute.

For committees, the lesson is practical: put the audit report and the rectification report on the AGM agenda every year, and minute it. For office-bearers facing a show cause notice, any reasonable excuse must be set out in the reply to the Deputy Registrar — it cannot be raised for the first time later.

Documents

The Registrars’ orders are in Marathi; the account above is a summary, not a translation. This note describes one decided matter for general information. The outcome of any matter depends on its own facts and documents. Nothing here is legal advice, and contacting the office does not create an advocate–client relationship.

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