Ordinance · Maharashtra Co-operative Societies (Second Amendment) Ordinance, 2019
2019 amendments: committees of administrators, boards of liquidators and audit reports
The Maharashtra Co-operative Societies (Second Amendment) Ordinance, 2019, published on 9 March 2019, amended Sections 2(17), 81, 92, 103, 110A, 152, 154, 161 and 165 of the Act. The Commissioner forwarded it on 26.04.2019.
Key points
- A committee of administrators, not only a single administrator, can now be appointed where the Act allows an administrator (Sections 92, 110A, 161, 165).
- A board of persons can be appointed as liquidator (Sections 2(17), 103).
- The Act’s provisions on audit now apply expressly to examinations by the flying squad, test audits and special audits (Section 81), so their reports can found criminal or civil proceedings.
- Orders of the Special Registrar are brought within the appeal and revision provisions (Sections 152, 154).
What changed
| Section | Change |
|---|---|
| 2(17) | “Liquidator” includes a board of persons appointed as liquidator under Section 103(1). |
| 81 | The Act’s provisions on audit apply to an examination by the flying squad, to a test audit ordered by the Registrar, and to a special audit. |
| 92 | “Committee of administrators” added alongside a nominated committee or an administrator. |
| 103 | The Registrar may appoint a person “or a board of persons” as liquidator. |
| 110A | A committee of administrators may be appointed in the cases where an administrator could be appointed for certain societies. |
| 152 | Appeals to the State Government lie against orders of the Special Registrar as well. |
| 154 | Revision covers orders passed by the Special Registrar. |
| 161 | Protection for acts in good faith extends to a committee of administrators. |
| 165(2) | Rule-making power extended to committees of administrators. |
Why
The statement of reasons explains that liquidations and administrations were slow because a single officer handled them alongside regular duties, so boards and committees were allowed; that flying-squad, test-audit and special-audit reports were not being treated as sufficient for filing an FIR under Section 81; and that the appeal provision did not expressly cover the Special Registrar.
What it means for housing societies
Most changes concern larger societies and the Department’s machinery. For housing societies the practical points are that a committee of administrators may be appointed instead of one administrator, and that findings in a special or test audit carry the same weight as a statutory audit report. An ordinance must later be replaced by an Act of the Legislature; check the current text of the Act.
Ten pages: the Commissioner’s covering letter in Marathi and the English Gazette translation of the Ordinance with its statement of reasons. This page summarises the document for general information; it is not a translation and not legal advice. Read the document itself for its exact terms, and check whether it has since been amended or superseded.
Have a question about your society?
Write to the office with a brief description of the matter. Meetings are by prior appointment.