Disqualification of Committee Members under Section 154B-23 of the Maharashtra Co-operative Societies Act

Introduction to Maharashtra Cooperative Society Act

The Maharashtra Cooperative Society Act is a crucial legislation that governs the functioning of cooperative societies in the state of Maharashtra, India. Under this act, various sections outline the rules and regulations pertaining to these societies, ensuring transparency, accountability, and proper functioning. Among these regulations, Section 154B-23 plays a significant role that warrants a closer examination.

Section 154B-23 of the Third Amendment to Maharashtra Cooperative Societies Act 1960 gives use the provisions under which the committee and its members can be disqualified.

Section 154B-23.

"(1) Without prejudice to the other provisions of this Act or the rules made thereunder, in relation to the disqualification of being a Member of the Committee, no person shall be eligible to be appointed, nominate, elected, co-opted for being a Member of Committee, –

(I) if he is a defaulter of any society, or

(ii) if he carries on business of letting, subletting and selling of flats in the housing society of which he is a member, or

(iii) if he has been held responsible under Section 79, 88, 154 B-8(2) or 154B-27 or for. Payment of cost of enquiry under Section 85, or

(iv) if he has incurred any disqualification under this Act or the rules made thereunder, or

(v) if he incurs any of the disqualification similar to that mentioned in the provision of clause (VII), (viii), or (IX) of clause (f) of sub – section (1) if section 73CA

(2) A Member, who has incurred any disqualification under sub – section (1), shall cease to be a Member of Committee and his seat shall thereupon be deemed to be vacant.

(3) A Member of a committee who has ceased to be a Member thereof, on account of having incurred disqualification under clause (ii), (iii), (iv) or (v) of sub – section (1), shall not be eligible to be re-elected, re-co-opted or re-nominated as a Member of Committee for five years from the date on which he or she has so ceased to be a Member of the Committee.

(4) A Member of a Committee who has ceased to be a Member thereof, on account of having incurred disqualification other than disqualifications, referred to in sub – section (3), shall, unless otherwise specifically provided in this Act, be eligible to be re-elected, re-co-opted or re-nominated as a Member of Committee as soon as such disqualification ceases to exist.

Overview of Section 154B-23

A person is disqualified if they are a defaulter to any co-operative society, are engaged in the business of selling or subletting flats in their own society, or have been found guilty under sections like 79, 88, or 154B-8(2). Disqualification also arises if they have violated other provisions of the Act or incurred penalties similar to those under Section 73CA.

Once disqualified, a member’s seat is automatically vacated. Moreover, if the disqualification is due to misconduct or serious violations (like those under clauses ii to v), the individual cannot be re-appointed for five years. For other lesser disqualifications, re-appointment is allowed once the disqualification no longer applies.

This section ensures accountability, transparency, and ethical conduct in the management of co-operative housing societies across Maharashtra.