Building maintenance fund of co-operative housing society
The co-operative housing society is required to repair the common walls and outer walls, the roof etc parts of their building on which extra amount has to be spent. It is a amount of money which the members are required to contribute in addition to common maintenance fund. Therefore, before making any demand by the Managing Committee, it is required to be discussed in a general meeting of the Society.
It shall be the responsibility and duty of the managing committee to carry out the repairs works and major maintenance of the property of the co-operative housing society. It is also the responsibility of the managing committee to ensure that the repair works and maintenance are carried out as per the agreement with the execution agency selected by the general body meeting of the co-operative society.
The managing committee shall be competent to incur expenditure on repairs and major maintenance of the co-operative housing society up to the one time expenditure limit approved by the general body from time to time or as provided in the bye laws of a co-operative housing society.
If one time expenditure on repairs, maintenance of works of the co-operative housing society exceeds the limit prescribed, prior sanction of the general body meeting of members shall be essential to be taken.
THE GENERAL BODY SHALL DECIDE
The limit of expenditure on repairs, maintenance of works could be incurred by the committee without calling the tenders for the works
In respect of works, the cost which exceeds the limits, so fixed, the committee shall follow the procedure of inviting tenders, placing them before the general body for approval and entering into agreement with the architect (if appointed or required) and the contractor.
HOW MUCH DEMAND TO BE MADE
It shall be decided by the general body meeting of the members, as to how much shall be made per month for the building maintenance fund. Thereafter the managing Committee is responsible to raise demand of this fund along with maintenance bills.
HOW THE SOCIETY IS TO ACCOUNT FOR IT
It is essential for the Society to create Building Maintenance Fund account in their books of account by Debiting Member and crediting the Building Maintenance Fund account, when demand is made. On receipt of money, debit Bank Building Maintenance account and credit the member. In this manner, entire amount shall be kept separate in FD and will not be used for any other purpose.
IF A MANAGING COMMITTEE misuses SUCH SPECIFIC FUND FOR SOME OTHER PURPOSE
If the Managing Committee uses this fund for maintenance or for any other purpose, it shall be offence on the part of the managing committee by violating the Sec 81 (4) and this will certainly make every member of the managing committee liable for misuse of funds of the co-operative society, which is a criminal offence.
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