Society imposes charges without approval of AGM


Under the DCS Act and the DCS Rules, the Managing Committee is required to make a budget estimate for the future year and according divided the total expense in number of members and drive out monthly demand per member to be made by the society. This estimate / budget may be increased or decreased or may be passed as proposed  by the General Meeting called for the purpose or the Annual General Meeting of the Society.

No demand should be raised by the Managing Committee until and unless the General Meeting has given approval of such a demand in properly called Annual General Meeting or Special General Meeting called specially for this purpose.

One of the Society had made a demand of money without such approval and a member of the society raised the objection before the Registrar of Co-operative Societies in the following manner.

Dated: 01.10.2012

The Registrar of Co-Operative Societies
Old Courts, Sansad Marg, New Delhi – 110001

Dear Sir,


  1. I wish to bring it to your kind notice that President of the Society Mr. Rakesh Kumar, has issued Circular dated 04.01.2012 (copy attached) and a Circular dated 06.06.2012 (copy attached), putting additional financial burden on the members.
  2. Please note none of these matters have been approved in a properly convened general meeting of members, as no general meeting has been held for the last One Year in this Society.
  3. Please further note that Bills demanding money as per Circular are being delivered to members and on violation, interest and penalty is being charged & recovered.

In view of the above, you are requested to

(A) Set aside all demands raised through Bills illegally

(B) Take necessary action against the Society as per law, with a copy to me.

Yours faithfully

Raminder Singh Sahota
Advocate & Member No.173




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  • Vishwas Kumar says:

    The builder of the Society is having majority of his known persons in all the meetings. He has made most of his worker employees as members of the Society but all the matters are decided by one person the Builder. The builder is the financier of all the employees. The builder has imposed undue charges heavy penalty and charging lot of money on water. Please help us to get rid of exploitation by builder, we are 38 members of the Society on one hand the builder is having 45 members. Now he has imposed all the charges without passing it in the General Meeting and we are very much depressed. Please help us. We are ready to pay fees for advice and also for filing writ petition in any court or in RCS office or CM or LG or even PM.

    Please respond earliest

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  • Khan says:

    My society consisting of all muslim friends have imposed charges after having a meeting in a religious place and did not call a SGM / AGM. No notice was given. Please let me know whether it is valid or not ????

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  • Vishal Gupta says:

    The managing committe has imposed charges without approval of SGM

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  • Janardhan says:

    Our President of the Society has also issued circular demanding Rs.500/- increase from all the members without calling AGM / SGM. Please advise ??

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  • Savita Vivek Mohurle says:

    The society committee member has imposed Rs. 5000/- as sinking fund for our flat . the total cost of my flat is Rs. 20,25000 (inclusive of all the charge like registration, MSEB, etc.). flat area is 541 sq.ft. So i think the amount of sinking fund is too high. we have till now not paid sinking fund. but we are paying maintainance charges regulary. According to society bye law we are defaulters, so we are not eligible to participate in society committee election. we need your suggestion for the same. And also can second owner on the Index2 is eligible to contest election. is the sinking fund amount Rs. 5000 appropriate or it must/should be less. Is this sinking fund decision taken by only committee member or the issue should be discussed in general meeting and then finalized?

    Kindly suggest. we need your help.


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  • Sqn. Ldr. J. P. Singh (Retd) says:

    In my Society,(The Nava Kairali CGHS Ltd) Dwarka,in AGM only few members come who are friends of the Management Committee. Society consists of 135 flat owners, but around 35 members come to attend the Meeting. In that one member proposes the expenditure for door change in the lift and another member seconds it. This proposal is considered to be passed and the expenditure becomes binding on to all 135 members. This has happened in last AGM held in September 2017, in which expenditure worth Rs. 60 Lakhs have been passed by AGM.In previous years also they have done the same thing. They have purchased on more Generator last year whereas the existing Generator was working alright. They wanted some reason to spend money. Just proposed by one and seconded by other get expenditure passed. The contractors are from their own group. No body knows as to who has been awarded contract at what rate. Notice is put on notice board about charges and that becomes binding on every body. The society is mostly owned by Kerala persons and Christians. No Hindu festival is allowed to be performed, like ladies gathering for Karwa Chauth etc. No election has been held for last five years. Same members keep on working as Members of Committee. Is this way of passing the financial burden to the members ia right as per law?

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  • Sqn. Ldr. J. P. Singh (Retd) says:

    What should be method adopted by AGM to pass a proposal which has financial implication on all the members of society?

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