NON-EXECUTION OF INDEMNITY BOND BY MC BEFORE SEPTEMBER 6TH, 2012

Government of Maharashtra
Co-operation, Marketing & Textile Department
Vide Govt. order No: CSL-2003/C No. 496/K-15-5
Hutatma Rajgure Chowk, K. Marg, Mantralaya,
Mumbai - 400032

Dated: 26th Nov'2013

Management Committees of several co-operative societies in Maharashtra State at disqualification following new orders issued by the state co-operation department

While the department had on Feb-14th abolished a condition that required office bearers in co-operative societies to furnish an indemnity bond taking responsibility of acts of omission and commission that cause loss to the society, the department issued orders on November 16th clarifying that the abolition could not be applied with retrospective effect.

The department has now ruled that in cases where office bearers elected to co-operative societies before Feb 14th and the ones who have not furnished such bonds stand disqualified.

In the case of housing societies, the department issued orders for abolition of the condition on September 6th 2012. The fresh order states that in case of housing societies, all those elected before this date and who have not submitted the bonds stand disqualified. The indemnity bond termed as M-20 bond is an undertaking given by each managing committee member.

In the case of housing societies, the bond had to be furnished by an elected member within 45 days of assuming office. For all other co-operative societies it had to be provided within 15 days. It implied that the managing committee members were liable for criminal action if misappropriation or forgery were reported during its term.

The co-operation department issued the orders thereafter. In its November 26th order, the department said that a clarification was sought from the Government on whether the order could be applied with retrospective effect and if action could be initiated against those who have not submitted M-20 bonds before the abolition. The Government ruled that the order was not with retrospective effect.

Therefore the fresh order state that in case of housing societies all those elected members before 06/09/2012 and who have not submitted the M-20 bond stand disqualified.

By order, Governor of Maharashtra

Sd\-
(Santosh Patil)
Special Executive Officer

Copy to,

1) Co-operation Commissioner & Registrar Co-operative Society Maharashtra State, Pune

2) AH Div. Asst. Registrar & Dist. Dy. Registrar Co-operative Society

3) Asst. / Dy. Secretary, Ward Officer cooperation Department, Mantralaya, Mumbai

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