Maha to audit housing cooperatives

Govt had been appointing administrators for housing societies suspected of fraud

PTI | March 22, 2011



The Maharashtra government would conduct an audit of accounts of cooperative housing societies having administrators considering fraud complaints against them.

"We will conduct an audit of cooperative housing societies' accounts where administrators have been appointed," minister of state for cooperatives Prakash Solanke informed the legislative council on Monday.

The administrators are appointed by the government for a period of six months if there are complaints about misdeeds or non-functioning by the existing housing society members.

The city and suburbs altogether have 20,834 societies (3463 in city, 4156 in eastern suburbs and 13,215 in western suburbs) registered under the Cooperative Act. Of these 168 have administrators for not submitting indemnity bond.

Thirty-one more societies are run by administrators for not following the rules and regulations, Solanke said.

The administrators are usually appointed from the working or retired staff of the cooperative department. Some times they are from outside the department either lawyers or chartered accountants, he said.

The minister's reply came after Deepak Sawant (Shiv Sena) alleged that administrators are involved in fraud, defeating the purpose of their appointment.

Prakash Binsale (NCP) suggested appointment of other housing society members, instead of administrator, after dissolving earlier committee.

The minister said he would consider the suggestion.

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