Cooperative housing societies (CHS) are bound by the model bye-laws, which prescribe several rules and procedures for various activities, including electing new members for the managing committee.
When a cooperative housing society (CHS) decides to undertake major repairs to its building, the managing committee cannot simply hire the services of a local builder for the work. In the interest of transparency and to avoid misuse of funds, there are specific bye-laws which clarify that resident members should be consulted before any major repair work and that due process is to be followed to evaluate the scope of work involved while inviting cost quotations from prospective firms.
Generally, the deputy registrar of cooperative societies (DtyRCS) appoints an administrator upon receiving complaints from members of the cooperative housing society (CHS), if they find that it is a fit case to expel the present managing committee. While the DtyRCS has the power to dissolve managing committees and appoint an interim administrator, it uses such powers sparingly and only to bring erring societies and their committees to book.
It is no secret that corruption runs rampant where power is centralised. In the case of cooperative housing societies (CHS ), certain dishonest members or office bearers sometimes embezzle funds for personal use, or they may abuse their position and power to favour some members of the Society.
When a cooperative housing society (CHS) opts for redevelopment of their building, a consensus is required among members. A developer agreement and an agreement for permanent alternate accommodation (PAA) is signed by the owners with the approved builder.