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Management of Funds, Cost, Profit, Accounts of a Co-operative Housing Society in West Bengal

Under Rule 148 of the WBCS Rules, 2011, apportionment of cost of land, house or apartment in Housing Co-operative Society is to be decided by:

“(1) The cost of any land (including its development cost) or the cost of any house or apartment on such land built by a housing co-operative society shall be apportioned in such manner as may be decided by the board.

(2) The cost of maintenance, repair or replacement of common areas and facilities shall be apportioned according to carpet area :

Provided that where apportionment of cost according to carpet area is not considered, equitable the society may with the approval of the Registrar, realise the cost in such manner as it may consider fit.

Explanation : Common areas

Common areas shall mean staircase, stair cover, stair room, lift or any other easement and its connected areas, lobby, open terrace, roof, external wall, lawn, garden, play ground, water tank, boundary wall, parapet, driveway, residual area of car parking, security room, generator room, fire fighting tank and similar other service areas as would be decided by the general body.

Explanation : Facilities

Facility shall mean water supply arrangement, lighting arrangement in common areas, security arrangement, intercom arrangement, generator arrangement, fire fighting arrangement, lift service, roof treatment, safety tank treatment and similar other facilities as would be decided by the general body.”

Under Rule 53 of the WBCS Rules, 2011, the Board of Directors of the Society has to maintain true accounts of money received and expended and accounts of assets and liabilities.

Under Rule 137 of WBCS Rules, 2011, a housing co-operative society should maintain the following:

“(1) All financial transactions in a co-operative housing society involving an amount exceeding one thousand rupees shall be made by Account Payee cheques only.

(2) All payments to a co-operative housing society shall be made against serially machine-numbered receipts duly signed by the secretary and bearing the common seal of the society.

(3) All payments by a co-operative housing society shall be made against proper receipt duly signed and dated by the payee concerned.

(4) All receipts and payments by a co-operative housing society shall be immediately entered in the cash book of the society making corresponding entries in the relevant ledgers.”

Under Section 89(3) of WBCS Act, 2006, the costs of maintenance and other charges for maintaining the society, repair works, replacement of common facilities and any additions if required would be carried out by the housing society in accordance with the bye-laws of the society and the local laws of competent local authority. However, the costs of such maintenance or repair or construction will be apportioned amongst all the members of the society.

Thus, if the society wants to expand the building or provide repair work and the cost of maintenance decided by the society will have to be abided by all the members of the society.

If there is any escalation cost to the project then the Board of Directors of the Society should bring the same to the notice of the members in AGM or GM, the profit of the Housing Society should be kept in the bank account.

The Housing Society has to maintain books of accounts as well as bank accounts and profit on sale would be kept within the said account. Under Section 4(44) of the WBCS Act, 2006, “net profit” means profit after deduction of establishment charges, contingent charges, interest payable on loans and deposits, audit fees and such other sums as may be provided in the bye-laws.

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