Tuesday, January 6, 2009

A bonanza for power of attorney holders

Send this Article to a Friend The Hindu- Online edition of India's National Newspaper

Staff Reporter New Delhi Tuesday, Jan 02, 2007

They can now become active members of housing society

NEW DELHI: In a New Year bonanza for lakhs of people living in the Capital's flats or apartments in cooperative group housing societies with General Power of Attorney (GPA) ownership, the office of the Lieutenant-Governor of Delhi has given its nod to the notification that allows GPA holders to become active members of the society with voting rights.

Under the provision, which has now come into force, the fee for getting membership of a society has also been reduced from Rs.5,000 to Rs.500 per member.

It was at November-end that the Delhi Government had in an attempt to bring about financial accountability and check arbitrary functioning of the societies provided for these provisions in the Delhi Cooperative Societies (Amendment) Bill 2006 which was subsequently passed by the Delhi Assembly.

The amendment also stated that any society that had not held audit of its accounts or had failed to convene the meeting of the general body for five years in a row would face dissolution under the law. "Provided that in the case of a cooperative society which has not conducted audit or annual general body meeting for five consecutive years or has no fixed assets and outside liabilities excluding share money of the members, such society shall be deemed to have been dissolved and shall cease to exist as a cooperative body after the expiry of the said period of five years," the amendment stated.

Defunct society

Similarly the amendment made it very clear that if the cooperative society was dissolved or had become defunct, its representatives would not have voting rights in the affairs of the society or its financial banking.

Through the Amendment, Delhi Development Minister Raj Kumar Chauhan had stated: "We have tried to simplify matters and make acquisition of membership for the GPA holders very easy with nominal charges. In a majority of the societies, the original members have either sold their premises or migrated to some other place but continue to be active members while the GPA members despite being in majority do not have any voting right. This amendment will undo this wrong of the past and things are likely to work smoothly."

With the notification, the Delhi Government's decision to lower the membership fee for the GPA holders to become regular members of the society has also come into effect. Now they will have to pay only Rs. 500 (as against Rs. 5,000 earlier) as fee.

Transfer fee

On this issue, the amendment stated: "The purchaser having registered GPA or registered agreement for sale or registered sale deed as the case may be, in respect of such a plot or flat, may apply for membership by paying transfer fee of Rs. 500 and share money and admission fee as per the provisions of the by-laws of the society and the committee shall grant membership to the applicant within 30 days after the submission of his application. In case of refusal by the committee, the applicant may appeal to the Registrar of Cooperative Societies within 30 days and his decision shall be final."

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