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1

CO-OPERATION, MARKETING AND TEXTILES

DEPARTMENT

Mantralaya, Madam Cama Marg, Hutatma Rajguru Chowk,

Mumbai 400 032, dated the 28th October 2020.

MAHARASHTRA ORDINANCE No. XVII OF 2020.

AN ORDINANCE

further to amend the Maharashtra Co-operative Societies Act, 1960.

WHEREAS both Houses of the State Legislature are not in session;

AND WHEREAS the Governor of Maharashtra is satisfied that

circumstances exist which render it necessary for him to take immediate

action further to amend the Maharashtra Co-operative Societies Act, 1960,

for the purposes hereinafter appearing;

Mah.

XXIV of

1961.

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(1)

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In pursuance of clause (3) of article 348 of the Constitution of India, the following translation

in English of the Maharashtra Co-operative Societies (Second Amendment) Ordinance, 2020 (Mah.

Ord. XVII of 2020), is hereby published under the authority of the Governor.

By order and in the name of the Governor of Maharashtra,

BHUPENDRA M. GURAO,

I/c. Secretary (Legislation) to Government,

Law and Judiciary Department.

[Translation in English of the Maharashtra Co-operative Societies (Second Amendment)

Ordinance, 2020 (Mah. Ord. XVII of 2020), published under the authority of the Government].

————————

RNI No. MAHENG /2009/35528

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NOW, THEREFORE, in exercise of the powers conferred by clause (1)

of article 213 of the Constitution of India, the Governor of Maharashtra is

hereby pleased to promulgate the following Ordinance, namely :—

1.

(1) This Ordinance may be called the Maharashtra Co-operative

Societies (Second Amendment) Ordinance, 2020.

(2) It shall come into force at once.

2.

In section 27 of the Maharashtra Co-operative Societies Act, 1960

(hereinafter referred to as “the principal Act”), to sub-section (1A), the

following proviso shall be added, namely :—

“Provided that, the provisions of this sub-section shall not the

applicable,—

(a) in respect of elections of societies to be conducted on or

before the 31st March 2021 ; and

(b) where voters list for conducting the elections has been

finalized prior to the commencement of the Maharashtra

Co-operative Societies (Second Amendment) Ordinance, 2020.”.

3.

In section 75 of the principal Act, in sub-section (1),—

(a) before the existing proviso the following proviso shall be added,

namely :—

“Provided that, for the financial year 2019-2020, the society may

get its books of accounts audited within nine months from the close

of its financial year and call the annual general body meeting within

twelve months from the close of its financial year.”;

(b) in the existing proviso, for the words “Provided that,” the words

“Provided further that,” shall be substituted.

4.

In section 81 of the principal Act, in sub-section (1), in clause (a),

after the third proviso, the following proviso shall be added, namely :—

“Provided also that, for the financial year 2019-2020, the society shall

cause its audit to be completed within a period of nine months from the

close of the financial year 2019-2020.”.

5.

In section 154B-19 of the principal Act, to sub-section (3), the

following proviso shall be added, namely :—

“Provided that, if the election to the Committee of the society could

not be held for the reason not attributable to the members of the

Committee of such society, the existing members of the Committee shall

be deemed to have been continued till the new Committee is duly

constituted.”.

Short title

and

commencement.

Amendment

of section 27

of Mah. XXIV

of 1961.

Amendment of

section 75 of

Mah. XXIV of

1961.

Amendment of

section 81 of

Mah. XXIV of

1961.

Mah.

XXIV of

1961.

Mah. Ord.

XVII of

2020.

Amendment of

section 154B-19

of Mah. XXIV

of 1961.

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3

STATEMENT

Due to the outbreak of pandemic Covid-19, social and economic activities

have suffered a setback since 24th March 2020, in the light of the declaration

of lockdown in the Country. Due to lockdown, functioning of the co-operative

societies in the State have also been adversely affected.

As per the provisions of the Maharashtra Co-operative Societies Act, 1960

and the rules framed thereunder, the societies are required to undertake

their election, annual general meeting and audit within the stipulated period.

However, due to the outbreak of Covid-19 pandemic, it is not possible to

conduct such elections, annual general meeting and the audit of the society

within the stipulated period. It is therefore considered expedient to amend

the said Act suitably.

2.

The salient features of the amendments are as under :—

(i) Amendment of section 27.—The said section 27 provides for voting

powers of members. Sub-section (1A) thereof provides that a member

who is not an active member shall not be entitled to vote. In order to be

an active member, the member of the society should participate in the

affairs of the society and should avail minimum services of the society

as specified in the bye-laws of the society.

Generally speaking, a member who attends one annual general

meeting and who has availed the minimum services of the society can

be said to be an active member of such society.

It is noticed that, in view of the pandemic Covid-19, the societies

may not be able to conduct the annual general meeting within six months

of the close of financial year and consequently, member may not continue

to be an active member.

In view of this, to enable member to be an active member and be

eligible to cast his vote in the election of the society, for the year 2020-

21, it is considered expedient to amend sub-section (1A) of section 27,

suitably.

(ii) Amendment of section 75.—Section 75 of the Act provides for

annual general meeting of the society. Sub-section (1) thereof provides

that every society shall within a period of four months after the close of

the financial year, get its books of accounts audited and within six months

after the close of the financial year, call the annual general meeting of

its members.

In view of the pandemic Covid -19, it is considered expedient to

amend the said section to provide that for the financial year 2019 - 2020,

the society may get its books of accounts audited within nine months

from the close of its financial year and call the annual general meeting

within twelve months from the close of the financial year.

(iii) Amendment of section 81.—Section 81 provides for audit of

society. Clause (a) of sub-section (1) thereof requires the society to

complete its audit within four months of the close of the financial year.

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4

However, due to pandemic Covid-19, the societies could not be able

to complete its audit within the stipulated period.

It is, therefore, considered expedient to amend the said section, by

providing for extended period for the conduct of the audit of society for

the financial year 2019-2020.

(iv) Amendment of section 154B-19.—Section 154B-19 provides for

constitution of committee of a co-operative housing society. Sub-section (3)

thereof provides that the term of office of the elected members of the

Committee and its office bearers shall be five years from the date of first

meeting of newly constituted Committee and the term of office bearers

of the society shall be co-terminus with the term of the Committee.

In the light of pandemic Covid-19, section 73AAA of the Act has

been amended by the Maharashtra Co-operative Societies (Amendment)

Ordinance, 2020 (Mah. Ord. XII of 2020) providing that, where the

elections to the existing society cannot be held for any reason not

attributable to the members of such Committee, the existing members

of the Committee shall be deemed to have continued till new Committee

is duly constituted.

It is considered expedient to make similar provisions in respect of

co-operative housing societies also.

3.

As both Houses of the State Legislature are not in session and the

Governor of Maharashtra is satisfied that circumstances exist which render

it necessary for him to take immediate action further to amend the

Maharashtra Co-operative Societies Act, 1960 (Mah. XXIV of 1961), for the

purposes aforesaid, this Ordinance is promulgated.

Mumbai,

BHAGAT SINGH KOSHYARI,

Dated the 27th October 2020.

Governor of Maharashtra.

By order and in the name of the Governor of Maharashtra,

ABHA SHUKLA,

Principal Secretary to Government.

ON BEHALF OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATION, PRINTED AND PUBLISHED BY DIRECTOR, RUPENDRA DINESH MORE, PRINTED AT

GOVERNMENT CENTRAL PRESS, 21-A, NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004 AND PUBLISHED AT DIRECTORATE OF GOVERNMENT

PRINTING, STATIONERY AND PUBLICATIONS, 21-A, NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004. EDITOR : DIRECTOR, RUPENDRA DINESH MORE.