Cooperative Housing Society Compliance Under MCS Act, 1960 & Model Bylaws

Managing a Cooperative Housing Society (CHS) in Maharashtra requires adherence to several legal and regulatory compliances as per the Maharashtra Cooperative Societies (MCS) Act, 1960 and Model Bylaws. These regulations ensure transparency, accountability, and efficient governance of housing societies. Below is a detailed guide to key CHS compliance activities and their respective deadlines.

Finalization of Accounts (15th May)
- Societies must finalize their annual accounts by 15th May every year.
- This ensures accurate financial reporting before the audit process begins.
- Relevant Law: Bye-Law No. 146(a), MCS Rule 61.
Document Inspection for Members (16th – 31st May)
- All financial documents must be made available for members' inspection.
- This promotes transparency and allows members to review the society’s financial health.
- Relevant Law: MCS Rule 61.
Submission of Accounts for Audit (1st June)
- The society’s accounts must be handed over to an auditor by 1st June.
- Appointing a certified auditor is mandatory under MCS laws.
- Relevant Law: MCS Rule 61.
Audit Report Upload Before AGM Notice (31st Aug or 15th Sept)
- The audit report must be uploaded before issuing the Annual General Meeting (AGM) notice.
- The audit ensures financial accountability and compliance with statutory obligations.
- Relevant Law: Section 81 of MCS Act.
Audit Report Upload Before AGM Notice (31st Aug or 15th Sept)
- The AGM must be conducted on or before 30th September every year.
- No extension is permitted, even by the Registrar.
- During the AGM, members discuss financial reports, budgets, maintenance charges, and other key matters.
- Relevant Law: Section 75 of MCS Act, Bye-Law No. 94.
Mandatory Annual Returns Filing (30th September)
- Societies must file their annual returns with the Registrar by 30th September.
- This filing is necessary to maintain the society’s legal status.
- Relevant Law: Section 79(1A), Bye-Law No. 146(b).
Appointment of Auditor (31st October)
- Societies must submit a mandatory return regarding the appointment of an auditor within one month of the AGM.
- This ensures that the auditing process is conducted by a certified professional.
- Relevant Law: Section 81 & Section 79(1B) of MCS Act.
Income Tax Return Filing (31st October)
- Societies must file their Income Tax Return (ITR) by 31st October under the Income-tax Act, 1961.
- Failure to comply may result in penalties and legal actions.
- Relevant Law: Income-tax Act, 1961.
Online Audit Order Generation by Auditor (31st October)
- The appointed auditor must generate the audit order online within the deadline.
- This ensures digital record-keeping and prevents fraudulent activities.
- Relevant Law:
Audit Rectification Report Submission (1st Nov – 31st Jan)
- If any discrepancies are found in the audit, societies must submit an audit rectification report within 3 months of the audit report submission.
- The auditor is responsible for uploading the rectification report through auditor logins.
- Relevant Law: Section 82 of MCS Act.

Importance of Compliance for Housing Societies

Failure to adhere to these deadlines and legal provisions can result in penalties, legal disputes, and restrictions on society operations. Proper compliance ensures:

Smooth functioning of the society.
Financial transparency and accountability.
Legal protection for office bearers and members.
Eligibility for redevelopment and government schemes.

Summery

Cooperative Housing Societies play a crucial role in urban living, and their governance must align with the MCS Act, 1960, and Model Bylaws. Timely compliance with financial audits, AGM proceedings, tax filings, and regulatory submissions ensures smooth operations and legal security for societies and their members.

For any assistance regarding CHS compliance, societies can seek legal and professional guidance to ensure adherence to all statutory obligations.

Contact CsLawship.in & Helpdesk #: 6390901500