When you are a managing committee member of a housing society, you often face the worry of dealing with irrecoverable dues. These include any loans and interests, charges due from housing society members, funds spent in recovery of those dues, accumulated losses and so on. Some housing societies create a bad debt fund for the purpose of covering the amount proposed to be written off. These have to be mentioned when auditing the housing society accounting.
Model Society Bye – Laws 148 and 149 throw light on this. They are as follows:
Society Bye – Law No. 148
Subject to the bye-law no. 149, the Society may write off Housing Society’s charges due from the Members, the expenses incurred on recovery thereof and the accumulated losses, which are certified as irrecoverable by the Statutory Auditor, appointed under section 81 of the Act.
Society Bye – Law No. 149
The amounts mentioned in the bye-law no. 148 shall not be written off unless:
- The meeting of the General Body of the Society has given due sanction for writing off the amounts;
- The approval of the financing agency to the writing off of the amounts, if the Society is indebted to it.
- The approval of the Registering Authority is obtained. Provided that, if the Society is affiliated to the District Central Cooperative Bank or any other financing agency but is not indebted to it the permission of the Bank or the financing agency is not necessary, Provided further that, if the Society is classified as A or B at the last Audit, no such permission of the Bank or the financing agency or the Registering Authority is necessary, if there is sufficient balance in the Bad Debt Fund, specially created
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