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Amended Rule 36 on Expulsion

Rule 36 regarding Expulsion of Membership vide Govt. Notification No. 66IPolicyIRCSI97-9811861 dt. 6.8.97 has been amended as under:

“The Society have to follow the procedure as laid down in the Rule 36. Instead of General Body Meeting, the Managing Committee has been authorised to deal with expulsion.”

(i) In the principal Rules, in 36, for sub rule (I), the following shall be substituted namely:

“(1) Notwithstanding anything contained in the bye-laws, any member who has been persistently defaulting in payment of his dues or the payment of claims made by a housing society for raising funds to fulfil its objects, has been failing to comply with the provisions of the bye-laws regarding sales of his produce through the society or, other matter in connection with his dealings with the society or who, in the opinion of the committee, has brought disrepute to the society or he has done other acts detrimental to the interest or proper working of the society, the society may by a resolution passed by a majority of not less than three fourths of the members entitled to vote who are present at a meeting of the committee held for the purpose, expel a member from the society:

Provided that prior to placing the matter before the meeting of the committee, the member concerned shall be served with three registered notices in this regard and in case of member of a housing society, also a public notice in a leading newspaper regarding the proposed expulsion shall be given fifteen days prior to holding of the committee’s meeting:

Provided further that no resolution shall be valid, unless the member concerned has been given an opportunity of representing his case in the committee of the society.(ii) sub-rule (2) shall be committed.

Insertion of new rule 36A.
In the principal Rules, after rule 36, the following rule shall be inserted, namely:­“36A. Penalty for belated payment or equalisation charges for new membership on enrollment at the advanced stage of construction, and payment of interest to a member who has resigned his membership in a group housing cooperative society:- 

(1) In case of default in payment of demand in cooperative group housing society by the members; equalisation charges on enrollment as a member against vacancy and payment of interest on resignation by member, the maximum rate of interest charges shall be as under, which shall be approved by a resolution of the general body of the society:

a)  For default of payment of installment upto six months - @ 12% per annum.

b) For default of payment of installment upto one year - @ 15% per annum.

c) For default of payment of installment for one than one year - @ 18% per annum.

d) Equalisation charges I interest to be charged from the member enrolled at the advance stage of construction -@ 24% per annum.

e) Interest to be paid by a group housing society to a resigned/expelled member on the amount deposited after deducting the administrative expenditure incurred by the society @ 7% per annum.

(2) The Registrar shall be competent to review the above rates periodically.

Last Updated Date :- 20-06-2018

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  • Page last updated on: 08-08-2022