Pune News: Palace Orchards Society Management Committee Disqualified for Financial Misconduct and Fraudulent Activities

On April 5, 2024, the Deputy Registrar further disqualified the chairman, secretary, and treasurer under Section 154 b/8 (2) & (23) for not providing financial information to society members for nearly two years, despite a quasi-judicial magistrate’s order. The committee was given time to submit required documents but failed to do so, leading to the Deputy Registrar’s decision being upheld. An appeal made to the Joint Registrar at Sakhar Sankul in September

 2024 was also rejected, confirming the disqualification for five years.

The charges against the committee included manipulation of members’ rights to information, falsified monthly proceedings, and installing illegally refurbished lifts without proper approvals. Additionally, a committee member residing abroad allegedly forged signatures for attendance. Financial discrepancies, including skipping the audit of three out of six society accounts, wavering dues illegally, and concealing a lift accident to cover up the use of substandard materials, were also highlighted. Arrogance and a dismissive attitude towards member concerns were cited as reasons for their actions, along with threats of “Dadagiri.”

Prajakta Pethkar and Shalini Noronha two of the many complainants said that our team ensured they submit each and every record/every proof of the committees violations (as found by the Investigation officer Ashutosh Pardesi in his report of sec 89) to the joint registrar through their advocate ensuring/leaving no stone is kept unturned so that justice is served well and truth prevails without a second thought. Even though when submitting the proof was the applicants responsibility. 

The chairperson, secretary, and treasurer were earlier charged in October 2023 for violating the National Honour Code after a tricolour was found discarded in the society office, leading to a six-year disqualification.

The investigation was conducted by Officer Ashutosh Pardeshi, whose findings were crucial in securing the committee’s disqualification. The case, initiated by society members including Prajakta Pethkar, Shalini Noronha, and M Y Pathan, was pursued with the support of over 200 members. Lawyer Arvind Thite, representing the complainants, commended the investigation team and authorities for their diligent efforts.

The complainants now plan to form a cooperative council to help other societies facing similar issues with their management committees, sharing lessons learned from their case. The disqualification marks a significant legal precedent, being the first case in Maharashtra where an entire society committee was disqualified under Section 78 after a High Court judgment.

The disqualified members are banned from holding any position in the society’s management for the next five years, effective from March 13, 2024.