Vyalikaval HBCS 'faulted' on allotment of apartments to firms

Vyalikaval HBCS 'faulted' on allotment of apartments to firms

The Vyalikaval House Building Co-operative Society, it is understood, has allotted apartment and sites, in violation of its bye-laws, to firms and institutions by admitting them as members.

It has come to light that the Society allotted a three bedroom apartment (No A-404) to Akhuratha Land Developers Private Limited, Goa and A-0704 in favour of Dibrugarh Physiotherapy Clinic Private Limited, Dibrugarh, Assam. Similarly, Tuscan Consultants Private Limited was allotted a four-bedroom apartment (No B-003).

Allotments to firms and companies is in violation of Sections 6, 10 (c) and 20 of the bye-law. While Section 6 allows only individual who has completed 18 years of age as members, Section 20 prescribes that a firm can be admitted only as a nominal member and such members are not eligible for allotment of sites/apartments.

Also, nominal memberships are restricted to persons with whom the society has financial transactions — contractors or any agent who has any interest in the business of the society.
Incidentally, the first two companies, are not in the territorial jurisdiction of the Society and are not eligible for membership and allotment, as it violates Section 3, which defines the area of operation of the Society and Section 10 (c) which insists on domicile in Karnataka for at least 10 years.

Orders soon

The inquiry into alleged violations by the Vyalikaval HBCS has reached a decisive stage. Bheemsen Bankad, Joint Registrar of Co-operative Societies, Bangalore Division, said: “The inquiry under Section 64 is complete and a report under Section 65 will be completed and an order under Section 68 will be made in the next 15-20 days.”