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Jeevan Nagar Co-operative Housing Society Ltd. (REG.NO.BOM/HSG/812 OF 1964)

BLOCK NO.C-1/4,MITHAGAR ROAD,MULUND (E),MUMBAI 81 Ph. 25637463 E-Mail : jeevannagar@gmail.com

The Managing Committee pays its respectful homage to the memory of the following members who passed away for their heavenly abode during the period from the last AGM till date. May their souls rest in eternal peace.

1. Shri. Baliram Kadam B-2/4 2. Smt. Nirmala D. Tamhane A-9/9 3. Smt. Indira D. Shirwadkar C-2/9 4. Shri. Arvind P. Dhonde C-6/11-12 5. Shri. K.V.Radhakrishnan B-5/5 6. Shri. G.S.Goankar B-3/7 7. Shri. P.S.Nair B-3/1 8. Smt. P. Thangammal Ramalingam A-3/5 9. Smt. M.L. Raje A-10/5 10. Shri. D.B. Chhapwale B-9/1

While all the above members were very co-operative and responsive towards the calls of the society, Late Shri. P.S.Nair could be always remembered for the services he had rendered to the society in the capacity of the treasurer for some years. The Managing Committee is grateful to Late Shri. E.S. Barve, who passed away last year for his selfless services to the society in various capacities as the Secretary, Treasurer and President besides being the founder of the co-op. consumer stores activities in the society. We hereby convey our heart felt condolences to the bereaved families of the deceased members.

PART- I

MANAGING COMMITTEE’S REPORT: The MC takes pleasure in presenting the 46TH ANNUAL REPORT on the working of the society together with statements of Income and Expenditure and Balance Sheet for the year ending 31st March 2010. A copy of the statutory Auditors report and the statement of the Fixed Deposits held by the society with various Banks are also annexed to this report.

1. COMMITTEE MEETINGS: The MC met on 25 occasions. All the meetings were well attended. All decisions were taken unanimously after free and frank expression of opinions and views by the members of the committee. Besides the MC meetings, AGM of the society was held on 26th July 2009. Immediately after close of the financial year 2009-10 a Sp. General Body Meeting of the society was held on 17th April 2010. Independence Day and Republic Day were celebrated as usual and members and children attended the same in large numbers. After flag hoisting ceremony, following members of the society were felicitated with a Shawl and Shrifal on completing 75 year of age on or before Republic Day on 26th Jan 2010.

1. Shri S.S. Raghavan (A-4/2) 2. Smt. P.S. Rao (A-7/2) 3. Shri K.S. Phanse (B-3/2) 4. Shri S. Srinivasan (B-4/10) 5. Shri S.S. Khamkar (B-6/1)

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6. Smt. A. Braggs (B-9/4) 7. Shri A.D. Pednekar (B-9/5) 8. Shri M.D. Wadhavkar (C-1/10) 9. Shri S.S. Darne (C-4/6) 10. Smt. M.R. Sagar (C-5/12)

2. MEMBERSSHIP:

The following persons were admitted as members during the financial year 2009-10. 1. Shri. Sanjay R. Bhosale C-4/3 2. Shri. Vivek A. Joshi B-3/10 3. Smt. Aditi S. Naik C-7/9 4. Shri. C.K. Dharmarajan B-8/5 5. Shri. Deepak B. Kadam B-2/4 6. Shri Arvind P. Dhonde C-6/11 7. Shri M.A.Kandarkar C-3/6 8. Shri. Deepak R. Karnik C-3/10 9. Shri. Iyer Sheshadri Sundareswaran B-2/1 10. Smt. Rugmani Padmanabhan A-3/5

3. ACCOUNTS : A. The AGM held on 26-7-2009 appointed Mr. T. K. Parmeshwaran and Mr. M.

S. Phanse as the internal Auditors of the society to carry out internal audit for the year under report i.e. 2009-10. Ever sincere as they both are meticulously carried out the internal audit of the society on regular basis and submitted their report well in time. We are thankful to them both for their co-operation, guidance and suggestions which are duly taken note of. We expect and hope that they would continue their co-operation in the future as well.

B. Statutory Auditors M/s Ketan & Associates completed the Audit for the year 2009-10 and we thank them for the timely audit. The audited statements of accounts and Auditors Report are attached with this report. Our Society has been classified by the Auditors as falling under ‘A’ Class for the year 2009-10. Our Society has been maintaining Audit classification of ‘A’ Class continuously for several years.

4. RECOVERY OF DUES : The recovery of dues from the members during the year is satisfactory due to persistent follow up by the MC. The outstanding dues are 84,407/- as on 31-03-2010. The last year the outstanding dues were Rs. 1,28,089.00/-as on 31-03-2009. Barring following cases of arrears recovery, the position of recovery of society dues is satisfactory. a. Smt. M.D. Kulkarni [A-7/3] has since the last AGM repaid amount of Rs.

17,204/- out of Rs. 29,467. The balance amount of Rs. 12,263/- is to be received from her. She has given an undertaking to pay these arrears at the earliest.

b. Shri. P.G.Walavalkar [A-1/5] has since paid Rs.5,000/- out of the amount of

Rs. 15,000/- due from him. The amount due from him is towards the cost of repairs and painting of A-1 bldg. carried out by the resident members of the said building. Shri. Walawalkar claims that he had earlier paid certain amounts in respect of the repairs of his building and agreed to submit the accounts, receipts, vouchers etc. for verification. We expect to square up his accounts soon after receipt of the above documents from him.

Since Smt. Kulkarni and Shri Walawalkar have partly paid their arrears the proceedings U/sec. 101 of M.C.S. Act are not initiated.

c. Smt. Rukmini B. Warang a member holding and residing at flat no A-6/3, had outstanding maintenance dues of Rs.11,132/- as on 31.03.2010. However the said member has since paid full maintenance upto May 2010.

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d. The last AGM held on 26.07.2009 levied penalty of Rs.20000/- on Shri Bharat Gala (A-1/6) for breach of bye-law of the Society. However Shri Gala instead of paying the said amount sent a letter dt. 03.08.2009 through his Advocate. The Society sent a reply to the said letter. We wrote letters dt. 29.09.2009 and 14.12.2009 to Shri Gala requesting him to pay the said amount of Rs. 20000/- with interest @21% p.a. We have also sent him final notice dt. 29.06.2010 calling upon him to pay Rs. 20000/- with interest @21% p.a. w.e.f. 28.08.2009. However, Shri Bharat Gala failed to pay the same till date.

5. MAINTENANCE ACTIVITIES: a. The MC of the society is making all efforts to keep and maintain society

buildings and surrounding clean and tidy. The cleanliness drive for clearing the surrounding of the buildings, SW drains, roads is taken up before the start of the monsoon and after monsoon every year. So also water tanks-underground tanks and overhead tanks are thoroughly cleaned twice every year.

b. Side walls of SW drains wherever damaged were repaired during the year. c. Temporary waterproofing treatment by applying waterproofing chemicals to

the terraces of the buildings is given wherever necessary. The report of the treatment is satisfactory.

d. Debris lying in the society premises and garbage collected at some corners are removed periodically to keep the society clean and tidy. However in the course of Re-development of the society some inconvenience is likely to be caused to the members and they would certainly bear with us for such inconvenience.

6. LEAVE AND LICENSE CASES AND COLLECTION OF OCCUPANCY

CHARGES :

We have come across 28 cases of Leave and License in the society’s buildings. We had in our Annual Report for the year 2008-09 informed the members about our society filing S.L.P jointly with other CHS in the Hon’ble. Supreme Court through our Advocate Pramodkumar and Associates, Andheri praying for orders of Apex Court for collecting non-occupancy charges at 10% per month of the gross income earned by the Lessor members. The matter is pending before the Hon’ble. Supreme Court and we are awaiting for the outcome of the said petition. We are pursuing the matter with our advocates. Now since society has executed development agreement and granted power of attorney to the Developers for the redevelopment, M.C. is required to give peaceful vacant possession of buildings whenever called for by developers to enable them to carry out uninterrupted construction activities. The M.C. therefore hereby seeks the directives of the AGM with regard to the proposal at Sr. No. 4 of Part II (Proposals) of this report.

7. MATTERS PENDING BEFORE LOCAL AUTHORITIES :

i. The matters relating to strip of land under the road connecting society to Mithagar road are pending with two local authorities viz., the MCGM and the other in the Court of Supdt. Land Records MSD Bandra for change of tenure in Government record in respect of CTS No. 1084 (pt), area 127.00 Sq.Mtrs. We are pursuing the matter with respective authorities.

ii. Recovery of rent from MSEB: Thanks to the concerted efforts of member Shri.

Nathan (B-5/2) we could get rent arrears of Rs. 3000/- from MSEB towards rent of sub-station.

8. LAUNCHING OF WEBSITE :

The M.C. successfully launched the society’s website under address www.jeevannagar.com. The site was inaugurated by the chairman of the society in front of all members and residents of Jeevan Nagar on 06th March, 2010. Relevant information and latest circulars are uploaded on the website so that the members and their families residing outside society can avail of

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this facility and can have all the information of the society on their desktop. We are proud to say that we are one of the very few societies who have successfully launched their website and are running business online. We proudly mention that the web designing and maintenance thereof has been carried out by shri. Hemant Bandal, son of Shri. Prabhakar Bandal of B-1/11 at very nominal charges.

9. REDEVELOPMENT OF THE SOCIETY :

The members are well aware of the conscientious efforts that are being made by the MC with help of subcommittee to expedite the process of Redevelopment of the land and property of JNCHS Ltd. The members are kept informed of the developments that are taking place in respect of Redevelopment process by issue of various circulars, notices, display of plans, charts/maps from time to time to maintain transparency in the process. After approval of the layout plans and Building plans by the AGM held on 26-07-2009 the same were sent to the Developers M/s MIPL for submission to MCGM for approval. There after the Developers gave audio visual presentation to the members and their families of the society on 06th March, 2010. All the consultants appointed for the project and the Developers were felicitated by the society before the presentation. The members appreciated the presentation and the assurance the Developers have given for adoption of various measures they would take to reduce maintenance cost by implementation of environmentally safe and power saving equipments. There after the MC received drafts of Development Agreement [D.A.], Power of Attorney [POA], Individual tripartite Agreement [P.A.A] and consent cum Indemnity. The drafts were thoroughly scrutinized by subcommittee and members of the MC and well-studied and knowledgeable members of the society. We specially thank Mr. R.G. Deshpande [A-11/1], for his valuable comments and suggestions in this regards. The modified drafts of all documents were sent to the appointed advocates and the Developers and appointed Architects M/s Architectural Associates for their comments/ corrections. The draft of the D.A. as modified by the MC was duly circulated to the individual members of the society on 30-01-2010 for their observations, comments, suggestions etc. The MC also had many sittings with the Developers in respect of all drafts along with the Advocates and Architects. The suggestions/comments received from the members relating to modifications were discussed by the M.C. and the valuable suggestions in this regards were incorporated in the documents. Similarly, the Developers suggestions for modifications in the amenities were also considered and included required for betterment of project and practicability of implementation of few amenities in the approved list of amenities. The suggestions regarding the amenities were approved by our appointed Architect. The same were discussed in the Special G.M. held on 17.04.2010 and accepted by adopting resolution No. 5. The following drafts were also approved by the special G.M. held on 17.04.2010. a. Development Agreement b. Power of Attorney c. Tripartite Agreement for permanent alternate accommodation in new towers. d. Declaration cum Indemnity Thereafter the D.A. and P.O.A both were executed on 10th May 2010 and registered on 11th May 2010. Further the Bhoomi Poojan ceremony was performed on the auspicious day of Akshay Tritiya on 16th May 2010 on a very grand scale at the initiative, instance and cost of the Developers. We are thankful to them for organizing such a magnificent event with discipline. The Bhoomi Poojan was performed by Sow and Shri. V.S. Kambli [B-8/1] a senior member of the MC. Besides the residents of the colony, many dignitaries from various walks of life attended and graced the occasion. All these events have taken place very recently and need no further elaboration. The members residing in the colony are themselves witnesses to the preliminary works that are being carried out by the Developers after Bhoomi Poojan. The MC is also going in for the exercise of allotment of flats on seniority basis. For members covered under phase 1 construction, the date of allotment is fixed on 8th August 2010 while the members covered under phase-II, the allotment date is on 15th August

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2010. We shall be keeping members informed of the progress of construction of Tower ‘A’ which is expected to start before long. Nearly an year and half ago in the historic Sp. General Body Meeting held on 1/02/2009 with the record attendance of 230 members out of total 272, we took unanimous decision after following due process of requisite formalities - legal or otherwise to entrust the work of redevelopment of our society to M/s MIPL as the Developers. Not only the MC members but also all the fellow members then thought that the work of redevelopment would progress steadily without much difficulty. The MC and Developers in mutual co-operation started the compliances of the preliminary requirements, formalities prior to the start of the actual work. All the documents / undertakings / indemnity bonds required for redevelopment of our society have been duly signed and executed and registered wherever necessary by the office bearer/s. The M.C. has also been issuing various circulars, informative letters etc. to maintain transparency in the ongoing process of re-developments. However a section of people, of late on the pretext of seeking clarification have made their intensions clear with regards to the project. As if they are the sole protectors of the interest of the members of the JNCHS Ltd. a group led by neo activist’s and non members appears to be bent upon implementing their following four point agenda to scuttle the re-development project at any cost.

a. Stall redevelopment of the society b. Dismiss the existing M.C. by hook or crook c. Take charge of the management of the society d. To lay baseless corruption charges against M.C.

They tried to misguide the members by raising the following issues.

i) How can associate members become office bearer of society ii) The area of plot is 27000/- Sq. Meters iii) The deductible reservations and 15% recreational garden area can be

availed by paying premium. iv) The carpet area shown on the plan is super built-up area v) The Developers will not demolish existing building and is going to use

the existing building as a transit camp for their future projects. vi) The construction will not start till 2020. vii) Bearing capacity of soil is very weak so the 26 storied structures will

sink. viii) The M.C. members have not executed statutory M-20 bonds. ix) Mislead the people by quoting lines from the tender document with out

reading complete clause in that respect. x) New Guidelines issued by Govt. of Maharashtra, Co-Operative and

Textile Dept. (they call it as G.R.) on 03.01.2009 are not properly followed. Hence they insisted to restart the entire process of re-development.

To attain the above agenda, the leaders of the group tried all means starting from representations, individual letters, distribution of unsigned letters, leaflets , giving misleading unconfirmed data and information, submitting request for requisitioning meeting without obtaining requisite signatures of the members, and also abusing M.C. members and office bearers, taking out morcha with placards and finally running to the designated authorities’ viz. Deputy Registrar of Co-operative Societies, T-ward, Mulund with complaints and thereafter to the court proceedings. The M.C. received a letter Dt: 22/03/2010 From the Deputy Registrar of Co-operative Societies, T-ward, Mulund regarding a complaint filed by a non-member Shri Satish Prabhu (A-6/7). The Dy. Registrar rejected the said complaint vide his letter Dt: 06/04/2010., and upheld that the M.C. has followed the procedure correctly. The observations made by the Dy. Registrar, T ward in the case were displayed on the notice board for information of the members of the society.

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Thereafter, the society received summons from the Hon’ble Co. Op. Court II regarding the Dispute filed by 8 disputants. Hon’ble Co. Operative Court -II has rejected application for interim reliefs filed by disputants vide its order Dt: 21st June 2010, This was duly notified on the notice board for information of the members. Despite there being no stay on the re-development process these so called activists made false propaganda that they obtained stay on re-development. The Hon’ble Court had directed the society to maintain status –co of buildings. M.C. could not take up the monsoon repairs to the buildings ignoring the above directives of the Hon’ble Co-Operative Court although we were very eager to attend to the complaints regarding leakages received from the members. Immediately After 21st June, 2010, the M.C. started the pre monsoon repairs, which proves our intention. The M.C. has always been transparent in its working. The M.C. has furnished the documents required by the members on payment of requisite charges as per the provisions of the bye-laws of the society. Despite of this, we received threatening letter from Adv. Vidya Pradhan Manjarekar on behalf of Shri C.A. Jadhav. The M.C. however gave a proper reply to the same. It is a matter of great regret and concern that despite of requests from senior members to resolve the differences by sitting across the table, these activists did not even bother to respect word of senior members. The members of the society have even witnessed the rowdy and indiscipline behavior exhibited by a few members in the special general body meeting held on 17th April 2010. Such attitude on the part of these members has no parallel in the living memory of past 40 long glorious years of our society. This is therefore very much disturbing and deplorable. Not satisfied with the filling of false cases before Dy. Registrar ‘T’ ward and Hon’ble Co-Operative Court non-member leader of this group has also filed a private criminal case for defamation in the Magistrate court against Shri. Abhijit D. Sawant and MC of the society in the month of April 2010. U/sec 500 of IPC. The same was notified by this group in the month of June 2010 on their notice board. 10. Our watchman Shri. Amarsingh retired on 01.02.2010 and services of another watchman Shri Dhansing Thapa has been terminated on the ground of indiscipline. We have deployed three security staff w.e.f. 01.02.2010 of M/s. Global Protection Force, one security man during daytime and two security men at night. 11. We are happy to record that the activities of ‘Utsav Mandal’ are running smoothly and in complete harmony with the MC. As reported, earlier the activities of milk scheme ended with effect from 1st April 2009 for want of sufficient demand for milk from the members. However, the deposit lying with the Government milk scheme Authority, Kurla is yet to be received and accounts are to be finally settled. It is understood that the then in charge of the scheme is trying his best to settle the accounts with the concerned authorities. The activities of the Library Committee were also stopped to make available more office space to facilitate the work of the Redevelopment of the Society. The MC places on record its sincere thanks to the Local Municipal Councillor Shri. Prabhakar Shinde, Shri. Shishir Shinde [MLA], Shri. Sanjay Patil [MP] Municipal Authorities of T ward, Deputy Registrar of Co-operative Societies, T-ward, Mulund, Officials of Mumbai Dist. Co-operative Housing Federation, M/s Pradeep Deshmukh & Associates, Adv. S.M. Deshpande, Adv. Vilas Naik, Adv. Komal Kandharkar, Adv. V.S.Khurana, Shri M.S.Phanse and Shri. K.T.Parmeshwaran the internal auditors and M/s Ketan & Associates our statutory auditors. We also thank members of Sub Committee (Mr. Vinay Khaturia, Mr. R.M. Solanki, Mr. H. Mathaies, Mr. B.S. Dalvi and Mr. Sanjay Nawani) for their painstaking efforts while finalizing all drafts. We also thank Shri. P.K.V. Nathan & Mr. Vilas Solanki for their voluntary assistance in office work. We look forward to them for their continued help, guidance in future also.

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PART-II (Proposals)

1. Note on Ratification on legal Expenses. Some eight persons headed by Shri S.B. Mhatre (C-4/2) filed dispute in CC court vide No.CC-II/347/10 dt: 6th May 2010 and also filed application for interim relief on 7th May 2010, and the Hon’ble. Court issued show cause notice to the society which was received on the evening of 07th May, 2010. The matter was kept for hearing in the morning of 10th May, 2010. As it was unexpected, the managing committee decided to appoint best available counsel to defend the matter. Therefore after consultation with various Sr. advocates and our appointed Advocate M. C. decided to appoint Adv. Vilas Naik as Sr. Counsel for this purpose. As there was no time left, the M.C. worked day and night and prepared the entire required documents as per the guidance of advocates and submitted written statement before the court within stipulated time. Our Advocates well argued the case in the court with the result that the application for interim relief has been rejected by the court on 21.06.2010. The society had to incur Rs. 5,63,000/- to cover the expenses of this case, which includes Advocates fees, Xerox and conveyance. Therefore Managing committee proposes to recoup the said expenses by way of contribution of Rs. 2,100/- per member in lump sum or by way of monthly installments of Rs. 100/- p.m. for 21 Months. If this dispute continues, members may have also to contribute more for the same. 2. Approval of Modification in plan of Tower ‘B’ As advised by the special General Body meeting held on 17.04.2010 to allow change of typology of some members the M.C. had to approach the Developers and Architects to accede to the request of these members. The M.C. was well aware that this change of typology may lead to discomfort to few members and entire shifting program may be disturbed. However M.C. was compelled to follow the direction of special G. B. and allowed members to change the typology. The Developers were also good enough to accede to our request for such changes and agreed to convert their sale flats admeasuring 675 Sq.Fts. to 860 Sq. Fts, for our allocation in tower ‘B’. This process has brought down the double shifting of members from 21 to only 6. A detailed circular was issued on 23rd June 2010, to that effect. 3. Withdrawal of Sinking Fund : As we have started the redevelopment and as discussed earlier in General Body Meetings, the time has come now to start process of withdrawal of sinking fund so that there will not be additional burden on the existing members and the same could be exclusively utilized for existing members of the society. The M.C. has thoroughly discussed the issue with the appointed Learned Advocate who has guided the M.C. in the matter. The M.C. proposes to adopt requisite resolution to start the process. 4. Permission for Leave and License Agreements: In normal course the members are permitted to let-out/sub-let their flats by following the norms given in the bye-law of the society. We are now in the process of re-development and as such we are required to handover peaceful vacant possession of our flats to the developers whenever called for to facilitate construction work. The M.C. therefore proposes not to allow any fresh leave and license agreement here after, or renew the existing L/L agreements. The M.C. further proposes to take Indemnity from such existing lessor members that they would hand over vacant and peaceful possession of their flats immediately on the call of the society/ developers. Date: 16th July 2010. Hon. Secretary