The President informed the house that as per records of the Society the following members had passed away after the last Special General Body Meeting held on 25.10.2009:

Mr. Amarjit Singh Garewal, Mr. I.C. Jain, Mr. C.M. Baweja, Mr. S.P. Raheja, Mr. Sunil Luthra, Mr. M.M. Lal, Maj. Gen. (Dr.) H.B. Singh, Mrs. Saroj Aggarwal, Mr. Shiv Charan Gupta, Mrs. Prem Lata Abbey, Mrs. Krishna Kumari Ghai & Mr. Sarbjit Singh Mongia.

The President said that the Society appreciated their service to the Society and to pay homage to the departed souls he requested the members to please observe one minute’s silence and pray for the peace of the departed souls.

After observing one minute silence, the President welcomed the members to the AGM and thanked members for electing the new team and giving them a chance to serve the Society.

The President said that that after taking over charge the newly elected Managing Committee faced a lot of problems concerning the Club and colony, including security problem, garbage problem etc. and the Managing Committee is trying to solve them. The main problem was about finances. Some steps had been taken and the income from Food and Beverages has increased from 18 lacs in the month of October to 32 lacs in the month of December leading to an increase in profits. This was done without any increase in F&B rates. The revenue deficit is now a surplus.

There was an amount of Rs.7,23,140/- due from M/s Fucon Technology (GYM), Rs.2,01,880/- from Nirula’s Rs.3,51,265/- from Central Bank of India and Rs.36,228/- from Team Tennis due to Electricity charges. The committee initiated action in this regard and recovered the entire amount from GYM and Team Tennis. The Central Bank of India agreed in principle to deposit it immediately. Nirula’s has not yet deposited their contribution and we have disconnected their electrical supply, full. For other violation our legal advisor has issued them a termination notice

The amount of Fixed Deposits have increased from Rs.4 crores to Rs.6 crores and the FDRs converted to higher interest rates. As the functioning of accounts section is very poor the committee has taken steps to get concurrent & internal audit done by outside auditors. We have also installed the Tally Accounts Software as the present software is too old and not working properly.

For looking after and monitoring the day to day affairs of the Society a General Manager has been appointed.

We have also restarted Tombola and other Club activities and started family days on Saturdays. We have served free meals to members above 80 years and giving surprise gifts to them including their own framed photographs. To entertain our children we have arranged free rides including Horse & Camel rides, Magic Shows, Puzzles and games on every family day.

The Garden Bar functioning on the Ground Floor has been shifted to the Dining Room to provide the members drinks with meals. The ground floor bar has been converted to Garden Café and lunch is being served in the lawns with separate menu. The old Dining hall adjacent to the Main Bar has been repaired and is now available for parties. There is also a proposal for construction of a Banquet Hall to facilitate larger parties.

The Society has taken suitable measures for the development and beautification of the parks in the Colony, removal of malba, etc. A scheme for connectivity of North and South Blocks is under preparation by P.W.D. Regarding sports activities, the table tennis has been started and we hope to start Squash early.

The Society is also planning for development of Club Building and its premises in consultation with a group of senior Architects. The President also informed that the Committee is of the view that there should not be any differentiation between Plot Owner Members and Flat Owner members. It is proposed to equalize the Admission Fee and Monthly subscriptions of both.

The proposal for amendment of Bye-Laws of the Society has been completed by a group of Ex-Presidents and is before this General Body meeting for consideration. The President added that the minute of all meetings of the Society with the agenda is available in the Library and the members can collect copies of the same.

The President assured the house on behalf of the Managing Committee that the committee will regularize all things and will have a General Body meting by 31st March, 2001 with a proper programme of activities and Budget for the ensuing year and also complete the Audit for the year 2010-2011 in time.

The President then invited Hon’ble members for their comments and suggestions.

Lt. Gen. S.D. Gupta – Congratulated the President and the Managing Committee on taking over the management, and said that improvements are already visible in their short tenure. He said that he had gone through the audited statement of Account as well as the Auditors Report and urged the Managing Committee to quickly act on the suggestions made by the auditors in their report.

As regards the Bye-laws, Gen. Gupta suggested that, they require detailed examination; and, should therefore be circulated to all members. He pointed out that he had made the same suggestion in a previous AGM. After a reasonable lapse of time to enable comments/inputs and recommendations after proper study a Special General Body meeting be convened to adopt the same.

Gen. Gupta stated that the last General Body meeting had set up a Special Committee to go into various matters. The Committee had done commendable work in identifying some of the matters which needs to be addressed urgently. He warned the General Body to endorse the recommendations of the Special Committee, so that action is taken, or if already taken, is approved.

Gen. Gupta was of the opinion since the Nirula’s had stopped functioning, the Committee shall reclaim the room with them and, reconvert it to a Senior Citizen Lounge. Regarding the Gym being run by FUCON & SPA on almost a quarter of the Club premises, the report of the Special Committee is disturbing. The agreement entered into with them is without proper authorization. The Special Committee has recommended the revocation of the agreement and, advised entering into a proper authorized license agreement.

Gen. Gupta moved the following resolutions for the consideration of the house.

“It is hereby resolved to stop all cash transaction/payments in the Club. All bills should be raised by vouchers to be signed by the members concerned and billed to them in their monthly bills.”

Shri P.K. Khullar seconded both the resolutions.

Dr. Krishan Saigal commented that the Managing Committee was remiss in including the Audit Report in the agenda and asking for its adoption. This Audit Report needs to be rejected as it cannot be adopted being incomplete. Dr. Saigal drew the attention of members to page 23 of the Audit Report. He pointed out that the total reserves of the Club and the Society are Rs.11.44 crores. There are the reserves of the Society. Cash and Bank balances are 1.58 crores. F.D. Rs.3.5 crores so that the total sum in banks is Rs. 5 lacs. This leaves 6.5 crores out of which 2.66 crores are accounted for by accumulated losses. This leads a deficit of over 3 crores. The Audit Report does not show where this money has gone. Now the depreciated fixed assets are 3.68 crores, in 2007-08 they were Rs.94 lacs. That is an increase of about 2.7 crores. It means this money has been spent on capital account, when there was no capital budget. The point is that where the money was properly spent. The first thing is that there must be a technical audit and summarized audit report on how this money was spent. Before taking any decision the General Body should know where this money has gone, was it technically properly spent, was it accounted for, was it missing? This audit report and audited statement of accounts should not be adopted because it is incomplete. Dr. Saigal pointed out that in this connection his opinion is that this audit report should not be adopted and the Managing Committee must arrange a Special audit as well as a technical audit to find out the exact position of the finances of the Society.

He added that it is important to note that the money was spent from the Reserve of the Society. The law provided that no money from the Reserve can be used without specific approval of the General body. No approval was there. In addition the audit report has not separated that the law was not followed and that there has been breach of trust. This must be looked into and suitable action taken. This must be looked into and suitable action taken.

Finally, Dr. Krishan Saigal moved the following resolutions:-

“It is hereby resolved that:

He pointed out that in every organizations the revenue and capital budgets must be approved by the General Body and money only spent after that.

Finally Mr. Wadhwa was on the opinion that the audit report and audited statement of accounts in front this General Body meeting should rejected, corrected and only then adopted.

Mr. Rajiv Bhardwaj agreed with what the senior members had said before him and added that there should be no loss on revenue account. The Income and Expenditure reflects that the staff cost are too high. He suggested to control expenditures and to generate internal resources. Regarding Club membership he pointed out that the discrimination between Plot Owners and Flat Owners is not good since Flat Owners are also a part of the Society & they should be treated at par. How the Club is charging Rs.50,000/- from Flat Owners?

On the matter of amendment of Bye-Laws Mr. Rajiv is on the opinion that first the copies of the proposal should send to all members and a Special General Body Meeting for the consideration of that called after that.

Regarding the Special Committee report Mr. Rajiv pointed out that the Special Committee was constituted by the General Body meeting held on 25th October, 2009. The minutes of that A.G.M. was not made and was not approved in any General Body meeting. Therefore, there is no validity for such a Special Committee and its report. He added that the date of the report is 20th November, 2009 in fact the Club was sealed on that day.

The President intervened and informed that the duty of preparation of minutes was of the person who presided over the meeting. The then President had issued a letter to the members wherein he mentioned that the Special Committee was formed under my Chairmanship in the said General Body Meeting. If the minutes were not prepared by the then President, the then Secretary or the then Managing Committee., the present committee could not do anything in this regard. The point is that the adoption of the Special Committee report is a regular agenda. The Special Committee has considered all the matters earlier than the High Court order came. The Administrator was appointed on 8th December, 2009. The Special Committee has submitted only an interim report, in which we have stated that the sealing is to be removed, the administrator has to be appointed immediately.

As the committee had already been dismissed, it is unprecedented for a dismissed Committee to sign an order for sealing the Club, closing the school, shutting down the office, etc. This was illegal. The President added that he himself and Mrs. Leila Kabir were almost locked in and we had to seek Police help.

In an unprecedented situation like that this report as the Special Committee report was already there and the Special Committee gave me the authority to pursue the matter, we went various authorities like Registrar Co-operative Societies, Delhi Police, M.C.D., D.D.A., etc. and take every step to resume the work of Society and all its units. We have approached Delhi Chief Minister three times. Finally the Administrator was appointed and all the functions were resumed.

The President further added that The Capital Budget is before the General Body, and we are asking for its approval. If it is approved we will start spending for the development works. He added that the Managing Committee has approved certain programmes like development of Mother Dairy Park, link road from Club to August Kranti Marg, etc. But we have not released any money for that. We are not going ahead with any expenditure without the approval of the Capital Budget by the General Body.

Mr. Rajeev accepted the same. He further raised the following points:-
When and how the membership Fee was increased in known to General Meeting? The rates need to be reduced.

How and when it was decided to have different Membership Fee for Members, say old and new members?

The agenda on this matter needs to be changed and revised without proper background note. It is difficult to appreciate the proposal.

Staff should be sensitive to be more pro-active and innovative in generating internal resources. Otherwise their pay may be made variable rather than fixed.

Take immediate remedial action to remove all irregularities in respect of M/s Fucon Technologies, Nirula’s, Tennis Court and Vidya.

Mr. Anil Kumar Srivastava drew the attention of the house to the fact that there are some serious observations and findings in the Audit report and the audit report and statements of accounts are incomplete. We need to comply with it. The expenses incurring on staff is very high. There are various statutory obligations like Service Tax, VAT, Income Tax, etc. A clear cut evaluation is required. What is our status in VAT liabilities, Service Tax liabilities, sale tax liabilities, etc. ?

Regarding legal expenses Mr. Srivastava pointed out that there is a huge amount of money spent for legal expenses. What is the status of pending cases?

The President informed the house that we will use the corpus money from the capital account as it is thennot taxable. He added that we have received an order from the Income Tax department wherein they have imposed some penalty because the TDS and Income Tax have been deducted from some parties but the return was not filed on time. The President pointed out that there is a provision in the Act that this penalty amount should be recovered from those who are responsible. This Committee will not take any action on our own. The Managing Committee is competent to refer this matter to the Registrar Co-operative Societies as per section 70 of the Delhi Co-operative Societies Act. It is the duty of the Managing Committee for filing Arbitration case. We are constrained to do it and the committee will take every effort to take action to recover anything due from anybody due to the negligence of any of the previous Managing Committee.

At the time when the present Managing Committee took charge there was no General Manager, no manager or any responsible senior person, or a proper accounts department. The present committee appointed a General Manager and is looking for a Senior Accounts Officer. The Administrator had engaged M/s. Choksi and Co. to look after the accounts and we are continuing that.

The President further informed that keeping in mind the views of the General Body meeting the Audit report for the year 2009-2010 will not be adopted and a Technical and financial audit for the said year will be held and action taken against who ever is responsible for spending money without the approval of the General Body. And also he requested the house to help the Managing Committee to find out the sources of leakage and fix responsibility.

In the light of the Special Committee report the Society would revoke the agreement of the Gym unless they agree to revise it. The Special Committee report should be adopted because this committee was constituted according to a letter of the then President to 7 members as decided in the General Body meeting held on 25th October, 2009 and the committee has spent a lot of time for that. The report was considered by the Managing Committee and recommended for adoption by the General Body.

On behalf of the Managing Committee the President assured that there is no intention to close the Gym and the Gym will not be closed under any circumstances. The amount spent for the Gym is our Money. We had an erstwhile gym and which was disposed of for three Lac Rupees. If the Nirulas close, the Senior Citizens room will go back there.

We hope that we will make profit of Rs. One Crore in the next year in the Club. The committee will come in March with a detailed programme of activity. The President informed that the committee is of the opinion that as there is no parity between the Plot owners and Flat owners the Club membership fee of the Flat owners should be reduced to Rs. 5,000/- as for Plot owners.

The President informed that there are four agreements signed for four outsourcers; M/s. Team Tennis, Vidya integrated, Nirula’s and Fucon Technology. Out of which Two – M/s. Team Tennis and Vidya before the General Body while the others did not. The President added that in the agreement with Nirula’s Mr. Umesh Kapoor, Director of Nirula’s is the final umpire for any disputes and regarding Fucon Technology Mr. Bhupendra Singh Chauhan their legal advisor is the arbitrator. This is very unfair and seem to have been dare out to harm out interests. This clause has to go.

Mr. P.K. Khullar congratulated the present Managing Committee and he said that the General Body should approve the Budgets. He added that the Special Committee has recommended certain measures. The House should support it and they should be implemented.

Mr. Vijay Kanwar congratulated the present Managing Committee for the setting up of Bar in the Dining Room. He also suggested to give priority for improvement of the present Bar.

Brig. Vinod Kumar Khanna started with congratulating to the present Managing Committee for their excellent work. He suggested that the tenure of the committee should not be three years, it is a long time a rotation of one third should be done.

He complained that there are a lot of illegal parking in the colony in front of Max, Banks, etc. A lot of construction materials are lying on the roads. People are washing cars on the road. He further suggested implementing a new Dress Code.

The President replied that the tenure of the Managing Committee for three years is as per the provisions of Delhi Co-operative Societies Act & Rule. Regarding other complaints, the Managing Committee will take it seriously and address them immediately.

Dr. Naveen Kalra complemented the Managing Committee. He complained that the Parking area is very bad. The filtration plant of the Swimming pool is not in good condition. The New Year programme conducted in the Club was very shabby and he was not happy with that. He further suggested to extend the timing of the Swimming Pool upto 9.30 P.M. Dress code should be implemented for both ladies and gents. Mobile phones should not be allowed in the Bar.

Maj. Gen. Inderjeet Singh Kahai pointed out that there are a lot of venders wandering in the colony which will affect security problems. Gen. Kahai further enquired that during the tenure of the administrator he has enrolled several Honorary members. What is their position now?

He added that there is a lot of problem in the timing of N-15 gate, the Panchshila park residents need to go through Shahpurjat.

The President replied that now there is no Honorary Members in the Club. Regarding the N-15 gate and other things the Managing Committee will try to solve it within two months.

Mrs. Malati Goyal, Mr. Rohit Handa, Mrs. Aradhna Vikram Singh, Dr. Randhawa, Col. P.C. Puri, Mrs. Reena Shah , Shri A. Tandon, etc. are also actively participated in discussions actively.

Finally, the house approved and adopted the following resolutions.

Agenda Item No. 1. To consider and adopt the Audit Report and Audited Statement of Accounts for the year ended 31st March, 2010 audited by the statutory Auditors appointed by the Registrar Co-operative Societies.

RESOLUTION No.1

“The General Body resolved that:
the audited accounts for the year 2009-2010 are not adopted as they are incomplete.
A special audit, both technical and financial should be held for the years 2008-2009 and 2009-2010 to identify sources of loss/leakage, if any, and help in fixing responsibility.
Appropriate action be taken for using reserve funds without approval of the General Body.”
The resolution was moved by Dr. Krishan Saigal and seconded by Mr. P.K. Khullar. It was unanimously adopted.

Agenda Item No. 2. To consider and approve the Budget for the year 2010-2011.

Mr. Rohit Handa proposed to adopt & approve the Revenue Budget as well as the Capital Budgets and Mr. Vijay Kanwar seconded the same. The General Body resolved as under:

RESOLUTION No.2.

“The General Body unanimously resolved to adopt and approve the Revenue Budget already circulated with the agenda notice”.

The Capital Budget was put to vote and there were only four members against the proposal and the others for it. So it was declared passed.

Agenda Item No. 3. To approve the Report of the Special Committee.

RESOLUTION No. 3.

“The General Body unanimously approved the Report of the Special Committee”.

Agenda Item No. 4. To consider the report of the Special Group for amendment of Bye-Laws of the Society and of the Club.

RESOLUTION No. 4.

“ As desired by the General Body the meeting resolved to adjourn the item and the meeting decided to circulate it to all members within 60 days. The meeting further resolved that in addition to the existing Special Group for amendment of Bye-Laws the following members are also included:
1. Col. Suresh Chand, Vice-President
2. Brigadior Vinod Chand Khanna
3. Maj. Gen. Inderjeet Singh Kahai
4. Mr. Rajeev Bhardwaj

Agenda Item No. 5. To consider the proposal of the Managing Committee regarding revision of the Club Membership fee including increase of monthly charges and Subscription Charges, etc.

RESOLUTION No.5

“The General Body resolved to approve the proposal of the Managing Committee regarding revision of the Club Membership fee including increase of monthly charges and Subscription Charges, etc. as circulated in the meeting which is reproduced as under:

“It is hereby resolved to stop all cash transaction/payments in the Club. All bills should be raised by vouchers to be signed by the members concerned and billed to them in their monthly bills.”

It was unanimously adopted.

The President expressed his thanks to all the members present and the meeting ended with a vote of thanks to the Chair.

Omesh Saigal
President