TT-CHS-AC-FinanceMismanagement

Petition/grievance Against Current Admin Committee of Tinsel Town CHS Members and mismanagement of finances

Ensuring control over expenditure should be the first priority of any CHS committee, while also fulfilling the basic requirements.

Based on the latest expense sheet shared by the TTCHS committee and the maintenance ask for FY 23-24, it is evident that this team have failed in basics as the expenses have almost doubled.

We would like to bring the following points to your attention to help understand why signing this petition is imp:

1. The Annual General Meeting (AGM) for the fiscal year 2023-2024 did not take place, preventing the discussion and voting on the budget. During a previous Special General Meeting (SGM), members referred committee to section 95E of the bylaws, which clearly states that the annual monetary budget should only be communicated through the AGM, and voting must be held for considering the maintenance charges. Most imp annual budget for the fiscal year 2023-2024 was not approved through a proper voting process. Therefore, we expect the current maintenance ask to be nullified, and we demand a formal Annual General Meeting (AGM) or a detailed meeting with voting to take place.

2. In general the vendors services has tremendously degraded , eg, housekeeping, STP, Water quality, The current committee has consistently ignored concerns regarding vendors and their poor services, despite raising the maintenance fees to double than avg of last 2 year eg below

3. Looking at previous years stats, The maintenance ask for FY 21 was 3400, and with that budget, FY 22 was smoothly run for an additional 8 months, requiring only 800 per month to cover the entire FY 22. This means that the two-year PM cost was 4200, which equates to just 2100 per month in a single FY.

4. The owners have not been provided with an account statement or a breakdown of monthly expenditures to review, to make us understand why expenses have been shooted this much, despite multiple requests (as per By-Law 96.ii).

5. The monthly expenditures of the past six months have not been transparently shared with the owners, and crucial information seems to be concealed in order to hide the reasons contributing to the high maintenance costs discussed during the SGM.

6. If the maintenance amount can be deducted from the funds of owners in the E wing for 8 months, there is no reason why the same cannot be done for owners in the ABCD wing. Especially considering the remaining credit note of 30-40 lakhs from the previous fiscal year, the current PM ask can be reduced by 500 Rs per flat.

7. The monthly billing for April and May 2023 has already been settled with the vendors using the maintenance funds from the previous year. It is suggested that a rebate of approximately two months be given to all owners, including the tentative billing for May /June 2023.

8. Water consumption and billing have drastically increased without any legitimate control from the committee, we see daily complaints from residents about wastage of water resulting increase in charges and in turn shooted expenses

9. Electricity: No proper measure about saving electricity, most of residents complains about clubhouse ACs and common area light misused and being not controlled resulting in wastage and overs-hooted bills also The committee has defaulted in the payment of the society's electricity bills, resulting in penalty charges of close to 3 lakhs in the last 6-8 months.

10. The housekeeping vendor services are the worst till date, despite being the costliest vendor (approximately 2.2 lakhs per month) compared to the previous vendor (approximately 1.2 lakhs per month).

11. The charges for the garden vendor have increased significantly from around 13-18K per month to 48K per month, without any noticeable improvement in services.

14. Regarding the presence of bouncers and the security vendor, it would be greatly appreciated if we could receive a proper justification for their necessity in a society of approximately 600 flats. Additionally, we kindly request that you consider the financial aspect, as their presence appears to consume a significant portion of the security vendor payment.

12. With regard to the allocation of costs for CCTV, we would like to bring to your attention that this expense should ideally fall under the responsibility of the builder rather than the maintenance fund. Even in urgent cases, it would suffice to install CCTV cameras only at the lifts and entrances.

13. Despite multiple requests, we have never received the account statement that should be shared with the residents. We kindly request that you promptly provide us with the requested information for better transparency

14. It is our belief that the expenses for FY 21-22 should have been compared with previous statistics and aligned with a reasonable increase of 10-20% for the planned expenses in FY 23. However, the current request for an increase seems disproportionately high at 200%. We kindly request a reassessment of the expenses to ensure they are aligned with past trends.

15. As per the By-laws, it has come to our attention that no separate account has been maintained for the sinking fund. We kindly request that the necessary measures be taken to rectify this situation in accordance with the established guidelines.

16. We have noticed that the maintenance fees for Sink fund from E building have been deducted from maintainance payment of two years, whereas the sinking fund deductions for ABCD have not been made from our collection and savings from previous years. We kindly request that this inconsistency be addressed and the necessary adjustments be made.

17. It has come to our attention that the contributions from defaulters of the sinking fund have been adjusted against the collection received from residents who have paid on time. We kindly request that you review this practice and ensure that the contributions from defaulters are appropriately addressed without impacting those who fulfill their payment obligations.

18. We have observed that there is an excess balance of more than 80L from previous years, and the rebate for the corpus has not been accounted for when calculating the total annual/monthly expenses. It would be ideal to consider the interest earned on the corpus as a rebate or adjust it towards new expenses, thereby reducing the burden of PM Maintenance charges on the payers. We kindly request that you take this into consideration during the calculation of expenses.

19. Despite the members' formal request for reconsideration of the annual budget and the submission of a written application, we have not received any convincing and satisfactory response so far which justify such hike in expenses and relevant maintenance ask.

20. There have been none internal meetings to address the day-to-day concerns of the residents in the past six months, such as STP/WTP housekeeping cleanup, security, etc. These concerns have been consistently ignored.

With that we all owners of tinsel town want current maintenance date of 15 June 23 to be pushed for a month so that these can be discussed and worked upon.

Tinsel Town Flat Owners    Contact the author of the petition