BMACBS

The Bheemunipatnam Mutually Aided Co-operative Building Society Ltd., 2443

Society Evolution

THE SOCIETY EVOLUTION

GENESIS

Bheemunipatnam, a small coastal town known for its scenic beauty with the sea on the East and partially on the South, hills on the West and river Gostani on the North is the first Municipality of the State of Andhra Pradesh and the second Municipality of India, next to Surat in Gujarat. It was the ancient sea outlet for trade with abroad particularly for the forest products from the agency areas of Orissa, Madhya Pradesh and North Coastal districts of Andhra Pradesh.

1.2. After 1936 when the sea outlet was shifted to the natural Port at Visakhapatnam, a place 30 kms south of Bheemunipatnam and since the nationalrail route does not pass through this town, the importance of the town starteddeteriorating and the commercial activity moved out of the town. By 1970, thus,the Municipality was in doledrums with the decline in population.

1.3. At this point of time, some senior citizens and leading persons of the town pondering over this situation of the town decided to approach the AndhraPradesh Government to provide land to develop a small township in the vicinity of Bheemunipatnam to provide an impetus to the measures to improve its economyand ease the housing pressure on the city of  Visakhapatnam, a fast growing urban complex, then. To implement this idea of theirs, these leaders under the aegis of Shri. Kota Appalanarasaiah, a retired District and Sessions Judge, decided to form aco-operative building Society and register it under the Andhra Pradesh Co-operativeSocieties Act 1964.

Thus, the initiators and founder members are as under:
Shri. Kota Appala Narasayya
Shri. D.V.S.N. Gajapati Raju
Shri. L. Appalanarasayya
Dr. D.N. Rao
Shri. G. V. Mahayana

2. FORMATION:

On 29th May, 1970, the Bheemunipatnam Co-operative Building Society (BCBS) was registered as a Co-operative Society with registration No. B. 1435 dated 29-5-1970 and Bye-Laws under the Andhra Pradesh Co-operative Societies Act (APCS)1964. Thus, the first Managing committee was formed with effect from 14-09-1970 with a President, Vice-President and five Directors as under.

 1. Shri. K. Appalanarasayya           :  President
 2. Shri. D.V.S.N. Gajapathi Raju      :  Vice-President
 3. Shri. Poosarla Venkata Rao         :  Director
 4. Shri. M. Vasudeva Rao              :  Director
 5. Shri. K. Saradhi Naidu             :  Director
 6. Shri. V.B.V.S. Nageswara Rao       :  Director
 7. Dr. D. Janardhana Rao              :  Director

2.2. Its tenure was upto 13-07-1973. However, it continued till 26-09-1974. During its period, the committee decided to apply for land for development of a layout and allot the plots to its members. Accordingly, it invited applications for membership of the Society and fixed Rs 10/- as the share value and admission fee (non-refundable) as Rs. 0.50 per share. Accordingly, invited applications for allotment of land in the vicinity of Bheemunipatnam and applied for 400 Acres landon 02-07-1970. It admitted 1706 members and permitted withdrawal of 7 members during this period. An amount of Rs. 1.52 Lakhs was collected as shares and refunded Rs. 380/-. It had convened one General Body Meeting during this period. Further, it held 20 Managing Committee Meetings and provided the Audit Reports.

3. SECOND MANAGEMENT COMMITTEE:
The 2nd Managing Committee was installed on 27-09-1974. This committee term was till 30-09-1976 and it consisted of

 1. Shri. K. Appalanarasayya             :  President
 2. Shri. P.V.S.N. Gajapathi Raju        :  Vice-President
 3. Shri. P. Venkata Rao                 :  Secretary
 4. Shri. K. Saradhi Naidu               :  Director
 5. Dr. D. Janardhana Rao                :  Director
 6. Shri. M. Vasudeva Rao                :  Director
 7. Shri. V.B.V.S. Nageswara Rao         :  Director

3.2. Unfortunately, the Vice-President expired and replaced by Dr. D. N.Rao.Also, the member M. Vasudeva Rao was disqualified for not attending three consecutive committee meetings was replaced by Shri. P.V. Ramanaiah.

3.3. Its term was extended till 23-03-1977. During this period, it admitted 32 members and 92 members withdrew their membership. It collected Rs. 1.30 Lakhs and refunded Rs. 3,570/-. It met 17 times during its term and held no Annual General Body Meeting. Also, it ensured that the accounts were audited and submitted the audited audit reports.

4. THIRD MANAGING COMMITTEE:
The 3rd Managing Committee was installed on 24-03-1977 with the following committee members:

 1. Shri. K. Appalanarasayya                    :  President
 2. Shri. K. Ramakrishna Rao                    :  Vice-President
 3. Shri. V.B.V.S. Nageswara Rao                :  Secretary
 4. Dr. D. Janardhana Rao                       :  Director
 5. Shri. P. V. Ramanaiah                       :  Director
 6. Shri. P. Venkata Rao                        :  Director
 7. Shri. D. Ramachandra Rao                    :  Director

During this period it admitted 2630 members and 196 members withdrew their membership. This committee took delivery of land from the local Tahsildar as per the orders by the then District Collector and issued a circular dated 19-08-1980 inviting members to contribute part land cost @ Rs. 0.15 per Sq. Yard and part development charges at Rs. 3 per Sq. Yards. It collected Rs. 44.35 lakhs and refunded Rs. 3.82 lakhs. It convened two General Body Meeting and held 37Managing Committee meetings.

5. FOURTH MANAGING COMMITTEE:

The fourth Managing Committee came into force from 24-06-1982 with the following as the committee members.

 1. Shri. V. Ramachandra Rao     : President
 2. Shri. C. Appalaswamy         : Vice-President
 3. Shri. P.S. Prasad            : Secretary
 4. Shri. M.S. Prakasam          : Member
 5. Shri. D. Sanyasi Raju        : Member 
 6. Shri. M. Narayana Rao        : Member 
 7. Shri. N. K. Rawat            : Member

5.2. During this period, the committee took delivery of 50 Acres of land and deposited Rs. 3.74 Lakhs as the provisional land price vide challana No. 200 dated 08-06-1984. It admitted 233 members and 119 members withdrew the membership. It collected Rs. 4.65 Lakhs and refunded Rs. 1.46 Lakhs. It convened no General Body Meeting and met 14 times.

5.3. This committee was superceeded by order No. Rc No. 3238/84 C dated08-10-1984 and a nominated Government committee with the following took over the management of the Society with effect from 11-10-1984.

 1. Shri. Jai Prakash Narayan, IAS                              : Chairman 
    (Joint Collector Visakhapatnam)
 2.--------------------------------                             : Vice-President
   (Regional Joint Registrar of Co-operative Societies)
 3. Shri. M. Purushotham Reddy                                  : Secretary & Convener
    (District Co-operative Officer)
 4. Executive Engineer                                          : Member 
    (Zilla Parishad,Visakhapatnam)
 5. Revenue Divisional Officer                                  : Member 
    (Visakhapatnam)
               

5.4. During this period, it admitted 11 members and 81 members withdrew. It collected Rs. 76.82 Lakhs and refunded Rs. 0.47 Lakhs. Further, it issued a Circular No. 10/84-85 dated 09-04-1985 inviting the members to contribute Rs.5,000/- per member and awarded the work of leveling the land to the M/s. Agro Industries Ltd for payment of hire charges @ Rs. 250/- per hour in case of 100 HPBullozer. It has not convened any General Body Meeting during its tenure. However,the committee met 7 times.

6. FIFTH MANAGING COMMITTEE:
An elected 5th Managing committee with the following members was installedon 05-10-1985 to be replaced on 17-01-1986 by a Government appointed Committee.

 1. Dr. D.N. Rao                             : President
 2. Shri. R. Sreenivasa Rao                  : Vice-President
 3. Shri. V. Rama Chandra Rao                : Secretary
 4. Shri. N.K. Rawat                         : Director
 5. Shri. M. Rama Raju                       : Director
 6. Shri. D. Pichayya                        : Director
 7. Shri. P. Seetha Rama Chandra Raju        : Director
 

6.2. During this period, it admitted 87 members and 469 members withdrew their membership. It collected Rs. 26.46 lakhs and refunded Rs. 6.40 lakhs. It convened one General Body Meeting and held 10 Committee meetings.

7. GOVERNMENT COMMITTEE:
The Governmental committee took over the Management of the Society on20-12-1986 and this committee consisted of

 1. Shri. Bala Subrahmanyam               :  Chairman
    (District Co-operative Officer)
 2. Shri. K. Pulla Rao                    :  Secretary 
    (Municipal Commissioner) 
 3. Shri. P. Venkateswarulu               :  Member
    (Mandal Revenue Officer, 
     Bheemunipatnam.)
 

7.2. During this period, it admitted 326 members and 653 members withdrew. It collected Rs. 17.67 lakhs and refunded Rs. 33.64 lakhs. It convenedone General Body Meetings and held 15 committee meetings.

8. SIXTH MANAGING COMMITTEE:

The 6th elected Managing Committee was installed on 31-10-1990 with the following as the office bearers and committee members.

 1. Shri. M. Arunachalam                 : President
 2. Shri. P. Sreenivasa Rao              : Vice-President
 3. Shri. D.G.K. Raju                    : Secretary
 4. Shri. Ch. Venkatapathi Raju          : Member
 5. Shri. M. Kondala Rao                 : Member
 6. Shri. P. Kama Raju                   : Member
 7. Shri. C.S.V. Rahman                  : Member

8.2. This committee endeavoured to revitalize and revamp the Society. It initiated action to submit a layout plan for the land to VUDA and without waiting for a formal approval commenced leveling of the land and laying a 80 ft wide entrance road. However, the VUDA had not approved the layout plan and asked theSociety to furnish the Title Deed for the land. Further, VUDA directed the committee to stop the development work. The committee filed a writ petition in the Andhra Pradesh High Court and approached the District Collector for the Title Deed. It collected Rs. 0.76 lakhs and refunded Rs. 6.94 lakhs. The Committee met 32 times during this period and held 2 General Body Meetings.

8.3. It, also, filed a writ petition against the Andhra Pradesh Government in the Andhra Pradesh High Court in 1992 and won it. Further, it filed a contempt ofcourt petition against the Andhra Pradesh Government. On account of this, theDistrict Co-operative Officer had not conducted the elections to the Managing Committee and appointed a Divisional Registrar as a person-in-charge of the Societyfor about 11months, from 01-11-1993 to 16-10-1994. During this period, it admitted 231 members and 10 members withdrew. It only refunded Rs.0.38 Lakhs. It spent Rs. 27 Lakhs. The committee met 14 times during this period and held one General Body Meetings.

9. PERSON-IN-CHARGE:
During this period there were no admissions and 10 members withdrew with arefund of 0.38 lakhs and collected Rs. 0.62 lakhs. It spent Rs. 5.77 Lakhs. No General Body Meeting was convened by the person-in-charge.

10. SEVENTH MANAGING COMMITTEE:
The seventh Managing Committee took charge of the Society on 17-10-1994with the following office bearers and committee members.

 1. Shri. K.V. Harinath                      :  President
 2. Shri. M. Arunachalam                     :  Vice-President
 3. Shri. D.G.K. Raju                        :  Secretary
 4. Shri. P. Kama Raju                       :  Member
 5. Shri. V. Mallikharjunudu                 :  Member
 6. Shri. K.M.M. Das Gupta                   :  Member
 7. Shri. U. Seethu Madhava Rao              :  Member

10.2. Shri. M. Arunachalam resigned and left Managing Committee on 18-04-1995 and the Committee accepted is 30-04-1995. The position was left vacant.

10.3. This committee took up the issue of the Title Deed for the land and secured a memo from the Andhra Pradesh Government fixing the final land price atRs. 4,000/- per acre. However, before it materialized, the Andhra PradeshGovernment revised this memo. Further, it awarded a work to M/s. J.I. Associates to prepare a layout for Scheme-1 and the firm submitted it. Also, this committee initiated another Scheme by purchasing 12 Acres 71 cents of land near Bheemunipatnam.

10.4. It admitted no members under Scheme-1 and 70 members withdrew their membership. Further, it stopped admissions into its first Scheme. It collected Rs. 7.26 lakhs and refunded Rs. 3.81 lakhs. It spent Rs. 9.54 Lakhs during this period.

10.5. The Committee met 40 times during this period and held 3 General Body Meetings. It ensured that the accounts are audited from 1990-1991 and published the Annual Report, every year.

11. EIGHTH MANAGING COMMITTEE:

The eighth Managing Committee was formed on 09-11-1997 as the members of the Society elected its Managing Committee members, unanimously, as under:

 
 1. Shri. K.V. Harinath                : President
 2. Shri. S. Satyanandhaa Rao          : Vice-President
 3. Shri. G. Joga Rao                  : Secretary
 4. Shri. V. Mallikharjunudu           : Member
 5. Shri. P. Kama Raju                 : Member
 6. Shri. M. Ramasatyam                : Member
 7. Smt. Renuka Rokkam                 : Member

11.2. Smt. Renuka Rokkam was disqualified as she failed to attend three consecutive Managing Committee meeting and in her place Shri. P. Kama Raju was co-opted as a member of the Committee with effect from 02-09-2001.

11.2. During this period, the committee developed Scheme-2 and obtained the VUDA approval for the layout. Further, it filed a writ petition in the Andhra Pradesh High Court against Andhra Pradesh Government for revising its 1995 memo.

11.3. It admitted no members under Scheme-1 and 120 members withdrew their membership. It collected Rs. 6.55 Lakhs and refunded Rs. 4.14 Lakhs. It spent Rs. 20.54 Lakhs as the Establishment expenditure and Rs.17.11 Lakhs as development expenses. It conducted 53 monthly Managing Committee meetings and held 5 Annual General Body Meetings. It ensured that the Annual Accounts of the Society were audited by qualified charted Accountant and submitted the audited audit reports.

12. NINTH MANAGING COMMITTEE:
The ninth Managing Committee was elected, unanimously with the following committee members and was installed on 27-10-2002.

 1. Shri. K.V. Harinath                      : President
 2. Shri. V. Mallikharjunudu                 : Vice-President
 3. Shri. G. Joga Rao                        : Secretary
 4. Shri. P. Kama Raju                       : Member
 5. Shri. M. Ramasatyam                      : Member
 6. Shri. S. Satyananda Rao                  : Member
 7. Smt. J. Vijaya Lakshmi                   : Member

12.2. During its tenure of six years (with an extension of one year) it admitted 298 members into Scheme -2 and Scheme -3 and 33 members withdraw. It collected Rs. 7.15 Crores and spent Rs. 6.84 Crores. The committee convened 7General Body Meetings and met 65 times. The significant events of its tenure arefiling of an appeal to the Division Bench by the Andhra Pradesh Government, filing of the SLP in 2004 by the Society and its admission in 2005, purchase of land forScheme-3, completion of Scheme-2 and registration of plots to Scheme-2 membersand purchase of land for Scheme-4, partially.

12.3. The Managing Committee was given extension in view of its application to convert the registration of the Society under APCS Act 1964 to the APMACS Act1995. This materialized in January 2008 with the issue of the registration certificate and approval of the new Bye-Laws. The new set up came into force from1st April, 2008.

13. FIRST MANAGEMENT BOARD:-
Accordingly, the first Management Board of the Society with 10,unanimously, elected Directors was installed on 27-04-2008 under the APMACS Act1995. The new Board consisted of the following Board of Directors.

 1. Shri. K.V. Harinath                     :  President for a period of 5 years.
 2. Shri. V. Mallikharjunudu                :  Vice-President for a period of 2 years.
 3. Shri. G. Joga Rao                       :  Secretary for a period of 5 years.
 4. Shri. M. Ramasatyam                     :  Director for a period of 2 years.
 5. Shri. K. Bimdhu Mohan                   :  Director for a period of 3 years.
 6. Shri. G. Jagannadha Rao                 :  Director for a period of 4 years.
 7. Shri. Kota Mallikharjuna Rao            :  Director  for a period of 1 year.
 8. Shri. S.U. Sarma                        :  Director for a period of 4 years.
 9. Smt. Rokkam Renuka                      :  Director for a period of 3 years.
 10.Smt. J. Vijayalakshmi                   :  Director for a period of one year.

13.2. There is a fundamental change in the Society organization between the Managing Committee under the APCS Act 1964 and the Management Board under APMACS Act 1995. The composition of a Managing Committee was 7 members for a fixed term of 3 or 5 years as per the Act from time to time. In case of ManagementBoard it is for 10 elected Directors with a term for 5 years for a Director. In nature,it is a perpetual body with two Directors retaining each year and these positions filled in by election. The maximum tenure of a Director is for 10 years only where as in case of a Managing Committee under the 1964 Act, there is no limit to the tenureof a Director.

13.3. Accordingly, two Directors, Shri. Kota Mallikharjuna Rao and Smt. J.Vijayalakshmi vacated their posts, on lottery basis, at the end of the first year. Elections were held to fill in these two vacant posts. Shri. V. Vijaya Kumar and Smt.J. Vijaya Lakshmi were elected, unanimously. At the end of the second year, Shri.V. Mallikharjunudu and Shri. M. Ramasatyam vacated their posts and elections wereheld.

Four members contested the election and the voting pattern was as under:

 1. Shri. V. Mallikharjunudu              : 350
 2. Shri. M. Ramasatyam                   : 346
 3. Shri. Lanka Jagannadham               : 115
 4. Shri. B. Krishnam Raju                : 104

13.4. Accordingly, Shri. V. Mallikharjunudu and Shri. M. Ramasatyam were re-elected as Directors of the Management Board for a term of 5 years from 27-04-2010.

13.5. During this period, there are certain developments in the Society which warranted a change in the functioning of the organization. Firstly, theSociety decided to resort to outsourcing some activities for their effective performance. Secondly, it has to indulge in moving in unpleasant direction on account of difference of approach in the Management Board among the Directors.Accordingly, it out sourced the services to be attended at the Hon'ble Supreme Court at New Delhi. It yielded good results and the long pending case No.5095/2005 wad disposed off in favour of the Society on 22-10-2009 putting an end to a long standing dispute regarding the final price for the land delivered to the Society on 29-02-1980. However, this led to the difference of views and approach to secure the allotment order from the Andhra Pradesh Government consequent tothe order of the Hon'ble Supreme Court.

13.6. To resolve this issue in a positive way, the Management Board was compelled to pass no confidence motion against two of its Directors including the Secretary. Further, one of the Directors resigned from the Board. As a result, the Management Board had to co-opt Shri. B. Krishnam Raju against Shri. K. Bimdhu Mohan, Shri. M. Surya Rao against Shri. G. Joga Rao and Smt. V. Mangathayaru against Smt. J. Vijayalakshmi for the remaining period of the tenure of the respective Directors.

13.7. Thus, the Management Board consisted of

 1. Shri. Shri. K.V. Harinath               :  President
 2. Shri. V. Mallikharjunudu              :  Vice-President
 3. Shri. G. Jagannadha Rao            :  Secretary
 4. Shri. V. Vijaya Kumar                    :  Director
 5. Shri. M. Ramasatyam                   :  Director
 6. Shri. B. Krishnam Raju                 :  Director
 7. Shri. M. Surya Rao                       :  Director
 8. Smt. Rokkam Renuka                   :  Director
 9. Smt. V. Mangathayaru                  :  Director

13.8. At the end of the third year Smt. Rokkam Renuka vacated her seat and stood for re-election. In place of Shri. G. Jagannadha Rao, the Management Board requested Shri. G. Satyanarayana, a member to file his nomination for a Directorpost. These two were elected unanimously for a period of 5 years till end of 26-04-2016. At the end of the 4th year, Shri. S.U. Sarma and B. Krishnam Raju vacated their position and stood for re-election. These two were re-elected as they were polled the highest votes as under:

  Shri. B. Krishnam Raju         :  324
  Shri. S.U. Sarma                   :  318
  Shri. Lanka Jagannadham   :  37
  Shri. Ch. Nataraj Kumar       :  14

This tenure will be for 5 years till end of 26-04-2017.

13.9. During 2012-2013, the Society witnessed another unpleasant situation.The Society failed to secure the allotment order from the Andhra Pradesh Government inspite of distinct and definite orders from the Hon'ble Supreme Court. The President requested the Director Shri. S.U. Sarma to keep himself from the pursuits to secure the allotment order from the Andhra Pradesh Government.

13.10. Shri. S.U. Sarma reacted unceremoniously which prompted the othereight Directors to move a no confidence motion against him. The Management Board co-opted Shri. Kota Mallikharjuna Rao as a Director.

13.11. At the end of the fifth year, Shri. K.V. Harinath and Shri. M. SuryaRao vacated their position and Shri. K.V. Harinath stood for re-election. Shri. J.S.Ranga Reddy joined the prey as a Director. Due to a technical flaw, these two were declared as elected as Directors for the next five years till 26-04-2018.

13.12. During this period, it admitted 210 members and 682 members withdrew. It collected Rs. 27.33 Crores and refunded Rs. 1.41Crores. It spent Rs.17.38 Crores. The Board met 42 times and convened 6 General Body Meetings.

14. SECOND MANAGEMENT BOARD:-
Thus, the second Management Board was installed on 28-04-2013 with the following Directors.

  1. Shri. K.V. Harinath                   :  President
  2. Shri. V. Mallikharjanudu              :  Vice–President
  3. Shri. V. Vijaya Kumar                 :  Secretary
  4. Shri. M. Rama Satyam                  :  Director
  5. Smt. R. Renuka                        :  Director
  6. Shri. K. Krishnam Raju                :  Director
  7. Shri. G. Satyanarayana                :  Director
  8. Smt. V. Mangathayaru                  :  Director
  9. Shri. K. Mallikharjuna Rao            :  Director
  10.Shri. J.S. Rangareddy                 :  Director

 

List of Annexures

 

SL NO ITEM DESCRIPTION  NO. OF ANNEXURES
1 Society Organisation Chart Annexure-1
2 Earlier Bye-Laws of the Society under APCS Act 1964. Annexure-2
3 Present Bye-Laws of the Society under APMACS Act 1995. Annexure-3
4 APMACS Act 1995. Annexure-4
5 APCS Act 1964. Annexure-5
6 Annual Reports of the Society from 1995-1996 to 2011-2012. Annexure-6
7 Audit Reports of the Society from 1969-1970 to 2011-2012. Annexure-7
8 Manual of the Society. Annexure-8