PALM MEADOWS OWNERS ASSOCIATION(Registered under Karnataka Societies Act. 1960)

Registration Number: 873/2003-2004Registration Date: Nov 29, 2003

Version 1.6September 11th, 2007

Revision History

Revision Status Description Date Author Reviewed By/ Approved By

1.0 Released Bye Laws Registered under Karnataka Societies Act.

Nov. 20, 2003

Ashok Bhagwat

Vinod Chandran

IWC

1.1 Draft Bye Laws updated to include arbitration process

Dec. 24, 2003

Vinod Chandran

IWC

1.2 Draft Bye Laws updated to include feedback from residents meeting on January 11, 2004

Feb 02, 2004

Vinod Chandran

IWC

1.3 Released Bye Laws updated to include amendments proposed at second General Body

June 26th

2005Vinod Chandran

General Body

1.4 Draft Byelaws updated to include amendments proposed by General Body at SGM held on 26.02.2006

February 26th 2006

Vinod Chandran

General Body

1.5 Released Final version after registration of amendments in version 1.4 with Registrar of Societies

July 24th

2006Vinod Chandran

Registrar of Societies

1.6 Released Final version after registration of amendments in version 1.5 with Registrar of Societies

September 11th, 2007

Suhas Nerurkar

Registrar of Societies

Version 1.6 of the Bye Laws of Palm Meadows Owners Association includes amendments approved by the General Body on June 30th, 2007 and approved by the Registrar of Societies on September 11th, 2007.

RELEASE APPROVED:

Signature: ____________________________

Name: _______________________________

Title: President Palm Meadows Owners Association Date: ________________________________

PALM MEADOWS OWNERS ASSOCIATION

PREAMBLE

In its efforts to promote and sustain an outstanding community, the Palm Meadows Owners Association shall be guided by a set of shared values, to which all its members stand committed. These values, expressed as the guiding principles of the community, shall be the touchstone for the byelaws, rules and operating guidelines of the Association.

The guiding principles relate to:

Harmonious community living

The emphasis here is on consideration for others, with residents relating to each other in the spirit of mutual support and fellowship. The basis for all key decisions is the greater common good.

Good citizenship

Residents respect the rights of others. They also willingly and voluntarily conform to the bye-laws, rules and operating guidelines of the Association

Outstanding physical environment

High standards are maintained for all common areas, infrastructure and services. Also, standards and guidelines are applied consistently and uniformly, where relevant to personal property.

Residents are guided in their actions by the need to conserve and protect the environment. In the same spirit, the Association also actively promotes and advocates the use of eco-friendly methods for the long-term benefit of the community.

BYE – LAWS

1.0 NAME/ ADDRESS OF ASSOCIATION:

Name: PALM MEADOWS OWNERS` ASSOCIATIONAddress: Ramagondanahalli, Airport Whitefield Road Bangalore 560066

2.0 APPLICATION:

These bye-laws may be called the bye-laws of the Palm Meadows Owners` Association

2.1 The provisions of these bye-laws apply to the Palm Meadows Owners Association, the Palm Meadows Club and the Amenities Complex.

2.2 All present or future owners, tenants, future tenants or their employees, or any other person who may use the facilities within Palm Meadows in any manner, are subject to the rules set forth in these bye-laws.

2.3 The mere act of acquisition or rental or taking on license any property or mere occupancy of any of the Villas in the Palm Meadows will signify that these bye –laws have been read and understood, are accepted, stand ratified and will be complied with at all times.

3.0 DEFINITIONS; In this bye –laws, unless contrary to the context, the following words and phrases shall have the meaning described herein:

3.1. "Palm Meadows " shall mean the entire Palm Meadows complex, inclusive of all the Villas, Club and Amenities Complex, Common areas consisting of approach roads, roads within the complex and children park, and boundary wall enclosing the Palm Meadows and the land forming part of it situated at Airport Road, Opposite Ramagondanahalli Bangalore 560066. (Detailed sketch is attached as Appendix A)

3.2. “Association" shall mean Palm Meadows Owners` Association.

3.3. “Member” shall mean a member of the association in whose name the villa or other property within Palm Meadows has been registered.

3.4. “Associate Member“ means a joint owner /General Power of Attorney holder, of a Villa in Palm Meadows Residential Complex whose name does not

appear in the first position on the sale deed pertaining to such Villa in the Palm Meadows Residential Complex. It is hereby clarified that Associate Members do not have voting rights unless specifically authorized by the member in writing (Ref Para ).

3.5. “Special Member” shall mean such individual who directly, or indirectly owns more than 75% of the shareholding in Palm Meadows Club Pvt. Ltd.

3.6. “Resident “ shall mean the person or persons currently in occupation of a villa in Palm Meadows Residential Complex either as an owner or a tenant.

3.7. “Community” shall mean all residents of Palm Meadows who are either Members, Associate Members or Residents.

3.8. “Club Owner” shall mean the persons or entity that own the Palm Meadows Club.

3.9. “Area Representative” (ARs) shall mean an elected representative of the community who may be a Member or Resident with approval of the Member. An Area shall be defined as a bloc of villas defined based on geographic boundaries. The ARs shall select a coordinator who is also a Member amongst elected ARs. The coordinator shall automatically become a member of the Management Committee with full voting rights.

3.10.“Committee Member” shall mean the duly elected Member or Associate Member who becomes part of the Management Committee for the time period entrusted to manage the Association as per the provisions of these bye-laws. .

3.11.The words “President”, “Vice President”, “Secretary”, "Treasurer” & “Committee Member “ shall mean the President, Vice President, Secretary, Treasurer & Committee Member respectively of the Committee for the time period in office.

3.12."Common Areas" and " Common Facilities", unless otherwise provided in the declaration or lawful amendments thereto, means

3.13.Common Areas: - The land on which roads are built, compound walls, Children Park, Transformer yards, walk ways.

3.14.Common Facilities: - The common facilities would include water treatment & filtration plant, pump sets, sprinkler system, sewage treatment plant, generator sets for emergency supply of electricity to residential complex as well as street lights, roads, street lights fixtures and bulbs, children parks along with the play equipment in the park, under ground water & sewage lines bus services, cable TV & telephone lines, common electricity meters,

and fiber optic conduits and any other facilities that may be added from time to time..

3.15."Financial Year" shall mean the year commencing on April 1st, and ending on March 31st of the succeeding calendar year.

3.16.The singular shall include the plural, and the masculine shall include the feminine.

3.17.“Rules” shall mean rules enacted by the Association.

3.18.“Amendment to Bye Laws” shall mean amendment duly approved by the house with two-thirds majority of Members in duly constituted general body meeting or by a three-fourth majority of Members in a re-constituted meeting with reduced Quorum as defined herein.

3.19.“ Amendment to Rules“ shall mean amendment duly approved by the house with a simple majority Members in duly constituted general body meeting or by two-thirds majority of Members in a re-constituted meeting with reduced Quorum as defined herein.

3.20.“Club” shall mean property within Palm Meadows operated by the Palm Meadows Club Pvt Ltd within Palm Meadows as defined in the sketch (and appended to these Bye Laws as Appendix. B)

3.21.“Amenities Complex” shall mean property within Palm Meadows, owned by Adarsh Developers in Palm Meadows complex as defined in the sketch (and appended to these Bye Laws as Appendix. C).

3.22. "Management Committee", or "MC" shall mean the management committee of the Association formed in accordance with the provisions of Section 7.0

4.0 MEMBERSHIP

4.1.Every person who owns a Villa/ Villas, or other property in Palm Meadows will be an initial Member of the Association. A Member shall pay Rs 100/- (One Hundred only) per each Villa/other property as entrance fee and shall purchase one share of the face value of Rs 1000 (Rs One Thousand Only). It is hereby clarified that, subject to the other provisions of these Bye Laws only a person who owns a Villa/Villas shall be entitled to be a member of the Management Committee.

4.1.1.In case more than one person jointly owns the villa, only one person, shall be the voting member of the Association. Further, the

nomination of the person as the voting member shall be in writing, signed by all the owners of the Villa and forwarded to the Association.

4.1.2.In case a villa is owned by, a company, firm or association of persons, the person nominated by such company or firm or association of persons shall be the Association Member so long as such person continues in the employment of such company, firm or Association of persons. Further, the nomination of the person, as the Association Member shall be in writing, signed by the authorized signatory of the company or firm or association of persons, as the case may be.

4.2.No person other than the owner of a Villa, or other property within Palm Meadows as aforesaid shall be entitled to become a member of the Association, provided that it shall be permissible for an owner to authorize in writing any one person to exercise all or any of the rights and powers or to perform any act, deed or things under these bye-laws. On such authorization, the owner shall be deemed to be represented by such representative and any act done by such person shall be binding on the owner. Such representative shall confirm his acceptance in writing to the Association.

4.3.Every owner shall submit to the Secretary of the Association a nomination form along the following lines along with an attested recent Passport size photograph of the nominee.

“In the event of my death, I hereby nominate ………… (Relationship), Mr/Mrs ……………… (Name), residing at ………… (Address) as my absolute nominee in respect of my Villa No …… phase I/II.

Further, only one person shall be nominated for this purpose, and such nominee shall confirm his acceptance of the nomination in writing to the Association.

4.4.The Special Member may refer a nominee to the Management Committee, whose appointment will be subject to the ratification by the then elected Managing Committee. Notwithstanding anything to the contrary contained n these bye laws, the owner of any the amenities complex and any other property in Palm Meadows, other than the Villas and the Palm Meadows Club will not have a seat on the Management Committee. Special Members shall have full voting rights.

4.5.Termination of Membership

4.5.1.The membership of the Association shall automatically end on person ceasing to be an owner or joint owner of a Villa.

4.5.2.The Special Member status of the Association shall automatically end on sale or change in majority shareholding of Palm Meadows Club Pvt. Ltd

4.5.3.In the case of a Company, firm or association of persons, membership shall cease on the person nominated ceasing to be an employee or connected with such company, firm or association of persons, or earlier if such company, firm or association of persons withdraws such nomination.

4.5.4.The membership of the Association shall automatically end on the dissolution of the Association.

4.5.5.Membership shall end on the death of a Villa owner. However, in such an event the person nominated as per bye-law 4.3 shall be deemed to be a member for a temporary period (not exceeding 6 months), until such time as the legal heir(s) take(s) possession as the lawful owner(s) of the villa. In the intervening period, the nominee shall take full responsibility for all matters relating to the Villa, including payment of water electricity bills, corporation taxes & dues of the Association.

4.6.Membership on purchase of a property:

Upon any change of ownership of a Villa or other property within Palm Meadows the purchaser shall be obliged to become a member of the Association by fulfilling the following: -

4.6.1.Have the Sale Deed registered and on production of the registered sale deed and submission of the photocopy of the sale deed at the Association office have the first name on the sale deed admitted as a member and other names on sale deed as associate member.

4.6.2.Every Purchaser of property/villa in Palm Meadows with effect from 01.09.2007 shall become a member of the Association and be bound by its Bye-laws. A non-refundable membership fee of Rs.1,00,000/- shall be paid to the Association by such Purchaser/New Member with effect from 01.09.2007. However, for transfer/change in ownership of villa/s in favour of legal heirs from existing Owner Members a Transfer Fee of Rs.1,000/- shall be paid to the Association.

4.6.3.Every owner of a Villa other property within Palm Meadows must hold one share of the Association for each such property.

4.6.4 The Owner members and their tenants shall abide by the following rules and regulations:

a. In the event any Owner Member of the Association lets out, rents or leases his/her villa, he/she shall inform the Association in writing seven days prior to the commencement of such lease, etc. giving such details of the proposed tenant as may be prescribed by the Managing Committee. The liability of the Owner Member shall be effective even when there is a change in tenancy/occupation of his/her villa;

b. The Owner Member shall ensure that his/her tenant shall be bound by and abide by the Bye-laws of the Association, by including a clause to that effect in the rental or lease agreement, as the case may be;

c. The tenant/occupant of a villa under rent, lease or such other transaction claiming through the Owner Member shall become Temporary Members of the Association by making an application to the Association in the prescribed form. An annual non-refundable subscription of Rs.10,000/- shall be paid to the Association by such Temporary Members in advance for each year.

d. Temporary Membership and payment of subscription as prescribed above, shall entitle a tenant/occupant to avail of services, facilities, amenities, maintenance, etc. offered by the Association.

e. The provisions of this Bye-law shall be effective from 01.09.2007; provided however, the Association shall also be empowered to give effect to the terms and conditions of this Bye-law for existing tenants/occupants also

5.0 POWERS & DUTIES OF THE ASSOCIATION; -

5.1.The Association shall be a non-profit organization. It shall have the responsibility of administering the Palm Meadows. To this end the Association shall, through the Management Committee, convene annual meetings and special meetings when required, to approve the annual budget, decide upon the policy matters affecting the members, and for any other reason as the Management Committee may deem fit in the best interests of the Members. The Association may frame rules to amplify these bye-laws and these rules, which shall be applicable to all members /residents after they are passed in the annual general meeting or a special general meeting ("AGM/SGM"). In the event of any doubts or contradictions, these Bye Laws shall prevail over the rules.

5.2.The Association shall be in charge of all maintenance and other related activities of Palm Meadows upon the receipt of maintenance deposit from Adarsh Developers. The Association shall hold the maintenance deposit made by the members and non-members of the Association and use the same in accordance with the provisions of Byelaws.

5.3.The Association shall oversee the work of maintenance and security agencies.

5.4.The Association shall open a bank account or accounts and invest moneys of the association in approved Bank(s) and securities as recommended by the investment committee (the "Investment Committee") comprising of a Treasurer and two other members from the Management Committee and three members elected from among the Members of the Association and as ratified by the Management Committee.

5.5.The Association shall generally look after and be responsible for safeguarding, promoting and protecting rights and well being of members, and enforcing their respective obligation to each other.

5.6.The Association shall represent the collective interest of the Community in Palm Meadows with various external agencies.

5.7.The Association shall commence/defend any legal proceedings only in so far as it is related or connected with and affects the Members and the affairs of the Palm Meadows & its Residents.

5.8.The Association shall promote and strive for a peaceful co-existence among all members of the association.

5.9.The Association shall regulate the manner and prescribe restrictions and conditions for and under which any member shall transfer or part with the possession of his ownership of a property in Palm Meadows so as to ensure compliance with these bye-laws and rules by the transferees.

5.10.The Association shall have unhindered access to all its facilities located within the “Club” premises for operation & its maintenance.

5.11.The Association shall sign an agreement with Adarsh Developers to define assets owned by the Association but located within the Club premises, its operation & maintenance. The Club shall reimburse the Association for facilities / services used by the Club but belonging to the Association.

5.12.The Association shall have adequate representation in the managing committee of the Club. Adarsh Developers shall provide free permanent space for effective working of the Association. This shall include office space

for the President, Secretary, members and the staff of the Association, external agencies such as Security and adequate storage facility etc.

5.13.The Association shall have a say in selecting types of services in the Amenities complex however, the Amenities Complex owner may select vendors. In the event of unsatisfactory service by the vendor, the Association shall have the right to recommend termination of his services.

6.0 MEETING & QUORUM

6.1.All resolutions of the Association shall require the approval of a majority of eligible members present at the meeting.

6.2.Meetings of the Association shall be held within the Club premises (Badminton Hall or other suitable premises within Club). It shall be made available free of costs by the Club.

6.3.The Annual General Meeting shall be held once in a year; and not more than fifteen months shall elapse between the dates of two consecutive annual general meetings. The Secretary/ President may, for any special reason, extend the time within which any annual general meeting shall be held, by a period not exceeding three months. . The quorum for the General body meeting shall be 50 % of the members of the Association. At such meetings members shall elect, by secret ballot, the Management Committee. A lawful business of the association may also be transacted.

6.4.A Special General meeting of the Association shall be called by the Management Committee as directed by a resolution of the Management Committee or upon petition by at least 50 members having been presented to the office of the association. Such a meeting shall be convened within 15 days after (i) Management Committee resolution or (ii) receipt of the petition.

6.5. The Management Committee shall circulate (i) an e-mail; (ii) a circular for the AGM to all Members and (iii) put up a notice on the notice board indicating the time & venue of the meeting at least three weeks in advance of the AGM and one week in advance for an SGM.

6.6. If any AGM/SGM cannot be conducted because of lack of quorum, the Management Committee may adjourn the meeting by one hour from the time the original meeting was called. If at such adjourned meeting also, no quorum is present, the members present in person being not less than 25% of the members, excluding the members of the Management Committee, shall form the quorum.

6.7. In any meeting of the Association, vote shall be cast in person or through duly authorized proxy. The authority to a proxy must be in writing. The proxy

must be deposited with the Secretary/President of the Association not less than 48 hours before the time for holding the meeting. The proxy need not be a member, but no person may be a proxy for more than four members.

6.7A However for the purpose of election of the Management committee, the Owner members can cast their vote either in person on the Election Day or through postal ballot, 5 days prior to the AGM, as per the directives issued by the Election Commission appointed by the Managing Committee and no proxies shall be permitted for voting in such election.

6.8.The AGM shall be conducted as follows; -

(i) Roll Call(ii) Obituaries, if any.(iii) Introduction of new members.(iv) Annual Reports with audited balance sheet.(v) Amendments to bye laws or rules, if any.(vi) Proof of notice of meeting or waiver of notice.(vii) Passing of minutes of preceding meeting/meetings(viii) Reports of members(ix) Report of the Committee(x) Unfinished business, if any.(xi) New Business.(xii) Any other point with the permission of the Chair.(xiii) Election of Management Committee members.

6.9.The SGM shall be conducted as per relevant clauses above, additional business as per Notice of the SGM and new business, if any.

6.10.The seating arrangement shall be such that one section is reserved for the members and duly authorized joint owners entitled to vote. The other section shall consist of Associate members who are not entitled to vote.

6.11.The association shall not act beyond the scope of its objectives without duly amending the provisions of these byelaws.

7.0 MANAGEMENT COMMITTEE

7.1.The Management Committee shall comprise of the following members

• President - One• Secretary - One• Treasurer - One• Committee Members -Five• Special Member - One

• Nominated Member (ex President) - One• Nominated Member (AR) - One

The election process shall be of the parliamentary format with the General Body electing the Managing Committee. The elected Management Committee will then nominate the office bearers by mutual consent. It is suggested that responsibilities are assigned as follows within the Management Committee, with reporting structure as outline in Appendix D.

• Administration [Secretary]• Finance [Treasurer]• Area Reps.• Security / Safety• Maintenance - including infrastructure• Rules & Guidelines• Environment - including pollution; lake; landscaping• Community eventsA Special Member is not entitled to be an office bearer in the Management Committee. A Nominated Member is eligible to be an office bearer only if elected by the General Body; ie: should the past President desire to be an office bearer in the new Management Committee he/she would need to stand for election and be elected by the General Body. A nominated Area Representative cannot also be an Office Bearer in the Management Committee. An Area Representative elected to the Management Committee would need to relinquish the post of Nominated Member (AR).

7.2.Members of the Management Committee shall be elected once in two years by all the Members of the association. The Management Committee members shall nominate one member, other than the office bearers, as Vice President. Resident PMOA members alone can contest for the position of Managing Committee membership. General Power of Attorney (GPA) holders or minors residing in Palm Meadows shall not be entitled to contest the elections to Management Committee.

7.3.Members of the Area Representatives shall be elected once in two years by and among the Members and Residents. The elections of the ARs will be conducted either simultaneously with the election of the Management Committee, or by the Management Committee, within 90 days of their taking office.

7.4. In the interests of continuity, the outgoing President of the Management Committee shall be automatically nominated as a member of the new Management Committee, subject to his own availability and acceptance.

7.5.All Members of the Management Committee will be bound by the Conflict of Interest guidelines as outlined below.

7.5.1.A Committee member may not participate in a matter under consideration by the Committee regarding the provision of services by the Committee member or the entity the Committee member represents.

7.5.2.A Committee member may not participate in any matter in which the Committee member, a qualifying relative or a business associated with the Committee member or qualifying relative, has a direct or in-direct financial interest.

7.5.3.Any Committee member, with a potential or actual conflict of interest, must disclose that fact, in writing to the Committee President as soon as the potential conflict is discovered and, to the extent possible, before the agenda for a meeting involving the matter at issue is prepared. If it should be determined during a meeting that a conflict of interest exists, the Committee member must verbally declare such conflict of interest, such declaration must be clearly noted in the minutes, and such Committee member must excuse him/herself from the remainder of the discussion and the voting.

7.6.A Committee Member who has breached the Conflict of Interest guidelines will be required to relinquish his post upon such breach being established and ratified by a Majority of the Management Committee.

7.7.Section 7.7. The members of the Management Committee shall hold office for a period of two years. The first elected Management Committee shall hold office till 30.06.2006 and all the subsequent Management Committee shall hold office for two years ending on June 30th of that respective year. The members of the Management Committee shall be eligible for re-election at Annual General Meeting. The member can seek re-election for not more than two consecutive terms.

7.8. The Management Committee shall meet as often as may be required, and at least once in Ninety days. The matters discussed and the decisions arrived at, duties allotted and the proceedings of each such meeting shall be recorded in a Minute Book and copies thereof sent to each member of MC.

7.9.The quorum for the meeting of the Management Committee shall be five, provided that at least President or the Vice President shall be present.

7.10.In the event of any vacancy arising in the Management Committee during the course of a year, the Management Committee shall be entitled to co-opt any other member for the period till such time AGM/SGM is held. A maximum of two members can be co-opted. In the event of total number of Members

falling below seven, a SGM shall be convened only for the purpose of holding fresh elections to fill the vacancies.

7.11.Any Management Committee Member, who is absent for two consecutive statutory Management Committee meetings, shall be required to relinquish his post in the interest of the Association. The vacancy so created shall be filled according to Para above.

7.12.Before any meeting of the Management Committee, any committee member may, waive notice of such meeting. Such waiver shall be deemed equivalent to giving such notice. Attendance by a member at any meeting of the Management Committee shall be a waiver notice by him. If all the members are present at any meeting of the Management Committee: no notice shall be required and any business may be transacted at such meeting.

7.13.The President shall be the Chief Executive Officer of the Association and the Managing Committee. He shall preside over the meetings of the Managing Committee and the General Body. In his absence the Vice President shall preside over these meetings.

7.14.The Secretary shall be responsible for the general administration of the Association under the overall direction of the President.

7.15.The Treasurer shall be responsible for the financial matters of the Association under overall direction of the President.

7.16.The Managing Committee can co-opt any person as an expert adviser, when discussing matters, where an expert opinion is considered necessary. The co-opted person will not have any voting rights.

7.17.The Managing Committee shall be authorized to employ a Manager and the office staff, as per budgets approved by the AGM /SGM, for the Association at a terms & conditions fixed by the AGM/SGM to perform the duties assigned by the committee.

7.18.The Management Committee shall have power to; -

(i) Appoint, dismiss, terminate or suspend any person as its employee, and specify the purpose, terms, and limitations of such appointments. All these decisions shall be taken collectively by the committee or by such members nominated to take these decisions.

(ii) Make payments, authorize outgoings from the funds of the association for any purpose whatsoever provided such payments or outgoings are relatable and bear nexus to the

buildings /villas, its administration and maintenance. All cheques of the Association shall be jointly signed by the treasurer and the President/ Secretary, or by such committee members empowered for the purpose.

(iii) Write & maintain proper books of accounts for income & expenditure of the Association. All meetings of the Committee, AGM &SGM shall be minuted and proper records maintained. Such books /records shall be open for inspection by all members of the Association.

(iv) Enforce these bye-laws and rules, or any other amendments thereto, in any manner it may deem fit and necessary and call for implementation and thereafter, if necessary, to embark on coercive action.

(v) Ensure that where a member licenses or parts with possession, in any manner, of his Villa or any portion thereof to any person, such person adheres to these bye laws and rules in the mutual interest of all members collectively

(vi) Call for an AGM/SGM for such purpose as may be considered necessary by it.

(vii) Implement all decisions and direction of the general body(viii) Determine the adequacy of maintenance deposit paid by the

members and seek enhancements or alteration thereof by reference to the general body.

(ix) Ensure that maintenance funds are utilized in a proper way for the maintenance purpose only. Surplus funds shall remain with the Association only as loans due to members to be adjusted against future outgoings of the association.

(x) Open a Bank account or accounts in the name of the association and operate the same through the Treasurer or any other Committee Member and for that purpose to sign any application forms of the Banks, furnish a copy of these bye laws and rules and to deposit/invest moneys of the Association in securities/investments in accordance with guidelines framed for that purpose by the Investment committee comprising of the Treasurer, two other members of the Management Committee and three members elected from among the Members of the Association. The three elected members of the Investment Committee shall have tenure of five years.

While investing moneys belonging to the Association, guidelines, framed from time to time by the Investment Committee and as ratified by the Management Committee, shall follow the following principles

i. Of the three primary attributes of Safety, liquidity and Return associated with all investment decisions; “safety of principal” shall be accorded the highest priority.

ii. Investments shall be so planned as to fulfill the liquidity needs of the Association and therefore part of the corpus shall be placed in Deposits, Securities or Mutual Funds that are liquid. Moneys may not be placed with Co Operative or Unscheduled Banks.

iii. Investments other than in Bank Deposits shall normally be in investment grade rated securities.

iv. In order to achieve targeted return, it may, at times be necessary to explore Investments in Real Estate, Equity Shares/Derivative instruments or other alternative avenues which are subject to higher levels of price risk. The investment committee shall exercise caution while pursuing such investment options and shall endeavor to protect the principal.

(xi) Deal with all statutory bodies for any matter relating to Common Services, Villas, particularly with the corporation of the city of Bangalore, Bangalore Development authority (BDA), Govt. of Karnataka, Bangalore Electrical supply Company (BESCOM), Bangalore Water Sewage Sanitation Board (BWSSB), Ramagondanhalli Grampanchyat, with respect to electricity, water supply, sewerage etc

(xii) Enter into and sign contracts or agreements for the supply of goods and services on such terms as may be necessary and proper for the maintenance and upkeep of the buildings, Villas and Palm Meadow Complex. All such contracts or agreements shall be signed jointly by the President and the Secretary, or by other members of the Committee as may be empowered for this purpose.

(xiii) Ensure that the Villa owners do not carry out external modifications, which are not in conformity with the approved Standards that are part of the Rules and Regulations of the Palm Meadows Association.

(xiv) Do and perform all acts, deeds and things that may be necessary or incidental for the effective implementation of the decisions of the general body

(xv) Ensure that the villas are used only as permitted in these bye-laws and take suitable remedial action therefore including legal action as thought fit by the Committee.

(xvi) Frame Guidelines for persons who shall be eligible to offer themselves for the post of Treasurer, which shall provide for such objective qualifications and criteria that would be most suitable for discharging the duties of a Treasurer.

(xvii) Frame Guidelines for persons who shall be eligible to offer themselves for the post of member of Investment Committee, which shall provide for such objective qualifications and criteria that would be most suitable for making decisions with regard to management of maintenance deposit corpus.

(xviii) The Managing Committee shall be responsible and empowered to ensure compliance of the rules, standards and compliances at Appendix A from all owners, members and residents of Palm Meadows. The Managing Committee shall also be empowered to issue letters, communications, etc. to the person/s that violate the same and demand compliance and direct necessary action be taken against such violators.

7A.0 INVESTMENT COMMITTEE

7A.1 The Investment Committee shall comprise of the Treasurer, two other members of the Management Committee and three members elected from among the Members of the Association. The three elected members of the Investment Committee shall have tenure of five years.

7A.2 The Investment Committee shall be entrusted with the management of Maintenance deposit amount held by the Association, in consultation with financial advisors and fund managers so as to enable the use of the deposit amount for maintenance of Palm Meadows and for the best benefit of the Association. However, the Investment Committee shall not be involved in the use of the interest and earnings of the maintenance deposit amount, which shall be solely managed by the Management Committee.

8.0 PUBLICATION OF ACCOUNTS, REPORTS & AUDITS

8.1.The Association shall, on or before June 30 of each year, publish an audited Annual Financial Statement containing:

a) Profit and Loss accountb) The receipts and expenditure of previous financial yearc) A summary of the properties and assets and liabilities of

the common area and facilities of the Association, giving such particulars as will disclose the general nature of these liabilities and assets and how the value of fixed assets has been arrived at.

8.2.The Audited financial statements shall be open to the inspection of any Member of the Association during the office hours and in the office of the Association, and a copy thereof shall be submitted to the competent authority not later than the 15th of August each year.

8.3.Every Financial statement shall be accompanied by a complete list of the Villa Owners as on March 31 each year. The financial statement shall state up to what dates profits and expenses are included.

8.4.The Association shall appoint in its General Body an independent Chartered Accountant, who, is not an owner of a Villa in Palm Meadows, as an Auditor who shall audit the accounts of the Association to be prepared by the Management Committee as here-in-before provided and shall examine the Annual Return and verify the same with the accounts relating thereto and shall either sign the same as found by him to be correct, duly vouched and in accordance with law, and specially report to the Association in what respect he finds incorrect, not vouched or not in accordance with the law.

8.5.The Management Committee may in its General Body Meeting appoint a qualified Internal Auditor who may be a Member, who will provide periodic reports to the Management Committee and report to the General Body at its Special or Annual General Body Meeting. The Internal Auditor shall not be a member of the Management Committee.

8.6.Power of the Auditor: The Auditor shall be entitled to call for the examination of any papers of documents belonging to the Association. The Internal Auditor shall work as an overseer of the financial operation and account maintenance, as well as implementation of the General Body and Management Committee resolutions and report only to the General Body.

9.0 RESPONSIBILITIES OF MANAGEMENT COMMITTEE

The Management Committee shall be responsible for the day-to-day administration of the Association, in accordance with the bye-laws and rules of Association. The responsibilities shall include the following: -

9.1.Timely collection of maintenance dues and any other payments or dues that may be decided upon from time to time.

9.2. Adequate security for the Villas, buildings and its residents.

9.3.Cleanliness of common areas

9.4.Continuous power supply to villas and common areas.

9.5.Provision of safe and adequate water supply to the buildings and villas.

9.6.Maintenance and upkeep of the following facilities at Palm Meadows: -

(i) Roads(ii) Parking areas(iii) Drainage(iv) Storm Water Drains(v) Krebs.(vi) Walkways(vii) Street Lights(viii) Sewage treatment plant(ix) Water treatment plant(x) Over head tank(xi) Sump tank(xii) Water pumps(xiii) Generators(xiv) Picket fencing(xv) Drip irrigation system / Sprinkler system(xvi) Electronic security system(xvii) Compound wall (Internal/External)(xviii) Children play areas(xix) Transformers(xx) Any other services added from time to time.

9.7.Maintenance and upkeep of the garden and landscaping in front of the Villas as per approved standards.

9.8.General electrical maintenance in the buildings/villas excluding replacement of breakages/parts in villas and repairs to personal effects.

9.9.General plumbing and sanitary maintenance excluding replacement of breakages/parts in Villas. External sanitary / plumbing maintenance.

9.10. External painting of Villas& common areas (once in 5 yrs).

9.11.Maintenance of road /caution signs and information boards.

9.12.Provision & maintenance of shuttle Bus service.

9.13.Collection and clearance of garbage

9.14.Termite, Rodent & Stray Dog control.

9.15.Appointment / dismissal, performance review, payment of salaries and all aspects of discipline relating to the staff employed by the Association.

9.16.Maintenance of proper accounts relating to the income/expenditure of the Association, and preparation of an audited Annual Statement as on 31 March of each year.

9.17.General conservation and preservation of the environment for the good of the entire community.

9.18.Publish to all members on a Quarterly basis a status report outlining the achievements of the Management Committee and progress of specific agenda items in the prior quarter and priorities for the next quarter.

9A. RESPONSIBILITIES OF MANAGEMENT COMMITTEE

All the Office Bearers of the Association shall at all times be kept indemnified and harmless against any/all actions, claims, costs, legal proceedings, damages, liabilities, etc., both individually and jointly, by the Association, during and after their tenure of office for all acts, deeds and things done or caused to be done by them in the exercise of their respective rights, powers and responsibilities granted to them under these bye-laws or done in good faith pursuant to the powers vested to them under these Bye-laws; Provided however, the indemnity shall not be extended to any Office Bearer/s of the Association for his acts of omission and commission, beyond the scope of his/her power or authority and without the sanction of these bye-laws or the Managing Committee or the general body as the case may be.”

10.0 RESPONSIBILITIES OF AREA REPRESENTATIVES

10.1 To uphold the Guiding Principles, Bye-laws, Rules and Guidelines of the Association. In furtherance of this objective, the Area Representatives shall:

10.1.1 Help to create and sustain the necessary awareness among residents.

10.1.2 Monitor compliance.10.1.3 Assist the MC in dealing with deviations / non-compliance.10.1.4 Assist the MC in reviewing Rules and Guidelines, based on

feedback from residents.

10.2 To resolve routine operational issues and complaints directly at the grass-roots level.

10.3 To escalate policy issues, and major issues of common concern, to the MC.

10.4 To assist the MC in maintaining high standards for the physical environment in Palm Meadows.

10.5 To assist the MC in monitoring the quality of facilities and consumer services available to residents.

10.6 To act as a communication channel between the MC and the residents.

10.7In pursuance of their responsibilities, the Area Representatives shall meet as often as may be required, and at least once in a month. The matters discussed and the decisions arrived at, duties allotted and the proceedings of

each such meeting shall be recorded in a Minute Book and a copy thereof sent to the MC.

11.0 OBLIGATIONS OF MEMBERS & OWNERS

11.1.All members shall comply with the byelaws and rules of the Association as well as any guidelines issued by the Association from time to time.

11.2.It shall be the responsibility of the new member concerned that the lessee or occupants of the Villa conform to all the bye-laws and rules of the Association. Not withstanding the above, the Management Committee shall be entitled to enforce any or all of the restrictions and rules directly against the tenants or occupants of the Villa.

11.3.It shall be responsibility of every owner to ensure that maintenance dues or any other dues decided upon by the Managing Committee /General body from time to time are paid in full and on time.

11.4.The owners of the Club and Amenities complex shall pay a maintenance deposit and ongoing maintenance dues of an amount as agreed between the Association & the owners of the Club and Amenities complex respectively

11.5.Monthly dues towards back-up electricity, water charges and any other recurring dues payable to the Association shall be made within the due date as defined by the Management Committee.

11.6.In case of delayed payments, the owner concerned shall be liable to pay interest at the Bank rates applicable at that time.

11.7.It shall be the responsibility of the Villa owner that any external modification to the Villa is carried out only after due approval of the Management Committee.

11.8.Members shall ensure that their Villa is used primarily as a residence. Its residents may use a Villa for commercial, social, cultural or religious activity, as long as it does not cause ongoing inconvenience or disturbance or present a security risk to neighbours and members of the community. It is clarified that a villa may not be used as a Service Apartment or to run any form of commercial boarding and lodging services.

11.9.Members shall pay maintenance charges as specified by the Management Committee for the work of a personal nature.

12.0 RIGHT OF ENTRY;

12.1.An owner shall grant the right of entry to the manager, or to any person authorized by the association, in case of any emergency originating in or threatening his Villa, whether the owner is present at the time or not.

12.2.An owner shall permit Association representatives or duly authorized Service provider when so required, to enter his premises for the purpose of maintenance, provided that requests for entry are made in advance and that such entry is at a time convenient to the owner .In case of an emergency, such right of entry shall be immediate under proper supervision.

13.0 ARBITRATION PANEL:

13.1.The role of the arbitration panel is to provide effective checks and balances for the functioning of the MC. Their responsibilities include:

• Assisting in the interpretation of the PM Rules and Standards in a manner that is consistent with the Guiding Principles and Bye-laws.

• To recommend additions / amendments (where relevant) for greater effectiveness.

13.2.The arbitration panel can seek further assistance (where relevant) from any source – resident, outside expert, etc. and their duty is to arbitrate between the MC and the residents if there is a divergence of opinion relating to the interpretation of the rules and standards.

13.3.In case of reasonable doubt, benefit of interpretation to be given to the resident.

13.4.Final decision by Arbitration Panel to be binding on the resident and the MC.

13.5.To recommend steps (where relevant) for corrective action as well as for good governance.

13.6.Structure

The Arbitration Panel will comprise of five members considered to be of high level of intellectual integrity; objective; non-partisan; well respected; ability to look at issues in the overall interest of the community; high level of commitment; sense of fair play. The MC nominates the Panel members. The initial Panel will have Tenure of three years and subsequent panels will have tenure of two years. Any Member can serve a maximum of two successive terms.

To hear an appeal the Member and MC will chose one arbitrator each and the two chosen arbitrators will choose the third arbitrator from the above panel. The Leader chosen among the selected panel members is designated as Chairman for a given Arbitration.

13.7Authority

Role carries moral authority (not functional or executive). Formal authority is limited to:

• Calling for MC meeting to review any specific issues rose / referred by residents, which require wider discussion.

• Calling for EGM / SGM if dissatisfied with the decisions or functioning of the MC.

13.8Escalation Process

Level Steps Processing time Days Cum.S NC complaint / report (by resident, Association staff or AR) 0

• Counseling by AR, and / or intervention by

Manager 2 2 L1 If unresolved, and for 'routine' issues • Manager to send note to resident 3 5

L2If still unresolved, or for 'major' issues - escalate to MC Member-Rules

• Counseling by MC Member-Rules (where

relevant), or

• Reference to Arbitration Panel (for

interpretation), or • MC Member-Rules to send note to resident 5 7

L3 If still unresolved - escalate to President (for review by MC) • Counseling by MC (where relevant), or • Reference to Arbitration Panel (for interpretation), or

• MC to send note to resident (indicate decision / proposed action / time for appeal to Arbitration Panel) 7 14

L4 If still unresolved, and no appeal made to Arbitration Panel • MC to initiate disciplinary action 7 21

OR L4 If still unresolved

• Appeal by resident to Arbitration Panel (only after

receiving note from MC and within stipulated time) 7 21

• Final decision by Arbitration Panel (to be

binding on resident and MC) 7 28 If decision by Arbitration Panel not complied with • MC to initiate disciplinary action 7 35 Notes:1 For reference to Arbitration Panel by Member-Rules (L2), or by MC (L3), add 3-5 days.

2Some options for disciplinary action by MC - display name as defaulter; communicate to all residents; withhold services; levy penalty.

3Dealing with non-compliance to be a structured, time-bound process. Each NC complaint to be given a distinct reference number for tracking / review.

4 MC to monitor its own performance against these norms.

Appendix A (Details of Standards, Rules and Compliance procedures)

Appendix B(Detailed Sketch of Palm Meadows Complex)