About the chapter issues, I dont think we need to say more that what Tinu and many others have already mentioned about. While not counting out the efforts that were made by the existing EC on building this out, Transparency is the primary issue that echoes thru. It is probably worth remembering that chapter is just a support system and has no control over the projects or its actions. It is neither an administrative power nor a place for people who just want to have a title on their business card or get their expenses covered. Chapter will be answerable to every single paisa spent to the community and community should stand up and demand for the clarity and visibility on things. If the chapter cannot do it, trust me, it will not last for ever. Probably the interim EC should not have re-elected themselves behind closed doors. Instead, they should have probably opened the memberships and conducted the election for the first official EC.

However, my vision about the future of EC is slightly different from what we have now. Unlike many other chapters around the world, Indic chapter have a unique challenge: Many different language Wikimedia projects, ranging from highly active to dead, (and more on the way) rolls up under its umbrella. To deal with this, we can probably take a page out of our democracy itself and consider building a representative assembly style administration system for our future.

Local Representation:All local wikis should elect a respected member of their community for a period of a year (or two) and form an administrative council for the chapter. This could be per language basis or per project basis, based on their community size. I would not exclude English, but would limit the participation to one member in council. for the rest of projects - It could be probably like for every project that has more than 50 (this is just a number, we can look at the real world situations) active people (not including bots) - we can allocate one member per project to the council. other wise, one member per language projects would be enuf. this is just to ensure that we have enuf coverage per project and per language depending on the size of people.
Formation of EC: From the administrative council, the EC can be elected in for a term. This election should be by the chapter members / local language wikimedians.
Limit on Term in EC: It may also be worth enforcing that no project gets more than one (or at the most 2) consecutive term in EC (if we have enuf representations to fill in all slots). This will ensure that all projects gets it share of EC terms over the years.
Communication: A Monthly or quarterly report of the chapter activities should be published by the EC and admin council. Individual representatives are and should be responsible for communication between chapter and projects. Should there be a reason to replace the member by the local community, such a provision should be provided.
Removal of member: Inactivity and lose of trust by the general public should be considered as a reason for removal as usual. On the other hand, if the rest of the administrative council members feels against one member, chapter should be able to request for replacement citing proper reasons for it.
Funds and Grants: All funds and grants from chapter account probably can be openly discussed and approved on the foundation wiki or meta wiki (like the foundation grant process)
Audit and Annual report: End of every financial year, an audit committee for the financial and functional aspects of the chapter's actions should be formed from the administrative council and audit results should be made public along with the annual reports.