society cannot collect more than 10 per cent as non occupancy charges
2) it should not be more than 250 per month ie 10 per cent of total maintenance charges
3) it cannot be levied with retrospective effect
Sub letting charges levied by society
Dear Sir, I have a flat in Thane, Mumbai. The same is given on rent to a tenant (not a relative) for past 5 years. The society was not collecting any sub letting charges for the same, but from sept 17 they suddenly started to collect the same + they also have levied the sub-letting charges retrospectively for past 34 months. The total maintenance charges for the flat comes to 2500 Rs + Society is collecting 500 Rs per month towards sub-letting charges = So total maintenance per month is 3000 Rs. I request to please advice me whether it is correct for the society to collect the sub-letting charges retrospectively and whether the quantum of sub letting charges fixed (500 per month ) is correct. Yours sincerely , Dhansingh thakur
Asked 8 years ago in Property Law
Religion: Hindu
12 Answers
The bye laws of the society should have the provisions for the same. The same can't be retrospective in nature.
1. Yes the society has the right to collect the sub letting charges retrospectively.
2. The amount depends on the bye laws or any office memorandum passed by the society. Usually an amount of Rs. 500/- is only charged by the society.
Regards
Dear Client,
There`s no provision of Sub letting charges but - As per the bye laws “Non-occupancy charges -- chargeable in accordance with the circular issued by the Government of Maharashtra/ Commissioner for Cooperation from time to time” The latest Circular reference is as under.
Govt.Order No.SAGRUYO-1094/15165/ case No. 317/14-C /Mantralaya Extension, Mumbai- 32 dated 1st August 2001.
“Non-Occupancy charges shall not exceed 10% of service charges that also when unit sub let.
can refuse retrospective payment.
1. Well,the rules allowing society to charge extra maintenance for letting the premises on rent is not permissible under law.
2.The same should be considered as violative of the right of free trade as envisaged under section 27 of the Indian Contract Act.
3. Ao the decisison of the society can be challenged beofre the Registrar of Society and then to High court.
4. if he matter reaches to high court then the system or charging extra maintenance charges for the tenanted premises would be set aside for sure.
5. mere existence of bye laws is not enough to save the situation.
Dear Sir, Thanks for the prompt response. With the exception of Mr Anilesh Tewari, I understand as follows: 1) the society cannot lay subletting charges. 2) Society can ask for non -occupancy charges if given on rent which should be not more then 10% of maintenance (250 Rs in my case), if provided in by laws. 3) My society says that vide previous AGM dated 10/6/2012 they had fixed sub letting charges , which they have stated to collect since September 2017 hence as per them it is not retrospective but from the date of their AGM. Requesting your advice and guidance . warm regards, Dhansingh Thakur
Asked 8 years ago
1) AGM cannot decide to levy non occupancy charges at 20- per cent of maintenance bill
2) further property taxes, sinking fund , repair fund have to be excluded and only on maintenance charges 10 per cent can be levied
3) you have to challenge resolution passed by AGM before the cooperative court
As advised earlier you can challenge the decisison of the society in the grievance redressal mechanism described above.
Hi,
If bye laws of the society is amended to collect the subletting charges through AGM then from the effective date it is applicable to all the owners who have kept the property on rent.
Actually this is a charge on the tenant but not on the owner as is paid by tenant.
This rule uniformly applies on all the owners not on the selected one.
1. Is thre any mention in the bye law about collection of sub-letting charges?
2. How suddenly the issue of fixing sub-letting chaerges arose?
3. Was there any AGM or Special General Meeting conveyed for deciding on the said purpose?
4. Was the decision taken as per the resolution passed in any meeting i.e. AGM or SGM/
5. If the decision to collect sub-letting charge was taken by passing a resolution in recentlyt held AGM or SGM, have you got copy of the same? If not then collect a copy of the said resolution and file an application before the Registrar against the said illegal resolution since the Society has nothing to do if you let your flat to any body and it can not charge any fee for your renting your flat as no additional expense or burden is being borne by the society for your having let out your flat.
6. If the Registrar does not act favourably then file a Writ Petition before the High Court against inaction of the Registrar making the Society also the party praying for a direction upon the registrar to direct the Sicxety not to punish you by levying sub-letting charge for your renting the flat when the Society is not incurring any pain or expenditure for your said sub-letting of flat.
1. it is highly unusual and irregular that based on the resolution passed in the year 2012 they have started collecting sub-letting charge from 2017.
2. The Society was required to convey a fresh AGM and get the resolution passed giving you an opportunity to contest the said proposal.
3. The resolution passed in the year 2012 gets time barred if no action is taken thereupon and the matter is to be dealt with afresh.
The subletting charges and the quantum will depend on the bylaws of the association/society.
As per the bye laws “Non-occupancy charges shall be charged in accordance with the circular issued by the Government of Maharashtra/ Commissioner for Cooperation from time to time” The latest Circular reference is as under.
Govt.Order No.SAGRUYO-1094/15165/ case No. 317/14-C /Mantralaya Extension, Mumbai- 32 dated 1st August 2001.
“Non-Occupancy charges shall not exceed 10% of service charges. (excluding Municipal Corporation/ Municipal Taxes)
My society says that vide previous AGM dated 10/6/2012 they had fixed sub letting charges , which they have stated to collect since September 2017 hence as per them it is not retrospective but from the date of their AGM.
Requesting your advice and guidance .
If the society has asserted that the charges are levied subsequent to the AGM then it is clear that it is not having retrospective effect.
If they demand the charges retrospectively, you can protest the same on the basis of the AGM held during Sep 17.
You can even refuse to pay the same and issue a legal notice if required.