• Mumbai based - housing society charging move-in/out fees and 10% clubhouse usage fees for tenants

Facts of Case:
Property based in Andheri West, Mumbai

1. Western Heights (Adani) - First CHS formed in Aug 2019 as OC received in Jan 2019.
2. Had first SGM/AGM in Dec 2019 and the society secretary decide to impose following rules on tenancy, there was no objection from the members attending the meeting as most of them were owners who reside and not who rent their flats to tenants:

a). The tenant shall pay Rs 10,000 per month against usage of service lift and other common areas, for usage by workers and material shifting

b). Society will charge one time moving in moving out charges of Rs 10,000 per moving in and moving out case. The member will be required to pay additional clubhouse charges at rate of 10% of Maintenance fee as non-owners. 

 Question:
Are rules in (a) and (b) legitimate and under authority of CHS even if agreed upon by attending members of society in SGM/AGM ? If above rules are illegal, then which by-law/section/reference of the CHS by registrar office can be quoted to the members of our society, so they can cancel or amend such rules? 

If the Secretary does not agree to cancel any charges, should i approach the Deputy Registrar Office of K-ward OR file complaint in which type of court?

Kindly guide on what can be done or cannot be done in above charges related to Tenancy.

Thank you.
Asked 2 years ago in Property Law
Religion: Hindu

12 answers received in 1 day.

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14 Answers

Society can at most charge 10 per cent of monthly maintenance bill as non occupancy charges 

 

2) society cannot charge flat Rs 10000 a month as usage charges from tenant 

 

3) there is no provisions for charging moving charges in the bye laws 

 

4) even if is approved by AGM any amendment in bye laws has to be approved by registrar 

 

5) complain to deputy registrar of your ward against said resolution passed by society Levi g exhorbitant charges 

Ajay Sethi
Advocate, Mumbai
87955 Answers
6207 Consultations

5.0 on 5.0

Rules made by the society and passed by its General Meeting is final and is cannot be challenged this is very common practice among the societies is that they charge in and out fees for using the lift and any damages whare society has made certain rules for the use of society clubs which is different from the common area in that case  society imposes a charge to use the club and in case of tenants or the owner of the apartment the charges may be different in case of owners they  already paid and amount as a fix club charges even then they might be charged and amount for the club services every month there is nothing wrong in this rules and you have to follow it.

Please remember to rate this answer if you like it

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

The by laws of the society will be the authority for all such types of charges.

However the by laws or any resolution passed by the society with regard to the illegal demand or exorbitant charges are not valid 

 The tenant is liable to pay the maintenance charges as per the norms of the society. However, the developer or the society cannot charge different fee from owners and tenants. This is not legal.

Shifting charges:

Society in Mumbai have to abide by the byelaws and byelaws do not allow for such charges. While renting out the owner will be chared monthly NOC by society which is max of 10% of the service charge charged by society to all owner members.

Having said that there are some societies which use this route to add to their income and one should ask the owner to pay up as the only thing that the tenant should be paying is the rent and interest free deposit. Tenant should be paying up if there is any loss to common property due to the shifting.

 

You can take up this matter with the registrar of cooperative societies and seek his intervention and remedy to this.

If ther is no action on this then you may plan to drag the society to cooperative court for relief and remedy.

 

T Kalaiselvan
Advocate, Vellore
78113 Answers
1543 Consultations

5.0 on 5.0

1. The Society can levy Service & Maintenance Charges as detailed in Bye Law no. 64 ,65.  Anything else beyond this is illegal & unauthorized even IF sanctioned /resolved in any General Body meeting.  Hence the charges mentioned by you are illegal & cannot be recovered, in anyway whatsoever.

2. A Grievance Petition can be filed before the Registrar (K-W ward) seeking directions to the Society and also a Grievance Petition can be filed before the Local Consumer Court, for such unfair Trade practices, harassment & intimidation etc.... and claim damages /compensation for the mental & physical trauma and other financial losses with interest thereon.

3. Check  out the following links, for further understanding:

https://chshelpforum.com/non-occupancy-charge

https://chshelpforum.com/service-charges-of-chs

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

Hi,

You are suggested first to write an application to chairman of society to change the bye-law. If not changed, approach to registrar of society for action against society. If you are not satisfied by action of registrar, then file the writ petition in high Court. 

 

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

Rules are absolute discriminating and without application of mind. Such exorbitant charges are imposed to indirectly prohibit tenancy. 

If members agree than valid otherwise invalid, owner cannot be prohibit to use his property in any legal manner. Can complain to registrar or rules will declare void by order of co operative society court.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

You can file complaint against society before deputy register for charging  high non occupancy charges

 

2) you can file complaint against society before consumer forum 

 

3) you can also claim litigation costs and compensation for mental torture undergone by you 

Ajay Sethi
Advocate, Mumbai
87955 Answers
6207 Consultations

5.0 on 5.0

You should issue legal notice to society against high non non occupancy charges 

 

you can opt for feature issue of legal notice on the website . Make payment online for sending legal notice 

 

If no reply received by society send letter to deputy register of your ward regarding high non occupancy charges 

Ajay Sethi
Advocate, Mumbai
87955 Answers
6207 Consultations

5.0 on 5.0

The aforesaid charges are totally illegal and against the byelaws of society and MCS Act 1960

Prashant Nayak
Advocate, Mumbai
27278 Answers
88 Consultations

4.4 on 5.0

A case before consumer court may not be maintainable on this subject.

You may approach the registrar for cooperative societies with an application against this exorbitant and unjustified demand made by the society.

You may argue that the society should work against the interest of its own members.

You may highlight that the exorbitant charges demanded by the society will frighten away the prospective tenants from taking up the tenancy which would ultimately result into a great loss to the owners who do not reside in the city itself.

 

T Kalaiselvan
Advocate, Vellore
78113 Answers
1543 Consultations

5.0 on 5.0

Your subsequent question addressing a particular advocate in the general forum may not be a proper approach, hence you may contact the chosen advocate by taking his personal details which are available in the forum's data available  in the website.

 

T Kalaiselvan
Advocate, Vellore
78113 Answers
1543 Consultations

5.0 on 5.0

1. Society cannot charge Rs 10K for usage of basic facilities of building from tenants as it is inappropriate amount and a type of extortion they are taking from tenants. 

2. Society can charge 10% extra of maintenance charges only. 

3. You can make complaint before deputy registrar coop societies against bye laws of society.

4. You can also file case before consumer forum or civil court if deputy registrar fails to take action against illegal byelaws of society.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

1. COMPLAINTS relating to "Monthly maintenance" & Non Occupancy Charges, can be made ONLY to the local ward Coop. Registrar.

2. Society is not liable for any losses /whatever, for non-availability of Tenants etc.... and Hence grievance relating to this will not be successfully entertained in the Consumer Court.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

No NOC require to give property on rent and at least No charge can be levy on NOC. You can obtain court order to quash this rule but not what you are expecting.

 

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

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