• Escalation cost by Society

Dear Sir, 

I have a flat in 7 Hills Power welfare society, Narsingi Hyderabad. I had purchased this flat in 2011 as a fixed cost member with the sale agreement specifically calling it out that no escalation cost will be levied on the fixed cost members. There are variable cost members and they should be the one bearing the escalation cost. 
Now the new EB, mostly variable cost members have passed a resolution in last GBM that the escalation cost of ₹134 per sft, to be borne by all the members, which seems to be illegal. The per sft paid by variable members are way lower than the fixed cost. 
The fixed cost members have paid extra cost for car parking, amenities and plc which the variable members have not. 
The flats are registered and there are many fixed cost members looking for legal advice to send notice to the EB. 

Please let me know the next steps and if we could meet to oppose this legally. 

Thanks
Sameer
Asked 5 years ago in Property Law
Religion: Hindu

3 answers received in 2 hours.

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8 Answers

Society must have adopted bye laws 

 

kindly clarify what is provisions regarding maintenance in bye laws adopted by society 

 

3) if it provides maintenance expenses have to be equal fir all members you will have to pay enhanced maintenance notwithstanding provisions in your agreement 

Ajay Sethi
Advocate, Mumbai
94522 Answers
7485 Consultations

5.0 on 5.0

You can challenge the same before consumer court. 

Prashant Nayak
Advocate, Mumbai
31807 Answers
175 Consultations

4.1 on 5.0

The fixed cost members would not have to pay the escalated cost even if the same is in the bye laws owing to the fact that they were always paying more than the variable cost members, before they cannot be made to pay escalated cost now as per law.

Firstly, the fixed cost member should serve legal notice to the society asking them to withdraw their stand for charging escalated cost from the fixed cost members.

If they fail to do so within 15 days of receipt of the legal notice,they can file complaints with the registrar of co-operative societies, approach co-operative court or consumer forum.

Siddharth Jain
Advocate, New Delhi
6303 Answers
102 Consultations

5.0 on 5.0

This is my response to you:

1. Firstly try negotiating with the EB, if they do not listen then you must send a legal notice;

2. If the EB does not respond within a time frame, then approach the court;

3. Consult a local lawyer, discuss full facts and then only take legal steps.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

1.  The issues can be challenged via a grievance petition in the local consumer court, supported with all documentary evidences, on grounds of harassment, negligence, deficiency, malpractice, unfair trade practice and applicable damages, compensation and interest thereon can be claimed.

2. Open /Stilt /Podium Parking spaces are all classified as "common open spaces" under the Regional Town Planning Act and CANNOT be Sold or Purchased or Registered . Parking spaces can be allotted (most of the times by illegally collecting money, which is a criminal offence).

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

when the fixed cost flat owners have registered deed against their allotment, it is obvious that the decision of EB is not applicable to them. the fixed cost members can give notice to EB and if they refuse to withdraw their decision or change their decision, the fixed cost members can choose housing society welfare tribunal for resolving their issue. 

Manish Paul
Advocate, Kolkata
287 Answers
2 Consultations

4.9 on 5.0

Dear client 

Yes you can send legal notice to the EB for levied so high Escalation cost and then you should approach the registrar of society with complain regarding the illegal cost put on you by variable cost members.

And if they doesnt take any action then you can approach Civil court for Issuing Permanent Injunction over the Escalation cost according to your sales agreement and to cancel illegal resolution passed by EB under the Influence of variable cost members.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

The newly elected body cannot make changes in the existing rules on their own.

If at all any changes are to be made a proper resolution to be adopted in the general meeting of the society.

Moreover as you said that you belong to the category of fixed cost member and have an agreement to that effect, you may produce the papers and seek exemption on that grounds by making a proper representation, if they still insist on it then you may issue a legal notice instructing them to refrain from making such illegal demands, if they still do not listen then you may drag them to the consumer forum for unfair trade practice. 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

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