• Quarterly advance maintenance charges demanding by society from owners of the flats

My society demanding quarterly advance maintenance charges from the members who give their flat on rent rest of the member who use their flat for self use they do not require to pay advance maintenance charges. 
Society also impose penalty for defaulting advance payment ₹500 per month and interest @21% p.a.
Whether it is legal or not?
Asked 4 months ago in Property Law
Religion: Hindu

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9 Answers

there appears to be some rationale behind such imposition

firstly the member who has given his flat on rent is not before the society at all times

whereas the members using their flats for self occupation are within the society premises only

so compared to a member who lives in the society and defaults in payment of maintenance AND a member who does not live in the society and has given his flat on rent, it will be difficult for the society to go behind the member of the latter class than the former class

this appears to me to be the reason why the society has come up with such a rule

if the rationale of the society is as above then it is a reasonable restriction and hence legal

the advance maintenance would also be charged to ensure that if in case the member's tenant does something which causes any damage to the society's property or its common areas then in absence of the member, the society can use the advance maintenance to make good the said damage. Ofcourse the society will be within its right to charge separately to the member for making good such damage by his tenant. The advance only gives an immediate fund in the hands of the society to meet such contingencies

considering the above i dont see any illegality in the society's decision

you can very well make the payment of the advance at one go from one month's rental that your tenant would pay you

 

Yusuf Rampurawala
Advocate, Mumbai
7517 Answers
79 Consultations

5.0 on 5.0

1) same rule applies to all members 

 

2) society cannot discriminate against those who give flat on rent 

 

3) society can charge non occupancy charges at 10 per cent of monthly maintenance bills 

 

4) interest for delayed payments can be charged by society at 21 per cent pa 

Ajay Sethi
Advocate, Mumbai
94774 Answers
7543 Consultations

5.0 on 5.0

Hello, 

 

the byelaws of the Society may have mentioned about advance payment of maintenance charges

or there must be a resolution passed in a General Body meeting. 

 

 

your can ask the Society to provide the provision of the byelaw or the resolution passed. 

Uma Vyavaharkar-Acharya
Advocate, Mumbai
59 Answers
2 Consultations

5.0 on 5.0

Please check the bylaws of the society to see if there is such a provision. If there is not, it is an unlawful act. Lodge your objection in writing to the society. If there the response is unsatisfactory, you may lodge a written complaint with the registrar of societies and also agitate the issue before the consumer forum in consultation with a competent lawyer. 

Swaminathan Neelakantan
Advocate, Coimbatore
2805 Answers
20 Consultations

4.9 on 5.0

The demand made by the society seems to be discriminatory act.

It is not known whether the society is authorised to make this demand through their bylaws.

In fact any bylaw affecting the interest of the members or if it is found to illegal is not enforceable and the affected member can very well object to this in writing and then escalate the complaint to the registrar concerned  for intervention and relief.

It may also be considered as an unfair trade practice hence a complaint under consumer protection act also is maintainable. 

T Kalaiselvan
Advocate, Vellore
84975 Answers
2204 Consultations

5.0 on 5.0

  1. Demanding advance maintenance is blatantly illegal. Also, if a percentage fine is levied on arrears, any additional amount  (rs 500) is bad in law. 
  2. You can move the cooperative court or consumer court against the society. Which of the two would best suit your purpose can only be adviced to you after exhaustive consultation session with you. You have to visit me for that. 
  3. I'm based in Mumbai/ NaviMumbai just as you are. So it shouldn't be much of an issue for you to visit me for such exhaustive consultation. 
  4. I extend my services not just to advice, but also take up the litigation if any,  to its logical conclusion 
  5. ९८२०८९७८८४ (nine eight two zero eight nine seven eight eight four) 

Netra Mohanchandra Pant
Advocate, Navi Mumbai
1547 Answers
5 Consultations

4.4 on 5.0

Dear client,

The regulations of the society govern the validity of the penalty and interest assessed, the distinctions made between self-occupied and rented apartments, and the quarterly advance maintenance fees. Housing societies in India usually formulate its regulations in accordance with the Maharashtra Cooperative Societies Act, 1960. The Act does not specifically govern the distinction between self-occupied and rented apartments, but it does provide organizations the power to impose maintenance fees. Any discriminatory action, therefore, must abide by the equality principles outlined in Article 14 of the Indian Constitution. The bylaws of the society may be legally enforceable if they expressly declare these requirements. The ₹500 monthly penalty and 21% annual interest rate, however, may be examined for reasonableness. The 2019 Consumer Protection Act may also be applicable in situations where there are unfair trade practices taking place.

 

Hope this helps you.

Anik Miu
Advocate, Bangalore
8920 Answers
110 Consultations

4.7 on 5.0

- As per RERA , collecting maintenance charges in advance is against the rules. 

- Further, the society cannot impose two rules for flat owners on the basis of rented flats and non rented flats. 

- You can lodge a complaint against the society before the registrar or the Consumer Forum as well. 

-   As per law, a society/RWA has no legal authority, to issue moral, ethical and social diktats to its residents.

- Further, Society by law and resolutions must be limited to the mandate of governing the society’s affairs and nothing more.

Mohammed Shahzad
Advocate, Delhi
13260 Answers
198 Consultations

5.0 on 5.0

It’s illegal to do that there is no such provision to discriminate between two categories 

Prashant Nayak
Advocate, Mumbai
31955 Answers
180 Consultations

4.1 on 5.0

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