• Maintenance penalty charges for co-operative housing society

Sir, 

i am failed to pay maintenance charges of my hosing society from so may time i am convincing society that ill pay all maintenance at a time but they are charging 
interest of 20% per month as they said they have made rules . so kindly advice us that how much maximum interest or penalty society can charge as per the law . thanking you .
Asked 1 year ago in Civil Law from Surat, Gujarat
1) society can charge maximum 21%interest for delay in making payment by member 

2) bye laws  adopted by your society would contain such a provision 

3) resolution has to be passed by society in its AGM  regarding interest rate to be charged for defaulters 
Ajay Sethi
Advocate, Mumbai
33842 Answers
1880 Consultations

5.0 on 5.0

If the rules provide for interest on delay then you are bound by the rules. The levy of interest is governed by the by laws/rules of society and not law.
Ashish Davessar
Advocate, Jaipur
20797 Answers
556 Consultations

5.0 on 5.0

The penal interest @ 20% per month is very much exorbitant, please confirm that if it is pr month or per annum.  They cannot charge interest at this exorbitant rate, it is illegal.  You may issue a legal notice to the society stating that this exorbitant interest shall be notified to the RBI for contradicting the law of the land in this regard, the society will wake up. 
T Kalaiselvan
Advocate, Vellore
23861 Answers
236 Consultations

5.0 on 5.0

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