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 .
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Lawyers are available now to answer your questions.
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
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.
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.
