• 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 9 months 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
23375 Answers
1225 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
18246 Answers
449 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
14158 Answers
128 Consultations
5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Civil Lawyers

T Kalaiselvan
Advocate, Vellore
14158 Answers
128 Consultations
5.0 on 5.0
Ajay Sethi
Advocate, Mumbai
23375 Answers
1225 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18246 Answers
449 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0
Nadeem Qureshi
Advocate, New Delhi
3537 Answers
130 Consultations
4.9 on 5.0
Atulay Nehra
Advocate, Noida
444 Answers
15 Consultations
4.7 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2786 Answers
41 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
873 Answers
43 Consultations
5.0 on 5.0
Ajay N S
Advocate, Ernakulam
1916 Answers
19 Consultations
5.0 on 5.0
S J Mathew
Advocate, Mumbai
1954 Answers
65 Consultations
5.0 on 5.0