Can society charge interest on outstanding repairing fund

This query is : Resolved 

14 November 2017

Hi gm
I m jigna gada from mumbai. Our society had stared collecting repair fund in Feb 2017,they collect it till 10 month then after they stop collection, they start charging intrest on outstanding repairing fund from March. Now repair start by Nov 2017.
My question is did society can charge intrest on repair fund till work not started.???

Guest (Expert)
14 November 2017

Of course, why the beggars should ask for interest? It seems, the members of the society think the management committee nothing more than beggars and they don't pay the dues even for 10 long months and then feel bad why they ask for interest.

Question arises, are your society members paying any salary to the management executives and expect them to go each day to beg for funds just to serve the members of the society. Why the members don't pay their dues on time at their own if they are desirous of facilities?

SHIRISH PAWAR, 7738990900 (Expert)
14 November 2017

Society can recover interest on repair fund amount as per resolution passed in a meeting.

Rajendra K Goyal (Expert)
14 November 2017

Society can charge interest on any outstanding including repairing fund till interest charging is specifically excluded in bye laws.

Sudhir Kumar (Expert)
15 November 2017

The society must charge interest from defaulters or else (though working honorary) face complaint to Registrar from non-defaulting members.

Sudhir Kumar (Expert)
15 November 2017

You believe that members must not pay at all since repair is not started.

the Management is not a civil contractor who will show you the finished work and then demand wages.

Your post does not at all indicates why work is not started or if the Management is having intention to embezzle funds without repair.

Sudhir Kumar (Expert)
15 November 2017

Every society has got some flats whose owners do not take part in any cooperative activity and ready to stop paying even maintenance charges on petty reasons like:-

1. somebody parked car in front of my gate.
2. children playing in ground create noise.
3. when water supply of the won failed the management did nothing (or management charged extra on the pretext of buying tankers).
4. Dhobi doe not remain in the society till I come from office (or does not come in society before I leave for office.
5. Persons from other societies are allowed in for festive celebration.
6. Voter registration is not done for his son who recently came back to India.
7. Secretary is not from white collar job or has retired from lower post than I hold.
8. Only one gate opens at night and my son's cab drop[s at the gate and he has to walk longer in night as gate near my flat is closed.
9. Secretary supported the guards when guard objected manhandling at night by my drunk relative.
10. Management did nothing to when police came and arrested my brother at night.
11. My wife does not have speaking terms with secretary's wife.
12. I am founder President when there were only 50 members and now none is to vote for me.
13. I have been voted out and a less educated person is elected.
14. Many ladies visit my daughter-in-law's beauty parlour and society expects them to park outside.
15. My daughter was not allowed solo dance or my 4 years old grandson not allowed singing of solo patriotic song on cultural function.
16. Secretary has asked me to stop overflow of water from my overhead tank.
17. The guards are not ex-servicemen.
18. Vegetable vendor allowed inside charges more than sabji mandi.
19. Secretary did not stop entry of the maid who left job at my flat after arguing with my wife.
20. Secretary did nothing to help me when police was called by neighbour at night because of Late night party on my son’s 18th birthday (or Bhagwati Jagran) with loudspeakers.
21. The electrician coming to society on payment basis did not decorate my house before dhanteras and Secretary did not debar his entry.

etc etc etc.

Guest (Expert)
15 November 2017

In nutshell, you should make yourself pretty aware that the management executives of the society are not paid servants of the members of the society. They render voluntary service for the benefit of all the members of the society. Timely payment to the society only helps service to members for which the members could have spent much more than they pay to the society, besides saving their own precious time and botheration required for arranging for the petty contractors, services and repairs to get their individual flats maintained independently.

The society does not get rich with the amount of interest. That is just a sort of pin pricking for the members to caution them that they are bad paymasters and should be ready to part with some additional money as of penalty.

Ms.Usha Kapoor (Expert)
21 June 2018

I agree with Sudhir Kumar.

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