Interest on pending housing society maintenance charges
Pankaj Patil
(Querist) 25 March 2018
This query is : Resolved
Dear Experts,
We are body members of a Housing Society in Pimpri chinchwad, one of our Society member has not paid maintenance charges from March 2017 till date. In Accordance we have sent a notice to this member with interest charges @21% simple interest on the 24000/- dues. In return of this notice the member is claiming to send a legal notice to the society saying that the interest rate is not as per legal norms and he will not pay these charges.
We wanted your expert advice and opinions in this regards. Please guide us.
Regards,
Guest
(Expert) 25 March 2018
If interest rate is not as per legal norms, is he ready to pay the original outstanding without interest or lesser rate of interest?
Vijay Raj Mahajan
(Expert) 25 March 2018
Interest rate seems higher even to bank interest rate. The imposing interest on due principal amount of the payment of maintenance of housing society by itself seems not practical unless it's financially affecting other society members.
Collect the principal amount due from him and settle the matter amicably.
Pankaj Patil
(Querist) 25 March 2018
We have applied the interest rate as per society by-laws.
Pankaj Patil
(Querist) 25 March 2018
We have applied the interest rate as per society by-laws.
Guest
(Expert) 25 March 2018
You have avoided replying my question. Apparently, your query is just a hypothetical academic query, not a real problem.
If a real problem and applied interest rates as per society bylaws, what is the hitch and why afraid in replying legal notice of the member?
Better consult your society's legal adviser instead of raising vague queries here.
Kishor Mehta
(Expert) 25 March 2018
Under Bye-law 67(viii) & Bye-law 71 of the Model Bye-laws of CHS in Maharashtra, a simple interest @21% can be charged on the amount of dues to the Society.
Kumar Doab
(Expert) 25 March 2018
GO thru; Rule 72;
http://rtiactivist.com/wp-content/uploads/2011/11/MAHARASHTRA_CO-OPERATIVE_HOUSING_SOCIETIES_BYE_LAWS.pdf
Kumar Doab
(Expert) 25 March 2018
The society bye laws seem to be in accordance with Model Bye laws…
You may check at your end..
If the member is claiming the interest rate applied is not as per norms then ask the member to show the said norms…and if member cannot convince the MC then MC may convince the member.
If the society has engaged a very able senior LOCAL counsel(s) of unshakable repute and integrity specializing in society matters and well versed with LOCAL rules/laws and having successful track record …and worth his/her salt…then entrust the matter to the counsel for opinion and if legal notice is issued…
If the society has not engaged then society may engage a very able senior LOCAL counsel….
Kumar Doab
(Expert) 25 March 2018
LCI Experts Mr. Hemant Agarwal, Mr. M.V.Gupta, Mr. Kishore Mehta, Mr. Madhu are from your state and post in threads, Articles sections on such matters….
You may visit their profiles and threads etc under their profiles and approach them..
Kumar Doab
(Expert) 26 March 2018
Thanks for agreeing Ms. Usha Kapoor..
Dr J C Vashista
(Expert) 29 March 2018
It is very much in order, nothing wrong in charging 21% interest on overdue maintenance.
Why the Society is reluctant to stop all the services of the defaulter?
Management is competent to take coercive action including expulsion of such defaulter.
As the President of a Cooperative Group Housing Society in New Delhi for the last 6 years, I have adopted arm-twisting tactics, consequently there is not even a single defaulter in our Society of 120 (mostly high-profile retired/serving government servants) members.
Ms.Usha Kapoor
(Expert) 21 June 2018
Agree with Vashista and Kumar Doab.
Ms.Usha Kapoor
(Expert) 24 June 2018
Agreev with Vashista anbd Kumar Doab.
Ms.Usha Kapoor
(Expert) 24 June 2018
Agreev with Vashista anbd Kumar Doab.
Guest
(Expert) 24 June 2018
Thanks of Mr. Kumar Doab becomes again due three times to Ms. Usha Kapoor, as she has again shown three times agreement with him.
