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Rajesh Jain   01 November 2018

Non Occupancy Charges in Housing Society

Can society pass a resolution with majority to charge all the flat owners who have rented their flats 1 month rent per year under the head "Voluntary Contribution to Building Development" ?


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 12 Replies

Dr J C Vashista (Advocate)     01 November 2018

No such contribution is legal, challenge it before RCS or High Court, through a local prudent lawyer.

G.L.N. Prasad (Retired employee.)     01 November 2018

Every thing depends on bye laws and it's approval during General Body meeting.  First read the same and then make a complaint to sub registrar, and after getting a record of all facts, then go for further remedy through court.

Rajesh Jain   01 November 2018

Thank you Mr. Vashista and Mr. Prasad. I really woder, referring to Mr. Prasad's reply, that society can form and get approved any such bye law. Most society members are not qualified enough to understand the intricacies and legal reunification of every law and thus may give consent without much deliberation. Dies it mean, any such illogical bye law can never be challenged once approved in General Body Meeting?

Rajesh Jain   01 November 2018

Corrections: 1. ...Legal reunification.. 2. Does it mean...

Kishor Mehta (CEO)     01 November 2018

According to the current Bye-Laws in Maharshtra, the society CAN NOT charge more than 10% of the MAINTENANCE charge towards Non-occupancy charges, and any resolution passed in AGM to this effect is bad in law. You can always approach Registrar of CHS of you zone with a complaint in the matter.

Rajesh Jain   01 November 2018

Thank you Mr. Mehta for your reply. So does it mean, point mentioned by Mr. Prasad does not hold good? No society can have such a bye law approved in GBM?

Kishor Mehta (CEO)     01 November 2018

I would not like to enter into any controversy with a lawyers club colleague whom I hold in esteem, the relevant resolution of the Maharashtra State Government is cited hereunder, you may make your own decisions.

No. SAGRUYO-2011/PRA.KRA. 360/14-SA, Co operation, Marketing and Textile Department, Date 15th October, 2011

4.5 Non- Occupancy charges:-
It is obligatory on the member, who let his flat / tenement (gala) on rental basis, to pay the non–occupancy charges upto 10% of the service charges to the society.
• The provisions in the directives issued by the government on dt. 01-08-2001 Section 79A of the Maharashtra Co-operative societies Act 1960 are as follows :-
1. Non occupancy charges should not be more than 10% of service charges.
2. If a member has given his flat to his close relatives like mother, father, brother sister, son, daughter, son-in-law, daughter-in-law, brother-inlaw, sister-in-law, grandson, granddaughter then the non–occupancy charges should not be charged.
3. The said directive shall be applicable to all residential and commercial tenement (gala) / flats in the co-operative housing societies in the state.
4. All housing societies in the state should have to take action in doing necessary changes as above in their bye-laws.                                                      5. However, if necessary changes have not been made as above even then the occupancy charges should not be more than the maximum limit mentioned in this order from the date of order.

Rajesh Jain   01 November 2018

Thank you once again Mr. Mehta. I did not intend to make you put any remark against any of our colleagues. So noble of you to respect the opinion of others.

G.L.N. Prasad (Retired employee.)     01 November 2018

My reply was in general to the actual query

Can society pass a resolution with majority to charge all the flat owners who have rented their flats 1 month rent per year under the head "Voluntary Contribution to Building Development" ?  

Voluntary Contribution to Building Development has been taken as the focus.

Honestly, I am not aware whether there is a difference between Voluntary Contribution to Building Development and non occupancy charges.

Rajesh Jain   02 November 2018

Further to my query and various suggestions, I want yo know whether taking legal route will cause me a lot of time, mental stress and probably more money than would society is charging?

Kishor Mehta (CEO)     03 November 2018

You may submit a complaint in writing to the Managing committee of the Society and demand a waiver of the excess charges of non-occupation, on failing to receive a response you should submit a complaint in Appendix 28 to the Dy. Registrar of your zone. Office of the Dy. Registrar is legally obliged to attend to your complaint. However you can always take recourse to RTI appliation if your complaint under Appendix 28 is not attended to satisfactorily. You can do this yourself anf do not need the services of an Advocate, not much of expenses are needed, what is needed is your time, patience and perseverance.

1 Like

Rajesh Jain   03 November 2018

Thank you Mr. Mehta for taking your valuable time out of your busy schedule to reply to my query. Your reply indeed is encouraging and enlightening. It's a nice guideline to kick start.

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