Coop housing society-interest incurred on major repair funds

Anila Nair (Querist) 04 July 2021 This query is : Resolved
Hello all,

I need a legal perspective on a ongoing issue with my building society. I stay in Navi Mumbai in small Cooperative Housing Society of 17 flats. In Aug or Sept 2017, we received update that in order to have building renovation (repairs and painting only, it's not going into redevelopment), every flat owner needs to pay 80k by March 2018. I paid 5k each mnth for a couple of mnths and then remaining amount totalling 80k was transferred by March 2018.

Due to other flat owners delaying their contributions and also other factors like rainy season and later covid in 2020, the renovation juts kept getting postponed. In January 2021, it was decided to start the work from March 2021 however after the contractors surveyed the extent of repair and other charges, each flat owner was asked to pay 25k more.

Now my question is that my 80k was with the society bank from March 2018 and has incurred a minimum of 5k in compound interest at 3.5% p.a. I and a couple of other flat owners who had paid the money on time, have asked the society chairman, secretary and treasurer to adjust the 2 years interest money that they have accumulated in the society account, which they have refused without any proper justification. Their explanation is aapko dia to sabko dena padega. If the money would have been in my bank this whole time, I would have benefitted from the interest amount.

To cut a long story short, I want to knw if the society can adjust the interest amt against the amt I am supposed to pay. I have already transferred 20 k and only the disputed amount of 5k is outstanding but keeps showing up as pending against my name in the maintenance bills. Can housing society take my interest money and refuse not to adjust it against my dues?

Thanks in advance.

Follow Query

Report Abuse

Quick Summary

A flat owner paid their full contribution for building repairs to their housing society in March 2018. Due to delays, the repairs were postponed, and the society held onto the funds, earning interest. The owner believes this interest should be offset against a subsequent additional payment demanded for the repairs. The society has refused this, stating it would set a precedent. While legal recourse may be limited, the advice suggests raising the issue in a General Body meeting or escalating it to the Registrar of Cooperative Housing Societies.

T. Kalaiselvan, Advocate (Expert) 04 July 2021
This doesn't finds a solution through legal sources.
You may have to get sorted out on the basis of local administrative steps enforced by the association.
There may not exist any legal solution even if you plan to initiate legal action to claim the interest on your deposit.
However you gather all the affected members and give a representation in writing mentioning your proposal and request to conduct a special meeting of the association to discuss the subject matter keeping it as an agenda for the proposed meeting and arrive at a solution through the meeting.

P. Venu (Expert) 04 July 2021
The matter could be attempted to be sorted out in the General Body. If possible, the persons affected may take steps for a special meeting of the General Body.

Dr J C Vashista (Expert) 04 July 2021
No legal dispute is involved in the facts posted by you.
Sort out amicably.

kavksatyanarayana (Expert) 04 July 2021
Raise the issue in General Body meeting, and all the members with a majority vote, ask the committee and not respond, complain to the Registrar of Coop House Building Societies of the District or RERA.

Anila Nair (Querist) 08 July 2021
Thank you everyone!

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries