Penal/ equalization interest
Shiv Rana
(Querist) 20 October 2011
This query is : Resolved
I became a new member of a Co-operative Group Housing Society in Delhi under RCS Delhi jurisdiction in Apr 2005 and paid all amount demanded from me at that time. (Approximately `13.80 lac at that time and few more later in 2010)
I was told that the flats would be ready by Dec 2005
There arose some dispute and construction of the Society stopped from Sep 2005 and I did not get flat as promised. Unfortunately I have nothing of the promise in writing. (So that is not an issue)
A new Managing Committee was elected in May 2009 by the RCS and after sorting out various problems began to restart the construction work in 2010. It is now said that it would take about six more months for applying for allotments of the flats to DDA & RCS.
Now the Managing Committee has made a demand of approximately `4.5 as a penal interest/ equalization amount for an amount which existed before I became a member in Apr 2005.
Therefore my queries are as follows?
1. Can I be asked to pay penal / equalization interest on something (amount) which I have never been told before?
2. An amount which has accrued the interest amount of `4.5 lac was obviously a small amount in Apr 2005 which I could have paid, if I were told at the time of becoming a new member. That small amount has now grown up to be `4.5 lac.
The interest charged by the Managing Committee is based on the formula given by the RCS. The RCS lays down that a new member who joins a CGHS which is in “Advanced Stage of Construction” needs to pay and equalization amount to bring the new member at par with the old member who have been paying regularly.
My query here is as to what constitutes an “Advanced Stage of Construction”?
I would presume that if a new member gets his flat in few months from becoming a “new member” would qualify the CGHS in an “Advanced Stage of Construction”, and therefore it will be justified to charge such penal/ equalization amount.
Now in my case, I became a member in Apr 2005, was promised to be given the flat in Dec 2005, and irony is that I have still not got the flat and now I am being treated as a new member and being asked to pay interest / equalization amount as the CGHS was in an advanced stage of Construction in Apr 2005, which has taken more than 6 (six) years to be completed (not yet completed)???
My query is what and how to quantify “Advanced Stage of Construction” ? or what will constitute “Advanced Stage of Construction” ? Can it take more than 6 (six) years to complete if a CGHS is in “Advanced Stage of Construction” ?
RCS notification attached.
ajay sethi
(Expert) 20 October 2011
you have a good case . when you became a member in april 2005 you were promised that flat would be ready by decemeber 2005.
do you have any document in writing to substaniate your statement?
did you receive any bills wherein it was pointed out that these are the outstandng dues?
when you purchased your flat in April 2005 and flat was transferred in your name as member did you receive any staement from society that any outstanding dues were payable ?
you need to consult a local lawyer in delhi
Raj Kumar Makkad
(Expert) 20 October 2011
i AGREE WITH AJAY. YOU ARE ADVISED TO IMMEDIATELY MOVE AHEAD AND ENGAGE A LOCAL LAWYER WITH COMPLETE INFORMATION.
prabhakar singh
(Expert) 20 October 2011
yes!makkad has no alternate but to agree and me too agree with Mr.Sethi.
