Co operative society charging excessive interest on pending due
Vikrant
(Querist) 25 August 2014
This query is : Resolved
Dear Sir,
My mother, Namita Vare is allotted flat no 604 in Sadgurukrupa CHS, sangharsh nagar, Chandivli, andheri east, Mumbai under SRA scheme in sept 2012. Our society got registered on Dec 2013. we had not occupied the flat till Jan 2014, and we are ready to pay all outstandings before that also. Now society is asking for more than 108% interest annually on pending amount from sept 2012 to Dec 2013. I am ready to make all payments as per Society bye laws, still society insists upon said interest which is 21% annualy. Also society is not willing to give clear break up of dues despite regular follow ups and applications.
I request you to kindly guide me for following points.
· Can non registered societies charge interest more than 21% on pending dues on there own.
Dr J C Vashista
(Expert) 26 August 2014
The rate of interest shall be charged as per Bye-Laws adopted by the society.
T. Kalaiselvan, Advocate
(Expert) 30 August 2014
agreed, the rate of interest on the default amount cannot be arbitral, it may be as per the determined rates.
Hemant Agarwal
(Expert) 08 January 2015
1. A Society is a legal entity ONLY on/after date of its registration.
2. Irrespective of anything, a Society CANNOT lawfully recover any amount, whatsoever, prior to its registration date.
Keep Smiling .... Hemant Agarwal
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