mohit (none) 10 December 2014

Apartment association asking for arbitrary fines.

Hi,

Here is my problem in detail..

- In my apartment complex (Hyderabad) we have something called as monthly maintenance charges which

are collected as per SFT and used for amenities such as power-backup, housekeeping,security etc...

- Recently the so called elected association members(none of them is elected by proper election) had a GBM

in which they decided to collect corpus fund of 1lakh. Out of this 40,000/- is to be used for manjeera

and rest for corpus contribution. It is same rate irrespective of SFT.

- The collection of this amount is via. post dated monthly OR quarterly OR one time post dated

cheques.

- They required the manjeera amount by Nov 2014 and final monthly installment of corpus amount

is in Feb2016. Anyone not paying by this plan is subjected to some arbitrary fines.

- My problem is that I was ready to give 40,000/- in the month of Nov2014 and rest 60,000/- in the

month of Feb2016, however association doesn't agree to it and is asking me to pay arbitrary

fines along with whole amount.

- Now they are threatening to cut off powerback and other amenities inspite of me paying for them

on time.

- For an individual who doesn't have kitchen in the apartment the manjeera amount has been waived off. After

he served a legal notice.

- The so called elected association members has been occupying the office since last 3+ years, however bye-

laws calls for election every two years.

- What options do I have please advice?

Reply Follow

3 Replies

T. Kalaiselvan, Advocate (Advocate) 14 December 2014

Whether the association is a registered one, if so registered as society with the registrar of cooperative society or registered Flat/apartment owners act? Whether the so called demand for corpus fund and manjeera was decided by a resolution adopted in the GBM and whether it conforms the bye laws meant for the association? If what you say is correct that the association decided to collect the amount in two installments, then demand for fine for late payment is unjustified. The association cannot disconnect the power supply or any other service related to basic amenity arbitrarily. If the elections have not been held as envisaged in the bye laws, you may as a member issue notice to the present office bearers questioning about their legal validity to hold the office beyond the tenure for which they were elected to as office bearers and you can endorse a copy to the registrar of societies about this. You can also issue a legal notice for their unjustified demands in the name of fine amount. Consult a local lawyer and proceed legally against them if the conciliation talks fail tom invoke any amicable solution.

Biswanath Roy (Advocate) 15 December 2014

Legally appropriate advice by earned Mr. KALAISELVAN. . Follow his valuable advice.

chandu 09 April 2016

Sire,

I have more or less similar problem. I live in a gated villas community in Hyderabad. Though there are legal bye-laws agreed, the new EC which came in to force, are not following the bye-laws. Instead they started a practice of having monthly general body meetings, where in they started with their own agenda and started harassing people whoever questioned their autocratic approach. Charging high interest rates on maintenance delays (which is not recorded in any of the bye-laws on the amount, though they said they can be penalties. However they declined to follow the bye-laws anyway).

When the society started 2 years back, a corpus fund agreed for Rs.50,000/- flat was planned to be collected. Initially it was agreed to be paid in installments by the members. However, after few months, the then committed failed to collect maintenance from the members and even after rejecting in the general body meeting, they went ahead and withdrew the amount from Corpus fund to pay the maintenance costs (electiricity). They never bothered to provide any plan to refill it. After that a new committed came into force, who with their autocratic approach are now threatening to charge a penalty of Rs.10000 if we don't pay it in one instalment. I asked them for a legal binding that they won't use it for anything other than the purpose the corpus is meant for. They declined to give any guarantee or legal agreement on it. Meaning they can still use it at their will and wish. If we don't pay, they are adding it to the dues and publishing in public defaming the residents.

Is it legally valid to find for Corpus fund delays, when they can't assure the safety of the funds? All that we wanted that an assurance on the safety of the corpus fund which they declined to give. Please advice.

Is there any legal clause where we can challenge their autocratic approach?

One more thing they are doing is.. if there is any interest levied on delayed maintenance.. next month they are adding further on that original maintenance+previous interest. Almost like compunding interest. Can they do it? Can't the law protect the residents?

Regards

-Chandu