brij (Organisation) 13 June 2012

Can society charge administration charges

Can a society charge Rs 5000 as administration charges to members letting our their flats for leave and license agreement apart from the non occupancy charges?.

There was a resolution passed in AGM to this effect where it was decided to charge 5000 per agreement to members letting out their flat.

Also a resolution was passed in AGM which levies a fine of 5000 p.m for members who are letting out their flats but do not take permission from society nor submit any records like LL agreements/ police verification etc to society before renting out.

Are both these charges legal, are there any limits set in bye laws if they have been passed in AGM ?

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Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 17 June 2012

A Non-Occupancy- Charge limited to 10% of the service charges can be levied from members who let out their flats to sub-tenants. No other charges are leviable.

There is a byelaw among the Model byelaws, which allows the General Body to levy penalty from members who are guilty of breaches of byelaws. Here also a procedure of giving a show cause notice, giving the member a hearing etc. have to be followed. Also there is a limit of Rs.1000/-