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Sayed Maqsood Ahmed   18 May 2024

parking charges in coperative housing society in maharashtra

dear Sir

our society was formed in 2004 but still no deemed or conveyance deed has been executed with the builder so far despite almost 20 years.

around 5 year ago, our society started to charge parking charges to all its members for parking their vehicles in open society's premises.

would like to know when our society is still not the owner or trustee of the open parking areas , they can still charge parking charges to its members.

it's understood that once the society's signed the deemed or conveyance deed with builder, then society can become the owner of society's premises and can charge parking charges to its members

please advise legal views on this issue.

thank you in advance

Best regards


 4 Replies

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     18 May 2024

I presume that the Society has been registered under the Maharashtra Co-operative Act, 1960 and the Byelaws have been approved by the Registrar. You are saying that the Society was formed 20 years back in 2004. If so is the Society levyiing subscripttion from members for various expenditures as per the Byelaws, holding Annual General Meetings, presenting audited accounts before the meeting and getting them passed? Are you paying subscripttion to the Society? Are the parkng charges approved by the General Body? If your answer is yes to all the questions, the Society can levy parking charges.

T. Kalaiselvan, Advocate (Advocate)     19 May 2024

What is your society bylaws say about this?

A society formed 20 years ago but have started collecting the parking charges only 5 years ago.

Therefore it can be construed that it is not an arbitral decision of the society.

A general body meeting would have approved the levying of the said charges.

Therefore you may clarify the details from the society president or the bylaws in this regard.

If the society is a registered body then it can take decision through a general or extra meeting of its members to decide on such issues 

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     20 May 2024

The member is not disclosing all the information. We have to presume as follows: The Society is collecting all the dues from the member and the member has been paying all the dues without objecting because the member acknowledges that all the amounts were and are payable by him to the respective authorities or entities and the society was acting only as an agent. But the society is collecting the parking charges and crediting it to itself. Parking charges are like a rent and only an owner of the premises can collect rent. The society is not yet owner of the premises as no conveyance deed has been executed with the builder. The builder is still owner of the common premises and only he is authorised to collect any rent or parking charges. He can also appropriate the amounts to himself and need not reimburse to the Society. Is the builder still around? This is a clever technical argument by a clever lawyer. Only a High Court or Supreme Court can decide this. If I were the member I will pay the parking charges without any dispute. It has also been argued that parking charges, unlike other charges have no mutuality and hence taxable for income tax. However the Income Tax Depatment has decided not to tax parking charges. Parking charges can be credited to the Repairs and Maintenance Account.

Sayed Maqsood Ahmed   20 May 2024

Dear Sir

You have very comprehensively answered to my question.  Your views have cleared my doubts.

Thank you so much for sparing your precious time and assisting us.

Best regards 


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