No, the Managing Committee (MC) of a Resident Welfare Association (RWA) cannot arbitrarily charge shifting in and out fees without the approval of the General Body (GB) meeting. Such charges should be discussed and approved by the GB before implementation. The General Body (GB) is the highest decision-making body within the RWA. It represents the collective will of all residents and is responsible for approving major decisions, including financial matters. Charging fees like shifting in/out charges without GB approval is considered arbitrary and unauthorized. It bypasses the democratic process within the RWA. If an RWA oversteps its authority, residents can seek legal recourse through consumer courts or other relevant authorities.
Cooperative housing societies operate under state-specific regulations. While general body meetings give them power to create rules, this authority is limited. Legal experts have noted that societies cannot charge fees not explicitly permitted under applicable statutes or by the Registrar of Cooperative Societies (RCS). Because there is no express legal provision for shifting charges, their validity falls into a grey area, requiring examination of each case individually.
Courts have consistently maintained that arbitrary fees by housing societies are not permissible. For instance, in a notable case involving a Mumbai-based cooperative housing society, the Bombay High Court clarified that societies lack the power to levy fees beyond those outlined in the law. Similarly, consumer courts have deemed exorbitant shifting charges to be unfair trade practices. The Registrar of Cooperative Societies also has the authority to intervene when such charges are considered unreasonable or unjustified.