MUMBAI: The deputy registrar of co-operative societies has informed the Chaitanya Cooperative Housing Society in Pratiksha Nagar, Sion East, Mumbai, that it is prohibited from collecting any excess fees from members renting out their flats, except for non-occupancy charges.
This ruling follows a complaint from a flat owner who alleged that the society was unlawfully charging Rs 5,000 as a building development fund.
Abhijit Deshpande, deputy registrar of co-operative societies at Mhada Mumbai City, stated that it is inappropriate for the society to collect any funds under the guise of a development fund from members renting their flats. He ordered the society to rectify the disputed amount in the complainant’s monthly maintenance bills within a two-month timeframe. The society had defended its actions, claiming the charge was authorized by a resolution passed during the AGM.
The complainant, A. Shaikh, a flat owner in the society, approached the deputy registrar, alleging that the society imposed an annual fee of Rs 5,000 for the ‘Building Development Fund’ in addition to the statutory non-occupancy charges. In his petition, Shaikh noted that under Section 43 (2)(iii)(c) of the Model Bye-Laws of Cooperative Housing Society, 2014, non-occupancy charges should be levied according to the guidelines issued by the state Department of Co-operation.
In response, the society claimed that a resolution was passed in 2014 to charge members Rs 4,000 for renting their flats. This decision was reassessed during the 2019 AGM, resulting in an increase to Rs 5,000 as a development fund. Shaikh further pointed out a government resolution from August 2001 that prohibits societies from charging more than 10% of service charges as non-occupancy fees.
Vinayak Adep, secretary of the Chaitanya Housing Society, stated, “A resolution was enacted regarding the charges during an AGM, supported by a majority decision. All members agreed to it, and no amount is charged without AGM approval.”
