Levy of Charges Of The Society

Part 2

v     Basis of charges

As per Bye-law No. 69(a) the Committee shall apportion the share of each member towards the charges of the society on the following basis:

(i) Property Taxes Normally such charges are fixed by the Local Authority on the basis the ratable value of the flat/shop per sq.ft. And should be collected according. Where the property tax is collected by the authorities individually in respect of each flat/shop no charges should be collected by the society.

(ii) Water Charges On the basis of the total number and size of inlets provided in eachflat.

(iii) Expenses for repairs and maintenance of the building/buildings of the society

At the rate fixed at the general body from time to time subject to the minimum of 0.75 percent per annum of the construction cost of each flat for meeting normal recurring repairs.

(iv)Expenses on repairs and maintenance of the lift, including charges for running the lift

Equally by all the members of the building in which the lift is provided, irrespective of whether they use the left or not. For detail discussion refers chapter No. 18.

(v) Sinking Fund As provided under Bye-law No.13(c), at the rate decided at the meeting of the general body, subject to the minimum of 0.25 percent per annum of the construction cost of each flat, excluding the proportionate cost of the land.

(vi) Service Charges Equally divided by the number of flats/shops/unit, (for Co-operative department order refer order 3 & 3 A.) Every Managing Committee should prepare a budget for each year at the Annual General Body Meeting for the expenses stated above. Approval at the general Body Meeting should be taken for equal division of the expenses among all the flats/shops etc. Some societies divide the above service charges on the basis of square feet. This is bad in law as it is not within the purview of the Bye-laws. Bye-law No111 sates that the general body is the society. Accordingly, the General Body cannot take any decision beyond the provisions of the bye-laws.

(vii) Parking Charges At the rate fixed by the general body of the society at its meeting under the Bye-laws No.84/85. For detail discussion refer chapter No. 18.

(viii) Interest on delayed payment of Charges At the simple rate not exceeding 21% fixed under the Bye-law No.72 to be recovered from the defaulting members

(ix) Repayment of the installment of the loan and interest the amount of each installment with interest fixed by the financing agency

  

(x) Non-occupancy charges As per Bye-law No.43 (2)(iii)(c), the members shall pay non occupancy charges to the society at such rate as is decided by the meeting of the general body of the society. Non Occupancy Charges should not be more than the directive of the Co-operative department. Refer Order-4 & 4A. At present it is 10% of service charges.

For detail discussion refer chapter No. 18.

The State Government issued a circular to co-operative Housing Societies not to levy non occupation charges more than one time of the service charges. This was held as not illegal. The direction are mandatory. (Twin Star Venus CHS LTD Mumbai & others v. G. N. Sainani & & ors, 2006 (1) Mh.L.J.721)

(xi) Insurance Charges It is proportionate to the built up area of each flat. If there is an increase in the insurance premium due to the storing of specific goods in any flat, used for commercial purposes, the extra burden of insurance premium shall be shared by those who are responsible for such increased premium in proportion to the built up areas of their flats.

(xii) Lease Rent The built up area of each flat

(xiii) Non Agricultural tax The built up area of each flat

(xiv) Any other charges As may be decided by the general body of the society at its meeting