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Can housing society pay interest to its members, under what section/rules of Mcs Act ?

11 December 2022 Ramchandra Jadhav, Mumbai

AGM approved creation of Building Development Fund by contributing certain amount for 6 months. Only 50% members paid. After one year as there was no progress, members requested for refund of the amount paid which was refunded with approval of AGM without deducting any amount spent towards initial expenses incurred for Architect fee and other incidental changes. The members after getting refund of the amount paid by them back, now demand bank interest towards amount refunded. Managing committee can not decide this without approval of AGM. But I want to know if AGM is empowered to pay bank interest, if so under what section of Mcs Act.
For expert advice please.

Advice from society consultant

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