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Maximum Penalty under New Maharashtra Hsg Society Bye Laws for Alleged Encroachment of "open area "

03 July 2015 Shouvik Roy , Mumbai

This is a questions regarding dispute between Co Operative Housing Societies under Maharashtra Co Op Hsg Soc Act , & an ordinary member of the CHS .
The Model Bye Laws seem to have apparent conflicting provisions for maximum penalty on a member for alleged encroachment of open area . ” Bye Law 168 a prescribing an “amount” upto 5 times of monthly maintenance, ( 168 a) Another BL ( 164 a) which restricts max penalty to Rs 5000 per financial yr, Which one prevails in the event of conflict between these 2 Bye Laws .
The language of 168a is as follows :
\" All open /common area meant for use of all Members for eg. staircase, steps,
landing areas, parking spaces, lift, corridor, and such other spaces, cannot be
occupied by any Member for his own use. The use of such areas shall be
restricted to the cause for which these are meant. Any Member found to be
violating the above condition by encroachment shall have to vacate the
encroachment and further he/she shall pay an amount equal to five times the
monthly maintenance charges per month for the period for which he/she has
encroached such spaces and further Members must not carry out any
constructions, structural changes over and above the sanctioned plan without
prior permission of the Society and Concerned Municipal Authorities /
Competent Authorities.\" .
On the other hand , the language of 164 a is as follows :

\" 164.
a. The meeting of the General Body of the Society may prescribe penalties for
different breaches of the Bye-laws of the Society. The Secretary of the
Society, under instructions from the Committee, shall bring to the notice of the
Member concerned, the breach/breaches of the bye-law/bye-laws committed
by him. If the Member persists in continuing the breach/breaches, the
Committee shall give the notice to the Member to show cause as why the
penalty should not be inflicted on him for breach/breaches of the byelaw/byelaws.
The General Body Meeting, after considering the Say of the Member
and after giving him hearing, may levy penalty to the extent of maximum
consolidated penalty not exceeding Rs.5,000/- in any one financial year.
b. Save except other provision in the Act, the A.G.M / Special G.B.M. can
penalize a Member for committing breaches in his Responsibilities. Such
penalty should be reasonable and equal to all such erring Members.
A.G.M./Special G.B.M. is empowered to frame the penalty amount. The
managing committee shall recover such penalties with proper care\"

Therefore what is the maxiumum penalty leviable on a member for alleged encroachment of open space

Related to housing society bye-laws

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Comments (27)

  1. Societyhive support
    20 January 2016

    Dear Shouvik,

    If it’s a violation of open area encroachment then the same has to be followed but in my opinion this is a matter that has to be ratified by General Body

  2. samir mohan shrivastava
    14 April 2016

    i am owner of flat at nallasopara west dist thane . i have not paid the maintenance in month march 2016. in april the society penalty 10 rupees. is it right or wrong. my monthly maintenance is 561 rupees.

  3. SP Sharma
    17 April 2016

    My Society imposed Rs. 5 perday penalty for 12 months and total amount is Rs 11,000.00 , while maintenance charges are only Rs 300 per month.
    They never informed me this rule, while I am staying there for last more than 10 years.
    is it legal or can we fight against this.

  4. Shah Asad Sohrab
    02 May 2016

    I have not paid major repairing fund & Society Transfer Fee too can society take a fine or penalty on this funds

  5. William Pinto
    24 May 2016

    In our society there are 19 shops having open space in front of them used for display of their products. Can the MC charge them 5times maintenance charges as penalty. Can such an open space be considered as common area. Other 80 resident members have passed a resolution to charge such a penalty for both resident n shops using common area. Pls guide me.

    20 August 2016

    Dear sir,

    Can my housing society do encroachment by making parking shed on open space along my flat at first floor? This parking will be on open space and affect my flat' s ventilation and hygenic conditions.its big threat to overall ventillation and hygiene in my flat.
    Please guide

  7. Tarun
    27 January 2017

    Can society levy penalty of more than 5000 in one financial year for playing cricket in society compound ,,playing once attract penalty of 500 per day

  8. Garry
    14 March 2017

    I recently moved out of a Society in Pune and was charged a 10000 RS Security Deposit before I was permitted to shift. I was never issue a receipt for this and once I shifted the Society Cashed my cheque and did not inform me. When I questioned why this was I was told that they had received a letter of complaint from another tenant and that they would now hold the money until they decide what fines they will issue me with. I asked if they had any intention of speaking to me to discuss the said complaint or hear my side of the story. The Society Chairman advised that they were under no obligation to do so and that I would be advised of any fine that was decided only when I queried my refund of the deposit. I have just got a cheque back from the Society after 7 days with a deduction of 3500.
    Is it correct that Societies can impose and collect fines without any consultation with me.

  9. Jyoti Karthik
    31 March 2017

    There is no conflict here.The Bye-Law 168 talks of the standard penalties which cannot be modified by the General Body and the Bye-Law 164 talks of penalties to be levied by the General Body which is in addition to the ones which are prescribed by the Act,Rules and Bye-Laws

  10. RONAK
    18 July 2017

    My Query is regarding definition of encroachment: As per my understanding
    1. Encroachment is building a permanent structure and denying entry to others members in that area

    An open space for which the society has no specified purpose eg: a Back of the building (space between the wall of the society and the building no body uses that space/ nobody wish to use that space which is not a gangway.

    My father at his retirement age wishes to spend his time there on a plastic chair

    We have never stopped anybody (any member) from visiting that space or enjoying that space in fact lot of neighbors kids play with my father, nor have we claimed that it is our backyard and nobody else should trespass

    Infact I invited the committee members to come and spend time with my dad it will make him happy

    The society is claiming it to be an encroachment

    Please help

  11. Jayant Gabale
    18 July 2017

    When members purchased flats by paying hefty amounts why they cannot pay for free use of the common area for their personal use. Members buy 2/3 bedroom flats but do not have enough space to accommodate their shoe racks! The society in which I am staying MC members themselves have encroached the open space! One member having taken 2 adjecent 3 bedroom flats is using Stilt parking for storage!
    The bye law imposing penalty is fully justified.

  12. Jayant Gabale
    18 July 2017

    Please let me know who is the authority to approach when a society deliberately as well as for reasons of vested interest do not either follow the adopted bye-laws or violate them

  13. Jayant Gabale
    18 July 2017

    Under Section 70 of the MCS Act 1960, long term deposits are to be kept in a state or district cooperative bank. The section per say do not have any provision to relax this provision. However our society is keeping funds in any banks. Is it a violation of provisions of Act? What is the penalty?

  14. Jayant Gabale
    18 July 2017

    What is the remedy to check the violation / non implementation of bye laws by the MC

  15. Kiran Sawant
    01 August 2017

    Whatever penalty society charged or framed neither than over rules of cooperative housing society act. The same has to be amended by DDR. Ddr approved such amended if they are acceptable or it's gets cancelled. So ask your society that does the decision approved is AGM is amended and approved by the local DDR ward office, if yes than asked for the approved and amended bye Law copy. Sure society may not done this procedure. So society will have to revise you penalty and interest charges.

    17 August 2017


    I have clocked my builder allotted still parking with small chain as it was used by
    other member and created the problems.Now commtte charges me with byelaws No17(A) illegal encroachment of common property.
    and impossed the 5 times penalty charges.

    I dont have care so they wanted to use the parking space to other to park their vehical stating its was in byelwas also

    Please advice.


  17. Yogesh Joshi
    25 September 2017

    Dear Sir/Mam,
    Our society in Panvel is forcing members to participate in cleanliness drive. In which me or my other family menders cannot participate due to old age & other medical issues. Society has decided to charge penalty to non-participant members. My question is:
    is this legal to charge penalty & if not where should I go for justice.

  18. Dinesh kandke
    25 September 2017

    How many extra society charges for tenant in legal

  19. Jayant Gabale
    25 September 2017

    Bye-laws are adopted by the General Body of the CHS. Once adopted, to follow and implement them, once again ratification of General Body is not required. Only when the bye-law itself states that GB's approval is required, in such case ratification by GB needs to be taken.

  20. Anjali Shirvalkar
    25 November 2017

    Can GB can adopt New Bye Laws by deleting ByLaw No 168 now its 169(a) for encrochemnt and penalty 5 times of maintainance charge.Our Society has not yet adopted New Bye Laws and want to adopt it by deleting bye law 168 or 169 a and 170.
    can GB move such a resolution?
    If no STRUCTURAL CHANGE s done and only wall is removed is it called encrochment.

  21. Anjali Shirvalkar
    25 November 2017

    Can GB can adopt New Bye Laws by deleting ByLaw No 168 now its 169(a) for encrochemnt and penalty 5 times of maintainance charge.Our Society has not yet adopted New Bye Laws and want to adopt it by deleting bye law 168 or 169 a and 170.
    can GB move such a resolution?
    If no STRUCTURAL CHANGE s done and only wall is removed is it called encrochment.

  22. Vaibhav
    28 January 2018

    If outsider like net provider keeping his devices in society premises without any permission and after the so many warning he is not ready to remove it then how would we take the legal action on him and also what is the by law number for the same.

  23. Parag Prajapati
    30 January 2018

    I keep my drum outside the door on 5th floor it is legal or illegal.if u not keep inside the house BMC will fine

  24. vivek shirvalkar
    31 January 2018

    The last and the Most important sentence of above advice appears incomplete . After comparing the provisions of Byelaws Nos. 168(a) and 164, following legal point as to whether the General Body of a CHS has the power under Byelaw No.164 to reduce the penalty charged for encroachment @ 5 times the Maintenance Charges P.M. with Retrospective Effect as per Byelaw 169(a).

  25. Alan M
    29 April 2018

    Both are specific and distinct byelaws Byelaw no 169a is very clear to fine 5 times the maintenance per month since the time the violation of encroachment was done.Full stop . it does not carry on to say the maximum of Rs.5000 neither does it mention that the management committee has the right to fix the amount of Penalty to be charged . Where as Section 164a gives the right to the management committee to fix the amount of penalty to be charged to member who violates and breaches byelaws of the maximum penalty should not be more than ₹5000 per financial year.

  26. V.R.PATIL
    30 April 2018


  27. V.R.PATIL
    30 April 2018

    In respect of MAXIMUM PENALTY
    FOR ALLEGED ENCROACHMENT will it be(a) Maximum Rs 5000/- per financial year or (b)FIVE TIMES OF THE MAINTENANCE CHARGES which will be applicable (a) or (b) if it is proved an encroachment and whose renspolibity to prove if it is encroachment or not

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