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What is maximum penalty in cooperative housing society for late payment?


30 December 2014 Rajesh, Pune

Dear sir,

i am a member of my society, i failed to pay a annual maintenance charge of society from last six months. our society passes a rule that if member is not paid there AMC of last 2 month, then give him a penalty charge of 10% per month for late payment of AMC

sir i want to know that society management can pass a rule of 10% (so much high) per month as a penalty?

one of our member is comed for to pay a total dues of his AMC including last month
then the penalty should be make on before 2 month or he should pay a penalty in including last month also?

Related to housing society bye-laws


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Comments (32)


  1. Societyhive support
    30 December 2014

    Dear Rajesh,

    Maximum penalty is Rs. 5000 p.a or 21% p.a. interest.
    You should approach the cooperative registrar of your area with your complaint.

    Answer
  2. kartik desai
    08 April 2015

    respected sir,

    our row house society is still not register .before 2 yr. ago because of some pending society work I was stop my maintance and comited that when u complited this work I will pay amount. i m not still stey threr because the society is newly so we r not meet again.but then after some time secretory told me about maintance n comitte me that he will complited that pending work on his comitment I was goes for pay maintance but remind one again for same work . at that time that person was shouted with angry and told me that not requeir your maintance. and not recive maintance amount.

    But before some days he told me about paying maintance when I go for payment at his home .he demand me penalty of two years of monthly 250/- per month. I m agree for pay maintance amount but not for penalty because there is not my fault because at that time I was readdy for pay maintance but he was not receiveing.

  3. Societyhive support
    10 April 2015

    Dear Kartik,

    If society is not registered then no one can be charged penalty. Just pay your contribution.

  4. Abhishek Shrivastav
    13 April 2015

    Dear Sir,

    We Members/Flat owner fail to pay monthly maintenance for more 6 months.

    What action can be taken on defaulters to clear there dues and what will be the penalty levied on them.

  5. Societyhive support
    15 April 2015

    Dear Abhishek,

    Send 3 notices as per cooperative act. Then legal notice and then case under section 101 of cooperative act. You will need a lawyer for the legal case.

  6. Mahesh
    22 April 2015

    our society collects the advance maintenance for 3 months for e.g. April to Jun is to be paid by April 20 else you would incur penalty , which would be 2 % of total advance due from April to Jun

    my questions are
    1. can you take advance maintenance
    2. if you can then can you charge penalty on advance maintenance of total months instead of only monthly due
    3. if one were to take penalty then should it not be prorated of the dues and the delay or at least of the monthly maintenance due i.e. if you were to pay by end of April then 2% of Aprils quota of maintenance which would be = 2% of X/3 AND NOT 2 % OF X which is maintenance from April to Jun

    are they allowed to collect the advance

  7. Mahesh
    22 April 2015

    forgot to add that 2% is collected every month of entire outstanding

    ie you would end up paying 2% every month of X as instead of 2% of X/3 for that month or optionally 2 % of earlier months NOT paid computed in a compound OR simple interest manner

  8. Societyhive support
    24 April 2015

    Dear Mahesh,

    Collection of dues from members is as per general body resolution.
    In case you wish to pay monthly, make an application for the same to society citing inability to pay in advance.

    It is permitted that in case a member is not in a position to pay up front in advance he can be allowed to pay monthly as long as it is paid on time

  9. Priya
    31 October 2015

    One of my friend from other society uses a software called Society MAXX to do their accounting. The software has four billing interest calculation options as below.

    For Delayed Payment or Unpaid Amt, Charge Interest from Due Date
    For Delayed Payment Charge Interest from Due Date & Unpaid Amt from Bill Date
    For Delayed Payment or Unpaid Amt, Charge Interest from Bill Date
    For Delayed Payment or Unpaid Amt, Charge Interest for Whole Month

    Even my friend does not understand what is Delayed Payment and Unpaid amount. What is the difference?

    Which is the best option to choose?

  10. Sadaf Ansari
    07 November 2015

    Dear Sir/Madam,

    I purchased 3 flats out of which two are registered and the 3rd one is still pending registration. Few flats in the building are still remaining to be sold by the owner/builder. Cooperative Housing society is still not formed and the owner says it can't be done unless all flats are sold....Secondly, the owner insists to pay maintenance charges monthly at the rate of 1 re-/ per square feet which comes to 2300 rupees for all flats....My extended family (brother's family) were living there however last month they shifted and paid they were paying maintenance from last one year....the flats are locked and no one residing in it now. In given circumstances my questions are....

    1. How was it legible for builder/ owner to ask for maintenance though society was not registered? And they paid every month.
    2. I don't want to pay any more further because firstly no one lives there anymore and secondly there is no cooperative society being formed yet.
    3. What will be the consequences from builder in terms of non payment upon me ?
    4. What is the maintenance charge per flat? Is it per square feet or per flat ?
    5. There is no society account but all residents pay in cash and whatever records of bills he shows everyone is left to trust with no questions. What questions could we ask regarding expenses?
    6. Is there any legal action upon me if I don't pay it in case of not living there?

    The flats are in Bhiwandi Maharashtra.

    Thanks in advance.

  11. Adiswar
    25 November 2015

    Can Managing Committee charge penalty for not attending special general body meeting? They have circulated a letter 7 days before the special general body meeting asking for penalty of 500 Rs for not attending the meeting.

    Is this legal? The resolution to charge penalty is passed in that meeting itself.

  12. raju
    01 December 2015

    Hi,
    Our society is charging unneccesory penelties for not closing the gate. Parking outside society in front of gate . Playing in the society area. Etc. penelty is 1000 rs. Each time.
    dont know what the fuck is commitee doing.
    Charging penelties will definatly not solve the issue. rather memebers will face quarrlsome situation within a society.
    Can we object the rules decided by commitee??
    tell me plz.

  13. rohit
    06 December 2015

    Sorry I am restless . I dont know whom should I approach . I will share my incident with you hoping you can help me out some way .

    My Society Committee members have charged me of 5000rs as water wastage .

    -- First of all please confirm is such fine valid
    --how they fine such big amount and on wht basis . (tried asking them they said 1000rs anyone can pay hence we charged 5000 )
    One said to pay in installment if you are earning less .
    -- they constantly charge anything
    -- I just can live in peace

    Can i file case of harassment ?

    Please provide me the email address of the concern person to reach out
    I live in Navi Mumbai .. please provide the email address so that i can consult the right person

  14. manish t patel
    11 March 2016

    dear sir . i have failed for paying maintenance of rs 1500rs /month for last two years . so as per law how much maximum late payment charges can be charged by society . for this late payment charge
    my society have made law and they are charging 20 % interest per month . so i am not able to pay and its higher site . so guide me according to housing society law how much max amount of penalty society can charge . we request you to answer for same thanking you .

  15. Sherry
    09 June 2016

    I have a query on late payment charges? can a society charge late payment fees to members who have paid maintenance in the same month. However on a later date than asked. is that legally binding since the society is for the benefit of the people living in it. But these unnecessary acts are becoming a nuisance. My payment was delayed say by less than a week and the society has levied late fees for that. Should that be acceptable or do I have rights to fight such rules.

  16. Ram S.Kumthekar
    25 June 2016

    sir if the maintanance is pending from last one year the society is having authority by law that they can charge iinterest on due maintanance

  17. Sachin Jadhav
    01 July 2016

    Dear Sir,

    My tenant is asked to pay society maintenance for whole month even when he joined on 20th of the month. So whether society can charge full month soceity maintenance from Tenant.

  18. Devendra
    03 July 2016

    Sir my society member's told me I am eligible for joint committee because flat is not on my name but on your father name is it true and how i join committee member

  19. BHIM SAIN TOSHNIWAL
    25 September 2016

    I have rented out a shop for ATM in 2012 and Leave and Licence Agreement was
    registered and copy is submitted to the builder.
    In 2014 society was framed and a copy of L&L was also submited to the society.
    Now society is demanding Police verification, I approched the Police station,
    they reply that old L&L can not be verified. Now the society has charged a fine
    of Rs. 500/- per month from March 16 for non submitting the Police Verification.
    Can society can charge the same or not, when I am paying Non occupation charges
    and Antina charges with maintence in time.


    Has the society has right to charge on monthly basis this fine of Rs. 500/-
    Please help me.

    with regards
    Toshniwal

  20. Fernandez
    29 September 2016

    Dear Sir,
    Our HSG Co-op society in Thane takes society mnt every 03 months thru Cheque/NEFT like ( July to Sept 2016) , and if any flat owner fails to pay dues for 03 months they are been charged 21% penalty and notice is put on board of said the flat owner fo non paying on time the due.

    I want to ask what is time frame or grant as per law for the flat owner regarding the penalty , Also at the time of election AGM a complete new team was setup by election does still the old society members who had passed resolution regarding penalty stand or continue for the newly elected Chairman/Treasurer /secretary and for the flat owners also please send me the Mumbai HSG society bye laws latest 2016 link

  21. Indrajit Malli
    13 November 2016

    My concern is that how much penalty can society charge if we dint paid the society maintenance on time.

  22. vijay jadhav
    07 March 2017

    AS PER CO-OP. HSG RULE LATE PAYMENT PENAL INTEREST MAXIMUM 21% AND NOT ANY AMT LIKE 100/-

  23. MVL
    11 May 2017

    One of our member not paying his maintenance charges from almost more than 2years due to some conflicts with old committee, he agreed paying the same in our last AGM in 2016 within 2-3 months, unfortunately he haven't paid till date. We are planning to send him 3 official notice for the same , What should be gap between each notice ? and if suppose he replies with any nonsense answer to any of the notice, do we need to send 3 notices again ?

  24. Kumar
    14 May 2017

    Sir, please advice me.. I'm holding a flat at dombivali near MIDC. Due to shortage of water and distance from station I shifted my stay on rental since 4yrs back. My flat I kept lock from last 4yrs. My building is not registered with society rules. Shall I required to pay monthly maintenance? If yes shall I get consection. I'm waiting for your valuable reply. Thanks

  25. Satish Bhange
    30 May 2017

    Dear Sir,

    Good Day !
    Our society is collecting Maintenance 3 months in advance and we fail to pay the Maintenance, now we paid after one month now society is charging interest 21%
    so now how much interest charges I have to pay as per the law or is this all legal ?

  26. Vijay Jadhav
    01 June 2017

    Society can't charge penal interest more than 5000/- or 21% p.a. on outstanding dues of AMC

  27. Siddhi
    03 June 2017

    I HAVE PURCHASE FLAT IN VIRAR.WHICH IS VACANT FROM THE PURCHASE.I AM REGULARLY PAYING RENT RS 500 AND THE SAID SOCIETY IS NOT REGISTRED YET.MY FRIEND SAID IF ROOM IS VACANT NO NEED TO PAY FULL MAINTENANCE CHARGES,JUST PAY MINIMUM MAINTANCE CHARGES. AND IN NEXT MONTH I AM LEASING FLAT TO MY MAMA (UNCLE). WHETHER NON OCCUPANCY CHARGE WILL APPLY OR NOT.PLEASE CONFIRM SIR

  28. siddhi
    03 June 2017

    I AM HAVING FLAT IN VIRAR.WHICH IS VACANT FROM THE PURCHASE. I AM REGULARLY PAYING RENT.BUT MY FRIEND SAID IF FLAT IS VACANT NO NEED TO PAY FULL MAINTENANCE CHARGES,JUST PAY MINIMUM MAINTENANCE CHARGES.AND IN NEXT MONTH I AM LEASING MY FLAT TO MY MAMA (UNCLE) WHETHER NON OCCUPANCY CHARGE WILL APPLY OR NOT.

  29. techcoze
    09 June 2017

    Ours is residential housing society. Few members have rented out their houses for commercial purpose (without societies permission). As per act 164, can society charge 5 times maintenance for such commercial use? Time 5 times maintenance will be more than 5000/-

  30. Umaji
    25 December 2017

    what is the fine / penalty should be imposed if coopetrative housing society members are not made payments for 4 to 5 months.?

  31. Rajesh
    04 January 2018

    Dear Sir,

    One of friend is having a flat and he has not paid the society maintenance since last 6 years as he has not received any maintenance bill till date, last week all of a sudden he got the maintenance bill together with Interest for for the last 6 years.

    Question is, as per the law is he supposed to pay the interest (even if he didn't receive any bill till date) if the answer is yes then he is required to pay the whole interest amount?

  32. Vikas
    15 January 2018

    Sir, i have two flats , one flat is in posesion of my cousin and i have given in writing to the society that the owner of thr flat is me and the person occupying is my cousin , so please do not issue any serious letter or give any noc until and unless i give in writing but mc gave noc to park his vrhicle in thr society premises then i started to pay only maintenence bill making less of parking charge so there is dispute with my society mc , for levying parking charges on my maintenance bill as the vehicle is not mine , so i have stopped paying parking charge and paying the rest maintenance bill , am i liable to be charged for interest for not paying only parking charge .

  33. Disclaimer: We are providing this information as a public service. We try to make it accurate as of the date noted in the materials. Sometimes the laws change. We cannot promise that this information is always up-to-date and correct. You should consult your lawyer or contact our legal advisers and get into greater detail before taking legal action.