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Society maintenance delay interest, simple or compound?


2 weeks ago Ayush Lay, Mumbai

Hi,

I am staying in Goregaon Mumbai flat for last several years. I stopped paying maintenance from January 2015 due to issues with society functioning. Monthly maintenance is Rs 5000. The total dues till December 2018 i.e. after 4 years of non-payment is principal of Rs. 2,40,000. Society is charging 21% interest apart from principal amount.

My questions are
1. As per the rule/bylaws the interest of 21% simple or compounded should be charged? My understanding is that 21% of simple interest is on pending principal amount is correct i.e. 2,40,000x 21%= 50,400.

Society is charging compound interest in lakhs of rupees which I don't think is correct. Society bylaws rule 72 says simple interest but it also refers to some time period mentioned in rule 70 which is confusing. Please guide me with exact rules regulations about the same.

2. The monthly maintenance of 5000 has many components including club house fees, service charges, property tax. Please let me know if it is correct to charge 21% on these components.

Thanks

Society Maintenance Charges


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