Query from Max Monteiro

We are a Mumbai, Maharashtra based housing society with Reg. No.2130 dated 04.08.1986

In our society major repairs work is proposed to be carried out. There are flats comprising of 04 shops, 07 nos 01 BHK and 04 nos 01 BHK. How do we move ahead to share the repair expense? Should we do it equally among all flats and shops? Are the charges to be levied – differently area wise, commercial and residential? Or flatwise/shop as an individual unit.

Please suggest with relevant reference.

I C Naik

It looks like your question on Major Repair contribution remained unattended as I was away from home

Bye-laws provide for basis of calculating amount a member is required to contribute to building repairs namely:

  1. The society shall create and establish the following funds by collecting contributions from its members at the rates mentioned hereunder:

                        (a) The Repairs and Maintenance Fund, at the rate fixed at the meeting of the general body from time to time, subject to the minimum of ¾ per cent per annum of the value each flat for meeting expenses of normal recurring repairs.

If your society has adopted subsequent model bye-laws replacing your registered bye-laws in 1986 (1984 Model), you should find following clause added to bye-law No. 13.

  1. Major Repairs Funds, as and when required and decided by the by the General Body at the rate fixed pro-rata on area basis.

If your originally registered bye-laws are in force till to day the Major Repair contribution will have to be fixed under bye-laws 71(a)(xv) “Any other charges : As may be decided by the general body of the society at its meeting.”

Options are:

  1. Equally among all flats and shops.
  2. Area wise, commercial and residential? or
  3. Flatwise/shop as an individual unit

Bye-laws are contracts inter se the members. So members have to negotiate basis of contribution as a contract with inter se the members, the limitation that you cannot “NOT ENTER IN TO CONTRACT”.

Building Repairs whether normal or abnormal it is very difficult to ascertain its b benefit to individual flats or shops. One uniform basis applicable to all is the best. Cost of construction of each unit is the least controversial, hopefully there are no apprehensions about the costs of construction. One fare basis seems to be to go by the latest Model 2014 which requires an Architect to certify cost of each unit even for Normal Repair. This can become the least controversial basis for fixing rates of contribution to major Repairs. Simplistic will be to make present normal repair as basis for Major Repairs also.