Ours is a registered Co-operative Housing Society located in Dahisar, Mumbai, Maharashtra. BMC authorities have issued our Society a formal Occupation Certificate. This is a single building (not a complex or township) comprising of 3 Wings with 1 shop and 57 units (flats) of which some are 2BHK and rest are 3BHK.
In the previous AGM of the society (held somewhere in Sept’2016) a proposal was put forth by our Managing Committee (MC) to apply for Deemed Conveyance. The MC explained that they sought guidance of a few advocates as regards the way forth in this context. The MC also informed that the expense, quoted by these advocates, were in proximity. The society members consented with the expense (Rs. ‘X’ lakhs) and it was decided that the MC should to go ahead and seek Deemed Conveyance. It was also decided, in this meeting, that the expense shall be borne equally by all members (i.e. irrespective of the size of the flat).
Basis this background my queries are –
- Can the MC compel the members to pay their share lump sum?
- A few members have asked for installments for making this payment. Can such collection be made part of the monthly maintenance billing?
- Currently, our Society levies 18% interest as penalty on members defaulting payment of maintenance bill by the due date. Considering that the MC consents to collection of funds in installments and if any member delays (for genuine reasons) or defaults payment can MC levy penal interest on such amount(s) which does not form part of monthly maintenance? This question is because this collection amount is definitely more substantial than the month maintenance.
A member owns 2 adjacent flats in our ‘C’ Wing… the exact ownership of these flats i.e. one flat is in the gentleman’s name in the capacity of HUF whereas the other flat is in his name as an individual. However, as regards his spouse being the owner or co-owner in either or both the flats is unknown to me.
Now, the query in this case is can this couple – both husband and wife form part of the Managing Committee?
Our MC has called for a Special General Body Meeting on Sunday, 26th Mar’17 for finalising collection of payment in context with Deemed Conveyance. May I, therefore, request your kindself to revert on priority please, either vide an e-mail or I am reachable on my below mentioned mobile number. Also, for both the above queries can I request you to revert quoting suitable Bye Law Number(s) wherever applicable / possible.
I C Naik
The Service Charges (costs of Amenities and common services and contribution to Funds) are to be apportioned to each flat/member as per basis laid down under bye-laws. Bye Law No differ as registered bye laws of housing societies could differ depending upon the date of application for registration. For example housing societies registered after 2 7 2001 but before 24 12 2010 have Bye Law No 69(a).
Look at the opening sentence of this bye-law 69(a): “ The Committee shall apportion the Share of each member towards the charges of the Society on the following basis:
There are 16 items of Society Chagres with different basis of allocation to flats.
(i) Property taxes : As fixed by the Local Authority
(ii) Water Charges : Total number and size of water inlets in each flat.
(iii) Repair Fund ane Sinking Fund : At the rate fixed by the general body as percentage of the construction cost of each flat.
(iv) Lifts: Equally by all the members.
(v) Service Charges : Equally divided by the number of flats.
(vi) NOC/ Interest / Parking Charges : At the rate fixed by the general body
(vii) Lease Rent N A and Insurance: The built up areas of each flat.
(viii) Any other charges : As may be decided by the general body of the society at its meeting.
These basis are mandatory for the managing committee to apply while fixing the rates. Basis of any other fund collection needs the prior approval of the members in general body meeting by a majority resolution with prior notice preferably. The basis include at leas in 5 cases direct relation to flat (area or costs of construction). So where the basis are not predefined under registered bye laws the general body meeting has to take a call. Bye Law No 5(a) has an object of obtaining conveyance of title deeds of the property of the Society. Bye Law No 5(c) is an important object of the Society namely; “To raise funds for achieving the objects of the society” The members in general body meeting get this authority to fix collection of funds to meet the costs of getting the conveyance. For fixing a basis with coherent thinking in general body meeting the basis adopted under bye-laws can be used as a general guide.
Conveyance is a process of registering the statutory ownership of the members collectively as a housing society. It has divisible (flats carpet area) and Common areas like Land, Compound, Lounge, Staircases etc specifically listed under registered bye law number 3(xxi). The member’s prime right in a housing society is of exclusive occupancy of carpet area of his flat as his dwelling. Common amenities and facilities are common to every member families. It’s right of access is uniform with no measure which can be apportioned to flat. So by consensus amongst members a base has to be agreed upon. One may find share per member is quite rational. Other may find that carpet area occupied by a member is far more logical basis as that is an exclusive fully defined right of member. Very important factor is the member’s share in the higher FSI allowed under Development Control Rules in future. With Floor Space Index getting liberalized say from 1:1 (total Carpet area equals total land area) to 1: 2 (total Carpet area is twice of total land area), the members will get additional carpet area in proportion to their respective current carpet area. The rationale basis of apportioning conveyance costs is carpet area under each member’s occupancy.
General body meeting should fix schedule of contribution amount and dates and any delay to cost 18% simple interest.
Subject to the strength of the number of members of the managing committee fixed under bye-laws No 115, every member having first name in a share certificate issued by the Society is eligible. HUF is not eligible to become member of the Society so the share certificate is issued in the name of Karta as an individual member. If any other member’s name is first in the share Certificate he/she is also eligible to vote and join the Committee if elected/co-opted. If Karta’s name is first in both the Share certificate only Karta as individual alone can vaote in election and contest also.