Talib
I stay in one of the housing society in Thane. Because of certain reasons I didn’t pay my maintenance for 16 months. Now I am ready to clear all dues. But society is charging me increasing penalty. For eg in my society penalty is 15 Rs per month. Now they add up this on the penalty of every month such as Jan-15 Rs, Feb-30 Rs, Mar-45 Rs, April-60 Rs and so on.
Is it legal way to calculate the penalty?
I C Naik
For Delayed payment of maintenance the bye law has a very clear unambiguous provision.
A defaulter member shall be required to pay simple interest at such rate as is fixed by the general body of the society at its meeting., subject to the maximum of 21 percent per annum, on the charges of the Society, defaulted by a member , from the date of the amount was defaulted till its payment.
Let is read it carefully. The consequences for default in payment of Society Dues is levy of simple interest that too if a General Body has fixed a rate. The rate so fixed can not be more than 21% if it is excess is not payable. Interest starts on the day the amount became due. Outstanding Interest amount is out side the amount on which interest is calculated. Monthly fixed penalty is illegal and need not be paid. Society will not be able to recover it. If General Body has fised Penalty and no interest default will go unpunished completely. The interest paynent will start from the day General Body Passes a resolution fixing its rate if not done already.