L L Agreement: Non Occupancy Charges

Vilas Pai

Can society apart from 10 & occupancy charges charge Rs 3000/ as documentation charges towards leave & licensee flats. This practice has been followed for last 3 years.

I C Naik

Leave License Agreement (LLA )is executed by and between a member of the Society (the flat-holder called Licensor) and his tenant (called the Lessee) subject to prior approval of the Managing Committee and acceptance of conditions prescribed as per Bye Laws which includes Payment of NOC at the rates prescribed by the General Body Meeting which shall not be higher than the rates notified by the State Government.

The LLA is required to be registered under Bombay Stamp Act which attracts stamp duty and registration fee prescribed therein.

Rs 3000 collected by the Society are liable to be returned. All concerned members can recover this by making a written request to the Secretary. In the rare event of refusal to return, file a case for refund in Cooperative Court in terms Bye Law 175(B)(i) for ” Excess Recovery of Dues from the members”

Member can also file a Compliant before District Consumer Redressal Forum for deficiency in service and refund of Rs 3000 of as a measure of deficiency.

In both Cases compliance of Section 148(3) of MCS Act 1960 is necessary i.e.” No prosecution under this Act shall be lodged, except with the previous sanction of the Registrar”

There is a high probability that Registrar with will inquire with the Society if it was interested in out of court settlement.

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