Query from Narendra Jadhav

I am residing in a tower located at Ghodhbunder Road, Thane Maharashtra. Society registration -TNA/(TNA)/HSG/(TC)/29793/2017.

Our society is in process of handover from builder and managing committee was appointed in sep 2018 during first AGM by developer. We have been following sqft rule of maintenance calculations since 2015 when it was under builder. Building consists of 1.5bhk -830sqft 76flats / 2bhk -1025 38flats/2.5 -1220sqft 38 flats.

Now the larger flats want to adopt the mixed method of calculations for maintenance which will raise the monthly contribution from 2490/- to 4400 for 1.5bhk flats.

All 1.5bhk and some 2bhk flat (total 85 out of 149) flat owners are against this and want to retain the sqft method. We have already submitted the letter stating the same.

Pls advice our next steps.

I C Naik

The Levy of charges of the Society must conform to the requirements of bye-laws Number 65 to 71. The Management Committee is bound to adhere to these requirements and the general body meeting has extremely limited role to play. Bye-laws prevail over resolutions of general body meeting. If a majority members want any provision to be altered, procedure specified in Bye-law No 166 [extracted below] has to be followed.

For the contribution to be collected from the Members of the Society, towards outgoing and establishment of its funds, Bye-law No 67 provides basis of recovery in respect of individual item of expenses. Most housing societies fail to recover the total amount so required by making incorrect accounting policies and reporting financial results which are not correct as required under law. This weaken the financial strength of the Society but the management in temptation of charging less to members cause irreparable damage to the society.

“Bye-law No 67

(a) The Committee shall apportion the Share of each Member towards the charges of the Society on the following basis:

1. Property taxes: As fixed by the Local Authority
2. Water Charges: On the basis of total number and size of inlets provided in each flat

 iii. Expenses on repairs and maintenance of the building/buildings of the Society: At the rate fixed at the general body from time to time, subject to the minimum of 0.75 percent per annum, of the construction cost of each flat for meeting expenses of normal recurring repairs.

1. Expenses on repairs and maintenance of the lift, including charges for running the lift: Equally by all the Members of the building in which lift is provided, irrespective of the fact whether they use the lift or not
2. Sinking Fund: As provided under the bye-law No. 13(c).
3. Service Charges: Equally divided by number of flats / units.

 vii. Parking Charges: At the rate fixed by the General Body of the Society at its meeting under the bye-law No. 84/85.

 viii. Interest on the delayed payment of Charges: At the rate fixed under the bye-law No. 72 to be recovered from the defaulter Member.

1. Repayment of the installment of the loan and interest: The amount of each – installment with interest fixed by the financing agency.
2. Non-occupancy charges: At the rate fixed under the bye-law No.43 (b).
3. Insurance Charges: The built up areas of each flat, provided that if there is increase in the insurance premium due to storing any specific goods in any flat, used for commercial purposes, the extra burden of insurance premium shall be shared by those who are responsible for such increased premium in proportion of the built up areas to their flats.

 xii. Lease Rent: The built up area of each flat / unit.

 xiii. Non-Agricultural tax: The built up area of each flat / unit

 xiv. Education & Training Fund : Rs. 10 per Flat/unit per month.

1. Election Fund: Equally by the Members and as prescribed by the Election Authority in the Rules

 xvi. Any other charges: As may be decided by the General Body Meeting of the Society

1. The Committee shall fix in respect of every flat the Society charges on the basis laid as down under the bye-law No 67 (a).”

For better understanding www.indiancooperative.com has my post which you can see on following URL

https://www.indiancooperative.com/cooperative-coffee-shop/mend-financial-management-flaws-under-maha-chs-ordinance/

Amending bye-laws

“166. No bye-law shall be made, altered or abrogated unless (i) a proposal to do so has been communicated to all Members 14 days before the Meeting of the General Body of the Society, at which it is proposed to be considered, and, (ii) the resolution is passed by not less than 2/3rd majority of the Members present and voting at the meeting of the General Body of the Society, and (iii) the making, alteration or abrogation is Approved and Registered by the Registering Authority.