Query of Dr R V Sharma

In cooperative residential society, charges for maintenance from members are levied as follows.

:IX. LEVY OF CHARGES OF THE SOCIETY

64. The contribution to be collected from the Members of the Society, towards outgoing and establishment of its funds, referred to in these bye-laws as ‘the charges’ may be in relation to the following: (i) Property Taxes, (ii) Water Charges, (iii) Common Electricity Charges, (iv) Contribution to Repairs and Maintenance Fund, (v) Expenses on repairs and maintenance of the lifts of the Society, including charges for running the lift.(vi) Contribution to the Sinking Fund, (vii) Service Charges, (Viii) Car Parking Charges, (ix) Interest on the defaulted charges, (x) Repayment of the instalment of the loan and interest, (xi) Non-occupancy Charges, (xii) Insurance Charges, (xiii) Lease rent, (xiv) Non agricultural tax. (xv) Education and Training Fund (xvi) Election Fund (xvii) Any Other Charges.

Further, under Rule 65. it is stated that  the Service charges of the Society referred to at 64 (vii)  above shall include the following:

(a).Salaries of the office staff, liftmen, watchmen, malis and any other employees of the Society. (b.) Where the Society has independent Office, the property taxes, electricity charges, water charges etc. for the same. (c). Printing, Stationery and Postage, (d.) Travelling Allowance and conveyance charges to the staff and the Members of the Committee of the Society.( e.) Sitting fees paid to the Members of the Committee of the Society, (f.) Subscription to the Education Fund of the Maharashtra Rajya Sahakari Sangh Ltd. (g.) Annual Subscription of the Housing Federation and any other co-operative institution to which the Society is affiliated .( h.) Entrance fees for affiliation to the Housing Federation and any other cooperative institution. ( I ). Audit Fees for internal, Statutory and reaudit, if any. (j). Expenses incurred at meetings of the general body, the Committee an the Sub-Committee, if any Composition of the Charges of the Society. Break-up of ServiceCharges of the Society (k). Retainer fees, legal charges, statutory enquiry fees.( l.) Common electricity charges. (m). Any other charges approved by the General Body at its Meeting. However such charges should not contradict the provisions of the Act, Rules and Bye-laws of the Society.

From above list of levying charges , two types of charge, namely, (iv) Contribution to Repairs and Maintenance Fund and (vi) Sinking Fund are basically funds for the maintenance of the Properties of the society and the utilisation of these funds has also been governed under rule 67. as below :

67. The following repairs and maintenance of the property of the Society shall be carried out by the Society at its costs: a. ( i ) All internal roads, (ii) Compound walls, (iii) External water pipe lines, (iv) Water pumps,(v) Water storage tanks, (vi) Drainage lines, (vii) Septic tanks, (viii) Stair cases, (ix) Terrace and parapet walls, (x) Structural repairs of roofs of all flats, (xi) Stair-case lights, (xii) Street lights, (xiii) External walls of the building/ buildings, (xiv) All leakages of water including leakages due to rain water, and leakages due to external common pipe line and drainage line, (xv) Electric lines upto main switches in the flats (xvi) Lifts, (xvii) The damaged ceiling and plaster thereon in the top floor flats, on account of the leakage of the rain water through the terrace.(xviii) Generators,(xvix) Sharing of the Society’s Charges by the Members. at its meeting. Committee to fix Society’s Charges in respect of every flat., Security Appliances (CCTV, Intercom, Group Mobile, Mass Data Sharing Devices, Siren Bell) (xx) Rain Water Harvesting,(xxi) Sewerage, Storm water Drain & Water Treatment Plant (xxii) Common areas not specifically allotted ,Swimming Pool, Gym, Sauna Bath, Coffee House (xxiii) Common Parking Space (xxiv) Solar and alternate energy devices. (xxv) Garden (xxvi) Community hall

From the above, it is clear that he routine expenses for gym/ swimming pool sauna bath etc, if available in a society in a separate building are not covered under these charges. Members utilising these facilities have to create funds through membership for these expenses. However, repairs of properties of Gym ,swimming pool sauna Bath etc like leakages/ painting or redevelopment etc will be undertaken by Society from the funds collected through (iv) Contribution to Repairs and Maintenance Fund and (vi) Contribution to Repairs Sinking Fund as mentioned under 67..

Now, the doubt is toward the day to day maintenance of Gym / Swimming Pool etc i.e. towards payment of electricity, AC and other equipment maintenance, etc.

Normally, Gym, swimming pool, sauna bath etc are the additional facilities provided by builder and are not part of purchase of flat. These facilities are related to physical exercises /health and those interested can avail these on payment. It cannot be imposed on all members of the society and therefore, should not be charged for day to day routine maintenance work like electricity, light fitting, ac repairs, instrument repairs etc.

An early clarification will be highly appreciated.

I C Naik

RESPONSE 21 10 2016

Your doubt is based on an assumption that  “a member has purchased only flat” This is a common parlance for a more complicated phrase used in registered bye laws at several places. The purchase of a flat means what exactly is being sold? When he sells the flat the conditions imposed on the seller under Bye Law No 38 are worth looking at it.  This bye-law opens up with a phrase: “A Member, desiring to transfer his shares and interest in the capital/property of the Society”  A member  of a housing society was first a purchaser of a flat was least conscious of the fact that he was purchasing  “interest in the capital/property of the Society” The price he pays  for a flat is the price for this “interest” the meaning of which is amplified in registered bye laws of the Society. Amongst a very important right of occ. Amongst a very important right of occupying the flat he has access to entire common assets that is not belonging to any exclusive individual purchaser that includes Club House Sauna Swimming Pool etc. In fact each purchaser has the same rights. He can walk around Swimming Pool, he can walk in to the clubhouse for example. Expenses incurred in maintaining them is the collective responsibility of all members that is the housing society. It is optional for a member to take a dive in to swimming pool or seat in Sauna or do burn out in a gym. For this optional services the concerned member has to pay certain sum decided by the management committee. This is because these services are not accessed as a bare necessity for living a life. The expenses incurred gets divided between the user members reducing the amounts to be apportioned over each flat as a duty specified  in the Bye Law No 67(a) “The Committee shall apportion the Share of each Member towards the charges of the Society on the following basis:”

So  there is no injustice to those who does not use the extra services as they are not charged for that.

I have a hunch that what you have extracted in your second mail from certain bye-laws especially No 67 is not from your housing society’s registered bye laws because if they are registered after 2-09-2014 its printed version as supplied by Housing Federation  has bye-law no 68 for the contents of Bye Law No 67. You have skipped the correct Bye Law No 67 a sentence from which I have quoted.

So please check provisions in your housing society’s registered bye laws because if it is not registered 2014 Model as posted on web site by by  the Commissioner for Co-operation and Registrar of Cooperative Societies  has nothing to do with your housing society.

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