Compound interest charging
Kiran Pai
(Querist) 27 May 2019
This query is : Resolved
Sir,
I am residing in Kalyan, Dist-Thane at Sinhagad CHSL., it is the issue date back to 2009, when our housing society is under re-plastering & repairing work done by a contractor. At this time I feel some wrong doing carried on by the society committee & contractor. So I asked the committee in writting to show me the records of the work agreement, payment details & bank statement. Our housing society committee was not ready to do the same & for this reason I hold the payment of repairing & re-plastering instalments since Aug-2009. From that date committee charge me the interest on the dues i.e. compound interest till date. Since 2015 I requested to settle the issue to the committee but I believe they are not interesting in this matter. But each & every months maintenance bill proving that interest is charged on the interest with due payment.
Now my request with you is please guide me how I can handle this matter & is it right our society has not shown the records and just charging the interest on the dues.
Thanks,
KiranPai
Kishor Mehta
(Expert) 28 May 2019
(1) You can submit a complaint under Appendix 28 of Maharashtra CHS rules to the Dy. Registrar of Co-Op Housing Societies of your Area in the matter of demand for records.
(2) Society can only charge simple interest at the rate of 21% maximum. Interest can not be Compounded. You can also submit your complaint in this matter under Appendix 28.
Dr J C Vashista
(Expert) 28 May 2019
The Act, Rule and Bye Laws of the Society on the subject matter is loud and clear. You will have to pay outstanding amount otherwise the Society has a right to recover as land revenue.
However, compounding of interest is illegal and invalid, request the Managing Committee, which should be followed by Registrar Cooperative Societies to rectify the issue.
It would be better to consult and engage a local prudent lawyer for proper guidance and proceeding.
