Interest charged on interest by c.h. socty.
Purushottam Dayama
(Querist) 11 May 2013
This query is : Resolved
Hello,
I am member of Mrudang Lokpuram CHS Ltd, Thane. The society was formed in 1990 and registered in '91. Since inception Society's
accounts were maintained by one part time accountant and he formed his own method of charging interest on delayed payment. There is no resolution in society office to charge
interest @21% but accountant doing it with some dubious software. From June 2004 they have also started NOC charge as flat Rs.200/ month though actual Maint. Charges were 208 Rs. so NOC should have been Rs.21 only. I complained to society in '06 about excessive NOC charges also about charging interest on interest but society did not respond. Then 2009 I send show cause letter
and also complained about mismanagement in painting fund. Then society replied that they are charging "simple interest" only but the ledger extract shows same interest on interest charged.
Now I have claimed to society to refund the excess charged NOC and give rebate for compound interest and I have submitted them list of calculation from Apr. 2004 to March 2013. I have paid the amount by cheques to society yet they are not agreeing to settle the arrears by simple interest and want extra amount to be paid as per their calculation. They are not giving me NOC/No dues certificate required to be submitted to bank for obtaining loan to repair flat.
Please help and advise me what to do.
Thanks in advance.
ajay sethi
(Expert) 11 May 2013
society cannot charge compound interest . maximum interest that can be charged is 21%interest . only simple interest can be charged .
if society is charging compound interest issue legal notice to society and move cooperative court against the society . you cna claim refund for 3 years only
Purushottam Dayama
(Querist) 11 May 2013
It seems that everything works for society only. I had given notice about excess NOC and interest in 2009-10 and have written now again. So because they have not responded I lose 3years interest + Extra NOC charges just because they are sitting tight and not responding. Present Chairman had stopped paying Painting fund in 96-99 and he accumulated 30-35 thousands dues. Later Society gave rebate to him and reduced charges to 18-20 thousands by making simple interest concession. He was saying that office bearers are doing scam in painting. All these times office bearers dont know any law and cant differentiate between simple and compound interest.
ajay sethi
(Expert) 11 May 2013
raise the issue in AGM . write letter to society to place said issue in agenda of AGM . draw attention of the society to provisions contained in MCS act and bye laws regarding charging of interest .
have resolution passed in AGM with majority support
Purushottam Dayama
(Querist) 11 May 2013
Thanks Sir.
Problem is I am old man now 62 years. Also I am deaf from childhood. I get from others written in notebook what is being said. My wife died 15 years ago and I am staying with relative as my sons are out of Mumbai for jobs. Due to heart problem I have walking problem. I had given flat for rent and went to Delhi for medical treatment. Society people are very jealous that I have given flat for rent. They want me to stay in socty and lose my pension in rent. Therefore I go to society once in while but they people try to abuse me.
ajay sethi
(Expert) 11 May 2013
thanks for your appreciation
R.K Nanda
(Expert) 11 May 2013
no more to add.
