Proposed society - compounding interest being charged by society - valid??
Parthiv Pathak
(Querist) 25 August 2015
This query is : Resolved
Respected Sir,
Mine is a proposed society in Kandivali in Mumbai since its inception. Society has issued several bills charging compounding interest on the overdue amount which is against the Law and Rules framed under The Cooperative Society's Act. We have paid entire Capital amount till date but not willing to pay interest which is compounding in nature. As far as my knowledge is concerned, Society can only charge simple interest on the overdue amount and not compounding interest. Society members are not ready to give up and threatening us that they will go legal. I have few queries.
1) Can they charge compounding interest if the society is not registered under the Coop. Soc. Act?
2) What can be the maximum rate of interest?
3) What legal remedy I have in this circumstances?
4) Can I go to the Registrar and file complaint of the secretary although my society is not a registered one and only a proposed society?
5) Can I file police complaint and will they entertain me?
I may please be advised as my father and uncle is holding the fort due unity created by all the shop owners who are in majority in our Society upto 90 percent. Please advise. Thank you. Parthiv
Hemant Agarwal
(Expert) 11 October 2015
1. An "unregistered" Society has no lawful authority to demand ANY money from the Flat-Owners and NEITHER can the so-called office-bearers take any legal action on the Flat-Owners. Stop paying any money to such illegal so-called office-bearers.
2. Make a written Police Complaint against the so-called office-bearers.
3. IN a "REGISTERED" Society, there is a provision of Simple Interest @ 21% AND NOTHING MORE.
4. Coop. Registrar has no role to issue orders to an unregistered Society.
Keep Smiling .... Hemant Agarwal
Read Articles: http://hemantagarwal21.blogspot.in/?view=sidebar
http://www.maharashtra-society-help-forum.com
Guest
(Expert) 12 October 2015
Dear Parthiv,
Unless registered with the registrar of cooperative societies, a society cannot be termed as a cooperative socity. That is merely an association of members taking care of the needs & interests of the members of the society on adhoc basis. Arbitrary terms cannot be ruled out in such cases.
So, that will be futile on your part, if you approach the registrar office, as the society won't fall within the jurisdiction of the registrar of cooperative societies to deal with the complaints of the members. Also, till the society is not registered, the society is not bound to follow any law or rules enforceable on a cooperative society.
However, the interest terms being unfair, you can approach a civil court for trial.
