Society bye laws
Biswajit
(Querist) 10 August 2014
This query is : Resolved
Hi,
I am from Mumbai and I am part of provisional managing committee. Recently we had an SGM and it was decided to charge service charges at sq feet wise while bye laws states it should be unit wise. To be specific, we have 3 BHK unit, 1BhK & 2 BHK.
Obliviously there has been a spate of infighting amongst the members since apportioned in different ways increases maintainenance substantially to 1BHK while 3 BHK holders would point bye laws. Please note that the number of 1Bhk unit is much higher then 3bhk.
We have sent mail to registrar for clarification but we haven't heard from them.
What should be the way out? What is the right direction? Please guide me and appreciate for your response.
Biswajit.
Sri Vijayan.A
(Expert) 10 August 2014
Fixing of Service charges is at the discretion of the Association/Committee.
However, in my view, SC may be fixed on the area of flat.
If your bye laws prescribed the fixation of SC unit wise and it created practical problems, you can amend the bye law and pass resolution to this effect and do the needful for registration of amended bye-law.
Registrar of Societies normally guide for preparation/ modification of bye-laws.
Raj Kumar Makkad
(Expert) 10 August 2014
Bye-laws of the society can definitely be got amended and till the amendment is inserted in the constitution, a resolution can be passed charging the maintenance as per area and not unit based.
Rajendra K Goyal
(Expert) 10 August 2014
You can pass the desired resolution and if bye laws need be amended, amend the same.
ajay sethi
(Expert) 10 August 2014
visi the Mumbai housing Federation for necessary clarifications .
Biswajit
(Querist) 15 August 2014
Dear learned ones,
We approached Mumbai housing society federation with the query on service charges ( to be charged unit wise or square feet wise ) and they have advised that we should charge as per unit/ tenant wise. They also have highlighted recent court judgement to do so.
This goes absolutely against what you all had recommended? Also how much binding is the recommendation of Mumbai housing federation? What is the probability of we getting different view from the registrar or deputy registrar?
Your views would be highly solicited and eagerly I shall for your reply.
Biswajit
Raj Kumar Makkad
(Expert) 15 August 2014
The maintenance charges are set depending on the per sq.ft. rate and hence differ depending on the area of a flat. For instance- if the maintenance cost is Rs 2 per sq ft for a 1000 sq ft apartment, the monthly charge will stand at Rs 2000, and 3000 for a 1500 sq ft. Furthermore, in most of the cases, the per sq.ft. charged does not differ depending on the apartment size.
One of the most frequently asked question is-From when the maintenance charges are payable? Experts confirm that such charges are applicable when the possession letter is issued. Hence, regardless of the fact that whether a particular property is occupied or not, the owner is legally obliged to pay up the charges. As per the The Karnataka Societies Registration Act, 1960 for rented apartments, a tenant is duty-bound to pay for the maintenance charges.
Methods for calculating maintenance fee
Over the years, apartment associations have adopted various methods and practices to collect the monthly maintenance fee. Some of such practices, which are still prevalent include:
Per Square Feet Rate
Under this rule, the fee or rate depends on the square feet area occupied by an apartment owner. The more the square feet owned, the higher the monthly maintenance fee will be. This rule finds its relevance in Apartment societies with different sizes of apartments.
Flat Monthly Fee
As per the flat monthly fee method, the maintenance fee is evaluated by the apartment owners association and is dispersed uniformly among the flat owners. As per the system, all the apartment owners are entitled to pay equal maintenance fee, regardless of the size of the flat. Apartment of same size sq.ft. follow this method.
Partial flat rate
According to this method, society or association charges flat rate for a limited square feet and every additional unit will be charged for extra. For instance, an apartment owner of 800 sq.ft. property will be charged at a fixed rate, and additional 100 sqft will be charged with 2%.
Maintenance charges form a significant part of the amount spent on property purchase. Hence, it becomes a must to get an idea of the nitty-gritties involved in maintenance cost, in order to avoid overpaying.
