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vinay   19 March 2025

Interest on society maintenance

Hi,

Wanted to seek a legal opinion ...

My society has been charging 21% interest PA on society maintenance dues since inception -1998 however it got registered in September 2019 so whatever fund was collected till September 2019 was kept in the bank as FD and tax was also paid on the same. 

If the society hasn't paid anything to BMC till 2019 how come they are charging 21% interest on the principal amount ?

We have escalated the same issue to the registerer office in kandivali and they pointed out the same stating "Society can't charge interest on the maintenance until or unless they are registered" hence we have trying for written order from the same.

 

 



 3 Replies

T. Kalaiselvan, Advocate (Advocate)     19 March 2025

So what is your problem?

You wait for the orders to pursue the matter legally in furtherance. 

vinay   19 March 2025

Thank you for your response, sir

I missed to mention earlier that many society members have refused to pay interest on arrears and informed the committee that they should not levy interest on principal amount prior to society registration in sept 2019 however the committee members are adament and on top of that threatening to take legal action. The same committee has been managing society for past 20 years and society members have often complainted about financial mismanagement as well.

T. Kalaiselvan, Advocate (Advocate)     19 March 2025

your question about levying interest against the arrears of maintenance amount, you have also mentioned that the dispute was  refererred to Registrar of cooperative societies and awaiting the orders.

Hence you may await the orders for taking action for further issues.

The other issues raised now also could have been taken up before the concerned authorites, however if you people join together and raise objection to the continuation of the same team as management committee members or office bearers and can  seek  intervention by the authorities concerned to hold election under their supervision.


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