Can Residents Societies charge complete annual maintenance in advance ? I sthere any Ruling / Law which restricts them to do so ?
Sunil Lal (Art Director) 13 February 2015
Can Residents Societies charge complete annual maintenance in advance ? I sthere any Ruling / Law which restricts them to do so ?
Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 14 February 2015
No advance collection of maintenance allowed by laws. The society funds have to be used judicially. If charges are collected under the head of Building Maintenance charges, then they must be spend for the repairs and maintenance of the building. The society’s accounts need to be subjected to third-party audits and scrutiny by the registrar of societies, and members should have access to them when demanded.
Dr J C Vashista (Advocate) 14 February 2015
Yes, it can be claimed/charged if the GBM has passed any such resolution, the decision of GBM is valid and legal.
In fact the amount charged in advance provide a leverage to the Managing Committee to earn interest on the maintenance being charged in lump sum in advance. Besides this, advance charging of maintenance reduces the accounting, planning and execution workload of the MC.
Moreover, the MC has to project, plan and spend as per financial condition of the society which is not possible conversely the MC has to remain hand-to-mouth,when the same is being charged on month to month basis.
Dr. (Major) J C Vashista, Advocate, Consultancy Room, Lawyer's chamber Block, High court of Delhi, New Delhi-110003 and President, Aakkash Ganga Cooperative Group Housing Society, Plot No 17, Sector 6, Dwarka, New Delhi-110075 Cell # +91 9891152939 email majjagdish @ yahoo.com
Advocate Ravinder (Advocate/Attorney) 14 February 2015
There is contradiction between the above experts. Any other expert can comment on this.
T. Kalaiselvan, Advocate (Advocate) 17 February 2015
It is a matter to be decided and resolved in the Annual GB meeting of the society, if the resolution is passed to this effect, it becomes legal and binding on all the members. There is no contradiction to this opinion expressed by expert Dr.Vashista, I fully agree with his views.