Sire,
I live in a gated villas community in Hyderabad. Though there are legal bye-laws agreed, the EC which came in to force, are not following the bye-laws. Instead they started a practice of having monthly general body meetings, where in they started with their own agenda and started harassing people whoever questioned their autocratic approach. Charging high interest rates on maintenance delays and interest each month on the previous month (principal+interest). (which is not recorded in any of the bye-laws on the amount, though they said they can be penalties. However they declined to follow the bye-laws anyway). Instead of treating the interest under interest head, they are adding the interest also under maintenance head in the accounting and adding further interest to it.
When the society started 2 years back, a corpus fund agreed for Rs.50,000/- for house was planned to be collected. Initially it was agreed to be paid in installments by the members. However, after few months, the then committed failed to collect maintenance from the members and even after rejecting in the general body meeting, they went ahead and withdrew the amount from Corpus fund to pay the maintenance costs (electiricity). They never bothered to provide any plan to refill it. After that a new committed came into force, who with their autocratic approach are now threatening to charge a penalty of Rs.10000 if we don't pay it in one instalment. I asked them for a legal binding that they won't use it for anything other than the purpose the corpus is meant for (this clause is there in the bye-laws, which the new EC declined to acknowledge). I sent an email to them that if they assure that the corpus fund won't be mis used for any purpose other than it is intended for, I can then pay, or I don't feel the funds are safe in their hands. They declined to give any guarantee or legal agreement on it. Meaning they can still use it at their will and wish. If we don't pay, they are adding it to the dues and publishing in public defaming the residents.
Is it legally valid to fine for Corpus fund delays, when they can't assure the safety of the funds? All that we wanted that an assurance on the safety of the corpus fund which they declined to give. Please advice. What they are saying is, the people who paid are asking to penalize the non-payers and hence they are penalizing with Rs.10,000 fine. The gated community is total having 72 villas and 24 villas didn't pay the amount so far.
Is there any legal clause where we can challenge their autocratic approach?
One more thing they are doing is.. if there is any interest levied on delayed maintenance.. next month they are adding further on that original maintenance+previous interest. Almost like compunding interest. Can they do it? Can't the law protect the residents?
Regards
-Chandu
