Simon D (manager) 19 February 2015

Sinking fund - apartment complex

I live in south of Bangalore in an apartment complex. . I have 2 questions

1. The apt. complex has an association but its not registered yet. DoD in progress. They say, they have bylaws defined. In which, any owner who misses paying maintenance or sinking fund will be charged with 24% penalty on daily basis. My question is - Do they have the right to collect this hefty 24% as this is not a registered body?

2. I missed paying sinking fund for the first year. In the second year invoice was send for 2014 only there was no mention of arrears of previous year anywhere. In month of August they sent a notice stating I have to pay sinking fund for previous year with penalty of 24%.My response was, if you had shown the previous year outstanding as arrears in 2014 Invoice, I could have paid it immediately. Hence its illegal to ask for penalty. I paid the dues but not the penalty so far.

Please tell me if its legal to collect 24% penalty

and is it not the duty of office bearers to inform on time to pay the dues or show the outstanding arrears in the next generated invoice?

Your expert help is required to help me,

thanks

Simon

Reply Follow

3 Replies

ADV-JEEVAN PATIL, MUMBAI ( DEEMED/CONVEYANCE OF BUILDING) 19 February 2015

1) legally cannot charge penalty for unregisteed Apartments/Society/Co. 2) They should have written to for ur failure to pay. If it is unpresidented refute paying or penalty. Hope clear

T. Kalaiselvan, Advocate (Advocate) 20 February 2015

You can always reuse to pay the penalty since your association if not registered, let them send a notice seeking the arrears, you can give a suitable reply through your lawyer. The exorbitant penalty is illegal.

T. Kalaiselvan, Advocate (Advocate) 22 February 2015

The penalty appears to be exorbitant especially in view of the arbitrariness in levying it by the members of the unregistered association. The bye laws meant for the association is also invalid due to non registration of the association. Therefore you may refuse to pay the exorbitant and abnormal charges levied by the so called association and may issue a legal notice condemning the irregularities demanding transparency. The association members will be infuriated over your action but some result or solution will arrive so that all the activities will be legalised in the future by following the proper procedures meant for it.