Residents in a cooperative housing society (CHS) and even owners in a commercial complex are routinely charged operating charges, which are termed maintenance charges, either monthly, quarterly or annually. For residents or tenants to enjoy uninterrupted services provided within the society premises, maintenance charges must be paid promptly.
 
As per the stipulated bye-laws, some items under maintenance have to be equally borne by all members, while others are calculated based on the size and area of each flat or unit. Unfortunately, there are cases where a managing committee may illegally or unintentionally add some charges to the maintenance bill, making it difficult for the owner to dispute them.
 
Calculation of maintenance charges has to be strictly done on the basis of the bye-laws. Any other additional charge has to be approved by the deputy registrar of societies before being put up for a vote in a general body meeting. This week, we shall examine how maintenance is calculated and what you can do if your Society has added illegal charges to your bill. I will also provide solutions to illegal encroachment and a parking space problem.
 
Calculation of Maintenance Charges in Housing Societies
 
Question: I have noticed that our managing committee has been violating society bye-laws and charging service charges in our maintenance bill on a square feet basis. Can you please provide some clarification on the calculation of maintenance charges as per the bye-laws?
 
Answer: Levy of Society's maintenance charges is governed by Bye-laws 65 to 71, of CHS Bye-laws Book of the year 2014. 
 
Under Bye-law No 67(a), the following seven categories of charges in the Society are based on the area of the flat.
 
(i) Property tax: as determined by the local authority, like the municipality.
(ii) Water charges: based on the total number and size of inlets provided in each flat/unit.
(iii) Expenses on repairs and maintenance of the building/s of the Society: Calculated on the basis of the built-up area of each flat/unit; minimum of 0.75% per annum (collected every month) of the construction cost of the flat/unit.
(v) Sinking fund: Calculated on the basis of the built-up area of each flat; minimum 0.25% per annum (collected monthly basis) of the construction cost of the flat/unit.
(xi) Building insurance charges: For each flat/unit proportionate building insurance premium is charged based on the built-up area of each flat/unit (calculated monthly).
(xii) Lease rent of Society's building land: as calculated based on the built-up area of each flat/unit.
(xiii) Non-agricultural (NA) tax: applicable to the land on which the Society's building stands, as calculated based on the built-up area of each flat/unit.
 
Following eight items of maintenance, each flat/unit is charged equally, irrespective of their built-up area.
 
(iv) Expenses on repairs and maintenance of the lift, including charges for running the lift.
(vi) Service charges, as described in bye-laws 65(g) and 66(a) to (m).
(vii) Parking charges, as fixed in the general body meeting of the Society, under bye-laws Nos. 78 to 84.
(viii) Interest on delayed payment of charges, as calculated at the rate fixed in the general body meeting of the Society, under Bye-law No. 71. This should be a maximum of 21% simple interest.
(x) Non-occupancy charges: This is applicable to a flat which has been given on rent and should be 10% of the monthly maintenance of the flat, excluding municipal property tax.
(xiv) Education and training fund: Rs10 per flat/unit per month.
(xv) Election fund: This has to be calculated equally to all flat/unit as prescribed by the election authority in the rules made thereof and as decided in the general body meeting of the Society.
(xvi) Any other charges, as may be decided in the general body meeting of the Society, provided such charges are within the laws prescribed, and their collection is approved by the deputy registrar of cooperative societies.
 
Apart from the 26 categories above, any other charges not prescribed in the bye-laws and not approved by deputy registrar of cooperative societies, cannot be levied as maintenance on any flat/unit in the Society.
 
If such illegal charges are levied, you make a complaint against the managing committee of your Society to deputy registrar of cooperative societies of your area. Make individual complaints for each wrongdoing of the Society, addressed to deputy registrar of cooperative societies of your area.
 
NOTE
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Encroachment and Illegal Restaurants in Commercial Complex
 
Question: In our commercial complex, some shops are being used by tenants. They are using our common spaces, such as walkways and parking, and subletting them to illegal tenants. We have given official notice several times, but the illegal tenants are unwilling to vacate or move. Some use the shop as a restaurant without a proper licence. They have also placed a chimney in the common area, which is harmful for the neighbouring shop owner. What are we to do in such a case?
 
Answer: For encroachment and illegal restaurants in your commercial complex, write a complaint to your local municipal ward officer. Know that you will have to be very persuasive in your complaint.
 
With a photocopy of the acknowledgement of your complaint to the ward officer, file an RTI (Right to Information) application to the ward's public information officer (PIO), asking the PIO to give you information on the action taken against your complaint. The PIO has 30 days to reply to your RTI letter. This will give you a clear idea if any action has been taken on your complaint. 
 
If the reply from the PIO mentions that no action has been taken, then proceed to file a Lokshahi Din complaint with the municipal commissioner against your municipal ward officer for his inaction. 
 
At a Lokshahi Din hearing held at the municipal commissioner's office, the commissioner will ask the erring ward officer to demolish all unauthorised structures in your commercial complex.  
 
Allocation of Unused Parking Spot
 
Question: In our housing society, one owner has two car parking spots, but he has only one car. The other space has been unutilised for the past decade. We do not have designated car parking in the Society; thus, we requested the owner to allow us to park our car in his unused parking spot. We even told him we are ready to buy the spot from him. But he is unwilling to cooperate or agree to any amicable terms. We have also put in official requests with the Secretary and Chairman as well. They say it's our personal matter and have washed their hands off it. What is the remedy and where can we complain about it?
 
Answer: Parking space in a CHS is owned by the Society and is allotted by them under Bye-law Nos. 78 to 84. Even if a parking lot is bought either from the builder or the Society, even if a parking deed is registered, the sale of parking space is illegal and invalid.
 
Furthermore, without owning a car, a flat-owner cannot reserve a vacant parking space in Society's premises, even if he is ready to pay monthly rent for the empty parking lot.
 
Therefore, if your Society's managing committee is not taking any action against the flat-owner, who is not allowing others to park in a vacant parking lot held by him, then against the Society, make a complaint under bye-law No 174(B)(iv) to cooperative court and make that flat owner a party to the case.
 
Kindly hire the services of an honest advocate who has good experience in handling cases in the cooperative court, specifically for parking problems in a CHS.
 
(Shirish Shanbhag has an MSc in Organic Chemistry, Diploma in Higher Education, and a Diploma in French and has completed his LL.B. in first class in 2021. Before his retirement, he was a junior college teacher at Patkar College from July 1980 to May 2012, teaching theoretical and practical chemistry. Post-retirement in 2012, he started providing guidance and counselling to people on several issues, specifically focusing on cooperative housing society-related matters. He has over 30 years of hands-on experience in all matters about housing societies and can provide out-of-box solutions for any practical issue.)