Cooperative Housing Society Cannot Charge Excess Fees from Rented Flats
A deputy registrar in Mumbai has ruled that the Chaitanya Cooperative Housing Society cannot charge additional fees beyond non-occupancy charges from members who rent out their flats.
Cooperative HousingNonoccupancy ChargesDeputy RegistrarSion EastChaitanya Cooperative Housing SocietyReal Estate MumbaiAug 21, 2025
This directive follows a complaint from a flat owner who alleged that the society was illegally charging Rs 5,000 as a building development fund. Abhijit Deshpande, the deputy registrar of co-operative societies at Mhada Mumbai City, Eastern Suburbs, and Konkan Board, stated that it was improper for the society to accept amounts under the name of a development fund from members renting out their flats. He further directed that the society should adjust the disputed amount in the complainant's monthly maintenance bills within two months.
The society had defended its actions by claiming that the charge was imposed following a resolution passed in the Annual General Meeting (AGM). The complainant, A Shaikh, who owns a flat in the society, approached the deputy registrar's office, citing that the society was levying Rs 5,000 per year towards the 'Building Development Fund'. This levy was in addition to the statutory non-occupancy charges, as mentioned in the petition. Shaikh in his petition stated that as per Section 43 (2) (iii) (c) of the Model Bye-Laws of Cooperative Housing Society, 2014, non-occupancy charges shall be levied in accordance with the circular issued by the state Department of Co-operation.
In response, the society stated that a resolution was passed in 2014 to collect Rs 4,000 from members renting out their flats. The issue was revisited in the 2019 AGM, where a decision was made to increase the amount to Rs 5,000 as a development fund. Shaikh highlighted in his petition that a Government resolution issued by the state government in August 2001 prohibited societies from levying more than 10% of service charges towards non-occupancy charges.
Vinayak Adep, the secretary of the Chaitanya Housing Society, said, 'A resolution was passed regarding the charging of the amount in an AGM of the society. It was a majority decision, and the members had agreed to it. Besides, no amount is being charged without approval in the AGM.' However, the deputy registrar's decision has clarified that such additional charges are not permissible and must be adjusted accordingly.
Frequently Asked Questions
Can a cooperative housing society charge additional fees beyond non-occupancy charges from members who rent out their flats?
No, a cooperative housing society cannot charge additional fees beyond the statutory non-occupancy charges from members who rent out their flats, as per the ruling by the deputy registrar.
What is the maximum percentage of service charges that can be levied for non-occupancy charges?
According to a Government resolution issued by the state government in August 2001, societies are prohibited from levying more than 10% of service charges towards non-occupancy charges.
What action has the deputy registrar taken against the Chaitanya Cooperative Housing Society?
The deputy registrar has directed the society to adjust the disputed amount in the complainant's monthly maintenance bills within two months.
How did the Chaitanya Cooperative Housing Society justify the additional charges?
The society claimed that the charge was imposed following a resolution passed in the Annual General Meeting (AGM) and that it was a majority decision agreed upon by the members.
What is the role of the deputy registrar in this context?
The deputy registrar of co-operative societies is responsible for ensuring that societies comply with the Model Bye-Laws and other regulations. They can issue directives and rulings to address complaints and ensure fair practices.
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