Big Relief: Housing Societies Cannot Charge Extra Fees from Owners Renting Out Flats Beyond Non-occupancy Charges.
Big Relief: Housing Societies Cannot Charge Extra Fees from Owners Renting Out Flats Beyond Non-occupancy Charges. ( Representational Image )
Deputy Registrar’s order curbs arbitrary charges by housing societies; directs refund of illegally collected funds.
In a significant decision for thousands of homeowners, the Deputy Registrar of Cooperative Societies has ruled that housing societies cannot levy any additional charges on flat owners renting out their homes, except the permissible non-occupancy fee. The order not only provides relief to affected members but also sets a precedent against arbitrary practices by management committees.
The order came after a complaint was filed by a member of Chaitanya Cooperative Housing Society in Pratiksha Nagar, Sion East, Mumbai. The member alleged that the society was charging an additional ₹5,000 under the head Building Development Fund on top of non-occupancy charges.
Upon investigation, the Deputy Registrar found the demand to be unlawful and directed the society to adjust the disputed amount in the complainant’s maintenance bills within two months. The ruling further clarified that non-occupancy charges must not exceed 10% of the service charges, as per cooperative housing society norms.
The decision is being hailed as a big relief for homeowners, many of whom have long faced arbitrary demands under various heads such as “development” or “infrastructure funds.” Housing rights activists believe the order will serve as a deterrent to societies that misuse their authority.
“This ruling reinforces that societies cannot create their own rules to exploit homeowners. It is a big win for members renting out flats,” said a housing rights campaigner in Mumbai.
With the rental market in Mumbai seeing constant demand, the decision is expected to benefit thousands of flat owners and tenants, ensuring greater transparency and fairness in housing society management.
