No Extra Fees: Cooperative Housing Society Must Stop Excess Charges from Rented Flats
In a significant move safeguarding tenant rights, a deputy registrar of cooperative societies has intervened in a dispute involving the Chaitanya Cooperative Housing Society located in Pratiksha Nagar, Sion East, Mumbai. The directive came after a resident-owner, Mr. A. Shaikh, filed a formal complaint. He alleged that the society was unlawfully charging ₹5,000 per year toward a “Building Development Fund” in addition to the statutory non-occupancy charges imposed on members who rent out their flats The Times of India.
The Complaint: Overcharging Beyond Legal Limits
Under Mumbai’s Model Bye-Laws for Cooperative Housing Societies (2014), only non-occupancy charges are permissible for rented units, guided by circulars issued by the state Department of Cooperation The Times of India. Mr. Shaikh pointed out that a government resolution from August 2001 states that non-occupancy charges should not exceed 10% of the total service charges The Times of India.
Despite this, the society insisted it had the mandate to collect an additional development fund—initially ₹4,000 in 2014, later raised to ₹5,000 in the 2019 AGM following a majority vote The Times of India.
Official Ruling: No Excess Charges Allowed
Abhijit Deshpande, Deputy Registrar of Cooperative Societies for Mhada Mumbai City, Eastern Suburbs, and Konkan Board, clarified that the society cannot levy any amount beyond the stipulated non-occupancy charges. He ordered that the disputed sum be adjusted within two months in Mr. Shaikh’s monthly maintenance bills The Times of India. The move underscores the principle that even society resolutions cannot override statutory bylaws or governmental directives.
Governance vs. Law: Society’s Defense Falls Short
While the society’s secretary, Vinayak Adep, defended the actions by referencing the AGMs and majority approval—stating, “A resolution was passed regarding charging of the amount… the members had agreed to it.”—the deputy registrar’s ruling emphasized that such resolutions cannot contravene established legal frameworks The Times of India.
Key Takeaways
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Legal Precedence Trumps Society Resolutions
Community decisions must align with statutory bylaws and government guidelines—not override them. -
Transparency and Compliance Matter
Societies must carefully ensure that charges imposed are legally permissible. Regular oversight is essential. -
Role of Cooperative Authority
The Deputy Registrar’s swift action reinforces the significance of regulatory oversight in protecting members’ rights.
Conclusion
This case serves as a timely reminder for cooperative housing societies to review and align their practices with legal mandates. Charging beyond authorized limits—notwithstanding member approval—can result in penalties or mandated reversals. Members, too, should stay vigilant and aware of the legal boundaries governing such fees.
Source: Times of India — “‘Hsg society can’t charge excess fee from rented flats’” (Aug 21, 2025)
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"Mumbai Registrar Cracks Down on Illegal Charges by Housing Society"