By Arosh John | Founder – John Real Estate (MahaRERA Reg. No. A51700001835) | Editor-in-Chief – Thane Real Estate News
Why timely maintenance payments matter
Housing societies in Thane and Mumbai rely on member contributions to cover essential expenses—municipal taxes, water, common electricity, lifts, repairs, sinking fund, and insurance. The Maharashtra Model Bye-laws clearly define these as “society charges” recoverable from every member.
When members delay payments, societies face liquidity crunches. This directly impacts safety, upkeep of the building, and even the resale value of flats.
What exactly are “society charges”?
As per Model Bye-laws 64–66, charges include:
- Property tax, water charges, and common electricity
- Repair and maintenance fund
- Lift expenses and sinking fund
- Service charges and parking charges
- Interest on delayed payments
- Loan instalments and non-occupancy charges
- Insurance premiums
- Lease rent, non-agricultural tax, education/training fund, election fund
- Any other charges approved by the General Body (consistent with law)
When do you become a “defaulter”?
Under Model Bye-law 69(a), if a member does not pay the bill/demand notice within the prescribed period (usually 21–30 days as fixed by the society), they are treated as a defaulter. The Secretary must place such cases before the Committee for action.
Interest on late payment
Model Bye-law 70 empowers societies to charge up to 21% simple interest per annum on arrears (or a lower rate if resolved by the General Body).
(Note: In 2025, the State proposed capping this interest at 12% and standardising charges, but this remains in draft stage and has not yet become law. As of now, up to 21% is legally permitted.)
Legal recovery actions if you don’t pay
- Demand Notice & Interest: Issued as per Bye-laws 68–70.
- Recovery Certificate (Section 101, MCS Act, 1960): Societies can approach the Registrar for a Recovery Certificate, making dues recoverable as arrears of land revenue.
- Voting & Elections: Defaulters lose the right to vote, contest elections, or hold office until dues are cleared.
- Resale/Transfer: Societies usually refuse to issue a No-Dues Certificate until all arrears are settled, blocking registration of resale.
What societies cannot do
- Cut essential services like water or electricity — courts have held these to be fundamental rights. Recovery must be through legal means.
- Impose arbitrary charges not authorised by the Act, Rules, or Bye-laws.
Your rights as a member
- Transparency: Demand a breakup of charges as per Bye-law 66.
- Inspection: Members can inspect records and obtain copies of society accounts.
- Fair recovery: If a society resorts to coercion or illegal practices, you can approach the Deputy Registrar or Co-operative Court.
Best practices to protect yourself
- Always pay on time; if struggling, request a written instalment plan with interest.
- Scrutinise bills and raise written objections to irregular charges.
- Request a General Body resolution to fix interest rates and “other charges.”
- Keep proper proof of payments (receipts, UTR numbers).
- Clear arrears before resale to avoid delays.
- Never stop paying as a protest; resolve disputes through proper legal channels.
Quick reference
- Bye-law 64–66: Defines charges and apportionment
- Bye-law 68–70: Billing, default, and up to 21% interest p.a.
- Section 101, MCS Act, 1960: Enables recovery as arrears of land revenue
About the Author
Arosh John is the Founder of John Real Estate (MahaRERA Reg. No. A51700001835) and Editor-in-Chief of Thane Real Estate News. With over 10 years of experience in the Thane real estate market, he is recognised as a specialist in resale transactions, NRI advisory, and luxury villa sales. As one of the few realtors who also leads a dedicated real estate news platform, Arosh combines on-ground transaction expertise with policy and regulatory insights—making him a trusted voice on Maharashtra’s housing society and real estate matters.
Consultation
Looking to buy, sell, or invest in Thane real estate? Book your one-on-one consultation with Arosh John (NRI/resale expert, luxury villas specialist).
Disclaimer
This article is based on the Maharashtra Co-operative Societies Act, 1960 and the Model Bye-laws of Co-operative Housing Societies (2014 edition), along with draft rule updates reported as of 2025.
- Societies may adopt slightly modified bye-laws when registered; always refer to your society’s registered bye-laws for exact applicability.
- The proposed 2025 amendments (capping interest at 12% and standardising charges) are not yet law.
- Non-payment of society maintenance can result in interest, penalties, loss of rights, and legal recovery under Section 101 of the MCS Act.
- Members should remain compliant with payments while pursuing transparency or disputes through lawful remedies.
Neither the author nor Thane Real Estate News accepts liability for actions taken solely on the basis of this article.
