Mumbai Pratiksha Nagar Housing Society Barred From Charging Extra Fees For Rentals

The Chaitanya Cooperative Housing Society in Pratiksha Nagar, Sion East, Mumbai, has been directed by the Deputy Registrar of Co-operative Societies to refrain from charging excess amounts from members renting out flats, beyond the standard non-occupancy charges. The move follows a complaint highlighting that the society had been levying Rs 5,000 annually as a ‘Building Development Fund’ on rented units, which was deemed unlawful under existing cooperative society regulations.

According to officials, the society must adjust the disputed charges in the complainant’s monthly maintenance bills within two months. The directive emphasises adherence to the Model Bye-Laws of Cooperative Housing Societies, 2014, particularly Section 43 (2) (iii) (c), which limits non-occupancy charges to the prescribed norms set by the state Department of Co-operation. The complaint, lodged by a flat owner, alleged that the additional fund collection exceeded legal allowances. While the society defended its stance citing resolutions passed in AGMs in 2014 and later in 2019 to increase the fund amount from Rs 4,000 to Rs 5,000, regulatory experts clarified that such charges cannot override statutory provisions. A government resolution from August 2001 prohibits societies from levying more than 10% of service charges as non-occupancy fees, reinforcing the restriction on additional levies.

A senior official from the co-operative societies department stated that any collection labelled under development or building funds from rented flats constitutes a breach of cooperative society norms. The society has been asked to ensure that any excess collection is refunded or adjusted promptly, aligning with principles of transparency and fairness in member contributions. The case underscores a broader issue in Mumbai’s housing sector, where several cooperative societies have implemented additional levies beyond statutory charges, often citing AGM approvals. Experts note that while member resolutions are important for internal governance, they cannot contravene established legal frameworks designed to protect tenants and flat owners alike.

Officials emphasised that strict adherence to the bye-laws ensures equitable treatment for all members, particularly in high-demand urban areas where rental properties form a significant portion of the housing stock. The move is also in line with broader goals of fostering sustainable and equitable urban living, ensuring that housing societies remain accountable while providing quality services. With urban housing increasingly under scrutiny, such directives highlight the need for clear policies on charges and contributions, ensuring financial transparency and preventing arbitrary fees from burdening tenants. Experts advocate for wider dissemination of regulatory guidelines among cooperative housing societies to avoid disputes and legal complications in the future.

Mumbai Pratiksha Nagar Housing Society Barred From Charging Extra Fees For Rentals