Can Housing Societies Collect Cultural and Social Charges? Rules Explained

Housing societies and social charges explained

Many members of cooperative housing societies are surprised when they notice cultural and social charges being added to their monthly maintenance bills. A common question arises: Can the society legally collect such charges even if a member did not attend the general body meeting where the resolution was passed?

Under the Model Bye-laws of Cooperative Housing Societies in Maharashtra, the answer is yes, provided that the levy has been properly approved by the general body of the society.

Legal Basis for Collecting Cultural and Social Charges

The Model Bye-laws, particularly Bye-laws 65, 66 and 67, prescribe the various components of society charges and the manner in which they may be shared among members.

These bye-laws specifically include provisions for “any other charges”, giving societies flexibility to recover expenses that are duly approved by members through the general body.

Further, Bye-law 5, which defines the objectives of a cooperative housing society, specifically authorises societies to undertake and provide cultural, social and recreational activities for the benefit of their members.

Therefore, if the general body passes a valid resolution approving such charges, the levy is generally considered lawful.

Is Attendance at the General Body Meeting Mandatory for the Resolution to Bind You?

No. Even if a member does not attend the general body meeting, decisions lawfully passed by the required majority become binding on all members.

Absence from the meeting does not exempt a member from complying with resolutions that are validly adopted.

Therefore, a member cannot refuse to pay cultural and social charges merely because they were not present when the proposal was approved.

Can You Refuse to Pay Cultural Charges?

In most cases, no.

Once the general body approves the levy, every member is required to pay the amount as part of the society’s maintenance or other authorised charges.

Non-payment may result in the amount being treated as society dues, which could attract interest or recovery proceedings under applicable provisions of the Maharashtra Cooperative Societies Act, 1960, and the society’s bye-laws.

What if You Disagree with the Resolution?

If you believe the resolution was passed improperly or is contrary to law, the proper remedy is not to stop payment.

Instead, you may challenge the decision before the appropriate legal forum, such as the Cooperative Court or the competent authority, depending on the nature of the dispute.

Merely refusing payment can weaken your position and may expose you to recovery proceedings by the society.

2023 Cooperative Department Circular on Non-Attending Members

The Cooperation Department issued a circular in May 2023 clarifying that members who choose not to attend general body meetings cannot subsequently object before the managing committee to decisions taken in those meetings.

If they are aggrieved by any decision, they must approach the Cooperative Court or other competent authority for appropriate relief.

This circular reinforces the principle that valid resolutions passed by the general body remain binding on all members, irrespective of attendance.

When Can Cultural Charges Become Disputable?

Although societies can levy cultural charges, disputes may arise if:

  • The charge was never approved by the general body.
  • The resolution was passed without following statutory procedures.
  • The amount is arbitrary or discriminatory.
  • The collection violates the society’s registered bye-laws or applicable law.

In such situations, members may seek legal remedies before the appropriate authority.

Best Practices for Housing Societies

To avoid disputes, societies should:

  • Obtain proper approval through a duly convened general body meeting.
  • Clearly record the resolution in the meeting minutes.
  • Inform all members about the purpose and amount of the charge.
  • Maintain transparency regarding utilisation of the collected funds.
  • Ensure compliance with the provisions of Bye-laws 5, 65, 66 and 67.

Conclusion

A cooperative housing society in Maharashtra can legally collect cultural and social charges if they have been approved by the general body in accordance with the Model Bye-laws. A member cannot refuse payment merely because they were absent from the meeting where the resolution was passed. If a member believes the levy is unlawful, the appropriate course is to challenge the decision before the competent legal authority rather than withhold payment.

Understanding the relevant bye-laws and actively participating in society meetings can help members safeguard their rights while ensuring smooth functioning of the society.

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