Housing societies often introduce charges that may seem routine but are actually not permitted under cooperative laws. One such recurring issue is the demand for entry fees, exit fees, or additional charges during the renewal of a leave and license agreement. Many members are unaware of their rights, leading to unnecessary payment of illegal charges.
This article explains the legal position on non-occupancy charges, leave & license renewals, and what actions members can take when societies impose arbitrary fees.
Understanding Non-Occupancy Charges
When a flat owner gives their property on leave and license, the housing society is permitted to levy non-occupancy charges. These charges are regulated under the Maharashtra Cooperative Societies Act, Rules, and Government circulars.
The rules clearly state:
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A society can levy non-occupancy charges up to 10% of the service charges.
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Service charges include common expenses such as electricity for common areas, general repairs, and administrative costs.
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Civic taxes (property tax, water charges, etc.) cannot be included when calculating the 10%.
This is the only valid levy in such cases. No other charges beyond this are allowed.
Illegal Charges: Entry Fee, Exit Fee, Renewal Fees
Many societies impose:
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Entry fees
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Exit fees
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Processing fees for renewal of leave & license agreements
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Annual charges for tenants
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NOC fees for tenants
These charges are not legally permitted. They have no basis under cooperative housing regulations.
The renewal of a leave & license agreement is a routine administrative event. The society cannot charge ₹6,000 as entry fee or ₹2,000 as exit fee or any similar renewal charge. Such levies do not stand the test of law and can be challenged.
When Non-Occupancy Charges Are Not Applicable
Some owners are exempt from non-occupancy charges altogether. If the flat is occupied by close family members, no such levy is applicable. This includes:
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Parents
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Siblings
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Children (son or daughter)
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Spouse
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Direct dependents living in the flat
If any of these relatives occupy the premises, the member should not pay non-occupancy charges.
What You Can Do if the Society Charges Illegal Fees
If your housing society continues to impose such unlawful charges, you have the right to take action. You may:
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Write to the society requesting compliance with government circulars
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Ask for a written explanation for the charges
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File a complaint with the Deputy Registrar of Cooperative Societies
The registrar has the authority to:
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Direct the society to refund any illegal charges
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Initiate action against office bearers who misapply the law
Members should not hesitate to seek redress, as cooperative housing law strongly protects residents from arbitrary fees.
Conclusion
Housing societies can levy only one valid charge in the case of leave & license occupancy—non-occupancy charges up to 10% of service charges. Any additional charges, including entry or exit fees for tenant renewal, are unlawful and unenforceable. Flat owners should be aware of their rights and challenge any unauthorized levies through the registrar.
