Calculation of Non Occupancy Charges in Housing Societies

non occupancy charges calculation

NON-OCCUPANCY CHARGES

Whenever the flat owner or flat holder himself or herself is not occupying the flat in the Society and allows some other person (non-family member) to occupy the flat, the Society is entitled to charge Non Occupancy Charges. Non Occupancy Charges are charges levied by a cooperative society only when the flat or unit is sublet. Such non-occupancy charges by a cooperative society only when the flat or unit is subtle occupancy charges should not be more than 10% of service charges. Charging more than 10% of service charges is illegal and unauthorized and would be a contempt of court orders.

It should be noted that if the flat is closed or kept vacant and is not occupied by the bonafide member then the member is responsible to pay regular Maintenance Charges. But if the flat is occupied by a non-family member i.e. by a licensee, then the Society has the right to charge non-occupancy charges subject to a maximum of 10% of service charges. Non-occupancy charges shall not be levied on the flat buyer who intends to become a member and who submits the documentary evidence thereof.

It is required to know what expenses of the Society are accounted under the head of service charges:-

According to Bylaw no. 67 (vii), Service Charges Include

  1. Salaries of the office staff, liftmen, watchmen, gardeners, and other employees of the Society.
  2. Where the Society has an independent office, the property taxes electricity charges, water charges, etc.
  3. Printing, stationery, and postage.
  4. Traveling allowance and conveyance charges to the staff and the members of the Committee of the Society.
  5. Sitting fees paid to the members of the Committee of the Society.
  6. Subscription to the Education Fund as per Section 24A of the Act.
  7. An annual subscription of the Housing Federation and any other cooperative institution to which the Society is affiliated.
  8. Entrance fees for affiliation to the Housing Federation and any her cooperative institution.
  9. Audit fees for internal, statutory, and re-audit, if any.
  10. Expenses incurred at meetings of the general body, the committee, and the subcommittee if any
  11. Retainer fees, legal charges, statutory inquiry fees. (However, a legal charges of any disputes/litigation of whatsoever nature between member to member or member and their family in which society is a party, in such cases legal and litigation charges are required to be charged to the respective member/ members).
  12. Common electricity charges.
  13. Any other charges approved by the General Body at its meeting, However, such charges should not contradict the provisions of the Act, rules, and bylaws of the Society.

The Government, under Section 79 A of the Maharashtra Co-operative Societies Act 1960, ordered that non-occupancy charges shall not exceed 10 percent of the service charges (excluding the Municipal Corporation / Municipal taxes). Also, in case the members have given her tenements/flats to their close relatives – mother, father, sister, mother, son, daughter, son-in-law, daughter-in-law, brother-in-law, sister aw, husband of wife’s sister, granddaughter, grandson, etc., and to other relatives recognized by the Society, in such cases, non-occupancy shall not be recovered. The said order shall be applicable to residential and commercial tenements/flats in all the co-operative Housing societies in the state.

 

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