Housing Societies Cannot Charge Extra Fees on Rented Flats Beyond Non-Occupancy Charges

Introduction
A recent directive has clarified that housing societies cannot impose additional fees on members who rent out their flats, apart from the legally permitted non-occupancy charges. The order reinforces that societies must strictly adhere to government regulations and cannot introduce extra levies under any other heads.

Key Highlights

• No Excess Charges Allowed

  • Housing societies cannot collect “development funds” or any other additional fees from landlords who rent out their flats.

  • Only statutory non-occupancy charges, capped by government circulars, are allowed.

• Legal Framework

  • As per the Model Bye-Laws of Cooperative Housing Societies, non-occupancy charges must be levied strictly in accordance with the circulars issued by the state’s Department of Co-operation.

  • A government resolution issued in August 2001 prohibits societies from charging more than 10% of service charges towards non-occupancy fees.

  • AGM resolutions cannot override these government circulars.

What Charges Can Housing Societies Collect? (Government Approved)

? Permissible Charges:

1. Non-Occupancy Charges (NOC) – Maximum 10% of monthly service charges when a flat is rented.

2. Service/Maintenance Charges – For upkeep of common areas, electricity, staff salaries, insurance, etc.

3. Municipal Taxes/Property Tax – Proportionate to each member’s share.

4. Water Charges – Either equally shared or based on meter usage.

5. Sinking Fund & Repairs Fund – As mandated under bye-laws, applicable to all members.

? Not Permissible:

• Arbitrary levies suc