Mumbai Housing Society Queries: 'Penalty 5 Times Maintenance For Common Space Encroachment,' Says Expert

Q. There is a lot of junk, including vehicles and construction garbage, in our society, which leads to the threat of rodents and snakes. Despite repeated reminders to the members, the managing committee has not received proper response. Please, suggest further recourse. Pratik Desai, Mulund A.

Clean environment is not only our right but also a responsibility towards the society. Firstly, the member carrying out the renovation or the structural changes in his/her flat has to be pursuant to the permission of the society or civic authority. The person is also required to segregate the construction and demolition waste at source by contacting the municipal authority or a paid service.

Reasonable time may be allowed by the committee for this process. Members are responsible to ensure that open/common areas cannot be occupied for own use beyond the allowed period, which would otherwise amount to encroachment. The committee shall notify the member to remove construction and demolition waste kept in such open spaces. If the person doesn't pay heed, the society will be constrained to levy a penalty five times the monthly maintenance charges for the continued period of default, as per bylaw 169.

In case of further inaction, the committee may arrange to remove the construction waste and recover the cost incurred from the member. With regard to the unused vehicles parked in the society, the committee should intimate the members to remove them. The society should have a general body-approved parking policy outlining the allotment of parking slots, removal of vehicles for regular cleaning and provision for penalty in case of violation.

The secretary shall bring to the notice of such members the breach committed by them and the consequences for non-compliance. If violation continues, the committee shall issue a show cause notice, asking the member why penal action should not be taken. After giving a hearing opportunity, the general body may decide to levy the penalty on such a member, as per bylaw 165. In your case, the committee may circulate the do's and don’ts to the members regarding the use of common spaces, including the consequences for non-compliance, and also put up the same on the notice board and open areas to avoid violations.

Q. It is high time that unpaid maintenance charges impact an individual's banking credit score. The defaulting member enjoys equal rights as the ones paying bills on time. What is the recourse for the managing committee to recover dues pending for over an year? Pandurang Joshi, Kandivli A.

As rightly pointed by you, there is no provision to consider maintenance dues, while evaluating credit scores. Though the cooperative housing societies are based on the cooperation principle, it is often found missing in most of the cases. The committee is required to initiate timely action against the members defaulting on society charges. At times, small matters are blown up due to ego.

The committee members should try to amicably resolve the issues and in case of stalemate, they can seek help from alternate dispute resolution institutions – the fastest way to resolve any dispute. Arbitration is complex, time-consuming and a costly mechanism. Conciliation and mediation may be a better alternative for your society. The Mediation Act has already been passed by the legislature, giving it legal sanctity. Conciliation and mediation are simple, cost effective and time-saving mechanisms to resolve any dispute within the society.

Your society can consider pre-litigation mediation/conciliation through any mediation service provider. Mumbai Grahak Panchayat (MGP) has its own Conciliation and Mediation Centre 'SAMET' where such disputes may be referred. Your secretary may write to mgpsamet@gmail.com for more information. If both the disputing parties are willing to find a solution, MGP’s trained and experienced mediators can facilitate a resolution. In any event, your society may obtain a recovery certificate from the district deputy registrar's office to recover dues.

Regarding your point that the defaulting members enjoy the same benefits as those making timely payments is partially correct. There are certain restrictions on the defaulting members like they can neither contest the committee election nor can be a member. (Refer section 93, 154B-23, 154B-29 of the Co-operative Societies Act)

The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat. The questions, in brief, may be sent to fpjchs@gmail.com

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Published on: Monday, November 10, 2025, 09:21 AM IST