A member has given his residential flat on leave and licence to one of the portals providing bed and breakfast services. Each time different people occupy the flat. The societys permission has not been obtained. Are such commercial ventures allowed in a residential society?
Tarini Rangnekar, Thane
Firstly, a member is not required to obtain permission for giving his / her flat on rent. He or she is only required to intimate to the society eight days prior to giving the flat on leave and licence, submit a copy of the agreement and intimate the local police station. However, commercial activity is not allowed in a residential flat. If it is done it will be a violation of the condition of purchase and the undertaking given to the society while applying for membership. Renting out the flat for bed and breakfast means the guests will keep changing frequently. The question of police verification of each and every guest will be an issue and this would impact the safety and security of other occupants in the building apart from raising issues of maintenance charge, electricity tariff, taxes, etc. The society can also consider amending its Bye Laws by specifying the allowed usage of the residential flat [Bye Law 43, 19 (a).
Our societys account is with one of the cooperative banks. The RBI recently cancelled the licence of this bank. What will happen to the money in our savings account and the fixed deposits?
Bhavesh Parikh, Ghatkopar
It is mandatory for all commercial and cooperative banks to insure each depositor under the deposit insurance scheme as per the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act. The premium of such deposit insurance is paid by the bank. DICGC insures all deposits, such as savings, fixed, current, recurring accounts, etc, barring a few exceptions. Each depositor is insured up to Rs5 lakh. The DICGC is liable to pay the claim amount to each depositor within two months from the date of receipt of claim from the liquidator. Please refer to RBI and DICGC websites for more information.
The flat in my name was mortgaged with a small finance bank against a loan taken by my only son with me as a co-applicant. I have repaid the loan including 4% penal charges for the foreclosure since I am in the process of selling my flat. The bank issued a closure certificate in the name of my son, which is not acceptable to the society. It is insisting that the said bank should issue a loan clearance letter in my name without which they will not grant NOC for me to sell my flat. Neither the bank nor the society is cooperating. Please help.
Anand Ramnathan, Matunga
Please note that as per Byelaw 38, NOC from society is not required to transfer the shares and interest of the transferor to the transferee. However, if such a a certificate is required by the transferor or the transferee, he or she shall apply to the society and the managing committee may consider such application on merit within one month. If your society is not providing the NOC as required, you may file a complaint to the district deputy registrar. The NOC may be a requirement for the financial agencies or government sanctioning loan to the purchaser of the flat and is not included in the list of documents required to be submitted to the Society. You may request in writing your bank to furnish no dues certificate in joint names since you were the coapplicant while applying for the loan and the sanction letter also has to be in joint names with you being the owner of the flat. In case the bank turns down your request you may file a complaint to the nodal officer of the bank or file a complaint with the RBI ombudsman.
(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)
