Accounting Management

Non Payment of Society Maintenance Charges

Published: March 6, 2025

A common problem in housing societies (and quite a persistent one at that) is the non-payment of society maintenance charges by members. Defaulters often refuse to pay for common charges such as electricity, lift, water, service staff payments, or even dodge overall maintenance charges.

At times, the society managing committee is found to be lax or apathetic to defaulting members and does not recover dues on time or in full. This is unfair to other residents who regularly pay their dues and they might have to bear the brunt of surplus charges that they are not responsible for. NoBrokerHood simplifies the process of managing society dues by offering an easy to use Society Accounting and Billing Solutions

Procedure to recover non payment of society maintenance charges from society defaulters as per law

Step 1: The first measure is to send a simple letter of notice to the defaulter, informing him or her of the non payment of society maintenance charges (with interest that could lead up to 21%) instructing him on how and when to pay the arrears. Issue a warning in the letter stating failure to comply will lead to the Registrar’s order to obtain recovery of dues.

Step 2: If the member still doesn’t pay, pass a resolution in the general meeting to file for recovery of non payment of society maintenance charges and send a final warning letter to the member informing him of the decision.

Step 3: Apply to the Registrar’s office for recovery of non payment of society maintenance charges by submitting necessary documents and paying a fee (between Rs 15 to Rs 1000 – refer to the table below) via a challan payable to RBI.

Amount to be recovered	Inquiry Fee based on claim amount	Court Fee
Up to Rs 1000	5.5%	Rs. 15
Rs 1001 – Rs 2000	4.5%	Rs. 20
Rs 2001 – Rs 5000	3.5%	Rs. 20
Rs 5001 and more	3.0% (up to Rs 1000)	Rs. 25

Step 4: The Registrar investigates the matter, verifying the claims made by the society of non payment of society maintenance charges and may even ask for a hearing from the member to understand his side of the story. After due diligence and verifying the truthfulness of the claim, the Registrar issues a Recovery Certificate.

Step 5: Thereafter, the society approaches the state government court where the presiding Recovery Officer issues a demand notice to the Sale Officer who is required to attach the moveable property of the member.

Step 6: The Sale Officer visits the residence of the defaulting member and submits an inventory of all his movable property, hands it over to the member along with the demand notice. At this stage, the member has the opportunity to pay his dues.

Step 7: If the member does not pay up, the Sale Officer will seize the movable property and hand it over to the society managing committee (usually Secretary or Chairman) of the society.

Step 8: The next action is to organize an auction of the defaulter’s property so that the proceeds can be made to settle his outstanding dues. The Sale Officer fixes the date, time and place for the auction.

Step 9: If the amount is still not completely recovered in spite of the auction, the Sale Officer has the right to auction the member’s residence to recover the balance dues.

(Note that such extreme cases are few and far in between as the member generally agrees to pay the arrears before such circumstances can arise).

Also Read: Apartment Maintenance Charges

Why should the dues be paid on time? What should be society’s responsibilities in non payment of society maintenance charges recovery?

Payment of dues on time is not a debatable issue. It is the member’s duty as per model bye-laws to pay all maintenance charges and any other charges that are agreed upon originally between the member and the society. Members should understand that non payment of society maintenance charges on purpose and prolonging such irresponsible behaviour can result in serious legal action against them.

In case if the member finds that the charges are unnecessarily high and disputes them, the right way to resolve the issue is to take it up officially with the managing committee instead of defaulting on payments.

At the same time, if the society faces non payment of society maintenance charges for over three months in spite of sending notices, it should follow the above-stated procedure and not resort to other illegal measures such as cutting electricity, water or gas connections.

Ideally, even without having to involve the Registrar and the subsequent formalities, member and the society should be able to come to some sort of a resolution internally. If not, the law should be followed precisely.

Conclusion

Timely payment of maintenance dues is crucial for the smooth functioning of any housing society. It ensures that essential services like electricity, water, and security are not disrupted and that all residents enjoy a well-maintained living environment. Defaulters not only create financial strain on the society but also burden responsible members with unfair additional costs. While the legal process for recovering non payment of society maintenance charges is well-defined, it is always best to resolve such issues amicably within the society before escalating them legally.

NoBrokerHood simplifies the process of managing society dues by offering an easy to use Society Management App. It enables societies to send automated payment reminders, generate invoices, and track payments efficiently. In case of disputes, the platform also provides expert legal assistance to guide societies in recovering dues smoothly.

FAQs

1. What happens if a member refuses to pay society maintenance charges?

If a member fails to pay dues for three months, they are considered a defaulter. The society can take legal action through the Registrar of Co-operative Societies for recovery.

2. Can a society cut off water or electricity if a member defaults on payment?

No, societies cannot cut essential services like water, electricity, or gas, as this is illegal. They must follow the legal procedure for dues recovery.

3. How much interest can a society charge on late payments?

A society can charge interest on overdue payments, which may go up to 21% annually, as per the cooperative society’s regulations.

4. What legal steps can a society take to recover dues?

The society can send a notice, pass a resolution, file a complaint with the Registrar, and if necessary, auction the defaulter’s movable and immovable property.

5. Can a member dispute maintenance charges?

Yes, if a member feels charges are unfair, they should address the issue with the managing committee instead of defaulting on payments.

6. How long does the dues recovery process take?

The timeline varies based on the case, but it generally takes a few months from filing the complaint to getting the Recovery Certificate.