The state cooperation department has proposed reduction in maximum interest rate on defaulted payment of maintenance by tenants of housing societies. According to a Indian Express report, while the present maximum interest rate imposed on defaulters for delayed payment of maintenance by a housing society is 21 per cent, the state is contemplating bringing it down to 15 per cent.
The proposal has been sent to the law and judiciary department recently. Once approved, rules of the Maharashtra Cooperative Societies Act 1960 will be amended. A notification soon will be issued seeking suggestions and objection from citizens, added the official. The proposal to reduce the maximum interest rate on delayed payment of maintenance aims to alleviate some of the financial pressure on tenants and provide them with more flexibility in managing their expenses.
By reducing the interest rate to 15 per cent, it is expected that tenants will be able to catch up on their overdue payments more easily, without facing excessive penalties. Also to address the concerns of tenants contributing to the smoother functioning of housing societies in the state including Mumbai.