In a significant order for cooperative housing society members, the Mumbai City District Sub-Registrar (Cooperative Societies) has ruled that societies cannot impose any extra fees beyond the legally permitted non-occupancy charges on members who rent out their flats. The ruling came after a complaint filed by Atique Sheikh, a member of the Chaitanya Cooperative Housing Society in Pratiksha Nagar, Sion. The society was reportedly collecting Rs 5,000 annually as a “development fund” in addition to non-occupancy charges. The registrar has now instructed that this excess amount be adjusted against the complainant’s future monthly maintenance dues.
The order was passed by Abhijit Deshpande, Deputy District Registrar (DDR) for Mumbai City, Eastern Suburbs, and the Konkan Division. Deshpande clarified that cooperative housing societies must strictly adhere to legal provisions when levying fees on their members. As per the bylaws and state government circulars, only non-occupancy charges - not development or miscellaneous fees - can be collected from owners who rent out their premises. Any collection beyond this violates cooperative housing regulations. The registrar further emphasized that no additional amounts can be demanded from flat owners under any other heading or justification.
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The registrar referred to provisions under Bye-law 43(2)(iii)(c) and a circular issued by the State Cooperation Department. As per these rules, societies can charge non-occupancy fees, but this amount is legally capped at 10% of the service charges. The complainant also cited a Supreme Court ruling reinforcing this regulation. The registrar acknowledged that charging additional money beyond what is permitted - regardless of the title used - amounts to a breach of the cooperative housing society norms. The case now serves as a precedent for other society members facing similar excess charges in Mumbai and other regions.
This judgment is expected to benefit numerous flat owners who rent out their properties and have been facing unjustified fees from housing societies. It also puts the spotlight on the responsibilities of managing committees to follow proper legal guidelines. Societies have now been warned that failure to comply with rules could result in strict action by cooperative authorities. The ruling strengthens transparency and accountability in housing societies and ensures that members are protected from arbitrary or unlawful charges. For members like Atique Sheikh, the decision represents a much-needed win and an important correction to irregular financial practices.