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Interest on delayed society sinking fund & annual fees

Mihir Joglekar (Company Employee) (38 Points)

16 January 2017

I reside in Co-Operative Housing Society in Pune. The due date decided during AGM to pay the dues by 25/05/2016. Though some members have delayed their payment. The Managing Committee charged them Interest at certain percentage for full month though it was paid during month. e.g. Payment received on 7th June 2016. The interest charged is for whole month i.e. 1st June to 30th June. Is it legal or appropriate according to the By Laws of Co-operative Housing Society ?

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 17 January 2017

Agree. Its not appropriate, but what to do? Usually the clause on interest to be charged includes words like .......... or part of the month.....

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 17 January 2017

In this connection let me tell you.

Government has enthrusted an additional reponsibility on busines entities (some others also) to collect tax on its belhalf (without any remuneration/commission), popularly known as TDS.

As per rules any tax deducted or collected on behalf of Government in any particular month, is to be paid back to treasury by 7th of next month. For any of reason, if there is one day's delay (NO EXCUSE, not even for public holiday, bank strike/sunday) for the deposit by that deadline, the obliger is termed as defaulter, and has to pay interest for TWO MONTHS!! (From own pocket!!!)

Is this the maths our forfather's/Chanakya taught us? Can one justify it as LEGAL??