Interest on Repair Fund which is part of Maintenance Bill :

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Interest on Repair Fund which is part of Maintenance Bill :


Housing societies can charge interest on major repair funds if a member defaults on their payments. The interest rate is usually specified in the society's bye-laws. 

Explanation

Repair fund

Housing societies collect funds for maintenance and repairs through a repair fund that's included in the monthly maintenance bill. 

Interest charges

If a member doesn't pay their maintenance or service charges, the society can charge interest on the outstanding amount. 

Charging interest

The society can charge interest at a rate specified in the bye-laws. For example, a bye-law might specify a rate of 21% per year. 

Additional charges

If the repair or repainting costs are more than the repair fund, the society can charge additional fees to its members. 

Fairness

The additional charges should be proportional to the size of each flat. 

Transparency

The society should follow a formal process to decide on additional charges. This process should include a general body meeting where members can discuss the need for repairs. 

If you think your society is charging interest on major repair funds in an unfair way, you can file a complaint with the deputy registrar of cooperative societies in your area.

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