Common Area - Encroachments MOVE SEEMS HARSH BUT IN RIGHT DIRECTION New Model Bye-law 170 (a) that permits fining a violating member five times the monthly maintenance charge per month for the period of ‘encroachment’ in common areas for eg. staircase, steps, landing areas, parking spaces, lift, corridor, and such other spaces, cannot be occupied by any Member for his own use by carrying out any permanent constructions, structural changes over and above the sanctioned plan without prior permission of the Society and Concerned Municipal Authorities In view of the new amendments in the law, cooperative housing societies will need to educate their members on New Model Bye-law 170 (A) on encroachment. Case Study :- A bill for penalty amount calculated as per bye-law no. 170(a): (i) Monthly Maintenance bill = Rs 12,000 (ii) Penalty for encroachment with retrospective effect = Rs 12,000 x 5 = Rs 60,000 (iii) Penalty for encroachment for the last five years i.e. 60 months = Rs 36 lakhs Following months simple interest @ 21% per annum as per the byelaws will be calculated on the unpaid penalty amount and so on ! Can you imagine the anger and fear the member and their family members will be feeling in these months ? These provisions are like time-bombs waiting to explode after a few months. They will cause a huge outbreak of bitter quarrels and enmities in housing societies that will be costly and impossible to resolve. All the societies where bye-law no. 170(a) is implemented will become like Sangharsh Co-op. Housing Society. BOTTOMLINE: PLEASE DELETE OR MODIFY 170(a) BEFORE ADOPTING THE MODEL BYE LAWS. Societies that have already adopted them must urgently call another Special General Meeting for this purpose.
Posted on: Thu, 22 Jan 2015 09:10:53 +0000
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