Published On: Sat, Jan 31st, 2015

Rate of interest to be charged by the group Housing societies from the defaulting members in Delhi

legal1By Accommodation Times News Services

 

Office of The Registrar

Cooperative Societies (Delhi Admn.)
Old Court Building, Parliament Street, New Delhi – 110001

Charging of Penal Interest by Housing Societies
No.F:46/Policy/RCS/1333 Dated :28/5/96

Directive Under Rule 77 of The Delhi Cooperative Societies Rules 1973.

Sub: Rate of interest to be char2ed by the group Housing societies from the defaulting members

(1) It has been noticed that some of the group housing societies are charging Interest from the defaulting members at the rate more than 18% which Is not just and equitable as prevailing lending rates of the financial institutions. As in modal by-laws adopted by the group housing societies there is no provision about the panel rate of interest to be charged from the defaulter, there fore, it is considered appropriate to prescribe maximum rate of panel interest which will be chargeable from the defaulting members of the Cooperative group housing societies.

(2) Similarly, at present there is no specific rate of interest/equalization charges which may be charged from a newly
enrolled member by a coop. group housing society at the advance-stage of its construction and as a result there of different managements of the societies follow different criteria for charging equalization charges/interest. In some cases no equalization charges are shown to have been charged from the newly enrolled member, therefore, it is considered necessary to prescribe a uniform equalization charges/interest for all the newly enrolled members by the coop. group housing society at the advance stage of construction.

(3) It has also been noticed that when a member of a coop. group housing society resigns/expelled, he is not paid any interest on the amount deposited by him. As his money remains blocked and is utilized by the society for construction of flats, therefore, it Is considered necessary that a member who resigns from the primary membership of the society is paid interest on the amount deposited by him after deducting the administrative expenditure incurred by the society during the period he remained member of the society.

(4) Keeping in view the above stated facts, I, Gita Sagar, Registrar, Cooperative Societies in exercise of powers vested in me under rule 77 of the Delhi Coop. Societies Rules, 1973 prescribe the following norms for charging interest from its member by the coop. group housing societies:

Societies from the defaulting members subject to the resolution passed by the G.B. of the society is mentioned below:

1. The maximum rate of interest which may be charged by the coop. Group housing

a) For default of payment of instalment up to 6 months 12%

b) For default of payment of instalment up to 1 year 15%

c) For default of payment of instalment more than on year 18%

2. Equalisation charges/interest to be charged from the member enrolled at the advance stage of construction 24%

3. Interest to be paid by a group housing society to a resignee/expelled member on the amount deposited after deduction the administrative expenditure incurred by the society. 7%

This issues for the information and guidance of all the group housing societies.

(Geeta Sagar)

Registrar, Coop. Societies

F.No.4&’policy/RCS/1334-1348 Dated :28/05/96

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