Non Payment of Society Maintenance Charges- Laws and Recovery
Non-payment of society maintenance charges is a common and persistent issue in housing societies. Some members delay or refuse to pay for essential shared expenses such as electricity, water, lift maintenance, service staff salaries, or overall society upkeep.
Unfortunately, managing committees sometimes show leniency or delay action against defaulters, resulting in incomplete or late recovery of dues. This unfairly burdens other residents who pay their fees promptly, often forcing them to cover additional costs they did not incur.
NoBrokerHood streamlines society dues management with its user-friendly Society Accounting Software, making it easier for committees to track payments and recover dues efficiently.
What are Society Maintenance Charges?
Society maintenance charges are periodic fees collected from all members to cover costs of upkeep and services within the community.
These include water supply, electricity in common areas, landscaping, security, cleaning, and repairs. Transparent and timely collection ensures that the society runs efficiently without disruption to services or increased costs.
Read More on: Society Maintenance Charges
Non Payment of Society Maintenance Charges: Common Issues
Non payment of maintenance is a widespread challenge faced by many societies. Understanding the common causes helps in addressing the issue effectively:
- Financial Hardship: Many members may face temporary or prolonged financial difficulties, such as job loss, medical emergencies, or other personal financial strains, which delay or prevent payment.
- Dissatisfaction with Services: Residents sometimes withhold payments due to perceived poor maintenance or lack of transparency. They may feel that the society is not effectively managing funds or providing promised services.
- Lack of Awareness: Some members may not be fully aware of the due dates, consequences of non-payment, or the importance of maintenance charges, leading to inadvertent defaults.
- Negligence or Forgetfulness: In some cases, members forget to pay their dues on time or neglect it without any specific reason.
- Disputes with Society Management: Ongoing conflicts between the managing committee and residents can result in members withholding payments as a form of protest or leverage.
These issues collectively result in delayed payments which affect the society’s cash flow and maintenance quality. Non-paying members increase the financial burden on timely payers, sometimes leading to legal disputes and social tensions within the society.
Procedure to recover non payment of society maintenance charges
Step 1: The first measure is to send a simple letter of notice to the defaulter, informing him or her of the non-payment of society maintenance charges (with interest that could lead up to 21%) instructing him on how and when to pay the arrears. Issue a warning in the letter stating failure to comply will lead to the Registrar’s order to obtain recovery of dues.
Step 2: If the member still doesn’t pay, pass a resolution in the general meeting to file for recovery of non-payment of society maintenance charges and send a final warning letter to the member informing him of the decision.
Step 3: Apply to the Registrar’s office for recovery of non-payment of society maintenance charges by submitting necessary documents and paying a fee (between Rs 15 to Rs 1000 – refer to the table below) via a challan payable to RBI.
| Amount to be recovered | Inquiry Fee based on claim amount | Court Fee |
| Up to Rs 1000 | 5.5% | Rs. 15 |
| Rs 1001 – Rs 2000 | 4.5% | Rs. 20 |
| Rs 2001 – Rs 5000 | 3.5% | Rs. 20 |
| Rs 5001 and more | 3.0% (up to Rs 1000) | Rs. 25 |
Step 4: The Registrar investigates the matter, verifying the claims made by the society of non-payment of society maintenance charges and may even ask for a hearing from the member to understand his side of the story. After due diligence and verifying the truthfulness of the claim, the Registrar issues a Recovery Certificate.
Step 5: Thereafter, the society approaches the state government court where the presiding Recovery Officer issues a demand notice to the Sale Officer who is required to attach the moveable property of the member.
Step 6: The Sale Officer visits the residence of the defaulting member and submits an inventory of all his movable property, hands it over to the member along with the demand notice. At this stage, the member has the opportunity to pay his dues.
Step 7: If the member does not pay up, the Sale Officer will seize the movable property and hand it over to the society managing committee (usually Secretary or Chairman) of the society.
Step 8: The next action is to organize an auction of the defaulter’s property so that the proceeds can be made to settle his outstanding dues. The Sale Officer fixes the date, time and place for the auction.
Step 9: If the amount is still not completely recovered in spite of the auction, the Sale Officer has the right to auction the member’s residence to recover the balance dues.
(Note that such extreme cases are few and far in between as the member generally agrees to pay the arrears before such circumstances can arise).
Also Read: Apartment Maintenance Charges
Society Bye-Laws for Non Payment of Maintenance
Bye-laws specify members’ payment duties and penalties. Usually, they enable societies to:
- Charge late fees
- Suspend facility access
- Initiate legal recovery actions
| Aspect | Details |
| Member Responsibility | Pay timely maintenance charges |
| Late Payment Penalty | Fixed % or flat fee per month late |
| Society Rights | Suspend services/voting rights |
| Recovery Actions | Legal proceedings, liens, etc. |
What Happens If a Flat Owner Does Not Pay Maintenance?
Consequences for defaulters typically include:
- Suspension of voting rights in meetings
- Restricted access to common amenities
- Initiation of legal recovery actions
These measures encourage timely payments and protect society interests.
Society Maintenance Late Payment Charges and Penalties
Late fees encourage prompt payments. Sample penalty structure:
| Parameter | Example |
| Late Fee | 2% of outstanding charges |
| Application Frequency | Monthly after due date |
| Purpose | Deter late payment, cover recovery costs |
Sample Non Payment of Society Maintenance Letter Format
[Society Letterhead]
Date: [Insert Date]
To,
[Member Name & Flat Number]
Subject: Notice for Non Payment of Maintenance Charges
Dear Member,
This is to inform you that the maintenance charges for your flat [Flat Number] have not been received for the period [Period]. The outstanding amount is AED [Amount]. According to society bye-laws, late payment charges will be applicable, and legal recovery actions may be initiated if dues remain unpaid. Please clear the amount within [X] days to avoid further action.
Regards,
[Managing Committee Name & Signature]
Recovery of Dues from Society Defaulters
If initial notices fail, societies have legal avenues to recover dues from defaulters. They can file suits in consumer courts or civil courts seeking recovery with interest and legal costs. Some societies may also impose liens on the flat or restrict possession rights until dues are cleared. The managing committee usually appoints legal representatives to take such actions.
What Action Can Society Take if Maintenance Is Not Paid?
Besides legal actions, society committees can enforce several measures including restricting access to facilities, suspending voting rights, and refusing certain services. Some societies have the power to disconnect utilities like water or electricity connected to the defaulter’s flat (subject to local regulations). These actions encourage defaulters to comply while protecting paying members’ interests.
Why should the dues be paid on time?
Payment of dues on time is not a debatable issue. It is the member’s duty as per model bye-laws to pay all maintenance charges and any other charges that are agreed upon originally between the member and the society. Members should understand that non payment of society maintenance charges on purpose and prolonging such irresponsible behaviour can result in serious legal action against them.
In case if the member finds that the charges are unnecessarily high and disputes them, the right way to resolve the issue is to take it up officially with the managing committee instead of defaulting on payments.
At the same time, if the society faces non-payment of society maintenance charges for over three months in spite of sending notices, it should follow the above-stated procedure and not resort to other illegal measures such as cutting electricity, water or gas connections.
Ideally, even without having to involve the Registrar and the subsequent formalities, members and the society should be able to come to some sort of a resolution internally. If not, the law should be followed precisely.
NoBrokerHood- Society Management App
NoBrokerHood simplifies the process of managing society dues by offering an easy to use Society Management App. It enables societies to send automated payment reminders, generate invoices, and track payments efficiently. In case of disputes, the platform also provides expert legal assistance to guide societies in recovering dues smoothly.
Here are all Solutions By NoBrokerHood:
| Society Accounting System |
| Society Management System |
| Visitor Management System |
| Boom Barrier |
| Apartment Management Software |
| Housing Societies |
Summary
Timely payment of maintenance dues is crucial for the smooth functioning of any housing society. It ensures that essential services like electricity, water, and security are not disrupted and that all residents enjoy a well-maintained living environment. Defaulters not only create financial strain on the society but also burden responsible members with unfair additional costs. While the legal process for recovering non-payment of society maintenance charges is well-defined, it is always best to resolve such issues amicably within the society before escalating them legally.