Housing societies cannot impose over ₹5,000 annual penalty on member: Court

MUMBAI: A Cooperative Housing Society cannot levy penalties exceeding ₹5,000 in a financial year on any member, the Maharashtra State Co-operative Appellate Court has ruled while dismissing an appeal in a parking dispute involving a Dadar housing society

MUMBAI: A Cooperative Housing Society cannot levy penalties exceeding ₹5,000 in a financial year on any member, the Maharashtra State Co-operative Appellate Court has ruled while dismissing an appeal in a parking dispute involving a Dadar housing society.

In its July 18 order, the appellate court upheld an interim order of the Co-operative Court restraining Landmark Co-operative Housing Society from imposing parking fines on member Deepali Bhube. The court also directed the society to provide her with a convenient parking space and refrain from charging daily penalties until the dispute is finally decided.

The dispute arose after Bhube complained that her allotted parking slot had become sandwiched between other parking spaces, making it difficult to use. Despite repeated requests to resolve the issue, the society allegedly failed to act and instead imposed a penalty of ₹200 per day for parking in an open space, collecting ₹1,800 over nine days.

Bhube approached the Co-operative Court, arguing that the society’s actions had caused her continuous inconvenience and hardship. Seeking interim relief, she requested that the penalties be stopped and that she be allotted a usable parking space.

The appellate court also rejected the society’s claim that it was unaware of the proceedings despite being served, noting there was evidence that its legal representatives had participated in multiple hearings.

Significantly, the court observed that the society had not followed the procedure prescribed under its bye-laws before imposing penalties. It noted that the bye-laws permit a maximum penalty of ₹5,000 in a financial year and require prior notice and a resolution before such penalties can be levied.

Finding no error in the interim order, the Maharashtra State Co-operative Appellate Court dismissed the society’s appeal, holding that the Co-operative Court’s directions were legal and justified. The judgement reaffirmed that housing societies must follow due process while imposing penalties and protect members from undue hardship.