Building maintenance fund of co-operative housing society

The co-operative housing society is required to repair the common walls and outer walls, the roof etc parts of their building on which extra amount has to be spent. It is a amount of money which the members are required to contribute in addition to common maintenance fund. Therefore, before making any demand by the Managing Committee, it is required to be discussed in a general meeting of the Society.

It shall be the responsibility and duty of the managing committee to carry out the repairs works and major maintenance of the property of the co-operative housing society. It is also the responsibility of the managing committee to ensure that the repair works and maintenance are carried out as per the agreement with the execution agency selected by the general body meeting of the co-operative society.

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The managing committee shall be competent to incur expenditure on repairs and major maintenance of the co-operative housing society up to the one time expenditure limit approved by the general body from time to time or as provided in the bye laws of a co-operative housing society.

If one time expenditure on repairs, maintenance of works of the co-operative housing society exceeds the limit prescribed, prior sanction of the general body meeting of members shall be essential to be taken.

THE GENERAL BODY SHALL DECIDE

The limit of expenditure on repairs, maintenance of works could be incurred by the committee without calling the tenders for the works

In respect of works, the cost which exceeds the limits, so fixed, the committee shall follow the procedure of inviting tenders, placing them before the general body for approval and entering into agreement with the architect (if appointed or required) and the contractor.

HOW MUCH DEMAND TO BE MADE

It shall be decided by the general body meeting of the members, as to how much shall be made per month for the building maintenance fund. Thereafter the managing Committee is responsible to raise demand of this fund along with maintenance bills.

HOW THE SOCIETY IS TO ACCOUNT FOR IT

It is essential for the Society to create Building Maintenance Fund account in their books of account by Debiting Member and crediting the Building Maintenance Fund account, when demand is made. On receipt of money, debit Bank Building Maintenance account and credit the member. In this manner, entire amount shall be kept separate in FD and will not be used for any other purpose.

IF A MANAGING COMMITTEE misuses SUCH SPECIFIC FUND FOR SOME OTHER PURPOSE

If the Managing Committee uses this fund for maintenance or for any other purpose, it shall be offence on the part of the managing committee by violating the Sec 81 (4) and this will certainly make every member of the managing committee liable for misuse of funds of the co-operative society, which is a criminal offence.

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14 Comments

  • Sanjeev says:

    Building maintenance fund kept in FD would be liable for tax or not ?

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  • Rahul says:

    My CHGS apartment management is saying that there decision is final wether its mention in DCS Act 2003/2007 or not . Rules will be followed in society whatever decided by Management .According to me DCS Act is universal Act which is followed first and if there ny addtional points to be add, then Managing comittee can think over it. Do you also think the same ?Please share any section number which fails this term?

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  • SUDEEP JAIN says:

    SIR I AM AN TENANT AND MY OFFICE IS ON 4TH FLOOR, ABOVE US WE HAVE A ROOF, BUILDING IS HANDED OVER TO SOCIETY WHICH IS FORMED RECENTLY. DUE TO RAIN WATER COLLECTED ON ROOF OFFICES ON 4TH FLOOR STARTED LEAKAGE PROBLEM FROM ROOF, AS WE ASKED FOR REPAIR TO SOCIETY CHAIRMAN HE SAYS THAT THAT IS NOT SOCIETY ISSUE YOU GO AND ASK FOR BUILDER AND OWNER OF THE OFFICE FOR SOLVING THE PROBLEM AS IT IS TECHNICAL PROBLEM. BUILDING IS MORE THEN 5-7 YEARS OLD.
    HOW COULD WE GET ISSUE SOLVED.

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  • Vartak says:

    Please guide me regarding calculation of maintenance charges in housing society.
    Which are different types of charges? Such as repairing fund,sinking fund, security fund,comman electricity charges.
    Our society is taking rs.500 per month for all members.whereas there are two different wings . In one 30 flats,having flats with maximum area 765 square feet.least area is 520. And in 2nd flats are four and area is 1200 square feet. Four row houses with area 1100.
    Please give me the segregation of maintenance charges.

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  • hemant vishwakarma says:

    sir in my building which is in mira road ,here are no agm and decide to repair building and charge per flat 40000rs and which is added to maintance bill.sir i want to ask you intreset will be charged on both arrears i.e on maintance bill and building repairing fund.and they also charged seprate sinkind fund charge.please guide me please

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  • Anil Patankar says:

    Is maintenance fund to be levied as on square foot basis or per member basis

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  • Alka Malik says:

    dear sir, i am alka malik living in cghs society and i am against the increased maintenance of the society i need advice that is it possible to write application to the management against that with few members of the society and tenants also.

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  • Shridhar Tawaate says:

    Our society carried out work worth about more than two Crores. Huge materials worth Lakhs of rupees was purchased privately, without calling for quotations from the whole sellers/suppliers, without Resolution of the GB for accepting lowest quotation. The Colour work carried out by spending huge amounts. Patches have erupted on the walls within few months. The finishing of the granite fixing is poor. Obviously the Contractor engaged semi skilled workmen.

    In such situation what action can be taken against the MC?

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  • Mithilesh Ram Palav says:

    What is menat follow the procedure of inviting tenders, Is that menat paper publication is necessary.

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  • vasant says:

    Dear Sir, in my building MC has carried out work of reducing garden area and converted into parking area for vehicles. and for that no meeting was called . Now they are charging extra amount in maintenance due to the work done. Please advice what action can be taken against them as we were not aware of the amount incurred and as work done without calling any meeting

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  • Ketan Shah says:

    Sir, what is the procedure for inviting and opening/finalizing of a tender for major repair works of a society building? If consultant is appointed what is the procedure of it and what qualification a consultant required? If some members of the society wants to form a Building Repairs Committee consist of few committee members and few knowledgeable members of the society to look after the tender procedure and quality of the works to be done, how that committee can be form? If some members has a doubt of corruption in the works to be carried out, what is the remedy can be taken?

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  • naveen dhawan says:

    Our society is having 100+members.Now the managing committee has issued one citcular demanfing Rs 2000.00 for three months total Rs 6000.00 from each member for the repairs/replacement of 3 lifts.Total recovery from members will be Appx Rs 660000.00.Can a managing committe can spend this much amount without approval from General Body meeting or Annual General meeting. How much money a managing committee can spend without approval of general boby meeting or Annual general meeting.

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  • Clifford fernandes says:

    Is the building repairs charges according to the area of each flat

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  • Manish Jain says:

    Sir,
    Can under any Rule of DCS Act, management committee of its own propose to levy Entry fee on monthly basis in lieu of parking charges on more than one car ? Will it require approval of GBM before start charging the same ?

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