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Wednesday 30 March 2022

What is non occupancy charges in housing society

All you need to know about Non-Occupancy Charges if you have a flat

What are the non-occupancy charges?

Non occupancy charges are applicable for flats that are not occupied by the owner or his family members and given on rent for income. Non Occupancy Charges is one of the charges among various other charges as listed in the bye-laws for a Co-operative Housing Society in Maharashtra.

For Ex. Sanket Mahadik (name changed) recently bought a 2BHK apartment in Mumbai as a investment for rental income. However, when he gave his flat on rent,  society imposed a “non-occupancy charges” on it. There are many flat owner like Sanket who don't know about this charges prevalent in Maharashtra. 

In the absence of clear guidelines or chs bye law information it has often caused disputes between a committee and members. In most cases, flat owners believe that they have been levied exorbitant charges by the society. The society, on its part, justifies levying such charges to members for subletting their flat and earning a rental income. As a committee members you should have updated with latest gr for non occupancy charges and other notifications, GR, circular too which published by government whenever.

How to calculate the non occupancy charges? | Non Occupancy Charges Rule

The rules and regulations of applicability of a charge of non-occupancy are detailed in the Non-Occupancy Charges Circular, Maharashtra. According to Section 79A of the Maharashtra Cooperative Societies Act, 1960. Non occupancy charges circular Maharashtra clearly mentioned the society can collect max 10% of service charges. 

As per bye law no. 67(a)(x) & 43(c) clearly mention "He shall pay non-occupancy charges to the society." Non-occupancy charges shall be levied in accordance with the circular issued by the government of Maharashtra and the commissioner of Co-operation form time to time and shall not be levied if the flat is occupied by the family of the member as defined under these Bye - Laws.

Non Occupancy Charges should not be more than 10 per cent of the service charges. For example, if the service charges in the monthly maintenance bill is Rs 1,510 per month, non-occupancy charges would be  Rs 151 per month. Check here how to calculate service charges. non-occupancy charges can not be charged on total bill amount, only 10% of service charges. 

What are the service charges?

According to bye-law 68 of the model bye-laws, service charges include salaries to staff, house keeping charges, printing and stationery charges, common electricity charges, Accounting Charges, Audit Fees, Security charges and any other common charges. You can check how to calculate the equal maintenance charges irrespective of flats area.

Who will pay non occupancy charges?

A member (Flat Owner) of the society who given his flat on rent for income will pay Non-Occupancy Charges . 

When are non occupancy charges not applicable?

As per Non Occupancy Charges rules, a charge for non-Occupancy is not levied if: –

1. If flat occupied the by flat owner and staying with his/her family. 

2. If a close member of family (parents, spouse, children, siblings including other blood relations) is occupying the flat. family means as per bye law are defined here.

3. If the flats not sublet and vacant or locked. 

What happens if the flat-owner refuses to pay non occupancy charges?

If a flat owner refuses to pay the Non-Occupancy Charges, the Managing committee can send a reminder notice to the owner. The Managing Committee will declare the owner a ‘defaulter’ if member will not pay the dues since 3 month. 

Free Download Non Occupancy Charges Rule

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