Hi. I am priya from an apt in bangalore. Our association is registered and I have a querie 1. During our AGM, lavish lunch or breakfast is provided to all the owners and tenants and the money is used from the maintenance fund. 2. Now recently an owner has raised an objection citing that this is illegal as maintenance is not meant for all this and neither is it specified in the by laws of the association and needs to be stopped. Is he correct legally
1) AGM is just once a year, & as you have mentioned the society arranges lavish lunch or breakfast is provided to all the owners and tenants and the money is used from the maintenance fund, it is ok as though it is not mentioned in any of the bye-laws such activities of lunch or breakfast is common as it gives an opportunity to know each other & the society members 2) As Now recently an owner has raised an objection citing that this is illegal as maintenance is not meant for all this and neither is it specified in the bye- laws of the association and needs to be stopped but he/she not correct legally as there is no such provision which also says that such kind of expenditure is not required. As such it is not on monthly basis so nothing to worry as such as it is spent on society welfare & nothing for outsider.
Dear Client, based on your question, The maintenance amount is exclusively collected for maintenance of common areas shared by all apartment owners. If the bye-laws of the housing society prohibits using maintenance charges for any other recreational activity, the owner have rightly objected. The association has violated the bye-laws of the society. The Bombay High Court has ruled that housing societies in India can collect charges for cultural and recreational activities. The association has the right to collect funds for cultural activities separately, but the maintenance funds should not be used for such purposes. You may send a written objection against the association. Ask for detailed financial statements from the association to know that the maintenance funds are not misappropriated. Hope this answer help you. Feel free to contact us for more discussion.
