Short Answer

Yes, cooperative society members can levy interest on the builder independently of RERA.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 empowers cooperative societies to take legal action against defaulting builders. This section allows the society to recover any dues, including interest, from the builder. In practice, if the builder delays the project causing financial losses to the society members, the society can charge interest on the outstanding amounts independently of RERA regulations. This provision ensures that the society can protect its financial interests and hold the builder accountable for delays.

Furthermore, Rule 18 of the Gujarat Cooperative Societies Rules, 1965 provides guidelines on the recovery of dues from defaulting members, including builders. The rule allows the society to impose interest on delayed payments as per the terms agreed upon in the agreement. In real-world scenarios, if the builder fails to adhere to the agreed timelines leading to financial implications for the society, the society can enforce interest charges as per the rules.

For example, if a builder delays the completion of a housing project, resulting in increased financial burden on the society members due to extended loan repayments or rental expenses, the society can levy interest on the builder for the delayed period. This ensures that the builder is incentivized to complete the project on time and protects the financial interests of the society members.

In another scenario, if a builder defaults on payments to the society for common amenities or maintenance charges, the society can charge interest on the outstanding amounts to compensate for the financial losses incurred. This mechanism helps in ensuring timely payments from the builder and maintains the financial stability of the cooperative society.

Overall, cooperative society members have the legal right to levy interest on builders independently of RERA to safeguard their financial interests and hold builders accountable for delays or defaults.

References

• Section 73 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 18 of the Gujarat Cooperative Societies Rules, 1965: Official PDF