Short Answer

Yes, as per the Gujarat Cooperative Societies Act, 1961 and Rules, societies can charge interest or late fees on overdue maintenance payments.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 empowers cooperative societies to charge interest on any sum due to the society but not paid within the specified time. This means that if a member fails to pay their maintenance dues on time, the society can levy interest on the overdue amount. The rate of interest and conditions for charging it can be determined by the society's by-laws.

Rule 88 of the Gujarat Cooperative Societies Rules, 1965 further elaborates on the procedure for charging interest on overdue payments. It states that the society can charge interest at a rate not exceeding 18% per annum on any sum due but not paid within the specified time. The rule also specifies that the society must give notice to the member regarding the overdue amount and the interest to be charged before imposing it.

In practice, if a member fails to pay their maintenance dues on time, the society can calculate the interest as per the by-laws and notify the member about the overdue amount along with the interest to be charged. The member then has to clear the dues along with the interest within the stipulated time to avoid further penalties.

Examples:

• Mr. Patel, a member of a cooperative housing society, fails to pay his maintenance dues on time. The society calculates the interest at 18% per annum as per their by-laws and sends a notice to Mr. Patel informing him about the overdue amount and the interest to be charged.

• Ms. Shah, another member, consistently delays her maintenance payments. The society charges her interest on the overdue amounts as per Rule 88 of the Gujarat Cooperative Societies Rules, 1965.

References

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

• Rule 88 of the Gujarat Cooperative Societies Rules, 1965: Official PDF