Tenancy, PG, and Use of Premises

Can the society charge an additional “non-occupancy” fee for a rented flat, and is there a legal cap on that fee?[11]

Yes, as per the Gujarat Cooperative Societies Act, 1961, a society can charge an additional "non-occupancy" fee for a rented flat, subject to certain conditions and limits.

Yes, as per the Gujarat Cooperative Societies Act, 1961, a society can charge an additional "non-occupancy" fee for a rented flat, subject to certain conditions and limits.

Written By: GatePal Analyst

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Short Answer

Yes, as per the Gujarat Cooperative Societies Act, 1961, a society can charge an additional "non-occupancy" fee for a rented flat, subject to certain conditions and limits.

Detailed Explanation

Section 73AA of the Gujarat Cooperative Societies Act, 1961 empowers a cooperative housing society to levy a non-occupancy charge on members who have let out their premises. This fee is meant to compensate the society for the additional wear and tear caused by tenants and to discourage absentee landlords. The Act does not specify a fixed cap on this fee, but it should be reasonable and in line with the maintenance costs incurred by the society due to non-occupancy.

In practice, the society needs to pass a resolution in a general body meeting to introduce or amend the non-occupancy fee. The resolution should clearly outline the purpose, calculation method, and the maximum limit of the fee. The fee structure should be transparent and non-discriminatory, applying uniformly to all members renting out their premises.

Real-world Scenarios

  • Scenario 1: A cooperative housing society in Gujarat decides to introduce a non-occupancy fee to cover the increased maintenance costs of rented flats. They hold a general body meeting, pass a resolution, and notify all members about the new fee structure.

  • Scenario 2: A member challenges the non-occupancy fee imposed by the society as excessive. The society justifies the fee by presenting a detailed breakdown of maintenance expenses attributable to non-occupied flats.

Reference

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

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