Maintenance and Utility Disputes

If the society’s maintenance rate was promised to be frozen for 5 years, can it still hike it?

No, the society cannot hike the maintenance rate if it was promised to be frozen for 5 years.

No, the society cannot hike the maintenance rate if it was promised to be frozen for 5 years.

Written By: GatePal Analyst

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Short Answer

No, the society cannot hike the maintenance rate if it was promised to be frozen for 5 years.

Detailed Explanation

Rule 65 of the Gujarat Cooperative Societies Rules, 1965 states that the society can fix the maintenance charges for a period not exceeding 12 months. This means that the society cannot unilaterally increase the maintenance charges if it had previously promised to freeze them for a specific period, such as 5 years. Any attempt to hike the maintenance rate in such a scenario would be in violation of the rules.

In practice, if the society had made a commitment to freeze the maintenance rate for 5 years, it is legally bound to honor that commitment. Members of the society can rely on this rule to prevent any unauthorized increase in maintenance charges during the specified period. This rule ensures stability and predictability for the members regarding their financial obligations towards the society.

For example, if a cooperative housing society had assured its members that the maintenance rate would remain unchanged for the next 5 years as part of a membership drive, the society cannot suddenly decide to raise the charges before the completion of the promised period. This rule protects the interests of the members and upholds the principle of transparency and fairness in the functioning of cooperative societies.

Another scenario could be where a society had entered into agreements with its members, explicitly mentioning the freeze on maintenance charges for a specified duration. In such cases, any attempt by the society to increase the maintenance rate before the agreed-upon period would be a breach of contract and against the provisions of the Gujarat Cooperative Societies Rules, 1965.

Reference

  • Rule 65 of the Gujarat Cooperative Societies Rules, 1965

  • https://cooperation.gujarat.gov.in/writereaddata/Portal/Images/pdf/Co_Op_Societies_Rules1965.pdf

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