State withdraws service charges on property rate basis

June 9: Following several representations from cooperative societies, the Government of Maharashtra has withdrawn its decision to recover ...

June 9: Following several representations from cooperative societies, the Government of Maharashtra has withdrawn its decision to recover service charges on the basis of fixed value of the property. This move, effective from May 2000, has withdrawn an earlier circular dated May 26, 1999, which had imposed service charges on the value fixed by municipal corporations.

Says Vinod Sampat, president, Cooperative Societies Residents Association: “This decision was hurting flat owners because whenever there used to be a change in the ratable value of property, service charges would automatically vary. Moreover, to get the correct ratable value on one’s flat, one has to depend on municipal officers which results in severe hardships.”

As per the ratable value, large flat owners were required to pay additional charges whereas small flat owners were in favour of this move.

Adhering to the Maharashtra Cooperative Societies Act, 1960, the government used to collect service charges from societies equally from flat owners. However, the government’s move to optimise revenues was bogged down by hectic lobbying of large flat owners.

The Maharashtra Cabinet has also approved some changes to the Maharashtra Cooperative Societies Act, 1960. Whenever a member is a defaulter, the society normally initiates proceedings under Section 101 of the act, though he can approach the Appellate Authority under Section 154. In order to ensure that the societies get their dues in time, the government has decided to amend Section 154 making it mandatory on the part of such members to deposit 50 per cent of the amount defaulted before praying for a stay.

Sources also said that the chief minister has stated that amendments will be made in Section 75 & 76 of Maharashtra Co-operative Societies Act 1960 stating that penal action would be taken against erring societies for their failure to hold the general body meetings within the stipulated period of time.