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Recovery officers help Pune housing societies recover dues from defaulters

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Pune District Cooperative Housing Societies and Apartments Federation has started getting on average 150 cases yearly from cooperative housing societies about chronic defaulters.

Suhas Patwardhan, chairman of the federation, said two government-appointed recovery agents help the societies recover dues from members through various actions, including the auction of the property.

Maintenance fees by the members are the primary source of income for cooperative housing societies. In return, the societies provide services like housekeeping, security, and other services. Housing societies charge annual maintenance fees from their members based on the area of the tenements of its members. The executive committee spends the collected fees and oversees its expenditure.

Patwardhan said payment of maintenance fees is a duty on part of members. In case they wilfully default, action has to be taken as otherwise the balance sheet of the society gets disturbed.

As per the cooperative societies law, the society can declare such members as defaulters. This should be preceded by three notices. As per the law, the society can apply to the court of the deputy district registrar for the recovery certificate. Once the certificate is obtained, the recovery officers of the federation can take action.

“The recovery officers issue two notices before the final action. Defaulting members can be charged a simple interest of 21 per cent,” he said.

In case the notice is challenged before the court of the joint registrar, the defaulting member has to deposit 50 per cent of the amount before the case is heard. “Generally these cases are disposed of soon as the only evidence that is relied upon is whether the amount is deposited,” he said. This, he pointed out, would take care of the default on part of the society.

The federation, on its part, has renewed its efforts to help the societies recover defaults. Societies interested in contacting the federation can mail it at punefed@gmail.com

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