Housing societies cannot impose over ₹5,000 annual penalty on member: Court

The Maharashtra State Co-operative Appellate Court ruled that a Cooperative Housing Society cannot levy penalties exceeding ₹5,000 in a financial year on any member.

The court upheld an interim order restraining Landmark Co-operative Housing Society from imposing parking fines on member Deepali Bhube.

The society had imposed a penalty of ₹200 per day for parking in an open space, collecting ₹1,800 over nine days.

The court directed the society to provide Bhube with a convenient parking space and refrain from charging daily penalties until the dispute is resolved.

The court noted that the society’s bye-laws permit a maximum penalty of ₹5,000 per financial year and require prior notice and a resolution before levying penalties.