As per bye-law No. 70 of the Model Bye-laws applicable in Maharashtra, a society can charge only simple interest. This provision is quoted below:
“70. A Member shall be required to pay simple interest at twenty one percent per
annum, or, at such lower rate as may be fixed by the General Body, on the
outstanding dues to the Society, from the date the amount was due as
prescribed under Bye-law no. 69, till full and final payment by the Member.”
You may also check the bye-laws of your society in this regard.
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