Handling maintenance defaulters in a housing society

Every society has a few members who fall behind. Handled early and fairly, most dues are recovered without bad blood.

By the myNest team · Updated 2026-10-23

Start early, stay polite

• Send a clear bill on time every month, with the due date.
• Remind members privately a few days after the due date.
• Talk to members who have a genuine problem; a short payment plan often works.

Interest on overdue dues

Maharashtra's model bye-laws allow simple interest of up to 21% a year on overdue dues, at the rate the general body decides. Apply it the same way to everyone, after the grace period, and show it on the bill.

Formal recovery

If dues stay unpaid, the society can apply to the Registrar for a recovery certificate under Section 101 of the Maharashtra Co-operative Societies Act, after giving the member notice. A member in default can also lose the right to stand for the committee.

What not to do

• Don't cut water, electricity or lift access: essential services can't be stopped to recover dues.
• Don't shame members publicly; keep reminders private.
• Don't charge interest above what the bye-laws allow.

How myNest helps

Bills go out on time, interest is added automatically after the grace period, and the committee sees each flat's oldest unpaid bill at a glance. Residents see their own ledger and get reminders in the app.

This guide is general information, not legal or tax advice. Your society's registered bye-laws and your chartered accountant have the final word.