The deputy registrar of cooperative societies (K West ward) in Bombay has directed a housing society at Lokhandwala Complex, Andheri (West) to drop an illegal monthly penalty of Rs. 26,595 from the maintenance bill of actress Arrona Irani and producer-husband Kuku Kohli. The penalty was imposed under the head ‘Unauthorised use of otla (open space)’ outside their five shops.
The registrar noted that shopkeepers were allowed to use the space in front of their shops, and the society could not levy arbitrary charges or claim encroachment without legal backing. The penalty, five times the regular maintenance fee, was ruled unjustified and contrary to the model bye-laws. The model bye-laws allow a maximum fine of Rs. 5,000 annually for bye-law violations.
According to the couple, the society passed the resolution in its November 2018 annual general meeting without prior notice or an opportunity to the couple to respond. The society also imposed 100% monthly interest on the penalty.
In his June 26 order, the registrar criticised the retrospective penalty, stating that it was both, illegal and a hindrance to the shopowners’ business. He emphasised that no notice of encroachment was issued by any authority, and the municipal corporation had never objected to the shopkeepers’ use of otla. He further held that the society committee acted unfairly by using its majority to impose harsh fines without legal basis. Citing a high court ruling, the registrar noted that while the general body held authority, its decisions needed to be reasonable and grounded in law. The society was ordered to revise the maintenance bills and withdraw the penalty.
