Answered by
 Bapoo Malcolm
I request MoneyLife's guidance in the following matter.

Earlier I had sought help from Mr. Abhay Datar who then directed me to Mr. A. V. Shenoy who has stated the matter being legal I should post in on ML for its legal experts guidance.

Subject: Life Membership - Garware Club House
Re: Imposition of Annual Maintenance Fee of Rs. 3000 plus Taxes W.E.F. 2016
Ref.: Clubs� Circular (Ref.: No. GCH/35/1126-2016) Dated: 20th April 2016

The referred Circular states that due to inflation and exorbitant increase in utilities & huge increase in the BMC Property Tax on the existing club building, the additional new building called Phase II, accounting from 2010 is Rs. 14.95 Crores. Further, with completion of the Phase III (3rd Building) future property tax out going for all three buildings will amount to approximately Rs. 6 Crores per annum. The circular further states that due to such unexpected increase the Managing Committee is constrained to levy Maintenance Fee of Rs. 3000 + Service Tax on all Members/Associates every year.

I became Life Member of Garware Club House in 1974 paying a onetime fee of Rs.10000, a large sum in those days but one that obviated remembrance and ordeal of paying monthly subscriptions. One of the inherit benefit of a life member that I am not expected to pay any other charges except the actual catering bills or fees for use of specific facility.

On or about 18th June 2016 I received the Bill for Maintenance Fees for Rs.3000 + ST Total Rs. 3435.00. And I wrote to the Club on 26th June 2016 that I am not liable to pay any Maintenance Fees being a Life Member. They wrote back saying that non-payment can lead to action by the MC.

The development of all Phases of the Garware Club were planned projects which must have been studied & deliberated in all aspects and in the collective wisdom of Managing Committees decided the requirement of all three phases. The claim for the amount is neither voluntary nor a onetime request, there is every probability that it may increase in years to come. The referred Circular is not talking of the levy of Maintenance Fee being discussed and passed in a General Body Meeting. The Managing Committee has mandated it as an annual Maintenance Fee!

Thank you, Cordially.
Prakash Hansraj

PS: I can attach undernoted but see the option to.
1) Clubs Circular Dated 30th April 2016
2) My mail to the Club Dated 18th June 2016 & Club's mail Dated 12th July 2016
 Basic legal research
It is not possible to for me to say whether you have a case or not unless I see the constitution of the club and the club rules.

Usually, life members do not have to pay annual fees. But if the... Read More
Our Experts

Shirish Shanbhag An MSc in Organic Chemistry and Diploma in Higher Education and Diploma in French. As a junior college teacher, he taught theory and practical in chemistry, to students in 11th and 12th standard at Patkar College from July 1980 to May 2012. After his retirement in May 2012, he started providing guidance to people on several issues. It includes, career guidance, Cooperative Housing Societies' legal paper works, Right to Information (RTI), Lokayukta, Ombudsman complaints, Marriage Registration,

Bapoo Malcolm Bapoo Malcolm is an Advocate at the Bombay High Court and a former national cycling champion and a man of many interests. Mr Malcolm is an expert in the mechanics of preparing Wills. He is advocate practising civil and criminal law as well as documentation and arbitration. He also takes up family court matters, redevelopment and MHADA matters and testamentary work, including litigation. Mr Malcolm operates in areas up to Nashik and Valsad and from Igatpuri to Udvada. He has experience in polluti

Jamshed Mistry Jamshed Mistry is a BCom, LLB, DLL & LW. He appears as Counsel in the Supreme Court and in various High Courts all over India. His clients have included several corporate companies as well as public sector corporations and institutions eg. the Reserve Bank of India and the Brihanmumbai Electric Supply and Transport Undertaking. He also works actively for social causes like the rights of disabled persons, beach safety (Goa Action Plan), the setting up of distinct hawking and non-hawking zones in

Shailesh Gandhi Shailesh Gandhi is a former Central Information Commissioner for the Right to Information Act. He is a successful RTI activist and a regular speaker at Moneylife Foundation.

Abhay Datar Abhay Datar is a consumer activist and is also Member of the Managing Committee of Mumbai Grahak Panchayat (MGP). He was Treasurer at MGP for over two and a half years. After working at Bank of Baroda for about 29 years, he retired as IT Manager. After retirement, Mr Datar joined Consumer Guidance Cell of MGP in 2008 and solved many cases related to banking including online fraudulent transactions, misuse of credit cards and ATM cards. Also handled cases related to mobile and mediclaim. Mr Data

AV Shenoy AV Shenoy hold degrees in both Mechanical and Electrical Engineering from VJTI, University of Bombay and a Post Graduate Diploma in Industrial Management from Jamnalal Bajaj Institute of Management Studies. Worked as a Design Engineer in Electrical Business Group of Larsen & Toubro Ltd. at Powai from October 1969 to September 2001 and retired as Dy. General Manager. Also worked as a Facilitator/Trainer for implementation of Total Quality Management (TQM) and ISO 9000 in the organization. Since r

DG Kale DG Kale, former General Manager of the Reserve Bank of India, with a long stint in the customer services department, has also been a Public Information Officer under RTI and has a ring-side view on what happens to complaints filed with the Banking Ombudsman. His vast experience makes him the ideal person to provide guidance on grievance redressal.

SD Israni Dr SD Israni is an Advocate & Partner of SD Israni Law Chambers and has over 37 years of experience in the field of Corporate, Commercial and Securities Laws. He has simply written the book on Indian securities laws, copies of which he kindly donated to Moneylife Foundation library. Dr Israni's professional achievements are formidable. He was a member of the Naresh Chandra Committee for simplification of Company Law relating to private and small companies. He has been on SEBI's committee on

Samir Zaveri An extraordinary activist who has dedicated his life to the cause of railways, with a mission to help every rail commuter and accident victims, and improve Railway safety.

Yogesh Sapkale Yogesh Sapkale is Deputy Editor of Moneylife and writes on legal, RTI, and consumer issues

To ask a question

Sign Up or Sign In
than you