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
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