Every society has them: a handful of flats that are always three months behind, and one or two that haven't paid in a year. Unpaid maintenance isn't just an annoyance for the treasurer. It means the society can't pay its security agency, lift AMC or electricity bill on time, and it quietly shifts the cost onto the members who do pay.

This guide sets out an escalation path that most Indian housing societies and resident welfare associations (RWAs) can follow, starting with the cheapest and friendliest steps. It is general guidance, not legal advice. The exact powers your committee has depend on how your society is registered, your state's law and your bye-laws, so check those — and speak to a lawyer before taking formal action.

Step 0: Make it easy to pay, and hard to forget

A surprising share of "defaulters" aren't refusing to pay. They're busy, they've moved out and let the flat, or they don't know how much they owe. Before chasing anyone, fix the basics:

One clear amount, one clear due date. Residents should be able to see exactly what they owe, broken down by head (maintenance, sinking fund, water, any special levy), and by when.
Easy ways to pay. If the only option is a cheque dropped at the office, collection will be slow. Online payment by UPI, card or net banking, straight into the society's bank account, removes most excuses.
A receipt every time. Disputes months later ("I paid in March!") usually come down to missing receipts. Issue one for every payment, online or offline.
Automatic reminders. A reminder a few days before the due date and another just after it does more than any number of angry messages in the group.

If you use a society app, this is the part it should do for you. In Community Hub, for example, dues show up in each resident's app, they pay through Razorpay (UPI, cards or net banking), invoices and receipts are generated automatically, and overdue flats get reminders without anyone having to send them by hand. See maintenance collection for how that works.

Step 1: Know exactly who owes what

Before contacting anyone, get your records straight. For each defaulting flat, you should be able to show:

the amount outstanding, month by month
what was billed and when
any payments received, including cash or cheques recorded offline
whether the flat is owner-occupied or rented

Nothing undermines a recovery effort faster than chasing someone for money they've already paid. If your records live in a spreadsheet and a WhatsApp chat, reconcile them first.

Step 2: A private, personal conversation

For flats a month or two behind, a polite private message or call from the treasurer usually works. Keep it factual: the amount, the period, how to pay, and an offer to sort out any discrepancy.

A few things to avoid:

Don't name defaulters in the society WhatsApp group. It rarely works, it creates bad blood, and publicly shaming members can expose the committee to complaints. Communicate with the defaulter directly.
Don't let it become personal. The committee is acting for all members, not settling a score.

Step 3: Understand why they haven't paid

Defaulters fall into a few groups, and each needs a different response:

Situation	What usually helps
Forgot / busy	Automatic reminders and easy online payment
Owner lives elsewhere, flat is rented	Contact the owner directly — the owner is usually liable to the society, whatever the rent agreement says
Genuine financial difficulty	A written instalment plan with clear dates
Disputes a charge (e.g. a special levy)	Explain how it was approved; take it to the committee or general body if needed
Unhappy with the committee	Hear the complaint, but separate it from the dues
Wilful, long-term default	Formal notice, then the remedies in your bye-laws and state law

Complaints about services are the most common reason people withhold maintenance. It's worth taking them seriously — a resident whose complaint has been ignored for months is unlikely to pay willingly. A visible complaint process, where issues get an owner and a deadline, removes a lot of this friction. (That's why Community Hub tracks complaints against an SLA.)

Step 4: A written reminder, then a formal notice

If personal follow-up doesn't work, move to writing:

Written reminder stating the amount, the period, and a date by which to pay.
Formal demand notice from the committee, referring to the relevant bye-law, stating the total outstanding including any interest the bye-laws allow, and setting a final deadline. Send it in a way you can prove delivery, such as registered post or email with acknowledgement.

Keep copies of everything. If the matter goes further, this paper trail is what you'll rely on.

Step 5: Interest and charges — only what your bye-laws allow

Most bye-laws allow the society to charge interest on overdue amounts. The rate and method must come from your bye-laws (and, for co-operative societies, any limits set under the state's co-operative law), and it should be applied consistently to every defaulter. In Maharashtra, for instance, the model bye-laws for co-operative housing societies cap interest on arrears at 21% per annum. Don't invent penalties the bye-laws don't provide for.

Step 6: Instalment plans

For members in genuine difficulty, an instalment plan often recovers more money, faster, than a legal fight. Put it in writing: the total, the instalments, the dates, and what happens if an instalment is missed. Get it approved by the committee so it isn't seen as favouritism.

Step 7: Legal remedies

If a member still refuses to pay, the route depends on how your society is set up:

Co-operative housing societies can usually use the dispute-resolution and recovery mechanisms in their state's co-operative societies act. In Maharashtra, for example, Section 101 of the Maharashtra Co-operative Societies Act, 1960 lets a society apply to the Registrar for a recovery certificate for arrears, and disputes can go to the co-operative court under Section 91.
Apartment owners' associations formed under a state apartment ownership act generally rely on their deed of declaration, bye-laws and the civil courts to recover dues.
RWAs registered as societies (under the Societies Registration Act, 1860 or a state equivalent) usually recover through civil proceedings, based on their bye-laws and members' undertakings.

These processes take time and money, so they're for persistent, significant defaults. A lawyer familiar with housing-society matters in your state can tell you which route applies and what documents you'll need.

What not to do

Some recovery tactics are common, and risky:

Cutting off water, electricity or lift access. These are essential services. Courts and consumer forums have repeatedly treated such disconnections as unlawful, and they expose the committee to complaints and claims. Don't do it.
Stopping domestic help or deliveries at the gate to pressure a resident. This can be seen as harassment and typically isn't something bye-laws authorise.
Public shaming — notice-board lists, WhatsApp call-outs, or announcements naming individuals.
Applying rules selectively. If the committee waives interest for one member and not another without a recorded reason, expect trouble.

Restrictions on non-essential privileges — for instance, booking the clubhouse — are only appropriate where your bye-laws clearly provide for them and the general body has approved the policy.

Prevention is cheaper than recovery

The societies with the lowest arrears usually have three things in common: a clear, published dues policy approved by the general body; a payment process that takes a minute; and records good enough that nobody can argue about what's owed. Getting those in place is a better use of the committee's time than chasing the same five flats every month.

If you're also revisiting how much each flat should pay, our explainer on how society maintenance charges are calculated walks through the common methods.

How Community Hub helps

Community Hub is a society management app for Indian apartments and RWAs. On the collections side, it lets the committee raise dues, residents pay through Razorpay by UPI, card or net banking, and it generates invoices and receipts and sends reminders to overdue flats automatically. Admins can record cash and cheque payments so the ledger is complete, and track expenses alongside. New communities get a 3-month trial, and we migrate your existing dues data for free.

Download Community Hub on the App Store · Get it on Google Play

About the author

This guide was written by the Community Hub team at TERRAPIRE Solutions in Hyderabad, who build software for housing-society committees. It is general information, not legal advice; for formal recovery action, consult a lawyer familiar with your state's housing laws.

How to Collect Maintenance Dues from Defaulters in a Society