FINIO RECOVERY PVT. LTD

What does No Recovery No Fee mean?

Finio is trying to solve the problem of societies having to pay upfront legal fees to recover pending dues. Paying upfront legal fees doesn't guarantee success and this deters MC members from taking legal action on defaulters. So Finio offers a No Recovery No Fee model which means that the society doesn't pay Finio any legal or consultancy fees until the defaulter’s payment has hit the society’s account. Finio bears all legal expenses, and we charge the society only after they are paid. This way it's easier for the society to pay Finio.

 

Is there really  no upfront cost to the society during the recovery process?

There is no upfront consultancy or legal fee cost. This means there is no upfront cost for drafting notices or case file petitions as well as tracking and follow-ups that Finio does with various government bodies. There is also no upfront cost for filing cases, and when our lawyers attend hearings on the society’s behalf. We also do not charge anything upfront to help  execute the court’s orders with the relevant authorities. However, the only cost the society will have before recovery is Stamp Duty and any government fees for which they will get challans. The stamp duty is about 1-2% of the recovery amount that must be posted to the court. Finio can't pay that as the entity who is a party to the case has to post this amount themselves. It is capped at around Rs.10000 in most cases. So for a recovery of Rs. 50000, this charge would be between Rs. 500-1000. Usually, the recovery certificate will have a clause to add this to the defaulter’s bill once the court order is given so the society is reimbursed.

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What is the process of recovery that Finio employs?

The law around society maintenance recovery is very straightforward. Although the process is long and requires a lot of steps, the law is tight and the society always gets its money. We try to resolve this initially using telephone, email follow-ups, and legal notices. If payment is not cleared even then, we file a case with the Deputy Registrar and apply for a recovery certificate under Section 154 B(29). Once this is received, the first step of recovery is complete. The hard work starts now. The court order then needs to be executed using the services of a Federation-appointed SRO (Special Recovery Officer). Several filings are required in between, and in the end, if the defaulter still doesn’t pay, the SRO auctions the property for which an order from the District Collector is sought. All of this is carried out under court orders and is legally binding. 

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How long does the recovery process take?

As with any legal procedure in Indian courts, this is a difficult question to answer. Several factors determine how long this will take. However, in our experience, about 80% of cases get resolved within 3 to 6 months. There are various stages at which defaulting members will realise that there is no option left but to pay the society what is due to them. The time taken for recovery depends on which stage that realisation hits them. Very rarely do cases go to the last step of auctioning. But if things do go that far, it would take 6-9 months from the date of filing our case in the Registrar's Office.

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What are Finio's fees and charges?

Finio charges a flat percentage fee on the entire recovery portfolio amount of your society. This means that no matter how many cases (defaulters) you have, no matter how big or small their amounts, Finio will charge a single percentage fee across all of them. There are 3 slabs under which each society is categorised based on the total recovery amount that needs to be collected.

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Upto Rs. 20 lacs - 15%

Rs. 21 - 99 lacs - 12.5%

​Rs. 1 crore+ - 10%

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Get in touch with us on +917378611058 or email us on contactus@finio.in if you would like to understand this fee better or have any questions regarding the same.

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Our builder is the biggest maintenance defaulter in our society. Can you help in this case too?

Certainly.  If you have taken handover from the builder and registered your cooperative society, then the units still owned by the builder make him/her a member of the society just like you. And members have to pay their maintenance dues on time as mandated by law. There is no difference here, and we can help recover the maintenance dues from the builder as well. 

 

A difference here is when the maintenance corpus collected by the builder before society formation is in dispute. This case doesn't fall under the cooperative society law and is a business vs. individual civil case. We do not prefer to take on such cases at this time since we see ourselves as specialists in maintenance recovery and focus solely on that problem.