December 12, 2008, 12:24 pm
The above Act was enacted by the Indian Parliament with an intention to provide effective provisions for the maintenance and welfare of parents and senior citizens. According to this Act, senior citizens who are unable to maintain themselves can make an application against their children for maintenance. If a senior citizen is a childless person, he can file an application against his relatives for maintenance.
The obligation of the children or the relatives to maintain a senior citizen extends to the needs of such senior citizens, so that such parents may lead a normal life.
If a person being relative of a senior citizen and is having sufficient means and is in possession of property of the senior citizen or if he would inherit the property of such senior citizens, then he is liable to maintain such senior citizens.
A senior citizen can file an application for maintenance to the maintenance tribunal. If he is incapable of making the application himself, he can authorize any organization or person to do the needful.
The tribunal is empowered to grant interim maintenance to senior citizens, during the pendency of proceedings before it. An application for maintenance shall be disposed off, in the normal course within 90 days from the date of service of notice and in exceptional cases, the tribunal may extend the said period, once for a maximum period of 30 days.
An application for the maintenance may be filed against one or more persons. The allowance for maintenance and for expenses for the proceedings may be passed from the date of the order or even from the date of filing the application. If the children or relative fails to pay maintenance to a senior citizen, then the tribunal can issue a warrant against them and send them for imprisonment for a term which may extend to one month or until payment, if sooner made which ever is earlier. The proceedings against the children and a relative shall be taken before the tribunal in a district where they resides or resided last.
The Act also provides for a conciliation officer who can try for a negotiated settlement between the parties. Normally the order for maintenance is made on a monthly basis. The maximum monthly maintenance is Rs.10,000/- per month. The tribunal has the power to make alteration in the allowances if there is a change in the circumstances or for other reasons like misrepresentation or mistake of fact done by the applicant before it.
March 8, 2008, 1:15 pm
With the average life span of Indians on the rise and the mortality rate coming down drastically along with the advancement of modern medicine, the number of senior citizens in the population is on rise. Coupled with this, the disintegration of social fabric, the disappearance of joint family system and the fast pace of modern life, have left many senior citizens economically and socially vulnerable during the fag end of their lives.With the idea to provide some social security measure to senior citizens, the Finance Minister of India formally introduced the concept of Reverse Mortgage in India in the last Union Budget. National Housing Bank has issued certain guidelines in this regard. Many banks like State Bank of India have already introduced this concept.
As per this concept, the senior citizens who own a house can mortgage their property to a banker. The banker will make periodic payments (say monthly) to the borrower, during his life time. The borrower need not repay the loan amount during his life time. After the borrower’s death, the house property is sold and the loan amount together with the interest accumulated is recovered by the bank. If the heirs of the borrower can repay the loan together with interest thereon, then they can release the mortgage and inherit the house property.The scheme is available for senior citizens who are above 60 years of age. Married couples can jointly borrow under this scheme. The borrower shall use the property mortgaged as permanent primary residence. The amount of loan that the senior citizens can avail depends on factors like market value of the property, age of the borrower, rate of interest etc.
The loan amount may be periodic (monthly, ½ yearly) or it can be one lump-sum payment. Normally periodic payments are made for monthly maintenance of senior citizens, while lump-sum payments are made for special purposes like medical expenses, home improvement etc. The maximum period of loan is 15 years. Commercial properties are not eligible under this scheme.
The senior citizens are also given a “right of rescission”, ie, they can cancel the scheme availed within 3 business days of finalizing the scheme. In such cases, the entire loan amount will have to be paid by the senior citizens within this 3 days period.
The loan amount will became due and payable when the last surviving borrower dies or intends to sell the home or when the borrower permanently moves out of the home. The borrower has the right to prepay the loan at any time during the loan tenor, which shall not carry any penalty or charge.