If you’re a homebuyer, a resident of a housing society, or planning to invest in housing projects in Bangalore, it’s important to understand how society maintenance charges work. A recent Supreme Court judgement on society maintenance charges has clarified responsibilities, rights, and fair practices around how these charges should be applied and managed.
Understanding this ruling, along with the RERA rules for maintenance charges and the impact of GST on society maintenance, is crucial for homebuyers who want a transparent and hassle-free living experience.
What Are Society Maintenance Charges?
Maintenance charges refer to the recurring fees collected from property owners to manage and maintain shared spaces and services in a residential society. These typically include:
- Cleaning of common areas
- Security and surveillance
- Lift maintenance
- Garden and landscape upkeep
- Water and electricity in common areas
- Repairs to shared infrastructure
These charges apply whether you reside in the unit or not. This principle was recently upheld in the Supreme Court judgement on society maintenance charges, which reaffirmed that all flat owners are equally responsible for maintaining the shared facilities, regardless of occupancy.
Supreme Court Judgement on Society Maintenance Charges
In a notable ruling, the Supreme Court clarified that maintenance charges must be reasonable, transparent, and mutually agreed upon. Builders cannot arbitrarily impose fees or change the terms once the buyer agreement is signed.
The Court further stated:
- Maintenance charges must be outlined clearly in the sale agreement.
- Builders are responsible for upkeep until the Resident Welfare Association (RWA) is officially formed.
- These charges should not be used for purposes unrelated to the maintenance of common facilities.
This decision empowers homeowners and holds developers accountable, especially in growing urban markets.
RERA Rules for Maintenance Charges
Real Estate Regulatory Authority (RERA) plays a key role in defining fair housing practices. Under RERA rules for society maintenance charges, the following points are mandated:
- Advance Maintenance Should Be Limited
Builders are allowed to collect advance maintenance charges, but usually not more than one year’s worth, and only until the RWA takes over.
- Complete Transparency Required
As per RERA rules for maintenance charges, developers must provide buyers with a breakdown of the amount, frequency, and exact usage of these charges.
- No Profit-Making from Maintenance
The law clearly states that maintenance charges must not be a source of profit for developers. They are strictly for operational and upkeep purposes.
- Separate Maintenance Account
Funds collected must be deposited into a dedicated maintenance account, which can be audited and reviewed by the residents.
These safeguards offer much-needed clarity for buyers considering under-construction projects in Bangalore or any other city.
GST on Society Maintenance
Another important factor to consider is GST on society maintenance. According to current regulations:
- If monthly maintenance charges exceed ₹7,500 per flat, GST at 18% is applicable.
- Societies with annual turnover above ₹20 lakh must register for GST and comply.
- If the charge is ₹7,500 or less, GST is not applicable.
This GST provision is often overlooked, but it can significantly impact your annual housing costs.
Society Maintenance Rules: Your Rights and Duties
Each housing society operates under a set of society maintenance rules that guide how maintenance is collected, managed, and utilised. These may include:
- Due dates for fee payments
- Late payment penalties
- Voting rights tied to payment status
- Budget allocation for repairs and upgrades
Whether you live in a small housing society or a large, gated community, it’s essential to familiarise yourself with these society maintenance rules. They ensure you know where your money goes and how to voice your concerns.
Methods of Calculating Maintenance Charges
Societies generally adopt one of the following three methods to determine how much each resident pay:
- Per Square Foot: Maintenance is calculated based on the area of the flat. Larger units pay more.
- Equal Division: Every unit pays the same amount, regardless of the size. This is common where units are uniformly sized.
- Hybrid Model: A fixed base charge applies to all, plus a variable component based on square footage.
The chosen model must be transparent and approved by either the developer or the residents’ association.
What This Means for Upcoming Projects in Bangalore
With Bangalore’s real estate sector growing rapidly, under-construction projects in Bangalore must now be more compliant than ever. Buyers must ensure that:
- Maintenance charges are clearly defined in the sale agreement.
- No ambiguous or hidden costs are levied.
- GST and other applicable charges are communicated upfront.
We at Casagrand ensure that our under-construction projects in Bangalore comply with RERA rules and the latest Supreme Court judgement on society maintenance charges. This guarantees homebuyers fair treatment and full transparency from the outset.
Make Wise Financial Decisions for Your Humble Abode
With the latest Supreme Court judgement on society maintenance charges and strict RERA rules for maintenance charges in place, homeowners now have more power and clarity than ever. Understanding how maintenance charges are calculated, what rules apply, and when GST on society maintenance kicks in can help you make smarter housing decisions.
If you’re moving into a completed flat or looking at an under-construction project, it’s better to be informed and get what you pay for—nothing more, nothing less.
