The smooth running of most residential society maintenance charges whether they are apartment complexes, gated communities, or group housing societies-depends significantly on collective upkeep. These repetitive contributions, made by every homeowner individually, ensure that premises remain clean, safe, functional, and properly managed.
However, upon purchasing properties in Bangalore or joining a society, the buyer, resident, or tenant still faces confusion regarding terms related to maintenance. What are the collection laws? How are charges calculated? What are rights and obligations?
The blog below explains the structure, lawfully, of society maintenance charges, rules regarding the maintenance of the society, governing legislation, and the rights and duties of residents and the management committee.
What Are Society Maintenance Charges?
Maintenance charges from an association are periodic fees imposed upon all owners of property in a residential community to enable the day-to-day operations, repairs, maintenance, and administration of the common areas and amenities. These can include expenditures for:
- Common area electricity
- Water supply management
- Security services
- Housekeeping
- Landscaping and care of grounds
- Maintenance of lifts and generators
- Clubhouse and swimming pool maintenance
- Infrastructure repairs
- Administrative expenditures
Most commonly, the monthly maintenance charge is determined by the management committee of the society and is ratified by the general body of residents.
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Legal Basis: The Society Maintenance Charges Act and Related Provisions
While no single law exists by the name Society Maintenance Charges Act, maintenance laws are governed by various state-specific cooperative society or apartment ownership laws. Such laws include:
- Maharashtra Cooperative Societies Act, 1960
- Karnataka Apartment Ownership Act, 1972
- Tamil Nadu Apartment Ownership Act, 1994
- Haryana Apartment Ownership Act, 1983
- UP Apartment Act, 2010
The following principles are usually common to these laws:
- Every resident should contribute to the maintenance of common expenses.
- The society should present the financial statements transparently.
- There should be a budget and an audit.
- Maintenance regulations must be shared with all the members.
Thus, we use the term ‘Society Maintenance Charges Act’ in a loose sense with a reference to the respective state apartment ownership or cooperative society laws dealing with maintenance collection and management.
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Common Society Maintenance Rules Residents Should Know
Every society may have different bylaws, but very often the following norms are followed:
Timely Payment Obligations
Every month, with no exception, all unit owners have to pay their maintenance charges. In case of delay, the general body may levy some interest on the amount for late payment.
Uniform Basis of Calculation
Charges are supposed to be levied based on a fair and reasonable basis, as approved by the committee (discussed below).
Use of Funds
Maintenance funds are to be used for society running only and not for any personal gains of any committee member.
Annual Budget and Audit
The managing body shall present yearly financial statements and have the books audited.
Rules on Transparency
Residents are entitled to scrutiny of maintenance accounts and expenses.
Sinking Fund Contribution
Most societies collect some extra amount from members as a contribution towards capital repairs in future, with proper use being made only for long-term infrastructure needs.
By grasping the maintenance laws, a homeowner can easily know his rights while fulfilling his obligations.
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How to calculate Society Maintenance Charges?
Indian societies typically adopt one or a few methods of calculation, which are as follows:
Per Square Foot Model
This is the most common.
Formula:
Maintenance Charge = Rate per sq. ft × Built-up Area
Example:
₹4 per sq. ft × 1,200 sq. ft = ₹4,800 per month.
Flat Sharing
- In this method, every flat in a society pays the same amount of maintenance irrespective of size.
- This is mostly seen to be adopted in smaller societies having very limited amenities.
Utility Billing
Bills for water, gas, or power back-ups may be charged based on individual consumption or readings from a meter.
Hybrid Model
This provides for a fixed retainer plus variable costs such as water or lift maintenance.
Capital or Sinking Fund Contribution
- It is normally computed as a percentage of monthly maintenance or a flat annual rate.
- The computation methodology should be clearly written in the society’s bylaws and approved by the general body.
Is It Mandatory to Pay Society Maintenance Charges?
It is true that, legally essential all owners of property, including flat owners and even owners who have kept their flat vacant, are liable to maintain the charges. This is because all common areas will be owned by all, and hence the members will be responsible for the maintenance of the mentioned areas.
This could lead to:
- Penalties and interest on dues.
- Suspending voting powers in the elections of the society.
- Legal notices sent.
- Recovery action under cooperative state laws.
In some extreme cases, the society might restrict access to non-essential services like the clubhouse, community hall, etc., but they cannot stop essential utilities such as water, electricity, etc.
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Supreme Court Rule on Society Maintenance Charges
The Supreme Court has elucidated various essential principles in different judgments. These are as follows:
- There should not be any arbitrary maintenance. The charges have to be reasonable, non-discriminatory, and accepted by the majority of members.
- No society can charge differential rates without justification.
- Essential services cannot be withheld for non-payment, but societies are free to sue for recovery of dues.
- Residents are mandated to pay certain common expenses, although a majority of them do not use the facility.
It is all about fair, uniform, transparent, and via the byelaws of the society, according to the Court.
What Questions Should You Ask About Maintenance Before Buying a Home?
Things that a buyer should ask before committing to a purchase in a residential project:
Maintenance Charge Structure
- How much per square foot or fixed charge?
- Are water, gas, and power backup charges separate?
What does the Maintenance Fee Cover?
- Security
- Maintenance of Clubhouse
- Lift Maintenance
- Generator/ STP charges
- Common area electricity
Status of Reserve and Sinking Funds
- How much is collected yearly?
- How often has it been used?
Transparency of Audit and Budget
- Are annual financials shared with residents?
- Are decisions taken in general body meetings?
Future Liability Risks
- Any unresolved repairs?
- Any loans or legal issues?
Some questions act as a buffer against the buyers for any financial burden post-moving.
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Conclusion: Society Maintenance Charges
Society Maintenance Charges are basically the pillar of community living; they make routine services for everything, including lifts, lighting, security, and sanitation, very smooth.
Knowing what you have to do, rights, and how to calculate will not only help you plan the expenses you’d probably incur but also bring greater transparency to functioning within society.
Whether one is a resident now or plans to buy a house, having a clear understanding of maintenance charges for society and the society maintenance rules, and apartment laws in the state helps one have confidence in making informed decisions.
FAQ’s
Maintenance is usually calculated on a per square foot basis of built-up area, equally per flat, or on a hybrid basis with some fixed and variable components. The mode of calculation should always be documented in society’s bylaws.
Yes. Every property owner covered under state apartment and cooperative laws is to pay maintenance charges irrespective of property use. Non-payment can therefore incur penalties and recovery mechanisms.
Query concerning the rate, calculation method, what services are included, contributions to the sinking fund, liabilities for future repairs, audits, and procedures for maintaining transparency.
Most common rules would include timely payment, maintenance according to set standards, the right to inspect the accounts, participation in general body decisions, and contribution to the sinking fund.
The Supreme Court says charges need to be fair, reasonable, transparent, and non-discriminatory, and adopted by the general body. Maintenance will have to be paid by the residents, but for non-payment, essential services cannot be stopped.
