Can maintenance charges be increased before getting O.C. or formation of Hsg Soc?
December 2025
A recent query from a reader raised an important question: can a builder increase maintenance charges for a flat when the Occupancy Certificate (OC) hasn't been received and the housing society hasn't been formed?
Legal Position as per RERA
According to RERA, builders are responsible for maintaining the project until the OC is obtained. Homebuyers aren't obligated to pay maintenance charges before the building receives the OC. If a builder gives "soft possession" or "fit-out possession" before OC, it's not considered legal possession, making maintenance charges tied to such possession unenforceable.
Maintenance Charges Before OC
-
Only Actual Expenses:
Builders can levy actual expenses for common area upkeep, not a fixed monthly fee. -
No Arbitrary Increases:
Builders can't arbitrarily increase charges without proper notice, break-up of costs, and proof of increased expenses. -
Essential Services:
Builders can collect maintenance for essential services like security, housekeeping, and electricity, but increases must be reasonable and justified.
After OC and Society Formation
Once the society is formed, the builder does not have the right to decide or increase maintenance charges. These charges are to be decided by the Resident Welfare Association (RWA) or Co-operative Housing Society.
Water and Electric supply
A builder can't cut water or electricity supply for non-payment of hiked maintenance charges, as these are essential services. Homebuyers can send a legal notice, file a complaint under RERA, or approach the Consumer Court if the builder increases charges unfairly. In summary, maintenance charges can't arbitrarily be hiked before OC and society formation. Any increases must be reasonable, justified, and follow due process. Homebuyers should be aware of their rights and seek legal recourse if needed.
~ Mr. Tushar Tiwari
Legal Advisor, DM Legal Services
Source: Thane Realty News
To Know About Thane Real Estate Development Contact Us at 09833458323
