3 Answers
Dear Client
In case, the builder is retaining control of the building and the association has not been transferred to the occupants, the builder is entitled to collect money for actual expenditure on maintenance from the residents; but asking you for two more years of maintenance charges is not necessarily justified by law, unless there is any such clause mentioned in the contract of sale and builder-buyer agreement. The Real Estate (Regulation and Development) Act, 2016 (RERA) mandates that a builder should be transparent in charging maintenance fee and shall not charge unreasonable amounts for the same. You may request the builder to provide a detail breakup of expense, account of maintenance fee charged in the past and contract providing the right to charge in advance for next two years. In case, you feel that the demand is unreasonable, you may approach the State RERA Authority or Consumer Commission for redressal of the issue under unfair trade practice and deficiency of services.
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Dear client, You are not required to pay any advance on maintenance for another 2 years. The builder is still controlling the building and you are not required to pay for one more 2 years. You are not required to pay another 2 years advance on maintenance. The maintenance has already been paid by flat owners when the builder sold the flat. The builder has to hand over the maintenance and common area control to the RWA within a stipulated period after delivery. The builder is violating RERA by asking for advance maintenance and for another 2 years you are not required to pay for the maintenance even if the builder demands it. The builder's arousing of the development society's control is also a violation on the builder. Demanding that we pay fresh 2 years advance after we have already paid advance, though the builder is continuing to control the building for 2 more years is not logical as we have not been expected to pay maintenance like this for two years. Further, the builder is demanding a fresh 2 years maintenance advance yet it has not given any evidence about how it spent the previous maintenance advance, which is a case of deficiency of service.
You can approach the RERA if you have a complaint. A consumer forum also can be approached for a compensation for deficiency of services. The first thing you should do collectively as flat owners is send a written demand to the builder asking for a fully audited statement of how the initial maintenance advance was spent. Do not make any further payments until this is provided in writing. Simultaneously, all affected flat owners should send a joint legal notice to the builder demanding a concrete RWA formation and handover timeline, collective action carries significantly more legal and practical weight than individual complaints. If the builder fails to respond satisfactorily, file a complaint with your state's RERA authority for illegal retention of society control and arbitrary financial demands. You can also got to the District Consumer Disputes Redressal Commission for compensation
Dear Sir,
A builder cannot arbitrarily demand advance maintenance charges unless such a condition is specifically mentioned in the agreement for sale, maintenance agreement, or other binding documents signed by the flat owners. You should first carefully verify the clauses in your sale agreement regarding maintenance charges, advance deposits, and the builder’s rights during the period when the project remains under builder control.
Normally, builders collect maintenance charges either monthly, quarterly, yearly, or sometimes as an initial advance deposit at the time of possession.