Society Maintenance Charges — Rules, Calculation & How to File Complaints

What Are Society Maintenance Charges?

Society maintenance charges are monthly fees collected by a housing society or Residents' Welfare Association (RWA) from flat/apartment owners to cover the cost of maintaining common areas and shared amenities. These charges are mandatory for all members once a housing society is formed.

Maintenance charges typically cover:

• Common area upkeep — lobbies, corridors, staircases, parking areas
• Security — guards, CCTV, access control systems
• Utilities — common area electricity, water pump, lift operation
• Staff salaries — housekeeping, gardeners, plumbers, electricians
• Repairs and maintenance — painting, plumbing, electrical repairs
• Sinking fund — reserve for major structural repairs
• Insurance — building insurance premium
• Administrative costs — accounting, audit, legal fees
• Amenity maintenance — gym, swimming pool, clubhouse, playground

How Are Maintenance Charges Calculated?

There are three common methods:

1. Per Square Foot Basis (Most Common)

• Charge = Rate per sq. ft. × carpet/built-up area of the flat
• Example: ₹5/sq. ft. × 1,000 sq. ft. = ₹5,000/month
• This is the most equitable method as larger flats pay more

2. Equal Share Basis

• Total expenses ÷ number of flats
• Simple but not always fair — a 500 sq. ft. flat pays the same as a 2,000 sq. ft. flat

3. Slab-Based

• Different rates for different flat sizes (1 BHK, 2 BHK, 3 BHK)
• A middle-ground approach

RERA recommends the per-square-foot method as the most transparent and fair basis for calculating maintenance charges.

RERA Rules on Maintenance Charges

The Real Estate (Regulation and Development) Act, 2016 has specific provisions regarding maintenance charges:

Before Society Formation (Builder Period)

• The builder/promoter is responsible for maintaining common areas until the society/association is formed
• The builder can collect advance maintenance for a maximum of 12 months at the time of possession (RERA guidelines)
• Maintenance charges during this period must be reasonable and transparent
• The builder must hand over maintenance to the society/RWA within the prescribed time

After Society Formation

• The society/RWA takes over maintenance responsibility
• Charges are decided in the Annual General Meeting (AGM) by majority vote
• Budget must be presented to members and approved
• Quarterly/annual accounts must be audited and shared with members

Key RERA Provisions

• Section 17(1): Promoter must execute a registered conveyance deed of common areas to the association within 3 months of majority sale
• Section 11(4)(e): Promoter must maintain services until handover to the association
• Section 14: Defect liability period of 5 years from possession — structural defects are the builder's responsibility

Sinking Fund — What Is It?

The sinking fund is a reserve fund maintained by the society for major repairs and structural maintenance — things like:

• Re-waterproofing the building
• Lift replacement
• Major plumbing/electrical overhaul
• Structural repairs
• Repainting the building exterior

Key Rules:

• In Maharashtra (under MOFA and Maharashtra Co-operative Societies Act): Sinking fund contribution is 0.25% of the construction cost per year per flat
• The sinking fund should be kept in a separate fixed deposit and not used for routine expenses
• Withdrawal from sinking fund requires a special resolution (majority vote in general body meeting)
• Many other states follow similar guidelines under their cooperative societies acts

What's Included vs Not Included in Maintenance

Typically Included:

• Common area cleaning and upkeep
• Security guards and CCTV
• Lift operation and maintenance (AMC)
• Water supply (common tank, pump, borewell)
• Common area electricity
• Garden and landscaping
• Staff salaries (housekeeping, watchman, manager)
• Insurance premium
• Sinking fund contribution
• Audit and accounting fees
• Pest control
• Fire safety equipment maintenance

Typically NOT Included (Charged Separately):

• Property tax (usually pass-through, billed separately)
• Individual flat repairs (owner's responsibility)
• Car parking charges (may be separate in some societies)
• Clubhouse/gym usage (sometimes charged as add-on)
• Non-occupancy charges (10% extra in Maharashtra if flat is rented out)
• Water charges (if metered individually)
• Special assessments (one-time levy for major projects, decided in AGM)

Maharashtra MOFA Rules (Special Provisions)

Maharashtra has additional rules under the Maharashtra Ownership Flats Act (MOFA), 1963 and the Maharashtra Co-operative Societies Act, 1960:

How to Challenge Excessive Maintenance Charges

If you believe your society's maintenance charges are unreasonably high, follow these steps:

Step 1: Request Budget Breakdown

• Ask the society secretary/managing committee for a detailed budget breakdown
• You have the legal right to inspect society books, accounts, and minutes
• Compare charges with similar societies in your area

Step 2: Raise in General Body Meeting

• Raise objections during the AGM or Special General Meeting
• Propose amendments to the budget
• Request an independent audit if you suspect mismanagement
• Decisions are made by majority vote — gather support from other members

Step 3: Approach Registrar of Co-operative Societies

• File a complaint with the Registrar/Deputy Registrar of Co-operative Societies in your district
• The Registrar can:
  • Order an inquiry or audit
  • Intervene in cases of mismanagement
  • Direct the society to rectify irregularities

Step 4: File RERA Complaint (During Builder Period)

If the builder is collecting excessive maintenance charges before society formation:

• File a complaint on your state RERA portal
• RERA can direct the builder to refund excess charges
• See our RERA complaint filing guide for the complete process

Step 5: Approach Consumer Forum or Civil Court

• For disputes involving financial loss, file a complaint at the Consumer Disputes Redressal Forum
• For larger disputes, approach the Co-operative Court (in Maharashtra) or Civil Court

What Happens If You Don't Pay Maintenance?

• The society can charge interest on overdue payments (typically 15-21% per annum)
• The society can restrict amenity access (gym, pool, clubhouse)
• The society can file a recovery suit in the Co-operative Court
• In extreme cases, the society can create a lien/charge on the property
• Non-payment does not exempt you from the obligation — courts consistently uphold maintenance charges

Important: Even if you disagree with the charges, pay under protest and then challenge. Non-payment weakens your legal position.

Tax Treatment of Maintenance Charges

• Maintenance charges are not tax-deductible for self-occupied property
• For let-out property: Maintenance paid by the owner is covered under the 30% standard deduction from rental income (you don't need to claim it separately)
• GST: If monthly maintenance exceeds ₹7,500 per flat, the society must collect 18% GST on the entire amount (not just the excess). Societies with annual turnover below ₹20 lakh are exempt

Important Tips

1. Attend AGMs — maintenance budgets are approved in AGMs; your absence means you accept whatever is decided
2. Request monthly accounts — a well-run society shares monthly income/expense statements with all members
3. Check the sinking fund — ensure it's in a separate FD and not being misused for routine expenses
4. Compare with neighbours — check what similar societies in your area charge per square foot
5. Pay on time — late payment interest (15-21%) is a significant unnecessary cost

Frequently Asked Questions

Can the society increase maintenance charges without AGM approval?

No. Any increase in maintenance charges must be approved in the Annual General Meeting (AGM) or a Special General Meeting by majority vote. The managing committee cannot unilaterally raise charges.

Are maintenance charges applicable on unsold flats?

Yes. The builder/developer must pay maintenance charges for all unsold/un-allotted flats until they are sold. This is established through various RERA orders and court judgments.

Can I refuse to pay if I don't use amenities like gym or pool?

No. Maintenance charges cover common area upkeep and are mandatory for all members regardless of usage. You cannot opt out of paying for specific amenities. However, you can raise the issue of reducing such expenses at the AGM.

What is the difference between maintenance charges and property tax?

Maintenance charges are paid to the housing society for upkeep of common areas and amenities. Property tax is paid to the municipal corporation/local body for civic services (roads, water supply, drainage, garbage collection). They are completely separate obligations.

Can a tenant be asked to pay maintenance charges?

The legal obligation to pay maintenance lies with the flat owner, not the tenant. However, many owners pass on maintenance charges to tenants as part of the rent agreement. The society can only recover from the owner.

How much is a reasonable maintenance charge per square foot?

It varies widely by city and amenities. As a rough benchmark:

• Basic society (no amenities): ₹2-₹4/sq. ft.
• Mid-range (lift, security, garden): ₹4-₹8/sq. ft.
• Premium (gym, pool, clubhouse): ₹8-₹15/sq. ft.
• Luxury (concierge, multiple amenities): ₹15-₹30+/sq. ft.

What is non-occupancy charges (NOC)?

In Maharashtra, if a flat owner rents out their flat, the society can charge non-occupancy charges — capped at 10% of the monthly maintenance. This compensates for additional wear and tear on common areas. Other states may have different rules.

This guide is for informational purposes only and does not constitute legal advice. CitizenNest is an independent platform and is not affiliated with any government body. Rules vary by state — consult your state's cooperative societies act and RERA authority for specific provisions.

Related Guides:

• RERA Complaint Filing — Step-by-Step Guide
• Property Registration Online