Latest Guidance on Maintenance Charges: What owners must know

Recently from 2024-2025 case law and regulator guidance emphasise transparency, lawful calculation, auditability, and proportionate allocation of maintenance charges. The Courts have struck in down arbitrary or board-only decisions to fix charges (especially per-sq.-ft. rules...) and have required general-body approval

Recently from 2024-2025 case law and regulator guidance emphasise transparency, lawful calculation, auditability, and proportionate allocation of maintenance charges. The Courts have struck in down arbitrary or board-only decisions to fix charges (especially per-sq.-ft. rules...) and have required general-body approval, audited accounts and clear breakups.

Waivers for delayed payments are now not a universal remedy - non-payment typically leads to recover it (with limited grace/relief in exceptional cases), so societies must follow fair notice and recovery procedures.

What Are Apartment Maintenances Charges?

Maintenances in apartments is the fee that the housing societies or the property management charges to maintain the upkeep of common areas to area and the facilities, as well as repairs and day-to-day rushing. Such Supreme Court follow-ups or determinations on apartment maintenances charges normally involves and:

Security Services: Salaries of the security staff and also the cost of surveillance systems.

Sanitation and Cleaning: Cleaning communal facilities (corridors, lobbies, stairs, and parking spaces).

Power in Common Areas: Lift, lighting, and common power.

Water Supply: Bore well maintenance, water purification, or tanker supply costs.

Repairs and Maintenance: The elevators, plumbing, and other equipment are serviced frequently.

Waste Managements: Garbage collections and also disposal fees.

Facilities: Swimming pools, gymnasium, clubhouses, multifunctional halls and children’s playgrounds, etc.

Reserve Funds or Fundings: Contribution to a corpus fund in case of an unexpected repair or emergencies.

Key Updates on Maintenance follow- up Charges (2025)

Supreme Court Landmarks and Ruling (Nov 2025):

Maintenance charges must be the transparent and fairly allocated along with the residents.

Resident Welfare Associations (RWAs) and the builders must disclose, how funds are used (repairs, amenities, staff salaries, etc.).

Any arbitrarys or hidden charges are prohibited in 2025 rulings.

Clauses in Agreements (Verification Points):

Mandatory Payments: Every flat owners is legally bounded to pay maintenance, and regardless of whether they use amenities.

Penalty for Delays: Agreements typically specify the late fees or interest if payments are delayed too.

No Waiver Provisions: Court have clarified that societies cannot waive for non-payment charges,and also instead they may allow a short grace period but must enforce recovery thereafter.

Transparency Clauses: Agreements must be included as a clear breakup of charges (security, housekeeping, electricity for common areas, etc.).

Dispute Resolutions: Maintenance disputes are should be resolved via RERA or consumer forums or not arbitrary society decisions.

Supreme Court ruling on Society Maintenances Fees

In a significant decisions, the Supreme Court emphasized that the maintenance chargers should be fair enough to, clear, and agreed upon by both parties. Builders are not allowed to impose charges at will or alter the terms after the buyer has signed the contract.

The Court alos mentioned as:

Maintenance fees need to be clearly specified in the sale contract.

Builders are accountable for maintenance until the Resident Welfare Association (RWA) is officially established.

These fees should not be diverted for purposes unrelated to the upkeep of shared facilities.

This ruling empowers homeowners and ensures that developers are held responsible, particularly in expanding urban areas.

Is there a legal “waiver” for unpaid/delayed maintenance?

Courts do not provide a universal waiver for maintenance fees. The prevailing judicial stance is as follows:

Societies are permitted to impose late fees or interest and can pursue recovery of dues through legal means, provided that recovery procedures (including notifications and resolutions from the general body, when necessary) are adhered to.

Courts anticipate fairness - for instance, reasonable notice, an opportunity for explanation, and clear accounting prior to any aggressive recovery actions - but failing to pay does not automatically eliminate liability.

In summary: Anticipate recovery (with potential judicially-ordered modifications in rare situations), rather than a waiver.

How to check maintenance clauses in your agreement (Checklist)

Utilize this checklist to review the maintenance clause in your sale deed, RWA bylaws, or society notices. Save this in your files for quick references:

Authority to Set Charges: Who determines the charges? Is approval from the general body necessary?

Calculation Method: Is the calculation method (per-unit / per-sq.-ft. / UDS-based / hybrid) clearly outlined and sanctioned?

Components Breakdown: Are the components detailed (security, housekeeping, electricity, salaries, sinking fund, etc.)?

Advance Collection Limits: Does the agreement permit advance maintenance payments?

Audit & Accounts: Ensure there are annual audited accounts and that members have access to them.

Penalty & Recovery Process: Are late fees, notice periods, and recovery procedures specified?

GST / Tax Clause: Confirm the applicability of GST (₹7,500/month threshold).

Protection of Essential Services: Courts typically safeguard essential services; societies cannot discontinue essential supplies without following due process.

Dispute Resolution: References to arbitration, RERA, or consumer forums must be adhered to.

Summary Table

Aspect

Latest Guideline (2025)

Waiver Allowed?

Payment Obligation

Mandatory for all owners

NO

Delayed Payment

Late fees/interest apply

No waiver

Transparency

Detailed breakup required

Yes (mandatory disclosure)

Audit of Funds

Annual audit required

Not waivable

Dispute Resolution

Via RERA/consumer forum

No waiver

Essential Services

Cannot be cut off

Protected

Practical Takeaways for You

Check your agreement for breakup of charges, penalties, and dispute mechanisms.

No waiver for non-payment - dues accumulate with penalties.

Supreme Court: Maintenance is a legal obligation. RWAs cannot waive fees.

Updated rules require transparency, audits, and upfront disclosure of charges.

In short: Maintenance charges are compulsory; waivers for delay/non-payment are not recognised, but transparency and faiess are legally enforced.

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

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.

Supreme Court & RERA Guidelines

Uniform Calculation: Based on carpet area or equal distribution.

Audit Requirement: RWAs must maintain audited accounts.

Legal Enforcement: Non-payment can lead to recovery; essentials cannot be disconnected.

Transparency: Builders must disclose charges upfront.

Society Maintenance Rules: Your Rights and Duties

Society maintenance rules may include:

Due dates for payments

Late penalties

Voting rights tied to payment status

Budget allocations

Knowing these rules helps track how funds are used.

GST on Society Maintenance

If monthly maintenance exceeds ₹7,500 per flat → 18% GST applies

Societies with tuover above ₹20 lakh must register for GST

Below ₹7,500 per month → No GST

What are courts & regulators saying?

Transparency & audit are mandatory

Judicial pronouncements and RERA-linked guidance require societies/builders to maintain

separate maintenance funds, produce audited accounts and disclose how collections are

spent (security, common electricity, housekeeping, repairs, staff salaries, etc.). Hidden or

arbitrary levies are being struck down.

Method of calculation must be approved

Recent High Court rulings insist that the general body (not just the managing committee)

must approve how maintenance gets calculated - e.g., per-unit, undivided share (UDS)

basis, or any other formula. Per-sq.-ft. levies imposed unilaterally by a board have been

held vulnerable.

Proportionate levy

Where statutes like the Apartment Act apply, courts have required levies to reflect

undivided interest or flat size - equal levies for unequal flats have been challenged

successfully.

GST compliance matters

Where statutes like the Apartment Act apply, courts have required levies to reflect

undivided interest or flat size - equal levies for unequal flats have been challenged

successfully.

The Final Word

The Supreme Court judgment on society maintenance charges has reshaped the financial and operational landscape for housing societies across India. It ensures that homeowners pay only what is fair, that developers maintain transparency, and that funds are used solely for maintaining shared amenities.

Backed by RERA rules for maintenance charges, this judgment provides residents with stronger protection and a legal framework to demand accountability. For both developers and RWAs, it sets a clear precedent for fair goveance and ethical fund management.

In this changing landscape, trusted developers such as Nearestate.in continue to uphold transparency, timely delivery, and clear financial practices across their projects. These values align with the principles reinforced by this Supreme Court ruling.

Ultimately, being informed is the best safeguard. Whether you’re a buyer, resident, or society member, understanding the society maintenance charges rules empowers you to make confident decisions, ensure transparency, and protect your investment.

Make Wise Financial Decisions for Your Home

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 laws 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.

FAQ’s

What did the Supreme Court rule on apartment maintenance charges?

The Supreme Court clarified that maintenance fees must be clearly defined in the sale agreement and cannot be arbitrarily increased. All flat owners must contribute.

How do RERA rules affect new societies?

Builders may collect limited advance fees, must maintain a separate account, and cannot ea profit.

What maintenance rules must existing societies follow?

Transparent calculation, annual audits, clear due dates, penalties, and proper utilisation of funds.

What is the Supreme Court decision on maintenance charges in an apartment?

It emphasises transparency, fairness, and proportionality based on apartment size or usage.

How are maintenance charges calculated?

Either proportionately (per sq. ft.) or equally per unit, depending on society rules.

Can I refuse to pay society maintenance?

No. All members must pay to maintain shared facilities.

Is a builder liable to pay for unsold flats?

Yes, until the RWA takes over.