In a significant ruling for homebuyers and housing societies, the Gujarat Real Estate Regulatory Authority (GujRERA) has made it clear that real estate developers cannot escape their financial responsibilities. The authority has held that a promoter must pay maintenance charges for all unsold units in a project to the housing society, starting from the date the Building Use (BU) permission is granted and continuing until those units are finally sold to allottees.
The Vastrapur Case: A Society's Fight for Fairness
The order came in response to a complaint filed by a housing cooperative society located in the Vastrapur area of Ahmedabad. The society approached the regulatory authority with a grievance that the project's developer had not been paying the maintenance dues for the flats that remained unsold in the complex. This non-payment, the society argued, was placing an unfair and additional financial burden on the existing residents who had already taken possession of their homes.
The project in question had received its crucial Building Use permission back in 2019. The society's contention was straightforward: since the developer continues to be the legal owner of all unsold inventory, they should be liable to contribute to the common expenses and maintenance charges, just like any other member or allottee of the society. This principle ensures that the cost of upkeep for common areas, security, lifts, and other amenities is shared by all property owners, not just the residents.
GujRERA's Order and the Legal Backing
After a thorough hearing, the authority sided with the housing society. GujRERA directed the concerned developer to clear all the pending maintenance payments for the unsold units. In its decision, the authority relied on specific provisions of the central Real Estate (Regulation and Development) Act, 2016, which forms the bedrock of consumer protection in the real estate sector.
The ruling specifically referenced Section 11(4)(g) and Sections 17(1) and 17(2) of the RERA Act. These sections outline the ongoing responsibilities of the promoter even after the completion of a project and the formation of a society. The order reinforces that the promoter's duty includes "running maintenance" for flats that have not yet found buyers.
Wider Impact on Real Estate Practices
This judgement is set to have far-reaching consequences across numerous housing societies in Gujarat, particularly in major cities like Ahmedabad. A real estate consultant highlighted the importance of the ruling, stating that it addresses a common pain point. "This judgement will impact many societies because non-payment by the promoter effectively shifts the cost of maintaining common areas and services onto the members who have already taken possession," the consultant explained.
The GujRERA order establishes a crucial precedent. It closes a potential loophole where developers could delay selling remaining units to avoid sharing the operational costs of a completed society. The authority's stance reinforces that promoters bear maintenance liabilities for their unsold inventory post-BU permission. This not only ensures financial fairness but also incentivizes developers to sell their stock promptly or bear the recurring costs, ultimately benefiting the collective welfare of housing society residents.
