increase in maintenance charges

Praveen Kumar (Querist) 05 July 2025 This query is : Resolved
Dear Sir, I am a resident and flat owner at Rishi Apartment, located in Baddi, Himachal Pradesh. I wish to bring to your attention serious concerns regarding the maintenance and functioning of our housing society, which is currently under the control of the builder. The builder has failed to provide basic facilities such as proper security, regular cleaning, and general upkeep of common areas. Due to these persistent issues, the flat owners collectively formed a Flat Owners Association (currently unregistered) to address grievances and represent our interests. On behalf of all residents, the association has been regularly communicating with the builder via email, requesting improvement in services. However, instead of addressing these genuine concerns, the builder recently issued a notice increasing the maintenance charges, despite the quality of services being extremely poor. As per the maintenance agreement, charges may be increased only once every two years, and by a maximum of 10%. However, the builder has imposed an increase that exceeds this limit, without consultation and without any corresponding improvement in services.In response to this arbitrary action, the flat owners have collectively decided to Withhold payment of the maintenance charges Until improvement of services .Despite multiple reminders, the builder has not responded to our communications. Furthermore, the builder is not registered under HPRERA .We now seek your kind guidance on the following: 1. Is it legally justified for flat owners to withhold payment of maintenance charges under these circumstances? 2. What legal recourse or action can we take against the builder for poor maintenance and arbitrary increase in charges? 3. Where can we file a formal complaint, given the builder is not registered under HPRERA? We look forward to your support and direction in resolving this issue lawfully and fairly. Reply Follow

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Residents of Rishi Apartment are concerned about poor maintenance and an unjustified increase in maintenance charges by the builder, who is also not providing transparent financial records. The builder has increased charges beyond the agreed limit and without improving services. Flat owners are seeking legal advice on withholding payments, taking action against the builder, and filing complaints, especially as the builder has not yet handed over the premises to the owners' association.

T. Kalaiselvan, Advocate (Expert) 06 July 2025
Firstly your association is not a registered body hence it is not a legally recognised entity, therefore the association's action against the builder is not legally maintainable because the unregistered association can neither sue nor it can be sued.
If you people find the builder is extremely hostile and is not responding to your demands for proper maintenance of the apartment complex then you can issue a legal notice to the builder and then follow it up through consumer commission demanding compensation for deficiency in service and also a stay order from charging additional maintenance amount without completing the pending works or raising it arbitrarily
You all try to get the association registered so that the association as a legal body can take a proper and effective action against the builder and claim the handover of the apartment and the common areas of the apartment complex

Dr. J C Vashista (Expert) 06 July 2025
Whether the Society (complex) is HP Cooperative Societies or HP Apartment Ownership Association, which is still not handed over to the association / Mananging Committee ?

Praveen Kumar (Querist) 07 July 2025
Dear Sir, Thank you for your valuable response. Kindly note that the builder's project is registered under the Himachal Pradesh Apartment and Property Regulation Act, 2005.

T. Kalaiselvan, Advocate (Expert) 07 July 2025
It is alright, you have been suggested to initiate suitable action as per law and in case of any doubt you may contact any local advocate and proceed as suggested

Dr. J C Vashista (Expert) 09 July 2025
Whether the builder has handed over premises to the Owners association of your apartment after filing declaration and due compliance of rules ?
It is better to consult and engage a local prudent lawyer for proper appreciation of facts/ documents, professional advise and necessary proceeding.

Praveen Kumar (Querist) 09 July 2025
Dear Sir,
Please note that the builder has not yet handed over the premises to the Flat Owners’ Association. At present, the builder is solely responsible for the maintenance of the society. However, we wish to highlight that there is a complete lack of transparency in the handling of maintenance activities. The builder is collecting maintenance charges in cash and is not providing any details or records of the expenses to the residents.
We have written multiple emails to the builder requesting a breakup of the maintenance expenditures, but no response has been received so far.

T. Kalaiselvan, Advocate (Expert) 09 July 2025
The emails whether multiple or one here and one there will not yield any response from the builder who is incredibly stubborn, unyielding, and not easily amenable.
You may resort to legal action by sending a legal notice demanding the required details and breaks ups of the maintenance amount collected from you.
You can gather like minded people and form an association, get it registered and demand the builder to transfer the apartment's property and appurtenances.
To ensure a builder transfers a building with its appurtenances to an association, you need to follow a structured process involving legal documentation, due diligence, and communication with the builder. This includes forming the association, registering it, and obtaining necessary approvals. The process also involves securing key documents, conducting audits, and potentially engaging legal counsel.

Dr. J C Vashista (Expert) 10 July 2025
Presumably the project is not registered under RERA, isn't it? In any case you should move to HP RERA / jurisdictional Consumer Commission through a local prudent lawyer highlighting all the facts.

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