Maintenance charges methodology karnataka

Suraj Gupta (Querist) 29 March 2023 This query is : Resolved
Dear Sir/ Madam,
We are a newly built society and we will be registering ourselves under Karnataka Apartment Owners Association Act, 1972. Section 10 of this act stipulates
"Common profits and expenses.- The common profits of the property shall be
distributed among and the common expenses shall be charged to, the apartment owners
according to the percentage of the undivided interest in the common areas and facilities. "
So it's clear that maintenace charges have to be calculated on per sqaure ft basis. But since, this building is a combination of 3bhk and 2 bhk flats, the bigger flat owners are arguing that the maintenance charges should be on flat basis rather than square ft basis, as the most of the common amentities are shared by equal number of people. Their family sizes are also small. They have also suggested a hybrid way, where fixed charges should be divided equally and operation cost based on sqaure feet.
Hence, in this regard, kindly advise, if there is a court judgement or any other exceptions provided in any Karnataka rules, where the association can adopt maintenance charge collection other Square feet rate?

Many Thanks
CA Suraj Gupta

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Quick Summary

A newly formed society in Karnataka is seeking guidance on calculating maintenance charges. While Section 10 of the Karnataka Apartment Owners Association Act, 1972, suggests charging expenses based on undivided interest (typically per square foot), some flat owners argue for a flat or hybrid basis, citing equal amenity usage. The discussion explores whether exceptions or court judgments allow for alternative methods and clarifies that decisions must be made by the association's AGM and incorporated into bylaws, which can still be challenged.

kavksatyanarayana (Expert) 29 March 2023
The common amenities are equal for all the flat owners and the maintenance charges are equal for all flat owners but not on square feet rate. However, at the time of the formation of the society, what did all the members decide in this regard? There is no rule for maintenance charges in the said act as it will be decided by the AGM.

Suraj Gupta (Querist) 29 March 2023
Thanks sir for your reply. We are at society formation stage and we are bit worried to adopt a decision which against Section 10 of Karnataka Apartment Owners Association Act, 1972. Please see below wordings from Section 10. Grateful, if I could a specific reply on the validity of this section please with any recent court judgements.
Section 10 of this act stipulates "Common profits and expenses.- The common profits of the property shall be distributed among and the common expenses shall be charged to, the apartment owners according to the percentage of the undivided interest in the common areas and facilities."

kavksatyanarayana (Expert) 29 March 2023
No judgments are with me.

T. Kalaiselvan, Advocate (Expert) 30 March 2023
The provision of law referred by you is very clear, what is yor confusion now?
Please note that you cannot decide the issue by yourself.
This has to be decided in a meeting, a consensus has to be arrived at and after that you can incorporate the same in the societies bylaws.

Suraj Gupta (Querist) 31 March 2023
Thank you so much T. Kalaiselvan sir. Much appreciated. You are right, it's very clear. Just one clarity needed, if it's incorporated in Bye-laws, can someone still go and challenge this in the court?

Suraj Gupta (Querist) 04 April 2023
Thank you so much T. Kalaiselvan sir. Much appreciated. You are right, it's very clear. Just one clarity needed, if it's incorporated in Bye-laws, can someone still go and challenge this in the court?

T. Kalaiselvan, Advocate (Expert) 24 August 2023
If the bylaws are against the interest of the members, it can be challenged before the concerned registrar and escalated through cooperative court, if you do not get any relief from Registrar concerned.

Suraj Gupta (Querist) 24 August 2023
Thanks for your help.

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