Society formation charges and maintenance charges

Yuvraj Vanjare (Querist) 02 May 2023 This query is : Resolved
Hello, Yuvraj this side.

I bought a 1 bhk flat having carpet 511 in a 24 storey building. Possession is in next month. But now the builder is asking for 12 month prior maintenance charge which will be 28,000 Rs + GST 5,000 Rs. and also asking for Society formation charges of around 50,000 Rs. I was absolutely unaware of these things before. Can you please guide if this things are legally right. Or is there any fraud the builder is trying to do!!

I really appreciate your guidance.
Thank you.

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Quick Summary

A homebuyer is questioning the legality of their builder demanding 12 months of prior maintenance charges and significant society formation fees before possession of their new flat. While these charges can be common, they may be unlawful if not clearly stated in the sale agreement. The advice suggests checking the agreement, refusing to pay if undisclosed, and potentially escalating the issue to RERA or a consumer forum if the builder insists. It also highlights the builder's responsibility to maintain the property until handover to the residents' association.

kavksatyanarayana (Expert) 02 May 2023
Prior maintenance charges for 12 months and society formation charges of about Rs.50,000/- are contrary to the rules. Complain against the builder in RERA.

T. Kalaiselvan, Advocate (Expert) 03 May 2023
Such demands are very common these days.
However if they are not included in the sale agreement then you can refuse to pay, and can approach RERA or consumer forum if the builder is still insisting without handing over possession.

Dr J C Vashista (Expert) 03 May 2023
These charges are not disclosed and kept hidden by builder at the time of agreement, it is better to pay it now and avoid penalty / interest for delayed payment as agreed.
However, builder is liable to maintain the complex till it is handed over to the association, which has already been formed or to be formed for future care and maintenance.

P. Venu (Expert) 03 May 2023
What is the response from other occupants. Please try to take a common and united stand on the issues.

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