Capital charges or sinking fund monthly maintenance payments

Courts in India have generally held that capital charges and sinking fund contributions are the responsibility of the property owner, not the tenant. Tenants are typically liable only for recurring monthly maintenance charges related to usage, while long-term capital expenses (like sinking fund, major repairs, or structural costs) fall on the owner. 

 Key Judicial Principles Supreme Court & RERA Guidelines The Supreme Court has clarified that society maintenance charges are necessary for upkeep of common areas and facilities. Under the Real Estate (Regulation and Development) Act (RERA), owners are responsible for contributions to the sinking fund and capital charges, since these relate to long-term structural maintenance and asset preservation.

Owner vs Tenant Responsibility Owners: Pay sinking fund, capital charges, and one-time contributions for major repairs or infrastructure upgrades. Tenants: Pay monthly maintenance charges linked to day-to-day services (cleaning, electricity for common areas, security, etc.). 

Court Reasoning Courts distinguish between recurring operational expenses (which can be passed to tenants as part of rent or service charges) and capital/structural expenses (which remain the owner’s duty). The rationale: tenants are temporary occupants, while owners hold long-term interest in the property and benefit from structural improvements. 

Practical Implications If you are a tenant, you can be asked to pay monthly maintenance but not sinking fund or capital charges. If you are an owner, you must contribute to the sinking fund and capital charges, even if the flat is rented out. Housing societies often issue separate bills: one for maintenance (shared with tenants) and another for capital charges/sinking fund (owner-only). 

 Example Case References Supreme Court Judgement on Society Maintenance Charges (2024) – clarified transparency and accountability in levying charges, emphasizing that sinking fund and capital charges are tied to ownership. Supreme Court Verdict on Society Maintenance Charges (2025) – reinforced that maintenance charges are operational, while capital charges are ownership obligations. 

✅ In summary: Courts have consistently ruled that capital charges and sinking fund contributions are the responsibility of the owner, not the tenant. Tenants are only liable for monthly maintenance tied to usage.

As per the Maharashtra Cooperative Societies Act 1960 or Maharashtra Apartment Ownership Act 1970, the owner of the unit is generally liable to pay maintenance, sinking fund contributions, etc., even if the unit is rented out.
It's normally the owner who is liable for contributions to a sinking fund or major capital charge under housing society regulations, unless the lease agreement clearly shifts that liability to the tenant. Monthly maintenance (routine service charges) may also be made the tenant’s responsibility by contract. If you are a tenant and there’s no clause in your lease saying you pay the sinking fund/major capital charges, then you may not legally be obliged to pay them — but you should check carefully the lease and the society’s bye-laws and perhaps take legal advice.

Very well replied. However, is there any specific legal judgement to support or cite or for reference. Thanks

What is the context for this query?

You can look for the appropriate judgement through internet sources.

You / your lawyer has to search for citation(s).

Context- in a housing society the residents are actually given monthly maitenance bill which includes capital charges and many are paying whole bill without knowledge of law. Their lease ageeement is silent on capital chgs but simply says maintenance to be paid by tenant. And the owners are making tenants liable to pay.

If nothing is mentioned in lease agreement then , who is laible to pay society maintenance charges  . It is mentioned that tenant is laible to pay water & power charges

The Society shall issue single bill for all dues / contribution(s) to its member(s).

It is mutual agreement between the tenant / occupant of the property to make it clear as to what funds / dues are to be paid by tenant/occupant and which one shall be responsiblity of the landlord/landlady.

Thanks for reply sir. 

If below mentioned two provisions are mentioned in lease deed, who is laible for paying society maintence charges . May pl see
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"That the Lessor shall pay all taxes, rates, license fees, ground rent and charges of whatever character assessed, levied, charged and imposed by or payable to any lawful authority in respect of the demised premises and if the Lessor fails or neglects to pay the same, the Lessee may make such payments and deduct the same with interest at the rate of 12% per annum from the rent or otherwise recover it from the lessor"

That the Lessee shall use the demised premises for the residential use of -----who shall pay the charges of the consumption of electricity and water direct to the Lessor or the concerned authorities, as per bills received by him.

The follwing term /condition included in the lease deed is invalid and illigal:

"That the Lessor shall pay all taxes, rates, license fees, ground rent and charges of whatever character assessed, levied, charged and imposed by or payable to any lawful authority in respect of the demised premises"

Payment of all taxes, ground rent and other charges cannot be responsiblity of lessee /tenant, if challanged.

 

As mentioned in my question , These responsibilities are of lessor and not lesse.