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V Mohan (Business)     18 June 2016

Maintenance charge+service charge collected by the builder

This is regarding some clarification required on the payment of maintanance charges levied by the builder to the owners after the intial maintenance period.

Hi,

Good day.

I have purchased an apartment on May 2013 in Chennai. I have paid Rs.15000/- as the Maintenance deposit as per the agreement with the builder.  Let me explaing the details here.

Overview

The builder's project consists of ~2000 apartments. There was having four phases of construction such as  A,B,C,D. B,C and D phases/blocks were finished by last year itself and  recently most of the B blocks have handed over. Currently the construction of A blocks, is going on. Till now the completion certificate for B,C,D blocks, hasn't received by the owners who has already received the possession.  

Maintenance provided by Builder

The builder is maintaining the apartment services such as security, wastage collection, back up generator set up, lift maintenance and other common area maintanance as the whole project is under construction. 

During Jan'2016 they have circulated a mail to all the owners which was having the following maintenance payment details.

A  Expenses sheet which includes payment due from owners from day one of their possession.  In average all owners has to pay maintenance from the posssession date onwards. 

B.  It was including  Maintanance charge, Service charge of 15%, service tax of14.5% and the interest of 18% on the maintanance charge [excluding the maintanance deposit of Rs.15000/-]

Recently we got a mail from the builder on 16th Jun 2016 to all the owners, which was containing the following payment requests

C.  The initial service tax of 14.5% has been reversed on the total maintenance amount from the date of possession and they have imposed the service  tax at 15% on the total maintenance  amount.

Queries

Following are my queries 

1.  Without informing about the maintance expenses periodically to the owners who got the possession, and sendind a communication by normal E-mail to pay the whole amount immediately in short notice including 18% interest. Is it legally valid or not?

2. They are collecting 15% as service charge on the maintanannce from the Owners. Is there any law to collect 15% as service charge from the owners by the builders after the possession handed over where the whole project is under  construction.

3. In the first mail for requesting the maintenance payment to the owners, service tax was indicated with 14.5% and the builder has sent another request mail on 16th Jun 2016  to the owners which was having the amended Service Tax of 15% on the whole pending maintenance charge from the possession date till now. is it valid as per law?

4. Till now builder has not provided the completion certificate, how the owners shall receive the completion certificate?

5. Builder has not intimated the owners before finalising the maintenance service vendors and appointing them with huge expenditure. Now the builder is requesting to all the owners to pay the maintenance charge after one or two years on the whole maintenance service expenditure. My concern is that, Why the builder has identified the service vendors and incurred a huge expenses for the services without informing the owners and after two years how they can charge the expenditure as the maintenance charge on all the owners? 

Awaiting a favourable response at the earliest.

Thank you.

an Owner.



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