• Maintenance charges

Hi sir, 
Our apartment has 301 flats and we have flats from 850 sqft to 1900 sqft. Now in our apartment the maintenance is charged on the basis of sqft though all the amenities are equally enjoy by all. 
Now my question is,
Our association is registered under Karnataka societies registration act. Our apartment bylaws doesn't mention the ways to charge the maintenance. They are following the sqft method as it's practiced by all. 
Our sale deed says it has to charged proportional. 
Now since we are a registered society does this sale deed clause affect our claim for equal maintenance for common maintenance. 
How can we handle this ? What details should we take in to account. 
Can somebody put light on the bylaws of ksra for maintenance. 
There is 130 plus flats who pay 8 k extra as maintenance.
Asked 6 years ago in Property Law
Religion: Hindu

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13 Answers

Dear Client,

Sale deed clause has no validity but as per bye laws and normal way to charge maintenance housing society must follow a combination of per square feet and per flat basis for final calculation of the service charge for various heads.

Two ways to calculate service charge. Flat wise/area wise. Flat - total maintenance charge to be incurred by the society and divides equally among all flat owners irrespective of the size of the flat.

Another way is already in operation by society.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

since your bye laws is silent on basis of maintenance charges the maintenance charges should be equal to all members irrespective of size of flats 

 

2) only water charges , insurance charges should be on basis of area of flats 

 

3) raise the issue in AGM 

 

4) resolution should be passed regarding maintenance charges payable by members 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

See maintenance can be charge area wise or the member wise in karnataka since the undivided share is proportionally more with the bigger flats the maintenance shall be charged accordingly.The maintenance charged by society on sq. Ft. Basis cannot be challenged.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

1. The imposition of maintenance  charge as per area of the flat owner is most logical and hence most states such procedure is adopted in local legislation.

2. The clause mentioned in the sale deed would be effective or binding upon the falt owners as long as the developer the managing the building complex. However once the same is taken over by the registered society , it can frame its won rules or bye laws.

3. So refer to your local laws governing the real estate on this 

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

The common area maintenance is charged by the square feet rate so that the equal distribution of expenses can be loaded to all the apartments this is way of equitable distribution of the expenses because all the apartment holders have rites in the total land of the society.

Society cannot charge equal amount to all the apartment holders as the smallest Apartments will have to end paying much more amount of maintenance which is illogical and unreasonable

Vimlesh Prasad Mishra
Advocate, Lucknow
6851 Answers
23 Consultations

It's illegal to charge it on sqfts. You can Complaint to Dy Registrar for the same

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Dear Sir,

The law is flexible and your management can make rules and amend the same in the General Body Meeting. The various options available are as follows. Nothing will effect the clauses of sale deed.

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Popular methods of calculating Maintenance charges

There are two common ways in which each housing society can decide the service charges for each member. The society is free to choose the design that suits their respective needs. The two popular methods used to calculate maintenance charges are:

Flat Wise: Flat wise service charge module calculates sum or total maintenance charge to be incurred by the society and divides equally among all flat owners irrespective of the size of the flat. This method brings a sense of fairness to each flat owner and society resident. This method is best adopted in housing societies where each flat is of the same size.

Area Wise: Under the Area Wise maintenance charge method, the total costs incurred by the society are charged according to the area in terms of per square feet owned by each member. The common areas are divided equally using a fixed rate while flats are calculated depending on the size of the apartment. For example, If acrate is Rs. 2/sqt then for 1000 sqft flats it is Rs 2000/per month and for 1500 sqft flat it is Rs 3000/per month.

Understanding Maintenance Charge Calculations

Housing societies have the option of charging their maintenance charges in either per square feet or per flat basis. Regulations in most states are not clear, but the model bye-laws of MOFA provide a simple solution. As per the Act, each housing society must follow a combination of per sq ft and per flat for various heads. There are however some exceptions as Co-operative Housing Socities (CHS) are not allowed to levy maintenance charges based on the area of flat of members under MOFA. This was clearly mentioned in the judgment following a writ Petition of Venus CHS Ltd and another, when the cooperative housing society wanted to switched from flat-wise monthly charges to area-wise monthly charges.

 

Kishan Dutt Kalaskar
Advocate, Bangalore
6230 Answers
499 Consultations

Dear Sir,

The following information may kindly be read:

Popular methods of calculating Maintenance charges

There are two common ways in which each housing society can decide the service charges for each member. The society is free to choose the design that suits their respective needs. The two popular methods used to calculate maintenance charges are:

Flat Wise: Flat wise service charge module calculates sum or total maintenance charge to be incurred by the society and divides equally among all flat owners irrespective of the size of the flat. This method brings a sense of fairness to each flat owner and society resident. This method is best adopted in housing societies where each flat is of the same size.

Area Wise: Under the Area Wise maintenance charge method, the total costs incurred by the society are charged according to the area in terms of per square feet owned by each member. The common areas are divided equally using a fixed rate while flats are calculated depending on the size of the apartment. For example, If acrate is Rs. 2/sqt then for 1000 sqft flats it is Rs 2000/per month and for 1500 sqft flat it is Rs 3000/per month.

Understanding Maintenance Charge Calculations

Housing societies have the option of charging their maintenance charges in either per square feet or per flat basis. Regulations in most states are not clear, but the model bye-laws of MOFA provide a simple solution. As per the Act, each housing society must follow a combination of per sq ft and per flat for various heads. There are however some exceptions as Co-operative Housing Socities (CHS) are not allowed to levy maintenance charges based on the area of flat of members under MOFA. This was clearly mentioned in the judgment following a writ Petition of Venus CHS Ltd and another, when the cooperative housing society wanted to switched from flat-wise monthly charges to area-wise monthly charges.

 

Netravathi Kalaskar
Advocate, Bengaluru
4951 Answers
27 Consultations

Usually that the maintainence of apartments shall be regulated by the local acts of the state and varies from city to city and society formed and the rules and regulations framed under the society formed for maintainence of the apartment cant give opinion on the problem need to verify all the above

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

1.  A Mumbai High Court judgement says that in a Society /Association, the Maintenance & Service Charges should be "per unit /flat wise" and not per square feet wise.

2.  The bye-laws of the association needs to be amended, by passing a General Body Resolution and registering the same, on the way for charging service & maintenance charges, else the same will perpetually remain disputable in courts, for claims from defaulter members.

Keep Smiling .... Hemant Agarwal 

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

Under the Karnataka Apartments Act, every apartment is to be considered as a single unit irrespective of its size together with common undivided interest in the common areas and amenities. Moreover, the undivided interest in the appurtenant common areas and facilities which an apartment owner enjoys cannot be separated from the flat(apartment) which he/she owns. Meaning thereby, all the apartment owners in a society have an undivided and common interest in the area and facilities which are to be equally and jointly enjoyed by all. Thus, it cannot be said that the stake of the owners of a bigger flat vis-à-vis the stake of an owners of smaller flat, in the common areas and facilities differs. 

 

 

Even under in the rules framed under the Apartment Act, a provision has been included to levy monthly maintenance charges from all the flat owners; whereas no formula has been prescribed for levying the same. Thus, going by the spirit and intent of the Karnataka Apartment Act, it is clear that the flat owners cannot be charged monthly maintenance charges on the pro-rate basis depending upon the size of the flats owned by them. In any case, the said exercise would be discriminatory and violative of fundamental rights of such flat owners who own a dwelling unit (flat) bigger in size in comparison to owners of smaller flat. 

Vibhanshu Srivastava
Advocate, Lucknow
9763 Answers
323 Consultations

Since this matter is common to all any changes to this decision can be taken only during the annual general meeting of the association.

There is no hard and fast rules to follow a particular system of charging the maintenance amount from its members.

If any demand raised by the management committee without the approval of the  AGM or special meeting then it is illegal demand as per DCS act or as per the DCS rules. 

The member can challenge the same in a court of law and will not be liable to pay any interest on such illegal demand subject to the verdict of the court.

In India, the only Legislation that provides considerable guidance in this matter is from Maharashtra, approved by the Commissioner for Co-operation and Registrar, Cooperative Societies.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

  1. As per the information mentioned in the present query, makes it clear that there has been arbitrary charges asked and paid also by the occupants.
  2. The basic amenities would remain same for everyone then how can they charge on the basis of the area and this is completely injustice even if the same has been stated in the sale deed (if it is there).
  3. You should file a suit for declaring the demands as unjustified and arbitrary before the court of civil law.

Sanjay Baniwal
Advocate, South Delhi
5477 Answers
13 Consultations

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