• When can builder charge maintenance before or after OC

I have a flat in a certain building where the builder is charging advance maintenance since year 2014 whereas he has received the OC only in the year 2018. He has not handed over the society yet . Now the members of the building are having discussion about maintenance . I know that maintenance is to be chargee only after OC is received but a lot of members don't have any idea about it. I want a reference of an act or book or PDF where I can show to the other members that the builder can only charge us maintenance after the occupancy certificate he been received and the builder is committing a fraud here. 
Please help me with the book and specific act as I have to represent my point legally in front of other members . They to scared to approach lawyers as the society formation might get delayed andyet no one wants to spend on the fraud money being asked. 
Please help me with the book or act and the section contained in it
Asked 4 years ago in Property Law
Religion: Hindu

2 answers received in 30 minutes.

Lawyers are available now to answer your questions.

13 Answers

Dear Client,

Without a valid OC, your occupancy is illegal as it can be classified as an unauthorized structure by the authorities. Hence, no MC can be charge on illegal occupation, further builder is liable to compensate for the period without OC. So, MC will adjust with that compensation.

Approach consumer court/RERA.

Recent order delivered by RERA that No builder can ask for maintenance fees until the OC is obtained.

Yogendra Singh Rajawat
Advocate, Jaipur
22630 Answers
31 Consultations

4.4 on 5.0

builder cannot deliver possession of flat before obtaining OC 

 

2) maintenance can be recovered after obtaining OC 

 

3) you should not take possession and sue the builder before consumer forum to direct builder to obtain OC within stipulated period 

Ajay Sethi
Advocate, Mumbai
94695 Answers
7527 Consultations

5.0 on 5.0

1. You can find such judgments in website of Consumer Court of Mumbai. There are many such orders.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

Without fail, file consumer complaint. You are entitle to compensation for not providing OC through CC.

And refund of MC paid till date with interest for charging MC without OC through RERA.

Judgements 

Yogendra Singh Rajawat
Advocate, Jaipur
22630 Answers
31 Consultations

4.4 on 5.0

No Builder Can Ask For Maintenance Fees Until The OC Is Obtained: MahaRERA

 

in your case you have taken possession of flat . builder can then recover maintenance from you 

Ajay Sethi
Advocate, Mumbai
94695 Answers
7527 Consultations

5.0 on 5.0

The Occupancy Certificate (OC) is a document issued by a statutory authority (such as BBMP and BDA in Bangalore) and it gives the applicant (builder) permission to “occupy” the property.

No Occupancy Certificate means that the building has not been given a “Pass Certificate”. This means that it does not have all the mandatory infrastructure/ clearances that make the building inhabitable.

Builders, without fulfilling the mandatory terms of sanction and/or promises to the buyers are eager to hand over and move on to the next project. By getting people to live in the flats, they create a shield for themselves. They also escape from the delay penalty clauses that are in the agreement. 

Most buyers do not pay much heed to maintenance charges in the initial stage of booking, but it comes back to haunt them as the possession date nears.

The builders may ask for 12 months, or 24 months, of maintenance charges in advance at the time of possession. Once handed over to the RWA, the frequency of collecting the maintenance charges is decided by it.

As a resident paying maintenance charges, you can look at the actual amount spent by the builder on maintenance, along with the break-up

"It is the residents' right to be aware of the amount spent by the builder on maintenance. Till a society is formed, a builder pays for the maintenance and has to keep his books open for scrutiny by the residents."

If the owner has put his flat on rent, it still doesn't absolve both him and the tenant from the responsibility of paying maintenance charges. The final responsibility even if the flat remains unoccupied, rests with the owner.

Maha RERA has ruled against the builders asking them not to charge maintenance fees to those buildings which have not received an OC to those buyers who did not take possession.

 

T Kalaiselvan
Advocate, Vellore
84895 Answers
2190 Consultations

5.0 on 5.0

OC has to be obtained by the Builder before handing over / taking over of property

If it is not done, your possession will be that of unauthorized occupant.

You can give notice to the Builder to obtain OC.

Builder can charge maintenance from date taking over possession.

 

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

5.0 on 5.0

Builders, without fulfilling the mandatory terms of sanction and/or promises to the buyers are eager to hand over and move on to the next project. By getting people to live in the flats, they create a shield for themselves. They also escape from the delay penalty clauses that are in the agreement. - Buyers are eager to take possession of their homes. Many are not even aware of OC and what it means. - Water, sanitary and electrical connections are being given on a permanent basis even without OC. - There are tenants waiting to rent the property. - The law is not being enforced by the government authorities. Finally, it is the buyer who pays the price.

In your case you can either wait or make the payments with objection by which you can take the builder into legal task or drag him to consumer forum for deficiency of service to not provide you the OC.

T Kalaiselvan
Advocate, Vellore
84895 Answers
2190 Consultations

5.0 on 5.0

Yes it can only be charged after oc. But for that you should not take possession of the flat. As taking possession before of is also illegal. So if you have not taken possession then builder can't charge maintenance

Prashant Nayak
Advocate, Mumbai
31930 Answers
179 Consultations

4.1 on 5.0

there is no book or act which specifically states this

it is based on common sense

if something which is not possessed by you then how can you be liable to pay maintenance for it?

the flat buyer gets possession only on receipt of OC and only from the date of OC or the actual date on which he was given possession [obviously after OC only], does his liability to pay maintenance arises and not before that 

infact the builder buyer agreement itself would have this stipulation that the buyer becomes liable for paying maintenance only after he is given possession. Now after putting the buyer in possession, the builder can also charge from him advance maintenance and this advance has to be used by the builder only for the purpose of maintenance and if in meanwhile the management is given to society then any surplus which remains with the builder would have to be passed on by him to the society and the society would then give credit to the buyer/its member for the period which is sufficiently covered by the advance maintenance paid by the buyer

 

Yusuf Rampurawala
Advocate, Mumbai
7509 Answers
79 Consultations

5.0 on 5.0

the said builder is not eligible to claim maintenance before the completion of the total facilities. First he is required to complete everything then he can ask for the maintenance charges. Also, if you want to, then you can file a complaint in the consumer forum for deficiency in services.

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

you can download from official website of maharera 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Dear 

The builder can charge the maintenance from the date when the owner take possession of flat.

Once the possession is handed over to owner then It doesn't matter that OC have been obtained or not. 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer