• Can a residential society registered under 2001 Act collect CAM charges

Hi!
We are a residential society with around 2000 flats in Hyderabad and our association is registered under Societies Act 2001. We have maintenance charges collected by our association per sft and few residents claim that CAM charges cannot be collected under 2001 act. Please let us know if it can be collected or not. 
1. Not sure if our builder registered our society under Telangana Apartments Act 1987 or not.
2. If it is registered under Apartments Act, can the association go ahead and collect CAM charges under 2001 act? 
Any inputs regarding this is greatly appreciated. Thanks in advance.

-Aparna
Asked 6 months ago in Property Law
Religion: Hindu

4 answers received in 2 hours.

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17 Answers

1. The decision about fixing and collecting monthly maintenance amount will be found in the bylaws, you may verify it.

2. Your society should abide by the bylaws in this regard.

 

T Kalaiselvan
Advocate, Vellore
90295 Answers
2513 Consultations

1) CAM charges are fees collected from residents to cover the costs of maintaining common areas and amenities within a housing complex or society. 

 


2) Telangana State Apartment Rules, 2016:

These rules, which are relevant to apartment owners and associations in Hyderabad, outline the responsibilities of apartment owners, developers, and associations regarding maintenance, including common area maintenance. 

 

3) CAM charges are indeed applicable and collectible in Hyderabad, within the framework of the Telangana State Apartment Rules and RERA, provided they are applied transparently and fairly. 

 

Ajay Sethi
Advocate, Mumbai
100092 Answers
8174 Consultations

Any one of the charges will be collected both can’t he collected. If maintenance charges are paid the other charges can’t be levied 

Prashant Nayak
Advocate, Mumbai
34752 Answers
252 Consultations

societies registered under the Telangana Societies Registration Act, 2001,can levy common maintenance charges.

 

2) The Telangana Societies Registration Act, 2001 allows for the formation of societies (including apartment owners' associations). Once registered, these associations have the authority to levy and collect maintenance charges as outlined in their bye-laws.

Ajay Sethi
Advocate, Mumbai
100092 Answers
8174 Consultations

You should register housing society under provisions of housing society registration act of your state 

 

It has been held by telengana HC that registration of society under societies registration act is void ab intio so register your society under provisions of Telangana housing societies act and collect maintenance from members 

Ajay Sethi
Advocate, Mumbai
100092 Answers
8174 Consultations

A residents’ association registered under the Telangana Societies Registration Act, 2001 (“2001 Act”) can collect maintenance (CAM) charges from members if such collection is expressly provided for in its registered bye-laws and agreed to by the members at the time of formation or upon joining the society.

The 2001 Act itself does not specifically mention maintenance charge collection. It is a facilitative statute that provides a framework for any group with a common objective to form a society, adopt bye-laws, and manage collective affairs—such as educational, cultural, charitable, or other “public purpose” groups. In practice, many residential societies across Telangana and Andhra Pradesh, especially where flat ownership is still not transferred under the Apartments Act or where formal conveyance is pending, are registered under the 2001 Act and function as RWAs with powers conferred under their bye-laws.

The key points for your context:

  • If your association’s bye-laws clearly authorize collection of CAM or maintenance charges from members for upkeep of common areas and services, and those bye-laws are adopted in accordance with the 2001 Act, the association has legal authority among its members to collect such charges—even if the Act does not spell out this power.

  • Courts have typically upheld the validity of maintenance collection by societies/associations where the majority of residents/members have consented to the bye-laws (see WP No. 3319 of 2013 and related judgments), especially where such societies are the only functioning resident body.

  • The argument that only a Co-operative Society under state co-operative laws or under the Telangana Apartments (Promotion of Construction & Ownership) Act, 1987 (“Apartments Act”) can collect maintenance is not fully correct. While the Apartments Act and co-operative society statutes have explicit provisions for common area management, a registered RWA under the 2001 Act can also function to collect, manage, and enforce maintenance charges so long as this is provided for in its bye-laws and agreed to by the members.

  • Registration type may affect some statutory protections, procedures (e.g., for recovering dues in government forums), and may not confer some regulatory benefits, but it does not alone invalidate maintenance collection in an established RWA.

If your association is also registered or recognized under the Apartments Act, it may have additional statutory rights/powers, but it is not compulsory for an RWA to be a co-operative society or under Apartments Act to lawfully collect CAM charges—bye-laws and member approval are the core authority for a Society under the 2001 Act.

In summary:
If your association’s bye-laws authorise collection of CAM charges and the residents are members, the association can collect such charges under the 2001 Act. This has been upheld by courts provided due process of adoption and collection is followed. The distinction is more about regulatory powers/enforcement mechanisms, not the basic ability to collect CAM among consenting members.

If you need sample case law, WP No. 3319 of 2013 does not bar associations under the 2001 Act from collecting maintenance if it is in the bye-laws and the association operates as per those bye-laws.

 

Yuganshu Sharma
Advocate, Delhi
1175 Answers
5 Consultations

As per judgment of HC it cannot be registered under societies registration act 2001

Ajay Sethi
Advocate, Mumbai
100092 Answers
8174 Consultations

Dear Aparna,

I refer to your query regarding the collection of Common Area Maintenance (CAM) charges by your residential society registered under the Telangana Societies Registration Act, 2001 ("2001 Act").

The 2001 Act serves as a general framework for registering societies formed for a variety of objects such as the promotion of arts, culture, education, charity, or other public purposes. Although the Act does not specifically mention the collection of maintenance or CAM charges, it enables the registered society to adopt bye-laws that govern the management of the society and its affairs.

In practice, many residential societies across Telangana, including those with large memberships such as yours, are registered under the 2001 Act where formal registration under the Telangana Apartments (Promotion of Construction & Ownership) Act, 1987 ("Apartments Act") or as Cooperative Societies has not been made. In such cases, the authority to collect CAM or maintenance charges arises primarily from the society's registered bye-laws and the consent of the members who form part of the society.

Your association’s bye-laws, if they explicitly authorize the collection of CAM or maintenance charges from members for upkeep and management of common areas, provide a lawful basis for such collection. This is further supported by legal precedents where courts have upheld the validity of maintenance charge collections by societies under the 2001 Act, especially when members have broadly consented to the bye-laws and the association functions in accordance with them (referencing WP No. 3319 of 2013 and related judgments).

The argument that only a Cooperative Society or an association registered under the Apartments Act can collect maintenance charges is not entirely accurate. While those registration types provide explicit statutory provisions and procedural mechanisms for maintenance collection and enforcement, societies registered under the 2001 Act are not precluded from collecting CAM charges from their members if the bye-laws expressly confer such power.

If your society also happens to be registered or recognized under the Apartments Act, additional statutory rights may be applicable; however, this is not a precondition for the lawful collection of maintenance charges. The key determinant remains the bye-laws adopted under the 2001 Act and the members’ approval thereof.

Regarding your concern about registering an RWA under the 2001 Act despite the specified objectives in the Act, it is important to note that residential societies have commonly been registered under this Act, and such registration does not, in itself, invalidate the society’s existence or its functioning. Courts have not disallowed registration of RWAs under the 2001 Act simply because their objectives may not fall precisely within the categories listed in the Act.

In conclusion, your society can legally collect CAM charges under the 2001 Act if your registered bye-laws authorize such collection and the members have consented. This issuance of maintenance charges is supported by judicial decisions, and the registration type primarily impacts procedural enforcement rather than the fundamental authority of collection.

It is advisable to ensure your bye-laws are clear on the matter, properly adopted, and that all members are informed of their obligations. Should any disputes arise, your society's compliance with due process and documentation of member consent will be critical.

Please feel free to reach out should you require assistance in reviewing your bye-laws or further legal guidance on this matter.

Yuganshu Sharma
Advocate, Delhi
1175 Answers
5 Consultations

Yes you can register the same

Prashant Nayak
Advocate, Mumbai
34752 Answers
252 Consultations

The housing societies registered under the Telangana Societies Registration Act, 2001, can levy Common Area Maintenance (CAM) charges. The Act allows societies to manage their affairs, which includes collecting funds for maintenance and upkeep of common areas. The Act allows for the registration of various types of societies, including those focused on housing. The Act enables societies to collect funds from their members, which can be used to maintain common areas, pay for services, and address other expenses related to the society's operation. 

T Kalaiselvan
Advocate, Vellore
90295 Answers
2513 Consultations

The Act allows for the registration of various types of societies, including those focused on housing.The Act enables societies to collect funds from their members, which can be used to maintain common areas, pay for services, and address other expenses related to the society's operation.If your housing society's association’s bye-laws authorize collection of CAM or maintenance charges from members for upkeep of common areas and services, and those bye-laws are adopted in accordance with the 2001 Act, the housing society on the basis of the bylaws,  lcan very well  collect such charges—even if the Act does not spell out in particular.

 

T Kalaiselvan
Advocate, Vellore
90295 Answers
2513 Consultations

It is registered under society's act as a welfare organisation for the members of the complex observing the bylaws meant for it. If the society is registered then it becomes a legal body/entity, hence can adopt the bylaws authorising the housing society to collect maintenance amount for maintaining the Common areas 

If you all decide about registering RWA , then you can pass a resolution in the society's next AGM and proceed accordingly, once the RWA is registered, then this housing society can be disbanded or dissolved  on the basis of the resolution passed accordingly.

T Kalaiselvan
Advocate, Vellore
90295 Answers
2513 Consultations

No, RWAs cannot legally register under Telangana Societies Registration Act 2001.

Legal Position:

  • WP No. 3319 of 2013 ruled that residential societies focused on apartment maintenance don't qualify as "public purpose" under Section 3(1)

  • Court declared such registrations void ab initio (invalid from the beginning)

  • RWAs don't fall under any of the specified categories (art, charity, sports, etc.)

Current Status:

  • Your registration is legally invalid for maintenance collection

  • Even with bylaws mentioning maintenance, the underlying registration lacks legal authority

Solution:
Must re-register as:

  • Cooperative Housing Society under Telangana Cooperative Societies Act, or

  • MACS (Mutually Aided Cooperative Society)

Bottom Line: Your 2000-flat society cannot collect CAM charges under current 2001 Act registration. Immediate re-registration required to avoid legal challenges from residents.

Shubham Goyal
Advocate, Delhi
2155 Answers
17 Consultations

It would be applicable to all RWA 

Ajay Sethi
Advocate, Mumbai
100092 Answers
8174 Consultations

In Telangana, it is mandatory for apartment associations to register either under the Telangana Cooperative Societies Act or the Telangana Mutual Aided Co-operative Societies Act. The Telangana HC has stayed a memo that allowed registration under the Telangana Societies Registration Act, emphasizing the need for registration under the Cooperative Societies Acts. This act provides the legal framework for individual ownership of apartments and shared ownership of common areas and facilities. These acts govern the registration and functioning of cooperative societies, including apartment owners' associations. Rule 7 of the relevant act mandates that apartment associations in Telangana must register under one of the Cooperative Societies Acts. Registration under the Cooperative Societies Act provides legal recognition to the apartment association, enabling it to manage the affairs of the building, represent apartment owners, and take legal action when necessary. A registered association can manage common areas, collect maintenance charges, resolve disputes with builders, and represent the interests of apartment owners. 

T Kalaiselvan
Advocate, Vellore
90295 Answers
2513 Consultations

It’s applicable to both 

Prashant Nayak
Advocate, Mumbai
34752 Answers
252 Consultations

Yes, WP 3319/2013 applies to all RWAs, old or new.

Shubham Goyal
Advocate, Delhi
2155 Answers
17 Consultations

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