• Maintenance issue

Sir, my society got the possession and Society formation as per the below dates.

Possession Date - 1st July 2014 (under Builder)
Society formation - 1st July 2019
need your expert opinion, In my society there are lot of members who had paid their maintenance to builder and took the Share certificate from him. There are other who had not paid the maintenance to builder post their possession till society formation, due to which builder has refused to do conveyance of society. 
Now since society is formed, we have requested the defaulters to now pay their pending maintenance that they were liable to pay to Builder from the possession date till society was formed to the society account. can the society recover those maintenance from owner who had not paid to builder and if yes then under which act or any case reference
Asked 4 hours ago in Property Law
Religion: Other

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2 Answers

1) Society can recover maintenance from defaulters Once a buyer takes possession of a flat (1st July 2014), they become liable for maintenance charges, regardless of whether the society is formed or not

 

 Once formed, the society steps into the shoes of the builder for all maintenance-related issues. The developer must hand over the maintenance fund and the list of arrears to the committee, enabling the society to collect arrears.

 

 

2) issue legal notice to defaulters to pay the dues 

 

3) if they fail to pass resolution for taking legal proceedings against defaulters 

 

4) take legal proceedings against defaulters under provisions of Maharashtra cooperative societies act 

 

5) A builder cannot use outstanding dues of a few members as a blanket reason to refuse Conveyance/Deemed Conveyance of the society, as per Section 11 of the Maharashtra Ownership Flats Act (MOFA), 1963. The society can proceed with conveyance while simultaneously recovering dues from those specific members

Ajay Sethi
Advocate, Mumbai
100357 Answers
8201 Consultations

Under the Real Estate (Regulation and Development) Act, 2016 (RERA) and various state-specific acts (like MOFA in Maharashtra), an allottee (buyer) is legally obligated to pay maintenance charges from the date of possession.

As per section 19(6) of RERA every allottee who has entered into an agreement for sale shall be responsible to make necessary payments, including maintenance charges, as specified in the agreement. Even if the society wasn't formed, the builder provided services (security, water, electricity, cleaning). If some members paid and others didn't, the defaulters are effectively enjoying services funded by their neighbors.

The builder should ideally provide a Statement of Accounts showing the arrears for each flat. To make the Society the legal "collector," there should be a formal handover document or a clause in the transition agreement where the builder assigns the right to collect these arrears to the Society. If the builder hasn't officially "gifted" or assigned these arrears to the society, a smart lawyer for a defaulter might argue that the debt is owed to the builder, not the society.The Managing Committee should pass a formal resolution in a General Body Meeting (GBM) stating that all pending dues from the date of possession are now payable to the Society to facilitate the Conveyance Deed.

Regulatory Authority (MahaRERA) has ruled that once possession is offered/taken, the buyer cannot escape the liability of maintenance, regardless of whether the society is registered yet.

Generally, debt recovery has a 3-year limit. However, in housing societies, since these are "continuing breaches" and linked to the Share Certificate and Membership, societies often successfully recover older dues during the transfer of the flat or through the Registrar.

T Kalaiselvan
Advocate, Vellore
90561 Answers
2522 Consultations

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