Supreme Court’s Latest Ruling on Society Maintenance Charges:
What You Must Know
April 9, 2025
If you’re a homebuyer, a resident of a housing society, or planning to invest in
housing projects in Bangalore, it’s important to understand how society
maintenance charges work. A recent Supreme Court judgement on society
maintenance charges has clarified responsibilities, rights, and fair practices around
how these charges should be applied and managed.
Understanding this ruling, along with the RERA rules for maintenance charges and
the impact of GST on society maintenance, is crucial for homebuyers who want a
transparent and hassle-free living experience.
What Are Society Maintenance Charges?
Maintenance charges refer to the recurring fees collected from property owners to
manage and maintain shared spaces and services in a residential society. These
typically include:
Cleaning of common areas
Security and surveillance
Lift maintenance
Garden and landscape upkeep
Water and electricity in common areas
Repairs to shared infrastructure
These charges apply whether you reside in the unit or not. This principle was
recently upheld in the Supreme Court judgement on society maintenance charges,
which reaffirmed that all flat owners are equally responsible for maintaining the
shared facilities, regardless of occupancy.
Supreme Court Judgement on Society Maintenance Charges
In a notable ruling, the Supreme Court clarified that maintenance charges must be
reasonable, transparent, and mutually agreed upon. Builders cannot arbitrarily
impose fees or change the terms once the buyer agreement is signed.
The Court further stated:
Maintenance charges must be outlined clearly in the sale agreement.
Builders are responsible for upkeep until the Resident Welfare Association
(RWA) is officially formed.
These charges should not be used for purposes unrelated to the maintenance
of common facilities.
This decision empowers homeowners and holds developers accountable, especially
in growing urban markets.
RERA Rules for Maintenance Charges
Real Estate Regulatory Authority (RERA) plays a key role in defining fair housing
practices. Under RERA rules for society maintenance charges, the following points
are mandated:
1. Advance Maintenance Should Be Limited
Builders are allowed to collect advance maintenance charges, but usually not more
than one year’s worth, and only until the RWA takes over.
2. Complete Transparency Required
As per RERA rules for maintenance charges, developers must provide buyers with a
breakdown of the amount, frequency, and exact usage of these charges.
3. No Profit-Making from Maintenance
The law clearly states that maintenance charges must not be a source of profit for
developers. They are strictly for operational and upkeep purposes.
4. Separate Maintenance Account
Funds collected must be deposited into a dedicated maintenance account, which can
be audited and reviewed by the residents.
These safeguards offer much-needed clarity for buyers considering under-
construction projects in Bangalore or any other city.
GST on Society Maintenance
Another important factor to consider is GST on society maintenance. According to
current regulations:
If monthly maintenance charges exceed ₹7,500 per flat, GST at 18% is
applicable.
Societies with annual turnover above ₹20 lakh must register for GST and
comply.
If the charge is ₹7,500 or less, GST is not applicable.
This GST provision is often overlooked, but it can significantly impact your annual
housing costs.
Society Maintenance Rules: Your Rights and Duties
Each housing society operates under a set of society maintenance rules that guide
how maintenance is collected, managed, and utilised. These may include:
Due dates for fee payments
Late payment penalties
Voting rights tied to payment status
Budget allocation for repairs and upgrades
Whether you live in a small housing society or a large, gated community, it’s
essential to familiarise yourself with these society maintenance rules. They ensure
you know where your money goes and how to voice your concerns.
Methods of Calculating Maintenance Charges
Societies generally adopt one of the following three methods to determine how much
each resident pay:
Per Square Foot: Maintenance is calculated based on the area of the flat.
Larger units pay more.
Equal Division: Every unit pays the same amount, regardless of the size.
This is common where units are uniformly sized.
Hybrid Model: A fixed base charge applies to all, plus a variable component
based on square footage.
The chosen model must be transparent and approved by either the developer or the
residents’ association.
What This Means for Upcoming Projects in Bangalore
With Bangalore’s real estate sector growing rapidly, under-construction projects in
Bangalore must now be more compliant than ever. Buyers must ensure that:
Maintenance charges are clearly defined in the sale agreement.
No ambiguous or hidden costs are levied.
GST and other applicable charges are communicated upfront.
We at Casagrand ensure that our under-construction projects in Bangalore comply
with RERA rules and the latest Supreme Court judgement on society maintenance
charges. This guarantees homebuyers fair treatment and full transparency from the
outset.
Make Wise Financial Decisions for Your Humble Abode
With the latest Supreme Court judgement on society maintenance charges and strict
RERA rules for maintenance charges in place, homeowners now have more power
and clarity than ever. Understanding how maintenance charges are calculated, what
rules apply, and when GST on society maintenance kicks in can help you make
smarter housing decisions.
If you’re moving into a completed flat or looking at an under-construction project, it’s
better to be informed and get what you pay for—nothing more, nothing less.
