AHMEDABAD: Gujarat Real Estate Regulatory Authority (GujRERA) has held that a developer must pay maintenance charges for unsold units to a housing society from the date Building Use (BU) permission is granted until the units are sold to allottees.
In an order involving a housing service society in Vastrapur, the authority said the promoter remains responsible for “running maintenance” for flats or units that have not been sold. The society had approached GujRERA alleging that the developer had not paid maintenance for unsold units, resulting in an additional financial burden on existing residents.
According to the complaint, the project received BU permission in 2019. The society argued that the developer continues to be the owner of the unsold units and, like other allottees, is liable to contribute to common expenses and maintenance charges. A consultant said, “This judgement will impact many societies because non-payment by the promoter effectively shifts the cost of maintaining common areas and services onto the members who have already taken possession.”
After hearing the matter, GujRERA directed the developer to pay the pending maintenance for the unsold units to the society. The authority relied on provisions of the Real Estate (Regulation and Development) Act, 2016, including Section 11(4)(g) and Sections 17(1) and 17(2).
The order reinforces that promoters cannot avoid maintenance liabilities for inventory that remains unsold after BU permission.
