In a significant ruling protecting the rights of homebuyers, the Haryana Real Estate Regulatory Authority (HRERA), Gurugram Bench, has directed BPTP to refund ₹1,16,545 collected as maintenance charges from a homebuyer before handing over physical possession of the apartment. The Authority also ordered the builder to pay interest at 11% per annum from the date of collection until realization of the refund.
Apart from the refund, the Authority awarded ₹1 lakh as compensation for mental agony and ₹50,000 towards litigation costs, reiterating that builders cannot compel buyers to pay maintenance charges before actual possession is delivered.
Background of the Case
The order was passed by the Adjudicating Officer of Haryana RERA, Gurugram, in Complaint No. 531 of 2024, filed by an allottee of an apartment in Park Spacio, a residential project located in Sector 37D, Gurugram.
The complainant alleged that the promoter had made payment of maintenance charges a pre-condition for handing over possession of the apartment.
According to the homebuyer, there was no clause in the Builder-Buyer Agreement permitting the developer to recover maintenance charges before physical possession was delivered.
Homebuyer Challenged Advance Maintenance Demand
The complainant argued that:
- The builder demanded ₹1,16,545 as advance maintenance charges.
- The amount was collected before handing over possession of the apartment.
- The Builder-Buyer Agreement contained no provision authorising such collection.
- The developer wrongly withheld possession until the maintenance charges were paid.
The buyer approached Haryana RERA seeking refund of the amount along with appropriate compensation.
Haryana RERA’s Observations
After examining the records, the Authority observed that the builder did not dispute the fact that maintenance charges had been demanded before handing over possession.
The Adjudicating Officer held that a promoter cannot make advance payment of maintenance charges a condition for handing over possession.
The Authority observed that possession of a unit cannot be denied merely because the allottee has not paid maintenance charges in advance.
Refund with 11% Interest Ordered
HRERA directed BPTP to:
- Refund ₹1,16,545 collected towards maintenance charges.
- Pay 11% annual interest from the date the amount was collected until the actual refund is made.
The Authority held that the amount had been recovered contrary to the rights available to homebuyers under the applicable legal framework.
Compensation for Mental Agony and Litigation Costs
Recognising the hardship caused to the homebuyer, Haryana RERA further awarded:
- ₹1,00,000 as compensation for mental agony and harassment.
- ₹50,000 towards litigation expenses.
The Authority noted that unnecessary demands and withholding possession create avoidable financial and mental stress for purchasers.
Authority Clarifies Position on Maintenance Charges
While passing the order, the Adjudicating Officer made an important observation regarding maintenance charges.
The Authority stated:
“No promoter is entitled to collect maintenance charges in advance before handing over possession of the unit. Promoters should educate people in this regard and work as per RERA rules.”
The observation reinforces that maintenance obligations generally arise after possession is handed over and services are made available to the allottee.
Builder Responds to the Order
Responding to the development, Rohit Mohan, President – Business Development, BPTP, stated that the company had not yet been formally served with the order.
According to the statement:
- The company will review the order after receiving a certified copy.
- Appropriate legal remedies will be considered, if required.
Significance of the Ruling
The decision serves as an important reminder that developers cannot impose financial conditions beyond the terms of the Builder-Buyer Agreement or applicable law before handing over possession.
The order also strengthens the principle that:
- Maintenance charges should not be collected prematurely.
- Builders cannot delay possession due to non-payment of advance maintenance.
- Homebuyers are entitled to seek refunds, interest, and compensation where unlawful demands are made.
The ruling is expected to provide guidance in similar disputes involving advance maintenance charges across real estate projects.
