The Punjab Real Estate Regulatory Authority (Punjab RERA) has passed a significant order in a dispute involving maintenance charges and formation of an apartment owners’ association in the Victoria Heights housing project at Peer Muchalla, Mohali. While the authority directed a flat owner to pay over ₹24.13 lakh towards pending maintenance dues and interest, it also held the developer accountable for failing to adequately assist in forming an Apartment Owners’ Association (AOA) and maintaining transparent governance.
The ruling highlights that both homebuyers and developers have responsibilities under the Real Estate (Regulation and Development) Act, 2016 (RERA) and that compliance is mandatory for ensuring smooth management of residential projects.
Background of the Case
The complaint was filed by M/s Fortune Multitech Pvt. Ltd., the developer of the Victoria Heights project, against allottee Pooja Goyal under Section 31 of the RERA Act.
According to the developer:
- Apartment No. 202 in Tower-1 was purchased by the allottee.
- Possession of the flat was handed over on September 28, 2017.
- A buyer agreement dated June 22, 2017 required the allottee to pay monthly maintenance charges from the date of possession.
- Despite availing common facilities and maintenance services, the allottee allegedly failed to pay maintenance charges.
Homebuyer Raised Concerns Over Maintenance Services
The allottee disputed the maintenance demand and argued that the developer had not provided satisfactory services.
Key issues raised included:
- Poor lift maintenance
- Water supply concerns
- Inadequate power backup
- Deficiencies in common area upkeep
- Parking-related issues
- Problems with gymnasium facilities
- Lack of transparency in maintenance accounts
- Absence of a separate maintenance agreement
The allottee contended that without proper services and transparent accounting, the maintenance charges demanded were unjustified.
Punjab RERA: Maintenance Charges Cannot Be Avoided
Punjab RERA rejected the argument that maintenance charges were not payable due to the absence of a separate maintenance agreement.
The authority observed that:
The obligation to pay maintenance charges arose directly from the Buyer Agreement itself and remained enforceable irrespective of whether a separate maintenance contract was executed.
Accordingly, the authority calculated:
- Maintenance Dues: ₹22,80,800
- Interest (up to May 31, 2026): ₹1,32,683
- Total Amount Payable: ₹24,13,483
Punjab RERA directed the allottee to clear the outstanding amount within 90 days.
Recovery Proceedings May Follow Non-Payment
The authority warned that if the amount is not paid within the prescribed period, recovery proceedings may be initiated under the provisions of the RERA Act.
Under RERA, unpaid dues can be recovered as arrears of land revenue, giving authorities significant powers to enforce compliance.
Developer Also Found Responsible
While directing the allottee to pay maintenance dues, Punjab RERA also made important observations against the developer.
The authority held that the promoter had failed in its statutory responsibility to:
- Assist in forming an Apartment Owners’ Association (AOA)
- Facilitate smooth transfer of management responsibilities
- Ensure transparent maintenance accounting
- Promote effective participation of apartment owners in project governance
Formation of Apartment Owners’ Association Mandatory
Punjab RERA emphasized that developers are required to assist and facilitate the formation of an Apartment Owners’ Association in accordance with the Punjab Apartment Ownership Act, 1995.
The authority directed the developer to:
- Take necessary steps for establishing the Apartment Owners’ Association.
- Maintain transparent and audited maintenance accounts.
- Cooperate with apartment owners in ensuring proper management of the project.
Significance of the Ruling
This order is significant because it balances the rights and obligations of both parties:
For Homebuyers
- Maintenance charges cannot be withheld solely because of disputes regarding services.
- Buyer agreements create binding obligations that must be honored.
- Residents can seek transparency and accountability from developers.
For Developers
- Collection of maintenance charges must be supported by proper accounting.
- Developers must actively facilitate the formation of Apartment Owners’ Associations.
- Transparent governance and audited accounts are essential requirements under RERA.
Conclusion
The Punjab RERA ruling in the Victoria Heights case reinforces an important principle: homebuyers must pay legitimate maintenance charges, while developers must ensure transparency, accountability, and proper handover of project management through legally constituted owners’ associations.
The order serves as a reminder that maintenance disputes cannot be resolved by unilateral non-payment, and developers cannot indefinitely retain control without facilitating resident participation through an Apartment Owners’ Association.
