Mumbai Housing Society Queries: 'Builder Cannot Avoid Paying Maintenance For Unsold Flats,' Says Expert

Mumbai Housing Society Queries: 'Builder Cannot Avoid Paying Maintenance For Unsold Flats,' Says Expert

The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat.

FPJ News ServiceUpdated: Monday, March 30, 2026, 11:01 AM IST
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Mumbai Housing Society Queries: 'Builder Cannot Avoid Paying Maintenance For Unsold Flats,' Says Expert | File Pic (Representative Image)

In our society, some members have not attended the general meeting even once. Can we penalise them? K Nandakumar, Mumbai

It is the shared responsibility of each member to cooperate and participate in the society's smooth functioning. It is also each member's right to participate and vote in the general body meetings. However, there are always some members who never show up. Please note there is no specific provision to levy fines or penalties on such members. Bylaw 165 provides for penalties for the breach of bylaws as approved by the general body. However, such a penalty cannot exceed Rs5,000 in any financial year. Secondly, penalties can be levied for encroachment of common spaces, as per bylaw 169(a). This levy may extend up to five times the monthly maintenance charges for the period of encroachment of common spaces. It is advisable to speak with such members and convince them to participate in the society meetings.

Can a builder avoid paying maintenance for unsold flats in a redevelopment project? Rushab K, Mumbai

No, a builder cannot avoid paying maintenance for unsold flats in any real estate project, including the redevelopment project. As per section 11(4)(a) of RERA, the promoter (builder) is responsible for complying with all obligations, responsibilities and functions under the provisions of RERA or the rules framed thereunder in respect of allottees as per the agreement of sale or to the association of allottees till the conveyance of all apartments to allottees or common areas to the association of allottees. Further, section 11(4)(g) provides that the promoter is responsible to pay all outgoings until he/she transfers the physical possession to the allottee or the association of allottees as the case may be.

In the recent judgement of Aspandiar Rashid Irani and Anr vs Pasayadan CHS Ltd (2026), the Bombay High Court held that maintenance charges are recurring statutory obligations and liability follows the flat. The court ruled that society dues attach to the premises and hence the person in possession or enjoyment of the flat is liable to pay. Liability exists even without formal membership or registered agreement. This principle directly applies to developers holding unsold flats because they are owners representing the premises. Therefore, they must pay maintenance. Though there is a legal provision, it is better to include a clause to this effect in the development agreement to avoid any future dispute over maintenance of unsold flats.

The society has admitted me and my brother as the provisional members following our father’s demise. Can we attend the meetings and vote in the special general body meeting? Vinita Sutha, Thane

You and your brother have been admitted as the provisional members on the basis of nomination registered by your late father. This is a temporary arrangement till lawful member/s is/are taken on record by the society. A provisional member can attend the special or general body meeting and also vote in accordance with the provisions of sub-section (3) under section 154B-11 of the Maharashtra Co-operative Societies Act. In case, the ownership is in the name of more than one person, the individual whose name appears first generally attends the meetings. However, with the written consent of the first member, the person whose name appears second may attend the meeting and vote if the first member is unavailable.

The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat. The questions, in brief, may be sent to mpanchayat@gmail.com

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