Bombay High Court Rules: Larger Flats Must Pay Higher Maintenance Charges

The Bombay High Court (HC) has issued a significant ruling that flat owners with larger apartments must pay higher maintenance charges in housing complexes, as per the provisions of the Maharashtra Apartment Ownership Act, 1970. This decision comes in response to a dispute at Treasure Park, a residential complex in Pune comprising 356 flats across 11 buildings.

The condominium’s managing body had initially passed a resolution to levy equal maintenance charges on all flat owners, irrespective of apartment size. However, owners of smaller flats challenged this decision in 2022, arguing that it violated the law. According to the law, maintenance costs must be shared based on each owner’s undivided share of the common areas, which is determined by the size of the apartment.

The deputy registrar of co-operative societies agreed with the smaller flat owners and ordered the condominium to charge maintenance fees proportionally. Owners of larger flats, unhappy with this order, first approached the Co-operative Court in Pune, but their case was dismissed in May 2022. They then moved to the Bombay HC, where they argued that maintenance is used for common areas and amenities used equally by all residents, and that assuming bigger flats have more residents and therefore must pay more is unfair.

The Bombay HC, however, disagreed with the flat owners of larger flats who challenged the Co-operative Court of Pune. Justice Milind Jadhav stated that both the law and the condominium’s own declaration documents support proportionate maintenance based on apartment size. Dismissing the petition, the court ruled that flat owners with larger homes must pay a larger share of the maintenance costs, as they hold a greater undivided interest in the common areas.

According to legal experts, the confusion among flat owners in Maharashtra stems from the absence of a uniform law governing maintenance charges, with multiple regulatory mechanisms in place. Experts advise that the first step is for apartment owners to determine whether their building is registered under the Maharashtra Apartment Ownership Act, 1970 (MAOA) or a different framework.

'The provisions of the Maharashtra Apartment Ownership Act, 1970 (MAOA) and covenants in the Deed of Declaration apply to the apartment owners in a condominium set up under the MAOA, 1970. As per the Bombay High Court ruling, in a condominium set up, an apartment owner who holds a higher proportionate value and size (area) of their apartments must contribute to common area maintenance charges proportionately,' said Trupti Daphtary, an advocate and solicitor based in Mumbai.

In contrast, for members of a housing society, it is the provisions of the Maharashtra Co-operative Societies Act, 1960 (MCS Act) that apply. In 2002, the Bombay High Court, in the case of Venus Co-operative Housing Society Ltd. vs. Dr. J.Y. Detwani, ruled that there is no rational basis for a co-operative society to levy maintenance charges based on the size of the flats. However, the Model Bye-law for the co-operative housing societies in Maharashtra has a provision for repairs and maintenance charges to be levied on members, and certain charges could vary based on flat area.