High Court Rules: Larger Apartments Pay Higher Maintenance Fees

The Bombay High Court has ruled that flat owners with larger apartments must pay higher maintenance charges in housing complexes, in line with the Maharashtra Apartment Ownership Act, 1970. This decision came in a dispute involving Treasure Park, a residential complex in Pune with 356 flats across 11 buildings.

The condominium’s managing body had initially passed a resolution to collect equal maintenance charges from all flat owners, regardless of the flat size. However, this decision was challenged by owners of smaller flats in 2022. They argued that it violated the law, which clearly states that maintenance costs must be shared based on each owner’s undivided share of the common areas—something that depends on 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. Dissatisfied with this order, the owners of the larger flats first approached the Co-operative Court in Pune, but their case was dismissed in May 2022. They then moved the Bombay High Court, where their lawyer 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.

However, the high court disagreed. 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.

While under the Maharashtra Ownership Flats Act, 1971, flat owners are entitled only to their individual units and access to common amenities, the Maharashtra Apartment Ownership Act, 1970 gives apartment owners legal ownership of an undivided share in the land and common areas of the property—essentially making them co-owners of the entire premises. This distinction affects how maintenance is calculated. In most co-operative housing societies governed by the 1971 Act, maintenance is typically charged equally per flat. However, in apartment-condominiums governed by the 1970 Act, maintenance must be charged in proportion to the carpet area of each unit.