Pune Deputy Registrar Declares 10% Extra Service Charge on Rented Flats Illegal

Pune, 19th September 2025: In a significant relief for flat owners and tenants, the Deputy Registrar of Cooperative Societies in Pune has ruled that apartment management committees cannot levy an additional 10 percent service charge (non-occupancy fee) on rented flats.

The order, issued by Deputy Registrar Milind Tanksale, clarifies that all residents must pay equal maintenance charges for common facilities such as security, cleaning, and utilities, regardless of whether a flat is rented or self-occupied. The ruling came following complaints from apartment owners who alleged that managements were imposing extra fees on rented units.

“There is no provision under the Maharashtra Apartment Ownership Act, 1970 or the registered bye-laws of condominiums that allows apartments to collect a non-occupancy fee,” Tanksale noted in the order. “Therefore, such charges are illegal and must not be levied.”

While the ruling applies to apartments registered under the Apartment Ownership Act, non-occupancy charges are permitted under cooperative housing society laws, where members can be charged up to 10 percent extra if their flats are rented out or remain vacant.

Explaining the difference, advocate Sanjay Dhindle, who practices conveyancing law, said: “Many apartment associations in the city were illegally charging an additional 10 percent service fee on rented flats. This order sets the record straight and protects owners from unfair demands.”

Manoj Shah, a company secretary who had rented out his flat, welcomed the order. “I was being charged an extra 10 percent by my apartment association. After filing a complaint, the Deputy Registrar investigated and confirmed that such a fee is not legal. This decision will help many others facing similar issues.”

The ruling is expected to resolve long-standing disputes between apartment owners and management committees, bringing uniformity and legal clarity on maintenance charges across the city.