The Gujarat Real Estate Regulatory Authority (GujRERA) has determined that a developer is obligated to pay maintenance fees for unsold units to a housing society from the moment Building Use (BU) permission is granted until those units are sold to allottees. In a ruling concerning a housing service society in Vastrapur, the authority stated that the promoter is accountable for “running maintenance” for flats or units that remain unsold.
The society had approached GujRERA, claiming that the developer failed to pay maintenance for these unsold units, which imposed an additional financial burden on the current residents. According to the complaint, the project was granted BU permission in 2019.
The society contended that the developer still holds ownership of the unsold units and, similar to other allottees, is responsible for contributing to common expenses and maintenance fees. A consultant remarked, “This judgement will affect numerous societies because the promoter’s non-payment effectively transfers the cost of maintaining common areas and services onto the members who have already taken possession.”
After reviewing the case, GujRERA instructed the developer to remit the outstanding maintenance fees for the unsold units to the society. The authority based its decision on the provisions of the Real Estate (Regulation and Development) Act, 2016, specifically Section 11(4)(g) and Sections 17(1) and 17(2).
This order emphasizes that promoters cannot evade maintenance responsibilities for inventory that remains unsold following the granting of BU permission.
