Table of Content
- What Was the Case Before Gujarat RERA?
- Why Unsold Units Create a Maintenance Burden
- What Gujarat RERA Observed in Its Order
- Legal Provisions Relied Upon by Gujarat RERA
- Impact on Housing Societies in Gujarat
- Implications for Builders and Developers
- What It Means for Homebuyers
- Expert Views on the Gujarat RERA Decision
- Conclusion
The Gujarat Real Estate Regulatory Authority has clarified a long-standing issue faced by housing societies by ruling that developers must pay maintenance charges for unsold housing units from the date Building Use (BU) permission is granted until those units are sold. The order reinforces that promoters cannot shift the financial burden of maintaining common areas onto residents simply because inventory remains unsold.
The decision by Gujarat RERA is expected to have wide-ranging implications for housing societies, builders, and homebuyers across the state.
What Was the Case Before Gujarat RERA?
The matter before Gujarat RERA involved a housing society in Vastrapur, Ahmedabad, which alleged that the project developer had failed to pay maintenance charges for several unsold flats. The project had received Building Use permission in 2019, after which residents took possession of their homes.
Despite retaining ownership of the unsold units, the developer did not contribute towards common area maintenance. As a result, existing residents were forced to bear higher costs to maintain shared facilities such as lifts, security, housekeeping, water systems, and electrical infrastructure.
The society approached Gujarat RERA seeking clarity and relief, arguing that the promoter, as the owner of unsold units, was legally obligated to pay maintenance charges just like any other allottee.
Also Read: UPRERA Clears 16 Real Estate Projects Worth ₹3,200 Crore Across Uttar Pradesh
Why Unsold Units Create a Maintenance Burden
In most residential projects, maintenance expenses are calculated based on the total number of units in the society. When a developer does not pay maintenance for unsold inventory, the cost is redistributed among existing homeowners.
This leads to several issues:
- Higher monthly maintenance charges for residents
- Disputes between societies and developers
- Delays in maintaining essential services
- Financial strain on resident welfare associations
Housing experts note that such practices unfairly penalise buyers who have already paid for their homes and taken possession.
What Gujarat RERA Observed in Its Order
After examining the facts, Gujarat RERA held that the promoter continues to be responsible for “running maintenance” for unsold flats or units after BU permission is granted.
The authority observed that once a project is ready for occupation, maintenance of common areas becomes a continuous obligation. If certain units remain unsold, the promoter effectively steps into the role of an allottee for those units and must bear the associated costs.
Gujarat RERA directed the developer to pay the pending maintenance charges for all unsold units to the housing society, thereby easing the financial burden on residents.
Legal Provisions Relied Upon by Gujarat RERA
The ruling is firmly grounded in the Real Estate (Regulation and Development) Act, 2016. Gujarat RERA cited several key provisions, including:
- Section 11(4)(g): Obligates the promoter to pay all outgoings, including maintenance, until property transfer
- Section 17(1): Requires the promoter to hand over common areas to the association
- Section 17(2): Mandates execution of conveyance deeds within prescribed timelines
By invoking these provisions, Gujarat RERA reaffirmed that ownership of unsold units carries both rights and responsibilities.
Impact on Housing Societies in Gujarat
This ruling by Gujarat RERA is expected to benefit housing societies across the state, particularly in large cities such as Ahmedabad, Surat, Vadodara, and Gandhinagar.
Key impacts include:
- Reduced financial pressure on existing residents
- Clear accountability for developers
- Stronger legal backing for societies in similar disputes
- Better maintenance of the common infrastructure
Industry consultants say the order sets a precedent that societies can rely on when facing non-payment issues from developers.
Implications for Builders and Developers
For developers, the Gujarat RERA order serves as a clear reminder that holding unsold inventory comes with financial obligations. Promoters can no longer delay or avoid maintenance payments once BU permission is granted.
This may lead to:
- Better financial planning by developers
- Faster sale of unsold inventory
- Improved transparency in project operations
- Reduced disputes with resident associations
While developers may see this as an additional cost, experts believe it will promote discipline and long-term credibility in the market.
What It Means for Homebuyers
For homebuyers, the Gujarat RERA ruling strengthens consumer protection and reinforces the principle of fairness. Buyers who take possession on time will no longer be penalised for unsold units in their project.
The order also reassures buyers that regulatory authorities are actively enforcing the spirit of RERA, which aims to balance the interests of developers and consumers.
Also Read: Haryana RERA Directs Builder to Pay 11% Annual Interest for Delayed Flat Possession
Expert Views on the Gujarat RERA Decision
Real estate consultants say the decision reflects a practical understanding of how housing societies function.
According to industry experts, non-payment of maintenance by promoters often results in disputes that escalate into legal battles. By clearly defining responsibility, Gujarat RERA has reduced ambiguity and provided a clear framework for compliance.
Experts also point out that similar interpretations may now be adopted by other state RERAs.
Conclusion
The Gujarat RERA order directing builders to pay maintenance charges for unsold units marks an important step in strengthening accountability in the real estate sector. By holding promoters responsible from the date of Building Use permission, the authority has ensured that housing societies are not unfairly burdened due to unsold inventory.
The ruling not only protects resident welfare associations but also reinforces the core objectives of RERA transparency, fairness, and timely accountability. As more societies become aware of this precedent, it is likely to reshape how maintenance responsibilities are handled across residential projects in Gujarat.
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Ans 1. Gujarat RERA ruled that developers must pay maintenance charges for unsold housing units from the date Building Use (BU) permission is granted until those units are sold. This ensures that residents do not bear the financial burden of maintaining common areas for unsold inventory.
Ans 2. Before the ruling, developers often did not pay maintenance for unsold flats, forcing existing residents to cover the costs of common areas such as lifts, security, water, and housekeeping. This led to higher monthly charges and disputes between societies and promoters.
Ans 3. The ruling is based on the Real Estate (Regulation and Development) Act, 2016. Key provisions include Section 11(4)(g), which obligates promoters to pay all outgoings; Section 17(1), mandating handover of common areas; and Section 17(2), requiring execution of conveyance deeds within prescribed timelines.
Ans 4. The decision will reduce financial pressure on residents, improve the maintenance of common areas, and establish clear accountability for developers. Societies can now rely on this precedent in similar disputes across cities like Ahmedabad, Surat, Vadodara, and Gandhinagar.
Ans 5. Builders are now required to include maintenance costs for unsold units in their financial planning. They cannot delay payments, which may encourage faster sale of inventory, better transparency, and improved credibility with residents and authorities.
Ans 6. Homebuyers will no longer be unfairly penalised for unsold units in their society. The ruling strengthens consumer protection and reassures buyers that regulatory authorities enforce fairness and accountability in line with RERA principles.
Ans 7. Industry experts suggest that similar interpretations could be adopted by other state RERAs, given the clarity and practicality of Gujarat’s approach. This may set a nationwide precedent for maintenance responsibilities in residential projects.
Ans 8. The ruling reinforces transparency, fairness, and timely accountability in the sector. It ensures that promoters fulfill their financial obligations while protecting residents, thereby strengthening trust between developers, homeowners, and regulatory authorities.