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The Gujarat Real Estate Regulatory Authority (GujRERA) has ruled that developers must bear maintenance costs for unsold housing units from the time a project receives Building Use (BU) permission until the units are sold. This decision follows complaints from housing societies, such as in Vastrapur, Ahmedabad, where residents had to cover expenses for common facilities due to non-payment by promoters. GujRERA clarified that promoters, as owners of unsold flats, are liable for maintenance like other allottees, reinforcing accountability and ensuring fair cost allocation in housing societies across Gujarat.
The Gujarat Real Estate Regulatory Authority (GujRERA) has directed that developers are required to cover maintenance charges for unsold housing units from the moment a project receives Building Use (BU) permission until these units are sold. This decision was taken after a Vastrapur housing society raised a complaint, stating that the promoter had not contributed to maintenance costs for unsold flats, forcing the existing residents to bear additional financial burdens for shared facilities such as lifts, security, and cleaning. Advertisement
In this particular project, BU permission was granted in 2019, and residents had taken possession of their apartments. However, several units remained unsold and were still owned by the developer, who had not paid any portion of the common maintenance costs. The society approached GujRERA seeking clarity and relief regarding the promoter's obligations toward these charges.
GujRERA emphasized that once a project is ready for occupation, maintenance of common areas and services becomes an ongoing responsibility. Since the promoter retains ownership of unsold flats, it must contribute to maintenance costs in the same manner as other allottees. The authority clarified that unsold inventory does not exempt developers from maintenance responsibilities, and promoters cannot avoid these costs once BU permission has been issued.
The order cited relevant provisions under the Real Estate (Regulation and Development) Act, 2016, including Section 11(4)(g), which mandates promoters to pay all outgoings until property transfer, and Sections 17(1) and 17(2), which govern handover of common areas and execution of conveyance deeds within specified timelines. GujRERA noted that these regulations are designed to ensure fairness in cost sharing and protect residents from bearing disproportionate expenses due to unsold units.
Legal experts and real estate consultants have highlighted that this interpretation strengthens accountability, as non-payment of maintenance by developers has historically shifted costs to residents who had already moved into their apartments. With this ruling, promoters are legally required to pay for upkeep of unsold units, reducing financial disputes and easing the burden on existing homeowners.
The decision has significant implications for housing societies across Gujarat, including cities like Ahmedabad, Surat, Vadodara, and Gandhinagar, where unsold inventory has been a persistent challenge. By reinforcing the regulatory framework, the order aims to ensure transparency, fairness, and equitable distribution of maintenance costs between promoters and residents.
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