A recent Mumbai court ruling has brought significant attention to how housing societies calculate maintenance fees, declaring that charging based on flat size is legally unsound. The decision came after a resident challenged her society’s practice of billing per square foot, arguing that maintenance costs should be equally shared, irrespective of apartment size. The court upheld this claim, citing a previous Bombay High Court judgment that stated, “There is absolutely no rational basis for societies to charge for services based on the size of flats.”
This ruling has sparked widespread discussions among Resident Welfare Associations (RWAs) in Mumbai, as societies reconsider their billing structures. The case has also drawn attention to how maintenance charges are calculated in different parts of India. While some cities follow per-square-foot billing, others have legal frameworks that lean toward equal distribution.
The Delhi Apartment Ownership Act, 1986, for example, states under Section 19(1) that maintenance expenses should be shared based on the percentage of undivided interest in common areas. This means that in many cases, larger apartment owners may still be required to pay higher charges. However, in Delhi’s cooperative housing societies, courts have previously ruled in favour of equal distribution, especially when expenses relate to shared services such as security, water supply, and common area maintenance. A facility manager from Delhi said, “Most societies resist change, but we should follow legal frameworks. The per-square-foot model is outdated.”
In Karnataka, the Karnataka Apartment Ownership Act, 1972, outlines that common expenses must be lawfully assessed by the Association of Apartment Owners. While the law does not specify how maintenance should be divided, many Bengaluru societies still follow the per-square-foot model, though instances of legal challenges against this convention have been rising.
This is not the first time Indian courts have addressed the issue of maintenance billing. In 2017, a Saket District Court ruling in Delhi supported residents who opposed the per-square-foot model, emphasizing that larger apartments do not inherently consume more security, common lighting, or clubhouse access than smaller ones. This case led to several RWAs in Delhi revising their fee structures.
The ruling has received mixed reactions from RWA members and residents. A Mumbai RWA member expressed concerns, stating, “This ruling will cause a major shake-up, societies will have to revise their by-laws.” A Pune resident who has been paying almost double the maintenance fee compared to her neighbors in smaller flats remarked, “If Mumbai courts ruled against it, it’s time for other cities to follow suit.”
With this ruling, Mumbai’s RWAs may now need to amend their by-laws and explore alternative billing models, such as fixed-rate systems or usage-based charges. Societies that continue charging based on square foot billing model may face legal challenges, and as the news of the ruling spreads, RWAs in other cities may come under increased scrutiny.
