The Bombay High Court (HC) has ruled that flat owners in apartment complexes governed by the Maharashtra Apartment Ownership Act, 1970, must pay maintenance fees based on the size of their unit. This decision means that residents of larger flats are required to pay more for upkeep than those with smaller homes.
The ruling came in a legal dispute involving Treasure Park, a residential society in Pune with 11 towers and 356 apartments. The managing board of the complex had decided to collect an equal maintenance charge from all residents, regardless of the size of their units.
In 2022, owners of smaller flats challenged this decision. They argued that the law clearly states that maintenance must be charged in proportion to each owner's undivided share in the common areas. This share depends on the size of each apartment. The deputy registrar of cooperative societies supported their claim and ordered the society to collect fees accordingly.
Unhappy with this decision, owners of larger flats filed an appeal in the Co-operative Court in Pune. However, the court dismissed their case in May 2022. They then approached the Bombay HC.
The lawyer for the larger flat owners argued that common facilities are used equally by all residents. Therefore, the maintenance charge should also be the same for everyone. The court disagreed.
Justice Milind Jadhav of the Bombay High Court said that the law and the condominium’s own declaration supported the system of proportionate maintenance. He said that owners of larger flats hold a bigger undivided share in the common property and must contribute more to its maintenance.
The court rejected the petition and upheld the earlier ruling. The judgment was based on the Maharashtra Apartment Ownership Act, 1970. Under this law, apartment owners legally own a share in the land and common areas. This makes them co-owners of the entire complex. The Maharashtra Ownership Flats Act, 1971, on the other hand, gives access only to individual units and shared facilities, not legal ownership of the common property.
In most co-operative societies that follow the 1971 Act, maintenance is usually divided equally. But for apartments governed by the 1970 Act, charges must be based on carpet area. This legal difference affects how fees are calculated.