Homebuyers In Possession Must Pay Maintenance Charges Even Without Completion Certificate: RERA Punjab

The Punjab Real Estate Regulatory Authority (RERA) on 15 April held that homebuyers in possession of their units and enjoying project amenities cannot evade maintenance charges on the ground that the developer has not obtained a completion or occupancy certificate.

Chairman Rakesh Kumar Goyal, directed the Arvind Nagar Residential Welfare Society to take over maintenance of the colony in Bathinda, holding that Sections 11(4)(d) and 17 of the Real Estate (Regulation and Development) Act, 2016 impose a clear obligation on the association to assume control of common areas, manage essential services, and collect maintenance charges once occupation begins. He observed:

“In the present case, the allottees are staying and are enjoying the amenities and premises have been constructed. The providing of electricity and water supply, free of cost, cannot be extended for an indefinite time though, the project is registered under the RERD Act, 2016 and legally not completed in view of non-availability of occupation/ completion certificate as the case may be. There is a long delay in obtaining the occupation or completion certificate, but this does not give a guarantee and a license to the residents to stay without paying maintenance charges after taking over possession of plots and thereafter constructing houses over it.”

A 15-year-long dispute arose between Arvind Nagar Residential Welfare Society and developer Pawan Goods Merchants Co. Ltd. over a plotted residential colony spread across approximately 37 acres in Bathinda. The project originated in 2006–2007, and members of the society took possession and executed registered sale deeds before the enactment of the 2016 Act.

The residents subsequently constructed houses and continued to reside in the colony while using common infrastructure such as roads, electricity, water supply, and sewerage systems.

The Developer began demanding maintenance charges from July 2024, citing continued use of essential services and common amenities. In response, the society filed a complaint under Section 31 of the Act alleging deficiencies in infrastructure and sought exemption from maintenance charges on the ground that no completion or occupancy certificate had been issued.

Pawan Goods Merchants contended that residents had already taken possession, constructed homes, and continued to enjoy all amenities, and therefore could not avoid contributing to maintenance costs. It argued that continued use without payment placed an unfair burden on the promoter.

The Authority accepted the Developer's position and held that once allottees accepted possession and constructed houses, they could not later dispute such possession merely due to the absence of completion certification. It clarified that “possession” under Section 18 of the Act is not limited to certified possession, and once residents accepted possession without protest, they could not later invoke statutory benefits linked to delay.

It further observed that promoters must maintain projects until completion certification, but this obligation assumes non-occupation. Once residents occupied the premises and used common facilities, the burden of maintenance could not remain indefinitely on the developer. It noted that residents had already enjoyed these services for over a decade, and allowing them to avoid maintenance would amount to unjust enrichment.

The Bench directed the Arvind Nagar Residential Welfare Society to take over maintenance of the colony, collect maintenance charges from residents, and ensure upkeep of common infrastructure. It also held that until the society formally assumed control, the promoter continued to maintain essential services and remained entitled to recover reasonable and transparent maintenance charges from residents.

Accordingly, the RERA rejected the primary reliefs sought by the Society.

Appearances for the Complainant: Advocates Rajnish Goyal & Mandeep Nagpal

Appearances for the Respondents: Advocates Mohit Dhiman & Manisha Maggu; Kamal Gupta (Authorised representative)