News: Maintenance Fee Rows in Noida and Gurugram Society Disputes-21-09-2026
A 40% rise in common area maintenance (CAM) charges at Cleo County in Noida has set off repeated protests by residents since September 5, highlighting a recurring problem in large gated communities: who controls maintenance, common funds and shared facilities once buyers move in.
A similar row has run for weeks in Gurugram’s Sector 37D. HT reported on August 24 that residents of BPTP’s Park Serene, Park Generation and Park Spacio said CAM charges had gone up from Rs 3.57 to Rs 4.27 per sq ft, roughly 20%, and alleged that the builder levied a 20% management fee over a 5% fee charged by a private maintenance agency. They want management handed to their residential welfare associations (RWAs). BPTP’s maintenance arm, Business Park Maintenance Service, rejected the allegations, saying expense details had been shared and that it had engaged with the RWAs on handover for more than four years.
At Cleo, close to 58% of unit owners oppose forming an Apartment Owners’ Association (AOA), citing the many senior citizens among residents. They instead want a third-party forensic audit, disclosure of the Interest Free Maintenance Security (IFMS), safeguards for the sinking fund and a greater say in maintenance decisions.
A builder spokesperson said the increase was unavoidable because of higher minimum wages and material costs, some linked to the West Asia crisis, with salaries typically forming more than 70% of CAM costs. Fees were not raised for the first seven years despite 14 statutory minimum wage increase cycles, the spokesperson said, adding that audited books had been shared at open fora.
The RERA Act, 2016 mandates an association and eventual handover, but maintenance charges remain largely under state laws. Sanjay R Bhoosreddy, chairman of UP RERA, said registering an AOA is the joint responsibility of developer and buyers and is mandatory under rules framed in 2011 under the Uttar Pradesh Apartment Ownership Act, 2010, once completion formalities are over. If either side fails to act, the other can approach the vice-chairperson of the development authority or the district magistrate. The association’s general body decides rates by majority, binding all owners. On IFMS, he said the 12th amendment to UP RERA’s General Regulations, notified in July 2026, lays down how the fund is collected, invested in fixed deposits and transferred at handover.
Regulators elsewhere have seen similar complaints. In a June 3, 2026 order on New Haven Bengaluru Phase 1, K-RERA directed the promoter to transfer the land khata, utility meters, corpus fund and balance escrow account to the association and render maintenance accounts. TG-RERA’s May 4, 2026 order on Balaji Elegancia, relying on an Engineering Staff College of India inspection, directed the promoter to finish pending amenities, with lapsed deadlines to be met within 60 days.
Advocate Mayanka Dhawan said Section 11(4)(d) of the Act requires a promoter to maintain essential services "on reasonable charges" until an association takes over, Section 11(4)(e) requires it to enable the association’s formation, and Section 17 covers handover. Substantial revisions should ordinarily be backed by expenditure and transparent accounts, she said, while residents must pay legitimate charges under Section 19(6).
A member of the central advisory council on RERA, speaking on condition of anonymity, said the council, headed by Union minister Manohar Lal Khattar, is deliberating how to standardise the framework nationally to reduce such disputes.
