Experts Call on MahaRERA to Ban Builders from Collecting Advance Maintenance from Homebuyers
MahaRERA
Housing experts say demanding one- or two-year advance maintenance from buyers violates the Real Estate (Regulation and Development) Act, 2016 and urge MahaRERA to enforce strict rules. Many buyers across Maharashtra have been unfairly burdened before societies are formed.
Mumbai, December 03, 2025 – A growing number of homebuyers across Maharashtra have reported that builders are demanding one or two years’ advance maintenance charges at the time of possession — a practice that experts say violates the Real Estate (Regulation and Development) Act, 2016. According to housing rights activists, maintenance should only become the buyer’s responsibility after a legally recognised residents’ association or cooperative housing society has been formed, a requirement that comes into effect once a majority of flats are booked. Until that society is established, the promoter remains responsible for maintenance. Collecting advance maintenance before the formation of such an association has been described as both unlawful and unethical.
Advocates argue that such pre-collection places an undue financial burden on buyers before they even begin living in their homes. In many cases, the amounts demanded run into significant sums — especially in large, premium projects — throwing off household budgets and causing distress among new homeowners. Critics say the practice amounts to “unjust enrichment,” allowing builders to earn interest-free money at the expense of buyers waiting for the society to take shape.
Under the provisions of the Act, once 51 percent of flats in a project are booked, the promoter must facilitate registration of a residents’ association within three months. Only after this association comes into existence does it become legitimate for maintenance charges to be negotiated and collected. In the absence of such a body, any demand for maintenance — especially for future years — is viewed as illegitimate.
Given the widespread nature of the problem, consumer groups and legal experts are urging MahaRERA to step in and bar builders from continuing this practice. They demand clear directives to protect homebuyers and ensure that maintenance charges follow formal formation of residents’ associations. For many buyers, relief means only one thing: stronger enforcement and accountability from the real estate regulator.
The call for change comes at a time when Maharashtra’s real estate market is seeing renewed activity, with many projects nearing completion. As handovers increase, so does the risk of unfair practices emerging around maintenance and society formation. Homebuyers say only consistent regulatory oversight will restore confidence.
