The Ranga Reddy District Consumer Commission has delivered a significant ruling affecting housing societies across Telangana. The case involved the Saket Pranaam flat owners’ association, which had been collecting a uniform monthly maintenance fee from all residents—irrespective of the size of their flats.
The complaint was filed by SL Narasimha Rao, the owner of a studio apartment ranging between 445 sq ft and 702 sq ft, who argued that it was unfair and unlawful to charge the same maintenance amount as larger-flat owners. The association had fixed a flat rate of Rs 2,500 per month, later increasing it to Rs 3,500 after an extraordinary general body meeting held in August 2024.
Arguments Presented by the Homebuyer
Rao contended that uniform maintenance charges violate housing laws, including principles recognised under RERA guidelines, which state that maintenance must be charged proportionately based on the area of each flat.
He also cited previous legal precedents affirming that smaller-flat owners cannot be compelled to pay disproportionately high charges simply to subsidise bigger units. According to Rao, the association’s approach placed an unfair financial burden on smaller-flat owners.
Association’s Defence
The flat owners’ association argued that:
• Maintenance had always been collected uniformly, and most residents supported the increased rate.
• All common amenities—such as the health centre, ambulance service, and food facilities—were equally accessible to all residents, irrespective of flat size.
• Therefore, they claimed, a uniform charge was justified and equitable.
Commission’s Findings and Observations
The Consumer Commission rejected the association’s reasoning, stressing that:
• Uniform charges unfairly burden smaller-flat owners
• Larger-flat owners indirectly benefit when costs are split equally
• Housing regulations and judicial precedents consistently favour square-foot-based maintenance models
The Commission observed:
“Charging a uniform maintenance fee from all residents, regardless of flat size, is unfair and contrary to established regulations. Maintenance must be collected strictly on a square-foot basis to ensure equity.”
The panel highlighted that common amenities do not justify equal charges because maintenance obligations arise from the proportionate ownership rights (undivided share of land and common areas).
Final Order of the Consumer Commission
The Commission allowed the complaint partly and issued the following directions:
• The association must adopt a square-foot-based maintenance model immediately.
• The association must pay Rs 10,000 to Rao for mental agony.
• An additional Rs 5,000 must be paid as litigation costs.
• The association has 45 days to comply, failing which a further penalty of Rs 10,000 will be imposed.
Why This Order Is Important for Housing Societies
This ruling reinforces key legal principles relevant to all apartment associations:
• Maintenance cannot be charged uniformly unless all flats are identical in size
• Square-foot-based charges are legally preferred and widely upheld by courts
• Associations must adopt transparent and equitable billing practices
• Flat owners can challenge arbitrary fee hikes before consumer forums
The decision strengthens the rights of residents, especially those owning smaller units, by ensuring maintenance costs are aligned with fair-share principles.
