Builders Prohibited from Collecting Upkeep Fees in Affordable Housing Projects

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    “The town and country planning department resolves the maintenance dispute in affordable housing, clarifying developer and allottee responsibilities for fair and transparent arrangements”

    The ongoing dispute between developers and allottees regarding maintenance and upkeep in affordable housing projects has been resolved with a clarification from the town and country planning department (DTCP).

    According to the clarification, issued based on public objections and suggestions, the Affordable Group Housing Policy of 2013 mandates certain services to be provided free-of-cost by developers under the Haryana Development and Regulation of Urban Areas Act, 1975. These services include the maintenance of roads, open spaces, parks, public health services, lifts, and sewage treatment plants (STPs).

    The order specifies that developers are responsible for the costs incurred in maintaining common areas’ cleanliness, providing electricity, maintaining parking spaces, and covering expenses for DG sets, as well as salaries for management staff and engineering manpower.

    Developers are permitted to charge allottees for power and water consumption through bills, property tax, door-to-door garbage collection, and repairs conducted inside a flat after possession. However, diesel costs for power backup facilities, electricity bills for lifts, defect liability on the part of allottees (excluding damage caused by the developer’s lapse), and Interest Free Maintenance Charges (IFMS) under the Rera Act, 2016, or HRera Rules, 2017, will be collected from the allottees.

    The clarification also states that charges decided through bilateral agreements, such as security services, may be collected as per those agreements.

    Allottees express concerns about potential disputes arising from bilateral agreements and seek clarification on when the order will be applicable—whether at the time of handover or when the clarification is issued.

    (Credits: Et Realty)

    Also read: Persistent Challenges for Real Estate Regulators in India

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