Maharashtra, India · property

Can a Builder Demand Advance Maintenance Before Possession in Maharashtra?

In Maharashtra, developers frequently demand years of advance maintenance charges and withhold apartment keys until you pay. Under MahaRERA rules and the RERA Act of 2016, these coercive tactics and multi-year advance demands are illegal and violate your rights as a homebuyer.

What the Law Says in Maharashtra

In Maharashtra, the relationship between developers (promoters) and homebuyers is governed strictly by the Real Estate (Regulation and Development) Act, 2016 (RERA) and MahaRERA rules. Section 11(4)(g) of the RERA Act clearly dictates that the promoter must pay all outgoings—including land cost, local taxes, water, electricity, and maintenance charges—until they hand over physical possession to the homebuyer or the association of allottees.

Crucially, a builder cannot demand any maintenance charges before obtaining a valid Occupancy Certificate (OC) from the local municipal authority. If a builder demands maintenance without an OC, or demands an exorbitant advance of 2 to 3 years (24 to 36 months) as a precondition to giving you your keys, they are in violation of Section 11(4)(d). This section states that they are only responsible for providing and maintaining essential services at reasonable charges until the association takes over.

Furthermore, under Section 11(4)(e) of the Act and MahaRERA Rule 9(1), the developer is legally bound to initiate the formation of a Cooperative Housing Society (CHS) or association of allottees within three months of 51% (the majority) of the units being booked. Because the society must be formed around the time of possession, demanding multi-year maintenance advances is unjustified. Additionally, MahaRERA Order 56/2024 mandates that all collected project funds, including maintenance collections, must go through a strict Tri-Account Escrow Framework, preventing builders from siphoning off maintenance funds into unverified, undisclosed operational accounts.

The Coercive 'No Payment, No Keys' Tactic

Many developers use the handover phase as a high-pressure bottleneck. Knowing you are likely paying both home loan EMIs and rent, they issue an ultimatum: clear all advance maintenance dues, or we will not hand over your keys. This tactic of linking physical possession to unauthorized lump-sum charges is a clear breach of your rights under RERA.

If you are facing this, you do not have to yield quietly. Legally, the builder cannot distribute the maintenance costs of unsold inventory among existing buyers to avoid paying their own share. Under Section 11(4)(d), the promoter is liable to pay maintenance for all unsold flats. Demanding that the first wave of buyers fund three years of building operations in advance before the society even exists is an unfair trade practice that can be challenged directly through a MahaRERA complaint.

How to Protect Yourself and Fight Back

Your first line of defense is a paper trail. Do not agree to oral demands. Force the builder to provide a written, itemized breakdown of any maintenance charges they are seeking, including the exact duration they cover. Point out Section 11(4)(d) and Section 11(4)(e) of the RERA Act, 2016, and state that you are willing to pay reasonable, short-term maintenance but refuse to pay multi-year advances before a housing society is formed.

If the builder still refuses to hand over possession, you can make the payment 'under protest' to secure your keys, ensuring that your transaction receipt or communication explicitly states the payment is made under protest and is subject to legal dispute. Once you have possession, you can file a formal complaint on the MahaRERA portal to seek a refund of the illegally collected amount.

If you are facing an uncooperative builder, you can use Caunsel to research recent rulings, save and manage your case documents securely, or consult with an independent lawyer to map out your next steps.

Steps

• Request a written, itemized demand letter from the builder outlining the exact maintenance breakdown, duration, and RERA-compliant account details.
• Verify if the builder has obtained a valid Occupancy Certificate (OC) for your specific wing or building, as no maintenance can be charged before the OC is issued.
• Send a formal written reply (via Email and Registered AD) citing Section 11(4)(g) and Section 11(4)(e) of the RERA Act, contesting the demand for excessive advance maintenance.
• If forced to pay to get your keys, write 'Paid Under Protest' on the payment cheque, demand a stamped receipt stating the same, and take physical possession.
• Gather other affected homebuyers to file a joint complaint on the MahaRERA portal (maharera.mahaonline.gov.in) for unfair trade practices and a refund of the unauthorized charges.

Common mistakes

• Paying huge lump sums in cash or to an unverified, non-RERA-compliant builder account without getting a written, itemized receipt.
• Accepting physical possession and signing a blank or broad waiver form that gives up your right to dispute charges or challenge construction defects.
• Delaying the formation of the Cooperative Housing Society, which allows the builder to retain control of maintenance funds indefinitely.

Questions people ask

Can a builder charge maintenance before getting an Occupancy Certificate (OC) in Maharashtra?

No. MahaRERA has repeatedly ruled that a builder cannot charge any maintenance fees or outgoings before obtaining a valid Occupancy Certificate (OC). Charging maintenance before the building is legally declared habitable is completely illegal.

How many months of advance maintenance can a builder legally ask for in Maharashtra?

While the RERA Act does not explicitly set a monthly cap, local authorities and consumer bodies like the Mumbai Grahak Panchayat (MGP) state that demanding 12 to 24+ months of advance maintenance is unfair and illegal, especially since a cooperative society should be formed within 3 months of 51% bookings.

What can I do if the builder refuses to hand over my keys unless I pay advance maintenance?

You can send a formal legal notice disputing the illegal linkage of possession to the advance maintenance. If you are under financial pressure, pay the amount 'under protest' (ensuring it is documented on the receipt) to get the keys, and immediately file a complaint with MahaRERA to recover the funds.

General information only, last updated 2026-10-06. Caunsel is not a law firm and does not practise law. AI answers and this guide are not legal advice. Verify filings, deadlines, and statutes with a licensed lawyer in Maharashtra, India.