Maharashtra, India · property

Can a Housing Society Charge Maintenance on a Square Feet Basis in Maharashtra?

While Maharashtra housing societies often charge maintenance on a square-foot basis, doing so for common services is illegal. Under cooperative laws and landmark rulings, common expenses must be split equally, while only specific funds can vary by flat size.

The Legal Framework in Maharashtra: What the MCS Act Rules

In Maharashtra, India, many flat owners are unfairly forced to pay inflated maintenance bills simply because they own larger apartments. However, managing committees cannot legally charge flat-rate maintenance solely on a square-foot basis. Under Section 79A of the Maharashtra Co-operative Societies (MCS) Act, 1960, the state government issued a definitive Government Circular/Order dated April 29, 2000. This circular explicitly mandates that common service charges must be divided equally among all registered units, regardless of their size.

Housing societies frequently abuse their administrative power by grouping all maintenance items into a single, square-foot calculation. This practice is a direct violation of the state's directive. While certain structural funds can scale with the size of your flat, your day-to-day common service fees cannot. Recognizing where your money goes is the first step to stopping your managing committee from taking advantage of your property size.

Landmark Court Rulings Rejecting Square-Foot Maintenance

The courts have consistently stepped in to protect homeowners from discriminatory maintenance billing. In the landmark case of Venus Co-operative Housing Society Ltd. v. Dr. J.Y. Detwani [2004 (5) Mh.L.J. 197], the Bombay High Court ruled that because common amenities are enjoyed equally by all members, charging larger flats more is arbitrary, unreasonable, and has 'no rational basis'. Security, lift operations, common area lighting, and housekeeping cost the same to run, whether you live in a small flat or a large one.

This legal principle was strongly reaffirmed on June 12, 2026, by the Maharashtra State Co-operative Appellate Court in Vatsala Niwas Co-operative Housing Society Ltd. v. Mrs. Poonam Soni (Appeal No. A.O. No. 49 of 2025). The court dismissed the housing society's appeal and upheld an injunction preventing them from charging maintenance on a square-foot basis or recovering arbitrary arrears. These rulings make it clear: the law is on your side, and your managing committee's internal resolutions cannot override state directives.

How Your Maintenance Bill Must Be Divided Under the Bye-Laws

According to Maharashtra's Model Bye-laws (specifically Bye-laws 65, 66, and 67), your monthly bill must separate equal-split components from proportional-split components. Items that must be split equally (per-unit basis) include service charges like security salaries, common electricity, lift maintenance, housekeeping, administrative staff salaries, and office expenses. Lift repair expenses and water charges (if not individually metered) must also be shared equally.

Conversely, components that are legally allowed to be calculated on a square-foot basis include the Sinking Fund (minimum 0.25% of the flat's construction cost per annum), the Repair & Maintenance Fund, and municipal property taxes. If your managing committee is ignoring this division and billing you a flat rate per square foot for everything, you have the right to challenge them. You can use Caunsel to research these statutory requirements, securely save your society's bills and notices in a dedicated case folder, or connect with an independent lawyer to plan your next legal steps.

Steps

• Request a detailed, itemized breakdown of your monthly maintenance bill in writing from the Managing Committee.
• Cross-verify each line item against Model Bye-laws 65, 66, and 67 to see which service charges are being illegally billed on a square-foot basis.
• Send a formal written protest letter to the committee, attaching the Section 79A Government Directive dated April 29, 2000, and demanding a corrected bill.
• If the committee ignores your letter or threatens you with a 'defaulter' status, file a dispute under Section 91 of the MCS Act, 1960, before the Co-operative Court or escalate to the Deputy Registrar.

Common mistakes

• Paying the disputed amount quietly without registering a formal 'Payment Under Protest' letter, which can weaken your case in court.
• Withholding the entire maintenance payment in anger, which legally classifies you as a defaulter after three consecutive months of non-payment.
• Relying on verbal objections during Annual General Meetings (AGMs) instead of establishing a clear, written paper trail.

Questions people ask

Can a general body resolution legally authorize maintenance charges on a square-foot basis?

No. A housing society's general body cannot pass a resolution that violates the Maharashtra Co-operative Societies Act, state-registered Model Bye-laws, or the Section 79A Government Order dated April 29, 2000. Any such resolution is invalid from its inception.

What exact components of my maintenance bill must be split equally?

Common service charges must be split equally per flat. This includes security guard salaries, housekeeping, lift maintenance, common area electricity, administrative office expenses, audit fees, and common water charges (if based on individual taps).

What components can legally be charged based on square footage?

Only specific, capital-focused charges can be proportional to flat size. These include the Sinking Fund (calculated on construction cost), the Repair & Maintenance Fund (to preserve the physical structure), and property taxes.

General information only, last updated 2026-09-11. 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.