Society maintenance charges: what you are paying for, and what you can question

Most residents pay the maintenance bill without ever reading the breakdown. That is usually fine. It becomes a problem when the bill rises sharply, when a new head appears without explanation, or when a charge looks designed for one set of residents rather than all of them.

What the bill usually covers

• Electricity and water for common areas, lifts, pumps and lighting.
• Security, cleaning, gardening and pest control staff or contracts.
• Upkeep of lifts, generators, water tanks, fire safety equipment and pumps.
• Insurance on the building, where the society takes it.
• Office running costs, audit fees and minor repairs.
• Contributions to longer-term funds for major repairs, covered below.

The funds that make the bill look bigger

Many societies collect into separate funds as well as covering monthly running costs. A sinking fund is set aside for major structural work or reconstruction far in the future. A repairs and maintenance fund covers larger periodic work such as painting or waterproofing. These are savings held for the building, not running costs, and a well-run society can show you the balance in each.

Area-based or equal per flat

Some heads are split by the area of your flat and others equally per flat, and your bye-laws decide which is which. Shared services that every household uses in roughly the same way are often charged equally, while costs tied to the size of the property are often charged by area. If you think a head is being split the wrong way, ask which bye-law the committee is relying on.

When GST applies

The ₹7,500 limit is assessed per apartment, so someone who owns two flats in the same society is assessed separately on each. If your bill shows GST, it is reasonable to ask the committee to show how it was worked out.

What you are entitled to ask for

• An itemised breakdown of your bill, with each head named.
• The annual budget and the audited accounts.
• The resolution that approved any new charge or increase.
• Receipts for what you have paid.
• The balance held in the sinking fund and repairs fund.

Raise questions in writing first, then at the general body meeting, where decisions about charges are meant to be taken. A committee that runs the society properly will usually answer without difficulty.

If you get no answer

For a registered co-operative housing society, the Registrar of Co-operative Societies for your area is the authority that deals with disputes about accounts and charges. Other kinds of residents' associations are governed by different state laws, so check which one applies to your building before you escalate.