Service charges: why they are equal for every flat
How a co-operative housing society divides its maintenance expenses among members, and which charges depend on the area of the flat.
Key points
- Under the Government Resolution of 29.04.2000, service charges are levied equally on every flat, irrespective of its area.
- Charges such as property tax, sinking fund and repairs fund are calculated separately, as the bye-laws provide.
- The co-operative authorities have applied this GR to direct societies to levy equal service charges.
The rule
Service charges cover the common expenses of running the society, such as salaries of staff, security, lift maintenance, common electricity and office expenses. Because every member benefits equally from these services, the Government Resolution of 29.04.2000 requires them to be divided equally among all flats, whatever their area.
Charges that are not equal
Some charges are not service charges and are calculated differently. Property tax is levied by the municipal authority on each flat. Contributions to the sinking fund and the repairs and maintenance fund are calculated as the bye-laws provide, usually by reference to the construction cost of each flat. Water and parking charges follow the bye-laws.
If the society levies area-based service charges
A member can point the society to the GR and, if necessary, approach the Registrar. The library includes an order of an Assistant Registrar applying the GR.
Documents
This guide explains the general position in Maharashtra. A society’s bye-laws and the facts of a case can change the answer. Nothing here is legal advice.
Have a question about your society?
Write to the office with a brief description of the matter. Meetings are by prior appointment.