The Gujarat Real Estate Regulatory Authority (GujRERA) has issued a landmark ruling requiring developers to bear maintenance costs for unsold housing units from the point a project receives Building Use (BU) permission until these units are sold. The decision, prompted by a complaint from a Vastrapur housing society, aims to protect residents from shouldering disproportionate expenses for shared facilities.
In the case in question, residents had moved into their apartments while several units remained unsold and retained by the developer. The society reported that common expenses, including lift maintenance, security, and cleaning, were being unfairly borne solely by occupied units. GujRERA clarified that unsold inventory owned by developers is not exempt from maintenance responsibilities and that promoters must contribute equally until legal ownership is transferred. The ruling cites the Real Estate (Regulation and Development) Act, 2016, highlighting provisions such as Section 11(4)(g), which obligates promoters to pay all outgoings until property transfer, and Sections 17(1) and 17(2), which outline the handover of common areas and conveyance deed execution. By reinforcing these statutory requirements, the authority ensures fairness and equitable cost-sharing between residents and promoters. Legal experts note that the order sets a precedent in Gujarat’s real estate governance. Historically, non-payment of maintenance by developers had shifted financial burdens to early buyers, often creating friction and long-running disputes within housing societies. “This decision reinforces accountability and ensures residents are not penalised for unsold units that remain the developer’s responsibility,” said a senior real estate consultant familiar with RERA proceedings.
The implications extend beyond a single society. In cities such as Ahmedabad, Surat, Vadodara, and Gandhinagar, unsold inventory has been a recurring challenge for homeowners’ associations. Developers are now legally required to factor ongoing maintenance costs for unsold units into project planning and financial models. This regulatory clarity is likely to reduce disputes, improve transparency, and provide societies with predictable cost structures for upkeep and facility management. By formalising promoters’ responsibility for unsold units, the ruling aligns with the broader objectives of RERA: promoting transparency, protecting homebuyers, and ensuring equitable treatment within residential projects. Housing societies can now enforce maintenance contributions from developers without prolonged legal delays, while buyers benefit from reduced financial uncertainty.
As Gujarat’s residential market continues to mature, the GujRERA directive may encourage developers to adopt more responsible sales and post-possession management practices, fostering trust between promoters and residents and ensuring smoother project handovers.
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Gujarat RERA mandates developers pay maintenance for unsold flats