Gurgaon Developer: Builders Can’t Charge Maintenance Fees in Housing Projects

Introduction

The Interim Budget 2024 is creating a sensation in affordable housing. DTCP has also issued a long-awaited clarification on maintenance fees for affordable housing projects. Management fees have been a point of contention between allottees and developers over the years. But will this new directive make affordable housing more affordable in Gurgaon?

Gurgaon Developer: Builders Can't Charge Maintenance Fees in Housing Projects

Table of Contents

Finally, the Department of Town and Country Planning (DTCP) has given clarity on the maintenance fee for affordable housing projects in Gurgaon. The long-awaited clarity for homebuyers came after the Punjab and Haryana High Court directed the department to resolve the issue by March 2023.

What Is The Gurgaon Developer Conflict?

Maintenance fees for affordable housing projects have been a contentious issue for home buyers in Gurgaon for years. Homebuyers have objected to the imposition of maintenance fees on affordable projects.

When this policy was implemented in 2013, it was stated that no management fee would be charged for the first five years. In the absence of clarity on the matter, around 150 affordable housing projects in Gurgaon have been allocated a maintenance fee.

New Operating Expenses Announced

According to a detailed order recently issued by DTCP director Amit Khatri, developers have to bear the cost of maintaining roads, open spaces, public parks, public health services, lifts, common area cleaning, plumbing, and electricity in common areas.

Maintaining electrical equipment in all shared areas of the project. Also, the cost of DG sets, generator sets (excluding diesel maintenance costs), parking lots, sewage treatment plants, and the salaries of maintenance staff and engineering staff will be borne by the builder.

Rajesh Kaushik, District Town Planner, Gurgaon, answered the payment of the maintenance fee. It is hoped that this clarification will clear doubts on the allotment of affordable housing and give a clear definition of each aspect.

What Are the Concerns Increasing by the New Allottees?

The directive provided minimal relief to those enticed by the guarantee of free maintenance for the initial five years on affordable projects. The allottees are expressing dissatisfaction over these orders. Concerns have been raised about the inclusion of bilateral agreements. These can be effectively used by developers to impose decisions on owners.

Also, safety personnel reported that the key issue of assignee deficient liability was not adequately addressed. Salaries of guards are exclude from general area maintenance. Associations representing affordable housing buyers have called for the judicious implementation of the order. Then immediate refund of any excess money collected from allottees.

Conclusion

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Also read: Fractional Ownership Market in India Is Expected to Grow Tenfold

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