The Department of Town and Country Planning (DTCP) has finally provided clarity on the issue of maintenance fees for affordable housing projects in Gurgaon. This clarification, long-awaited by homebuyers, comes after the Punjab and Haryana High Court directed the department to address the matter in March 2023.
What is the conflict between developers and allottees regarding maintenance fees?
Maintenance fees for affordable housing projects has been a disputed subject for homebuyers for several years in Gurgaon. Homebuyers have objected to the imposition of maintenance fees on affordable projects, arguing that when the policy was introduced in 2013, it was directed that no maintenance fees would be charged for the initial five years. The lack of clarity on this issue resulted in allottees paying maintenance fees ranging from Rs 3 per sq ft to Rs 4 per sq ft in about 150 affordable housing projects in Gurgaon.
How are the upkeep expenses divided as per the new order?
As per the detailed order recently issued by Amit Khatri, Director, DTCP, developers are obliged to cover the cost of maintaining roads, open spaces, public parks, public health services, lifts, common area cleaning, plumbing, electricity in common areas, and maintaining electrical equipment in all shared space of the project. Also, the responsibility for the maintenance of DG sets, generator sets (excluding the running cost of diesel), parking spaces, sewage treatment plants, and expenses related to the salaries of management staff and engineering manpower will be borne by the builder.
On the other hand, allottees of affordable homes are required to cover the costs of individual electricity and water bills, property tax if the project is under Municipal Corporation limits, door-to-door waste collection, garbage collection and upkeep of each floor. Further, repairs inside the flat, diesel costs for power backup, electricity bills for lifts, running costs of generators, and taxes imposed by the Central and State governments are also to be taken care of by the allottees.
Rajesh Kaushik, the District Town Planner of Gurgaon, expressed confidence that the clarification would address all doubts of the affordable housing allottees regarding the payment of maintenance fees and provide a clear definition for each issue.
What are the concerns raised by allottees after the new directive?
Allottees have voiced dissatisfaction, asserting that the directions offered minimal relief to those who were enticed by the promise of free maintenance for the initial five years in affordable projects.
Concerns were raised about the inclusion of bilateral agreements, which developers could potentially use to impose decisions on owners. Also, allottees noted that the crucial issue of defect liability has not been adequately addressed, and salaries of security staff/guards have been excluded from common area maintenance. Associations representing affordable homebuyers called for the order to be implemented prudently and also for any excess money charged from allottees to be promptly returned.
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