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April 15, 2026 : The Punjab Real Estate Regulatory Authority (RERA) has ruled that homebuyers who have taken possession of their plots and are residing in a project while enjoying common amenities cannot avoid payment of maintenance charges merely due to the absence of a completion or occupancy certificate.Punjab RERA, maintenance charges, occupancy certificate, completion certificate, RERA Punjab ruling, residential welfare society, plotted colony dispute, possession under RERA, Section 11(4)(d) RERA, Section 17 RERA, Bathinda real estate dispute
The order was passed by Chairman Rakesh Kumar Goyal in Arvind Nagar Residential Welfare Society v. Pawan Goods Merchants Co. Ltd. & Ors. (Complaint No. GC No. 0242/2025), concerning a plotted residential colony in Bathinda.
As reflected from the record (notably pages 1–2 of the order), the dispute arose from a residential project developed around 2006–2007 over approximately 37 acres, where allottees had taken possession, executed sale deeds, and constructed houses well before the enactment of the Real Estate (Regulation and Development) Act, 2016.
The Resident Welfare Society approached the Authority under Section 31 of the Act, alleging deficiencies in infrastructure and seeking exemption from maintenance charges on the ground that the project lacked a completion or occupancy certificate. The promoter, however, contended that residents had long been in possession and were availing facilities such as roads, water supply, electricity, and sewerage systems.
From the findings recorded across pages 8–11 of the order, the Authority noted that residents had been occupying the premises for years and enjoying essential services. It held that once possession is taken and acted upon by construction and occupation, allottees cannot later deny such possession solely due to the absence of certification.
Rejecting the Society’s contention, the Authority observed that continued use of amenities without payment would amount to unjust enrichment. It clarified that free provision of services such as electricity and water cannot continue indefinitely and does not grant residents a right to avoid maintenance obligations.
Importantly, relying on the statutory framework under Sections 11(4)(d) and 17 of the Act (discussed in pages 12–13), the Authority held that the responsibility for maintenance of common areas shifts to the association of allottees once possession is taken and the project is occupied.
The Authority further noted that the residents had already enjoyed infrastructure for over a decade, including roads, water pipelines, sewerage systems, and electricity connections (page 9). In such circumstances, refusal to contribute towards maintenance was found to be unjustified.
Accordingly, RERA directed the Arvind Nagar Residential Welfare Society to take over maintenance of the colony, including management of essential services and collection of maintenance charges from residents. Until such takeover is completed, the promoter is required to continue maintaining essential services but is entitled to recover reasonable and transparent maintenance charges (as recorded in the operative directions on pages 13–14).
The complaint seeking exemption from maintenance charges was therefore dismissed.