Builder Raised Maintenance Charges After Purchase? Your Legal Remedies Under RERA

One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

TL;DR: A builder cannot unilaterally increase maintenance charges after quoting a lower amount in the cost sheet you relied on while purchasing. The cost sheet is a contractual representation. You can file a complaint before the RERA authority or the consumer court to enforce the original figure and seek compensation for the excess demand.

Arjun Mehta booked a 2BHK flat in a Godrej Properties project in Pune’s Baner area in February 2024. The cost sheet handed to him by the builder’s team expressly mentioned maintenance charges of Rs 55,800 for 24 months. He signed the agreement and made payments accordingly. Fast forward to mid-April 2025, possession day. He’s handed a fresh demand: Rs 96,000 plus 18% GST, totalling Rs 1,13,280. A sudden jump. No prior intimation. No revised cost sheet. He tried reasoning with the builder’s office. Emails. Calls. They kept insisting the earlier figure was only an estimate and that actual costs had risen. That’s when he reached out to the Chamber of Advocate Sudhir Rao. The office of Advocate Sudhir Rao immediately identified the legal flaw. The cost sheet wasn’t a casual estimate—it formed part of the pre-contractual representation that induced the purchase. The client had relied on it. Under RERA and contract law, such representations bind the builder. Advocate Sudhir Rao and his office argued that the builder’s revised demand amounted to a deficiency in service and an unfair trade practice. A complaint was drafted under the Real Estate (Regulation and Development) Act, 2016, and a parallel notice was sent invoking consumer protection jurisdiction. Because the approach was sharply focused on the written commitment, the authority directed the builder to honour the original maintenance figure. The order came within months—far quicker than the client had feared after weeks of stalled talks. Advocate Sudhir Rao’s domain experience with real estate disputes made all the difference, because the strategy hinged on proving that the cost sheet was not a mere projection but a binding term.

Key Facts of the Case

• The buyer booked a residential flat in Pune in February 2024.
• Godrej Properties provided a written cost sheet showing maintenance charges of Rs 55,800 for 24 months.
• At the time of possession (around 15 April 2025), the builder demanded Rs 96,000 + 18% GST (total Rs 1,13,280).
• No revised cost sheet or prior notice was given to the buyer.
• The buyer first attempted direct resolution, which failed.
• The Chamber of Advocate Sudhir Rao took up the matter, highlighting the binding nature of the cost sheet under RERA and contract law.
• The authority ruled that the builder could not unilaterally change a committed maintenance amount.

The Direct Legal Answer

Understanding the Costs

The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.

A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.

What should I do now?

File a complaint under RERA Section 14 and 18, or before the consumer court under the Consumer Protection Act, 2019, citing deficiency in service. Attach the original cost sheet, payment receipts, and the new demand letter. You can also send a legal notice first, asking the builder to withdraw the excess demand and honour the original terms.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Do not pay the inflated amount under protest without legal advice. Sometimes builders use the “possession at stake” pressure. And here’s the thing—once you pay, recovering the excess becomes more complex. Gather all documents: cost sheet, payment receipts, emails, and the new demand. These are your primary evidence. Real estate disputes over maintenance charges involve nuanced interpretation of contractual representations. A general practitioner may treat it like a simple breach of contract, missing the powerful remedy under RERA. A specialist knows that a single written sheet can turn the case.

Applicable Sections of Law

This is primarily a civil dispute. The Real Estate (Regulation and Development) Act, 2016 governs: Section 14 (promoter’s obligations to adhere to sanctioned plans and project specifications, including commitments made to buyers), and Section 18 (refund and compensation for failure to give possession on time or for breaching obligations—useful if the builder’s demand is linked to delaying possession). The Consumer Protection Act, 2019 applies: Section 2(11) defines deficiency in service, and Section 47 lays down jurisdiction. The Indian Contract Act, 1872, Section 73 provides compensation for breach. The Limitation Act, 1963, Article 55 prescribes a three-year period for suits for compensation for breach of contract, though RERA complaints have a two-year limitation.

Jurisdiction — Where to File the Case

You can approach the RERA authority of the state where the property is located—for Pune, that’s the Maharashtra RERA. The complaint must be filed within two years from the cause of action (date you received the inflated demand). Alternatively, the consumer district commission or state commission has jurisdiction depending on the value of the excess amount and any compensation claimed. For claims above Rs 50 lakh but below Rs 2 crore, the state commission; below Rs 50 lakh, the district commission. Pecuniary jurisdiction matters because filing in the wrong forum leads to rejection. Territorial jurisdiction lies where the builder’s office is or where the property is situated.

Limitation Period

Under the Limitation Act, 1963, a complaint before RERA must be filed within two years from the date the cause of action arose—here, the date the builder made the new demand. For a consumer complaint, the limitation is also two years. Missing this deadline is fatal unless you can show sufficient cause for condonation of delay. The clock starts ticking the moment you receive the inflated maintenance bill. Don’t wait.

Interim Reliefs Available

While your complaint is pending, you can seek interim orders to prevent the builder from withholding possession due to non-payment of the disputed amount. Under Order 39 Rule 1 and 2 of the Code of Civil Procedure, a temporary injunction can be requested, directing the builder to accept the original maintenance charge and hand over possession. You may also apply for a status quo order so that the builder does not create third-party rights or cancel the allotment. If there is a risk that the builder is siphoning funds, an attachment before judgment under Order 38 CPC can be considered, though it’s less common in such disputes. Early interim reliefs often break the deadlock and bring the builder to the table.

How Courts Typically Approach Such Cases

RERA authorities and consumer forums view the cost sheet seriously. It isn’t a loose brochure. If it contains a specific breakdown with maintenance figures and you relied on it while booking, the builder’s unilateral hike is treated as an unfair trade practice. The authority will compare the original commitment with the new demand and will ask the builder to justify any escalation. If no escalation clause exists in the agreement, the authority almost always rules in favour of the buyer. Consumer courts additionally award compensation for mental agony and litigation costs.

If You Are the Victim

• Do not pay the hiked amount under pressure. Send a written objection first.
• Collect all documents: cost sheet, agreement, payment receipts, and the demand letter.
• Send a formal legal notice through an advocate demanding adherence to the original charges.
• File a complaint under RERA or consumer court immediately—don’t let limitation run out.
• Keep digital copies of every email and WhatsApp communication with the builder.

Documents You Must Keep Ready

• Original cost sheet with the maintenance section clearly visible
• Builder-buyer agreement and any subsequent addendums
• Payment receipts for booking amount and instalments
• The demand letter or invoice showing the inflated maintenance charges
• Emails or WhatsApp messages where you raised the issue
• Aadhaar and PAN card for identity verification
• Possession letter or offer of possession, if any
• Any written assurance by the builder’s representative

What Evidence Is Required?

• The cost sheet: This is your primary documentary evidence. It must show the maintenance figure of Rs 55,800.
• The fresh demand: The possession letter or invoice demanding Rs 1,13,280 proves the hike.
• Payment receipts: They establish that you paid booking based on the original representation.
• Emails/letters: Any correspondence where you asked for an explanation and the builder responded (or didn’t) strengthens your case.
• Screenshots of WhatsApp chats, if formal communication was informal. Courts now admit electronic evidence under the Indian Evidence Act.
• Witness affidavits from other buyers in the same project who received similar hikes—that can show a pattern of unfair practice.
• Brochures or advertisements that may have advertised low maintenance costs, serving as corroborative evidence.

Timeline of Legal Process

• Send legal notice: 15–30 days for reply.
• File RERA complaint: Your advocate drafts the complaint with annexed documents and files it online on the state RERA portal.
• Registration and numbering: Within a week.
• Notice to opposite party: The authority issues notice; builder gets 30 days to file reply.
• Hearing and orders: Typically 3–6 months from filing to final order, if the builder doesn’t seek adjournments.
• If you choose consumer court, the timeline: admission hearing, notice, reply, evidence on affidavit, arguments, and judgment—can take 6–12 months.
• Execution: If the builder fails to comply, you file execution proceedings.

Understanding the Costs

The total expense of pursuing a matter like this varies considerably from case to case. It depends on the complexity, the forum (RERA versus consumer court), the number of hearings, and whether the builder contests strongly or settles early. A professional advocate who reviews all your documents and the sequence of events can give you a clearer picture of the likely costs. No two cases are identical, so any off-the-cuff estimate without a full consultation would be unreliable.

Can the Matter Be Settled Out of Court?

Yes, and it often is. Builders prefer settlements to avoid an adverse RERA order or NCDRC judgment. Mediation and conciliation mechanisms exist under RERA and the Consumer Protection Act. The authority may refer parties to mediation. If the builder agrees to withdraw the excess demand and honour the original cost sheet, you can close the matter with a compromise deed. Lok Adalats and pre-litigation settlement cells also handle such real estate disputes. Settlement is advisable when the builder is willing to make amends quickly, saving you time and litigation costs. But never settle without your advocate’s guidance—the terms must be watertight.

Common Mistakes People Make

• Delaying action: Limitation is strict; even a few months’ delay can jeopardize your complaint.
• Paying the hiked amount and then trying to recover it—this weakens your stand on the binding nature of the original cost sheet.
• Not preserving the cost sheet or taking only a verbal assurance, which leaves you without proof.
• Signing supplementary documents at possession time that retrospectively accept the higher charges—read everything before you sign.
• Venting on social media instead of gathering evidence; that can alert the builder to destroy records.
• Choosing an advocate who doesn’t regularly handle real estate or RERA matters. Domain-specific experience is crucial because the evidentiary value of a cost sheet, the interplay between RERA and consumer law, and the strategic use of interim reliefs are often missed by a general practitioner, resulting in longer resolution times or even an unfavourable order.

FAQs People Normally Have

Is the cost sheet legally binding even if it’s not part of the main agreement?

Yes. It is a pre-contractual representation and can be enforced under RERA and contract law. Courts have held that such documents, when acted upon by the buyer, have binding effect.

Can I claim compensation for mental agony over and above the excess amount?

Absolutely. The Consumer Protection Act allows compensation for harassment and mental agony. RERA also permits interest and compensation.

What if the builder threatens to cancel my allotment if I don’t pay?

That threat is actionable. You can seek an injunction from the RERA authority immediately. The builder cannot cancel your allotment for refusing an illegal demand.

Is there a time limit to file a complaint?

Two years from the date you received the inflated demand letter. Act without delay. If you miss it, you’ll need to explain the delay and seek condonation.

Will I lose possession while the case is on?

Not if your advocate obtains an interim order directing the builder to hand over possession upon payment of the undisputed original maintenance amount. Courts protect genuine buyers.

This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.

Advocate Sudhir Rao, Supreme Court of India