PANAJI
In a significant order reinforcing the obligations of developers and builders, a Reconciliator has directed M/s Kurtarkar Real Estates to pay nearly Rs 19.75 lakh in arrears to a housing society at Gogol, Margao, towards maintenance charges for 39 unsold flats and shops.
The ruling underscores Rule 135(5) of the Goa Cooperative Societies Rules, 2003, which makes builders directly liable to contribute maintenance for unsold units, even if vacant and unoccupied. The order clarifies that upkeep of common infrastructure benefits all units, including those held by the developer, and cannot be evaded until sale.
The dispute was filed by the Kurtarkar Landmark Cooperative Housing Maintenance Society, registered in 2022, which comprises 207 units across six blocks in Margao.
The society argued that despite repeated invoices and a legal notice, the builder failed to pay monthly contributions from April 2024, leading to arrears, late fees and interest totalling Rs 19,74,716.
The builder resisted liability, claiming the units were locked and unused, and argued that maintenance charges apply only after sale to third parties. They also challenged jurisdiction and cited statutory timelines.
However, Reconciliator Adv Milly Andrade, after evaluating statutory provisions and appellate rulings, held that Rule 135(5) imposes a clear responsibility on developers to pay for unsold units.
The order directs Kurtarkar Real Estates to clear arrears within 30 days, pay interest at 18 per cent per annum until full settlement, and continue monthly contributions until the units are sold.
The ruling comes amid growing disputes between housing socieites and builders over maintenance liabilities in Goa’s housing sector. Legal experts say it could set a precedent, reinforcing that builders cannot shift the burden of maintaining complexes onto societies while holding unsold inventory.
