TV
In a precedent-setting decision, the Bhubaneswar Development Authority (BDA) has upheld the rights of an apartment owners’ association to take firm action against residents who habitually avoid paying monthly maintenance fees.
This is the first time in Odisha that a regulatory body has officially empowered residential associations to disconnect essential services such as water and electricity to flats whose owners continuously default on shared expenses. The decision is grounded in the provisions of the Odisha Apartment (Ownership and Management) Act, 2023.
The case stemmed from a complaint lodged by the registered association of allottees in a prominent residential complex. They accused four out of approximately 160 residents of deliberately withholding their monthly contributions, even after the association had formally taken charge of common area management from the builder.
The defaulters argued that since the association was not initially registered under the Act, the responsibility of maintaining the premises should still lie with the developer. In contrast, the association clarified that it was now a registered body and had legally taken over the upkeep duties.
After examining the matter, the BDA referred to Section 19(1) of the 2023 Act, which authorises the association to suspend essential services if a resident fails to contribute toward common expenses for over three months.
The BDA directed the defaulting residents to settle their dues within one month of the order’s issuance. If the payments are not made within this window, the association has been granted the liberty to act per the law, including disconnection of essential services.
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Real estate observers welcomed the move, calling it a much-needed enforcement step. “In apartment living, collective responsibility is key,” said realty analyst Bimalendu Pradhan.
“Some owners knowingly avoid their obligations, creating tension within the community. This order sends a clear message,” he added.
