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Can builder charge non-usage charges for the club house provided


02-Oct-2023 (In Property Law)
Hiranandani Realtors charged a club house membership fee at the time of booking itself for usage by residents. He is charging non-usage charges even from sr citizens who do not use the club at all. The builder has further leased the club house to a commercial profit making firm who charge substantial amounts for each facility used besides enrolling members from outside the complex thereby making /running the club house a profitable business at the cost of residents who have contributed and paid for the club house. Normally, club house is meant for residents for their personal use and used as attraction for selling their flats. My question is can the builder engage in profit generation from out of a facility funded by the residents? There are more than 2500 flats in the complex and each one contributing from 1-3 lacs towards club house charges.
Answers (1)

Answer #1
742 votes
In principle the builder cannot charge for nonusage and it sounds strange. As you rightly said, a clubhouse in a residential complex is normally meant for usage by residents only and the same cannot be used for commercial purposes. If the association bylaws permit for such usage on such terms and the same is informed to all residents from the beginning then no issues. Otherwise it is illegal.

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