# RERA Orders Builder to Refund Club Membership Charges and Facilitate RWA Formation
## Punjab RERA Protects Homebuyers Against Unfair Charges
In a significant decision favouring homebuyers, the Punjab Real Estate Regulatory Authority (RERA) has directed a Mohali-based builder to refund club membership charges collected from plot purchasers, wherever such charges were separately recovered despite already being included in the sale consideration.
The Authority has also instructed the developer to assist in the formation of the Residents Welfare Association (RWA) and ensure fair maintenance and electricity arrangements until the association becomes functional.
## Background of the Complaint
The complaint was filed by plot purchasers against a real estate developer in Mohali. According to the complainants, they had booked plots in September 2023 and obtained registration in May 2024.
After taking possession, the buyers alleged that several promised facilities remained incomplete. They also raised objections regarding separate recovery of club membership fees, maintenance charges, electricity-related issues, and delay in forming the Residents Welfare Association.
The buyers requested RERA to direct the builder to refund the unlawful charges and ensure proper management of the residential project.
## RERA’s Findings
After examining the sale documents and project records, Punjab RERA observed that the sale agreement already included the cost of club membership as part of the overall plot price.
Therefore, if the promoter collected club membership charges separately from buyers, such amounts must be refunded.
The Authority further directed the promoter to actively facilitate the constitution of the Residents Welfare Association in accordance with the provisions of the Real Estate (Regulation and Development) Act, 2016.
## Directions Regarding Maintenance and Electricity
RERA also clarified the responsibility of the builder until the RWA is formally constituted.
The Authority directed that:
– Electricity supply must be provided without discrimination to all residents.
– Electricity charges should be recovered only on the basis of actual consumption.
– Buyers who have already taken possession and are using common facilities may be charged reasonable and proportionate maintenance charges.
– However, maintenance expenses relating to unsold or unallotted plots must be borne by the promoter and cannot be passed on to existing residents.
## Buyers Alleged Incomplete Infrastructure
The complainants further submitted that several promised amenities and infrastructure were still incomplete, including:
– Club house facilities
– Security arrangements
– Sewage infrastructure
– Electricity backup
– Internal roads and common amenities
These deficiencies, according to the buyers, affected their peaceful enjoyment of the property despite taking possession.
## Builder’s Stand
During the proceedings, the builder informed RERA that the project had received its Occupancy Certificate in April 2024 and that possession had been lawfully handed over.
The developer also denied allegations of illegally collecting additional club membership charges.
However, after examining the contractual documents, RERA found merit in the buyers’ grievance regarding separate recovery of club membership fees.
## Why This Order Matters
This order highlights that developers cannot levy charges that are already included in the agreed sale consideration. It also reinforces the promoter’s statutory obligation to facilitate the formation of a Residents Welfare Association and to manage maintenance transparently until residents assume control.
The decision strengthens consumer rights by ensuring greater accountability, transparency, and compliance in real estate projects governed by RERA.
## Key Takeaways
– Club membership fees already included in the sale price cannot be recovered separately.
– Builders may be directed to refund unlawfully collected club membership charges.
– Promoters must assist in forming the Residents Welfare Association.
– Maintenance charges should be reasonable and proportionate.
– Electricity charges should be based on actual consumption.
– The promoter must bear maintenance expenses for unsold units until they are allotted.
## Conclusion
Punjab RERA’s decision is another reminder that real estate developers must strictly adhere to the terms of the sale agreement and the provisions of the RERA Act. Homebuyers are entitled to challenge arbitrary charges and demand proper project management, transparent maintenance practices, and timely formation of the Residents Welfare Association.
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*Disclaimer: This article is intended solely for educational and informational purposes and should not be treated as legal advice. Individual cases depend upon their specific facts and applicable law.*
