Builder Maintenance Arrears and DLP Compliance in Bangalore

What Legal Checks Are Needed When a Builder Has Not Paid Maintenance During the Defect Liability Period in Bangalore?

By the Property Law Team | Legal Brigade | Bar Council of Karnataka

The RERA defect liability period is five years from the date of possession during which a Bangalore builder is legally obligated to rectify any structural defects in the building at no cost to the flat owners. This period also creates a maintenance obligation where the builder must pay maintenance charges for any unsold flats they retain, and when the builder fails to pay this maintenance during the DLP, the association faces a funding shortfall that every paying flat owner must subsidise.

What Is the RERA Defect Liability Period and What Obligations Does It Create?

Section 14(3) of the Real Estate (Regulation and Development) Act 2016 provides that if any structural defect or defect in workmanship, quality or provision of services becomes apparent within five years of the date of possession, the developer must rectify such defects without any additional charge. This five-year defect liability period is a significant consumer protection. It means that a builder cannot hand over a flat and walk away from the building’s condition. During the DLP, the builder remains legally responsible for structural defects and must respond to association defect notices within a defined period. RERA’s DLP provision applies to all RERA-registered projects and is one of the most important buyer protections in the legislation.

The DLP creates two distinct obligations that run in parallel. The first is the defect rectification obligation, which requires the builder to fix structural and workmanship defects at no cost to the flat owner. The second is the maintenance obligation for unsold flats, which requires the builder to pay maintenance charges for any flats they have not sold and for which they remain the owner. Both obligations are grounded in the builder’s continued legal presence in the building during the DLP. When the builder fails on either front, the financial and operational burden shifts directly to the association and, by extension, to every flat owner who is paying maintenance regularly.

Legal Brigade’s RERA complaint practice has seen a significant increase in DLP-related complaints in the 2023-2026 period, as the buildings delivered between 2018 and 2021 enter or complete their five-year DLP. The most commonly reported DLP violations are builder non-response to structural defect notices and builder failure to pay maintenance for retained unsold flats, both of which deplete the association’s financial resources during a period when the building’s infrastructure needs are highest.

What Is the Builder’s Maintenance Obligation for Unsold Flats During the DLP?

When a builder retains unsold flats in a building, those flats remain the builder’s property. Under the Karnataka Apartment Ownership Act and the general principles of RERA, every flat owner is a member of the apartment association and must contribute to maintenance in proportion to their ownership. The builder, as the owner of unsold flats, is not exempt from this obligation. The builder must pay maintenance charges for every unsold flat they retain, and they must also contribute to the sinking fund and other common charges that the association levies on all members. This is not a discretionary payment. It is a statutory obligation that arises from ownership.

The table below sets out the builder’s DLP maintenance obligations for unsold flats in full detail.

When the builder does not pay maintenance for unsold flats, the association’s monthly collection falls short of its budget. The association then has three choices: reduce services, increase the maintenance charge on paying members, or accumulate arrears to vendors. All three outcomes harm the flat owners who are compliant. The builder’s non-payment is therefore not merely a dispute between the builder and the association. It is a direct financial extraction from every paying flat owner.

How Do I Check Whether a Builder Has an Outstanding Maintenance Obligation Before Buying?

1. Ask the apartment association secretary specifically how many flats remain unsold or in the builder’s name and whether the builder is paying maintenance for those flats. The secretary maintains the membership register and the maintenance collection records. A direct question about builder-paid flats will reveal whether the builder is current or in arrears.
2. Obtain the association’s maintenance collection records for the last two years and confirm whether all flat owners, including the builder for their retained flats, are current on maintenance. These records show month-by-month collections and identify defaulters by flat number. If the builder’s flats appear as arrears entries, the financial health of the association is compromised.
3. Ask the association for the arrears position, specifically whether any single flat owner has a significant maintenance arrear and whether that owner is the builder. Large arrears from a single owner, particularly the builder, indicate a systemic collection problem that will not resolve without legal intervention.
4. Check the association’s financial statements for any note about maintenance arrears from the builder and the action being taken to recover them. The financial statements may disclose legal notices, RERA complaints or civil suits filed against the builder for maintenance recovery. This tells you whether the association is actively enforcing the obligation.
5. Have a property lawyer assess the builder’s maintenance arrear position and its financial impact on the association before any purchase commitment. A lawyer can calculate the per-flat subsidy burden, review the association’s enforcement strategy and advise whether the purchase price should be adjusted to reflect the building’s compromised financial position.

What Is the RERA DLP Defect Rectification Obligation and How Is It Enforced?

Section 14(3) of RERA creates a comprehensive defect rectification framework that covers structural defects, workmanship defects, quality of materials defects and provision of services defects. The builder must rectify all covered defects at no cost to the flat owner within a reasonable period of receiving written notice. The flat owner or the association serves the notice, describes the defect, and requests rectification. If the builder fails to respond or refuses to rectify, the enforcement mechanism is a complaint before the Karnataka RERA Authority.

The table below presents the RERA DLP defect rectification framework in structured form.

The distinction between a DLP defect and normal wear and tear is often contested. The builder may claim that cracking plaster, water seepage or tile displacement is the result of age, climate or poor maintenance rather than a defect in original construction. The association must document the defect with photographs, expert reports and maintenance records to establish that the issue originated from the builder’s construction rather than from subsequent use. Legal Brigade routinely coordinates structural engineer inspections to create the evidentiary foundation for DLP complaints.

What Recourse Does the Association Have When the Builder Does Not Respond to DLP Defect Notices?

An association that has served a formal defect notice on the builder and received no response has two primary enforcement routes. First, a RERA complaint specifically citing Section 14(3) and the specific defect, with supporting evidence of the defect and the builder’s non-response. K-RERA can direct the builder to rectify within a specified period and impose a penalty for non-compliance. The RERA complaint is the faster and more cost-effective route because K-RERA is required to adjudicate complaints within sixty days and its orders are enforceable as decrees of a civil court.

Second, if the defect poses an immediate safety risk, the association can carry out the repair itself and file a civil suit against the builder for recovery of the repair cost as a statutory obligation under the RERA DLP. This route is appropriate when lift collapse risk, structural column failure or electrical fire hazard requires immediate intervention that cannot wait for K-RERA adjudication. The association should pass a resolution authorising the emergency repair, obtain three contractor quotations, execute the repair and then sue the builder for recovery. The civil suit can also claim interest and legal costs.

See Legal Brigade’s complete RERA complaint guide at /karnataka-rera-complaint-lawyer/

Frequently Asked Questions

Q1. What is the RERA defect liability period and how long does it last?

The RERA defect liability period is five years from the date of possession. During this period, the builder is legally obligated to rectify any structural defect, workmanship defect, materials quality defect or services defect at no cost to the flat owner. The period is calculated from the date the flat owner takes possession, not from the date of registration or the date of project completion. For buildings delivered between 2018 and 2021, the DLP is currently active or concluding.

Q2. What types of defects are covered by the RERA five-year DLP?

The DLP covers structural defects in foundation, columns and beams; workmanship defects in waterproofing, plastering and tiling; quality of materials defects; and provision of services defects in plumbing and electrical systems. Normal wear and tear and damage caused by misuse are not covered. The builder must rectify covered defects at no cost within a reasonable time of receiving notice.

Q3. Is the builder obligated to pay maintenance for unsold flats during the DLP?

Yes. The builder is the owner of unsold flats and is therefore a member of the apartment association. Under RERA and the Karnataka Apartment Ownership Act, every owner must pay maintenance in proportion to their ownership. The builder’s obligation to pay maintenance for retained unsold flats runs concurrently with the DLP and does not expire when the flat remains unsold.

Q4. What happens when the builder does not pay maintenance for retained unsold flats?

When the builder does not pay, the association’s maintenance collection falls short of its budget. The paying flat owners must either subsidise the unpaid amount through higher charges or accept reduced services. The sinking fund also grows more slowly, limiting the association’s ability to fund capital repairs. In some cases, BBMP may impose building-wide penalties if property taxes for unsold flats are unpaid.

Q5. How do I check whether the builder is current on maintenance for their unsold flats?

Ask the association secretary for the number of unsold flats and the builder’s payment status. Request the maintenance collection records for the last two years and the financial statements for notes on builder arrears. Confirm whether the association has issued legal notices or filed complaints. Have a property lawyer review the position before you commit to the purchase.

Q6. What RERA complaint is available when the builder does not rectify a DLP defect?

The association or the affected flat owner can file a complaint before K-RERA under Section 14(3) of RERA. The complaint must describe the defect, attach evidence of the notice served on the builder and document the builder’s non-response. K-RERA can direct rectification within a specified period and impose penalties for non-compliance. The complaint must be adjudicated within sixty days.

Q7. Can the association carry out repairs itself and recover the cost from the builder?

Yes, but this route is most appropriate for emergency repairs that pose an immediate safety risk. The association should pass a resolution, obtain quotations, execute the repair and then file a civil suit for recovery of the cost from the builder. The civil suit treats the repair cost as a statutory obligation under RERA that the builder has failed to discharge.

Q8. Does the DLP obligation survive if the builder sells a retained flat during the DLP?

The DLP obligation is tied to the builder as the developer of the project, not to the individual flat owner. If the builder sells a retained flat during the DLP, the DLP obligation for that specific flat may transfer to the new owner for defects that manifest after the sale, but the builder’s original five-year obligation for the project as a whole remains enforceable for defects reported during the DLP period.

Q9. What if the builder claims the defect is normal wear and tear, not a DLP defect?

The builder frequently raises this defence. The association must rebut it with evidence that the defect originated from construction rather than from use or age. Photographs, structural engineer reports, maintenance records and expert testimony can establish that the defect is a DLP-covered construction defect. Legal Brigade coordinates engineer inspections specifically for this purpose.

Q10. How does Legal Brigade assist associations in enforcing DLP obligations against builders?

Legal Brigade represents apartment associations and individual flat owners in K-RERA complaints for DLP defect rectification and maintenance recovery. We coordinate structural engineer inspections, draft defect notices, file RERA complaints and pursue civil recovery suits for emergency repair costs. Our practice is exclusively focused on Bangalore property law, and we have handled DLP matters across the full range of building types and builder profiles in the city.

Buying a flat in a Bangalore building that is within five years of its possession date?

The builder’s DLP maintenance obligation and defect rectification compliance are material checks for any building in the DLP period.

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Frequently Asked Questions