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kRISHAN LAL (Retired)     07 January 2019

Maintenance Agreement

I entered into Maintenance Agreement (MA) in 2015 with builder from whom I purchased the Villa in Faridabad. In the MA it was agreed that Maintenance Agency (Agency) will provide general security, scavenging, general maintenance, and electricity for common area and will charge @Rs 3.25 per sq yd. In 2017, upon introduction of GST, Agency segregated the maintenance charges in two parts i.e. Common area maintenance charges (CAM) and Common area Electricity (CAE) charges. Agency reduced the CAM charges from RS 3.25 to RS 3/- per sq yd BUT added another charge as Common Area Electricity (CAE) charge @ RS.2.77 i.e Agency raised the charges from RS.3.25 per sq yd to RS. 5.77 per sq yd. and started raising bills at the above rates. Agency further is using its discretion in adjusting the charges for electricity or CAM against common area electricity charges. My query is (1) whether Agency is justified in increasing charges without amending the MA (2) whether Agency can use its discretion in adjusting the payments inspite of specifically mentioning in mails that the payment is for Electricity or CAM.
charges.

KL Bhalla


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