From Rs 7,900 to Rs 13,500: Why maintenance fees at Gurgaon condos are increasing

Residents of Gurgaon's Adani M2K Oyster Grande B1 condominium are outraged by a recent hike in maintenance fees, which have risen from Rs 3 per square foot to Rs 5.33. Previously, monthly bills averaged Rs 7,900, but will now reach approximately Rs 13,500. This surge in fees is attributed to the Haryana government's decision to increase minimum wages for workers by 35% in April, with the effect retroactive since that date.

The wage hike has forced societies to adjust their annual budgets, with projections of a 15-30% increase in expenses for security, housekeeping, and facility management. Residents' Welfare Associations (RWAs) warn that expenses could surpass the Rs 7,500 threshold at which Goods and Services Tax (GST) is applied, potentially impacting many households.

In response, RWAs are proposing a 15-20% rate hike, pending approval at upcoming General Body Meetings. However, at developer-managed societies lacking formal RWAs, residents have taken matters into their own hands, withholding payment and causing a decline in facility maintenance. To avoid passing the full burden onto residents, some societies are implementing cost-cutting measures, such as reducing outsourced agencies and increasing non-dues revenue.