BDA empowers housing association to cut essential services for defaulters

Bhubaneswar, July 11: In a landmark move, the Bhubaneswar Development Authority (BDA) has issued a crucial order empowering the association of allottees in a major residential project to disconnect essential services to units that fail to pay monthly maintenance charges for an extended period. This decision marks a significant precedent in urban housing governance in Odisha.

The order follows a complaint filed by the association, which alleged that some flat owners had been avoiding their share of common expenses. The dispute involved four homeowners, out of a total of over 160 units, who refused to pay maintenance charges. These owners argued that the association was not yet formally registered and that maintenance responsibilities should rest with the promoter.

However, the association countered the claim, asserting that it had already been registered and the promoter had officially handed over all common areas. Therefore, each allottee is legally bound to contribute towards upkeep.

After reviewing the matter, the BDA cited Section 19(1) of the Odisha Apartment (Ownership and Management) Act, 2023, which allows service suspension if dues remain unpaid for more than three months. Defaulters have been given one month to clear dues, failing which disconnection will proceed as per the Act.