MC Explains: Can apartment associations disconnect power, water supply of homebuyers defaulting on maintenance?

An elderly couple in Mangaluru has been living in the dark for the past four years after the residents’ welfare association (RWA) of Maurishka Park disconnected the power to their apartment. Veena Shantharam Prabhu (56) and her husband, Shantharam Ramdas Prabhu (60), charge their inverter with the help of neighbours or charging points (at nearby shops) to light up their apartment and when it discharges, resort to candles.

In another instance, in Mahaveer Orchids in Bengaluru, there was a fistfight between a homeowner and association members over maintenance charges. Gangadhar, who goes by one name, who is also a police official, had defaulted on maintenance charges, and when the RWA disconnected water and power to his apartment, the fight broke out.

Why do RWAs disconnect the supplies?

Manjunath Achari, an advocate, said when owners fail to pay the maintenance fee, most RWAs resort to cutting water and electricity supply to make them clear the dues.

“Every apartment complex has either a high-tension or low-tension wire that supplies electricity from the local supply. Either the apartment will have individual electrical meters or one central meter and individual sub-meters” to measure the consumption of electricity, Achari said.

For water, the source can be like in the case of the Bangalore Water Supply and Sewerage Board in Bengaluru, or from a borewell within the complex, he added.

Experts say this is a common issue in Karnataka, though not reported often. But it is not restricted to the state: in at least two incidents in Mumbai, and one in Delhi reported this year, water and power supply were disconnected by the association/builder over non-payment of maintenance dues.

Can association members disconnect the supplies?

Achari, who was counsel in a similar case in a Bengaluru civil court, said, “The court had disposed of the matter saying the association members cannot disconnect water and electricity connections at the apartments.”

Parminder Singh, an advocate from Mumbai, was categorical that association members or societies cannot disconnect water or electrical supplies as they fall under essential services. “There are several legal paths available to approach such situations. However, disconnection is not an option across any state in India,” he added.

Several Supreme Court as well as high court judgments across states have already established that water and electricity are essential services.

In 2010, the Madras High Court in the case of Cosmo Towers Owners’ Association vs Chennai Metropolitan Water Supply and Sewerage Board ruled, “The action of the petitioner Association in disconnecting the water supply to the fourth respondent’s flat is also illegal as it is an interference in enjoying the common facility.”

The association can only take steps to recover the amount payable to the metro water from the respondents if the same is not paid by them, the order added.

Part XIV (IA) of the Electricity Act, 2003, states, “Upon detection of such theft of electricity, immediately disconnect the supply of electricity: Provided that only such officer of the licensee or supplier, as authorised for the purpose by the Appropriate Commission or any other officer of the licensee or supplier, as the case may be, of the rank higher than the rank so authorised, shall disconnect the supply line of electricity.”

Anil Kalgi, a close watcher of the real estate industry, added, “Only an authorised person can disconnect electricity, and RWAs do not have the right to interfere. In any case, the Electricity Act also mentions that every offence is a non-cognisable offence.”

Advocates said that as seen in the Supreme Court case between assistant engineer (D1), Ajmer Vidyut Vitran Nigam Ltd vs Rahmutullah Khan in 2020, power supply cannot be disconnected if the owner/occupant continues to pay the electricity bill even after not paying the maintenance charges.

Kalgi added that in the case of Karnataka, the state electricity regulatory commission specifically says, “Yet in practice ESCOMS (electricity supply corporations) may resort to disconnect electricity supply due to various reasons. This doesn’t mean that ESCOMS are at liberty to disrupt power supply to the consumer’s installation. As per law, any disconnection should be for a valid reason and the consumer is entitled to have advance knowledge of such disconnection [sic].”

What can associations or homeowners do?

For Maharashtra, Singh added, a regulatory framework is already in place for such situations. “If any homebuyers fail to pay the maintenance charges, the society members may approach the registrar and complain. The registrar will be responsible to pass appropriate orders against pending dues with interest. Every state has societies’ laws and individual bylaws that streamline this process,” he said.

Advocates said that if any homebuyer faces such an abrupt disconnection, they may approach the police and file a complaint against the society or the association. Additionally, they may also approach the registrar to resolve the issue.

Bengaluru-based advocate Abhilash Naik said associations can even file a recovery suit against the owner at the civil court if they are registered under the Karnataka Apartment Ownership Act (KAOA), 1972. However, if they are registered under Karnataka Co-operative Societies Act (KSCA), 1959, they may approach the registrar, who has the power to attach the assets of the defaulter.

However, for Karnataka the problem is deep-seated.

Advocates claim that Karnataka does not yet have a proper real estate regulatory framework. Currently, RWAs in the state can be registered under KAOA and KSCA. However, the state government has not notified the competent authority under KAOA, and homebuyers cannot approach the registrar to address grievances as in cases where their power or water supply has been discontinued.

Commander Surendra, a naval veteran and who goes by one name, had his electricity disconnected after he stopped paying the maintenance fees alleging misappropriation of funds by the association registered under KAOA. “The registrar’s office told me they do not have directions from the state government and cannot help me. I only had the option of approaching the civil court,” he said.

In the case of Prabhu and her husband, there is also the question of which is the real RWA. She said that at least three associations have cropped up in their apartment complex as the developer did not convey the land share to the association needed to be formed.

“Each one says the associations will get registered as soon as we register the sale deed. However, that is misleading, only associations registered under KSCA will have the competent authority, the registrar’s office for grievances.”

She said for the last four years, she has been circling several courts in Karnataka, as the registrar’s office failed to help her.

Previously, the additional registrar of cooperative societies had sought clarification on KAOA from the state legal department through the principal secretary.

Officials at the law department of the additional registrar of cooperative societies told Moneycontrol that the department has already received a clarification from the state government. The document is under process and will be published next week, he added.