By Arosh John | Founder – John Real Estate (MahaRERA Reg. No. A51700001835) | Editor-in-Chief – Thane Real Estate News
Why this guide matters
Township residents across Thane and Mumbai often face confusion about Federation/Common Area Maintenance (FCAM) — why two sets of bills exist, how long developers can collect FCAM, when handover should happen, and what to do if bills lack transparency.
This guide brings together three detailed explainers from Thane Real Estate News into a single resource.
1. Why Two Maintenance Bills Exist in Townships
- Society charges cover building-level expenses like lifts, cleaning, and common electricity.
- Federation/Common Area Maintenance (FCAM) covers layout-level services like internal roads, security, sewage & water treatment plants (STP/WTP), landscaping, and clubhouse upkeep.
- Legal basis: MHRD Act, 2012, Section 18(3) recognises the Apex Body/Federation as the authority to administer layout-level amenities once formed.
👉 Read Now Township FCAM in Maharashtra: Why Two Maintenance Bills Exist and Why They’re Essential
2. From Developer to Federation: The Handover Process
- Developer-controlled phase: Until all societies are formed, developers manage layout-level facilities and collect FCAM.
- Handover timeline:
- Society formation
- Federation registration
- Conveyance of layout land & amenities
- Handover of contracts & accounts
- Resident-controlled federation governance
- Legal basis:
- RERA Act, 2016 Sec. 11(4)(d): Promoters must provide essential services on reasonable charges until handover.
- MHRD Act, 2012, Sec. 18(3): Federation becomes responsible for layout-level maintenance.
- MahaRERA Order 57/2024: Sale agreements must list amenities and proposed handover dates.
👉 Read Now From Developer to Federation: How Township Handover of Common Areas Works in Maharashtra
3. FCAM Transparency Before Handover: Residents’ Rights
- Advance FCAM: Developers commonly collect 1–5 years of advance FCAM at possession. Agreements usually call this “provisional” or “subject to revision.”
- Reality: When the advance runs out, new FCAM bills are raised — often higher, and sometimes without transparency.
- Residents can:
- Demand itemised accounts & audited utilisation of advance (while continuing to pay bills on time to avoid penalties).
- Check MahaRERA filings for annexures & disclosures.
- Form township-level committees for collective representation.
- Approach the Deputy Registrar of Co-operative Societies or MahaRERA for non-compliance.
- Important: Non-payment of bills can attract interest, penalties, and even affect resale NOCs. Always stay compliant while pursuing remedies in parallel.
👉 Read Now FCAM Transparency Before Handover: What Township Residents Can Do
📌 Key Takeaways
- Two bills exist because societies and federations handle different responsibilities.
- Developers must maintain services until federation handover, and charges must be reasonable.
- Since July 2024, agreements must include amenity lists + proposed handover dates (MahaRERA Order 57/2024).
- Residents should pay charges on time but actively demand audited accounts, transparency, and regulatory compliance.
About the Author
Arosh John is a leading Thane real estate expert with over a decade of experience in the Mumbai Metropolitan Region. He is the Founder of John Real Estate (MahaRERA Reg. No. A51700001835) and Editor-in-Chief of Thane Real Estate News (TREN), the city’s first dedicated real estate news and insights platform.
Through his advisory and editorial work, Arosh specialises in:
- Resale transactions & due diligence
- NRI advisory for investments and exits
- Luxury villas and premium housing in Thane & MMR
- Breaking down laws, regulations, and township governance for buyers and residents
Disclaimer
This guide is based on the RERA Act, 2016, the Maharashtra Housing (Regulation and Development) Act, 2012, and MahaRERA Order 57/2024. It is for general educational purposes.
- Agreements executed before July 2024 may not have amenity lists or handover dates.
- Agreements executed after July 2024 must include these disclosures.
- Advance FCAM collections are provisional and subject to revision; audited utilisation should be demanded.
- Non-payment of FCAM can lead to penalties or legal recovery; residents should pay while pursuing remedies through collective action and statutory authorities.
Neither the author nor Thane Real Estate News accepts liability for decisions taken solely based on this guide.
