How 40% hike maintenance charge at Noida’s Cleo County society triggered multiple protests but can AoA do so? Know rules
A 40% hike in CAM charges at Noida’s Cleo County has triggered repeated protests, while residents question transparency and AOA formation. UP rules provide for an apartment owners’ association and give its general body a role in deciding common expenses.
How a 40% hike in common area maintenance triggered protests in Cleo County
A 40% increase in common area maintenance (CAM) charges at Noida’s Cleo County has triggered repeated protests since 5 September, bringing a familiar problem in large gated societies back into focus: who controls maintenance, common funds and shared facilities once homebuyers take possession?
The dispute at the Sector 121 society centres on a revision in CAM charges from ₹2.75 to ₹3.85 per square foot. The increase is being applied retrospectively from April, according to residents. The society, spread across 25 acres, has more than 2,500 units, and residents of around 1,450 units have signed a petition opposing the hike, The Times of India reported.
Residents have also raised questions over the absence of an Apartment Owners’ Association (AOA). They have sought greater transparency over maintenance accounts, an independent forensic audit, disclosure of the Interest Free Maintenance Security (IFMS) and safeguards for the sinking fund. Protests were held at the society over both the maintenance increase and the proposed formation of an AOA.
The developer, however, has defended the increase, attributing it to higher minimum wages and rising material and operating costs. It has also said there had been no maintenance fee revision during the first seven years despite multiple statutory minimum wage increases. The developer maintains that audited financial records have been shared with residents through open forums.
What do the rules say about an AOA?
The legal position in Uttar Pradesh does not leave the formation of an apartment owners’ association entirely to individual preference. Under the Uttar Pradesh Apartment (Promotion of Construction, Ownership and Maintenance) Rules, 2011, the framework provides for the association and its role in the management and maintenance of apartment properties.
UP RERA chairman Sanjay R Bhoosreddy has said the formation of an AOA is a joint responsibility of the developer and homebuyers once the prescribed completion formalities have been fulfilled. Where either side fails to act, the other can approach the competent authorities over non-compliance.
The Uttar Pradesh Apartment Ownership Act, 2010 also establishes that apartment owners cannot simply avoid their share of common expenses by choosing not to use common areas or facilities. It provides for recovery of unpaid common expenses under specified circumstances.
The question of who fixes the maintenance rate is therefore important. According to Bhoosreddy, once an association is formed, its general body can determine common maintenance charges through a majority decision, with the decision binding on apartment owners.
The IFMS framework has also been updated. UP RERA announced in July 2026 that its new framework covers collection, investment and eventual transfer of IFMS to the residents’ association during handover.
The Cleo County dispute therefore goes beyond one maintenance bill. It highlights the transition from developer-led management to resident-led administration, and the importance of transparent accounts, properly constituted associations and clear responsibility for common funds.
