Sobha Palm CourtApartment Owners' Association
The gap, the runway, and the proposal

The shortfall and the plan

Three groups estimated this year's shortfall and got three numbers. They differ on what to count, not on the facts.

EstimateShortfall, FY 2026–27What it assumes
Treasurer's projection₹91 LSpending of ₹33 L a month; only HDFC interest counted; nothing saved.
Managing Committee's working model₹70–80 LActual spending of about ₹31 L a month; all interest counted, including ICICI interest that arrives at maturity; tax on interest provided; no savings yet.
Finance Sub-Committee's report₹23 LRunning costs only (no one-time items), ₹18 L a year of savings assumed before they are made, and tax at a third of last year's level.
The MC plans on ₹70–90 L. Savings from the tenders reduce it from next year. The target is ₹25–30 L a year.

Cash, month by month

The account had ₹5.9 L at the end of Aug 26 — about a week of spending. Spending is ₹26 L a month, plus tax in September, December and March, plus the ₹8 L lift contract in December. The next bill is 1 October at the current rate. The meeting cannot be held before 18 October. The table below starts from the real Aug 26 closing balance: even with a 20% increase from 1 October, the account still needs the reserves in several months, because there is no cushion left to absorb the wait.

Month-endInOutCash if nothing changesCash with +20% from 1 Oct
Aug 26 (actual)8.837.75.95.9
Sep 265.328.5−17.3−17.3
Oct 26 · Q3 bill58.326.015.015.0
Nov 265.326.0−5.74.9
Dec 26 · lift AMC, tax5.336.5−36.9−26.3
Jan 27 · Q4 bill58.326.0−4.616.6
Feb 275.326.0−25.3−14.7
Mar 27 · tax5.328.5−48.5−37.9

Assumes no ICICI deposits mature and no savings from tenders yet. A maturing ICICI deposit (one is expected within weeks) would ease this. Tax is at the current ₹2.5 L a quarter; the Options page defaults to the higher, correct provision, so it shows a somewhat larger draw. Negative means the reserves are used.

Until the General Body decides, the gap is met from the reserves. There is no other source this year. What is drawn will be shown on the reserves page month by month, and the meeting will be asked to decide how it is repaid.

What an increase would mean for your flat

Illustrative only. The MC's proposal will be in the meeting notice. Once a flat's monthly charge crosses ₹7,500, 18% GST applies. It can apply to the whole amount (the tax department's position) or only to the amount above ₹7,500 (a High Court reading). The difference is over ₹1,300 a month for the larger flats. Written advice is being taken.

Flat typeToday, per monthAt +20%With GST on the whole amountWith GST only above ₹7,500
A / E (1,934 sq ft)₹7,432₹8,918₹10,524₹9,174
A1 / E1 (1,949 sq ft)₹7,499₹8,999₹10,619₹9,269
B / F (1,822 sq ft)₹6,921₹8,305₹9,800₹8,450
B1 / F1 (1,837 sq ft)₹6,988₹8,386₹9,895₹8,545
C (1,633 sq ft)₹6,058₹7,270₹7,270₹7,270
D1 (1,560 sq ft)₹5,723₹6,868₹6,868₹6,868
D (1,485 sq ft)₹5,381₹6,457₹6,457₹6,457

Flats still below ₹7,500 pay no GST under either reading. If the association can reclaim the GST on its own contracts (about ₹35 L a year), the increase needed is smaller.

Why not just cut costs?

Both are needed. The two big contracts have never been tendered. They are being tendered now. But tenders take months, and the savings start next year. Residents rated housekeeping and landscaping the best services on the estate. Cutting those to avoid an increase would trade a visible service for an invisible saving. The lift contract, rated worst, is being rebid on uptime.

Updated 15 September 2026. Accounts to end Aug 26; deposits as at 7 September 2026; survey August 2026. Published by the Managing Committee. Questions: spcaoa@gmail.com