Why This Mumbai Society Pays Its Residents In Lakhs For Living There

In the metropolitan cities, there are flats built in towering societies. From offering modern amenities to luxury designs, builders promise a lot when a new project begins. It is only after residents get possession that they encounter reality, and with it, they have to write a monthly maintenance cheque.

Depending on the society you live in, builders in India can charge maintenance fees ranging from Rs 2 to Rs 25 per square foot, according to Housing.com. A high fee means better amenities and a hefty price tag per square foot to buy in the building.

But a Mumbai building, constructed in the 1970s by the Jolly Group, has made its residents richer. According to Vishal Bhargava, a real estate blogger and content creator, Jolly Maker 1, Cuffe Parade, pays the resident a dividend of Rs 2.5 lakh. Shocked to read? Here is how it is possible.

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Why Residents Don't Pay Monthly Maintenance In This Society

According to a 2003 Times of India report, Jolly Maker Apartment 1 comprises two 25-storey residential buildings with 180 flats and 10 bungalows. Believed to be one of the most plush societies in the city of dreams, it has a reserve fund and a sinking fund, estimated at Rs 25-30 crores. 

The residents living in the A and B towers of this society own 1,285 to 2,590 sq ft apartments, many of which are sea-facing. But do you know the benefits of living here? None of them pays any monthly maintenance fee, including a wide range of municipal taxes. Why? The society takes care of all the bills.

The residents only pay one paise per sq ft per month, which people living in other societies in Cuffe Parade used to pay Rs 3 to Rs 4 per sq ft. In some societies, the price is now Rs 8 or more, according to No Broker.

Why A Mumbai Society Pays Lakhs To Residents Annually

The affluent society has been paying a dividend annually to its residents. Think of it this way - each person who purchased a property in this building was offered commercial ownership in another building at Nariman Point, which today fetches a rent of Rs 50 lakh per month, and buyers paid a 40% premium at that time. The money earned from the Nariman Point building is used for the maintenance of Jolly Maker 1 and paying the dividend to the homeowners.

The money they invested back then translated into a lifetime of free maintenance and recurring income. In 2003, the amount of the dividend was Rs 100 per sq ft. In 2012, a Jolly Maker resident told Times of India, "This cash-rich society pays every flat-owner a yearly dividend of Rs 300 for every sq ft they occupy."

In 2003, a person occupying a 2,500 sq ft apartment earned Rs 2.5 lakh a year, but with the new rates, they earned Rs 7.5 lakh. There is no information on whether the dividend rate has increased in the last 13-14 years.

In 2012, one of the most expensive apartments was sold in Jolly Maker at Rs 1.11 lakh per sq ft. The 21st-floor flat fetched the owner Rs 29 crore. Even today, the real estate websites mention that the regular price per square foot is more than Rs 75,000.

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