Nevertheless, in a letter circulated to its unit holders last month, company managing director PN Mohan told all `Sterling members' that despite being hit by recession, the company was investing heavily in services, like an on-line computerised reservation system.

But the sting lay in the tail. A decade into its operation, customers were suddenly asked to cough up an `amenities charge' to `contribute towards the upkeep of amenities' at its resorts. The new levy, to be made an annual affair, ranged from Rs 950 for a studio apartment to Rs 1,950 for a two bed room apartment. Further, a `debit note' enclosed with the letter saidthat holiday reservations would be `confirmed' only after the amount was paid.

Customers are not amused. "It is completely illegal," fumed one, "after claiming that there will be no recurring charges, they now threaten that the timeshare will not be made available."

Not so, says Mohan. "Customers are aware of it. They knew they had to pay for upkeep at the time of signing the agreement. It's just that we have been absorbing the costs till now."

"In fact, this point is highlighted in the customer review form, where we highlight the important points, so there's no question of hiding behind fine print. All buyers are made to go through these points and confirm their understanding before they sign," he said.

True enough, for products introduced within the last five years or so. The Sterling Happy Vistas scheme has the clause. In the application form for enrolment in Resort Condominiums International (RCI), a company which facilitates exchange of timeshares between member companies, it is even stated thatthe amenities charge will not be increased by more than 15 per cent a year.

But in earlier agreements, there's no such clause. In fact, as per the original agreement, Sterling Holiday Resorts had committed itself to setting up a separate maintenance company, which was to be funded by a corpus created out of a part of the sale proceeds. While the timeshare holders were to pay for things like utilities and food, there's no mention of any amenities charge. The company's sales brochure circulated at the time also expressly states that there will be `no recurring expenses'.

Now, it's a matter of definitions. Mohan says he still provides free maintenance - like cleaning and washing sheets. However, over the past decade, a lot of the infrastructure - like ACs, TV sets and so on - need replacing. Hence the amenities charge. "I personally meet people and explain the need for further investments. Most of them are happy to pay," claims Mohan.

Despite the bravado, there are distinct signs of anxiety. Sales havetemporarily taken a back seat as teams of Sterling Holiday Resorts staffers have been fanning out to personally meet as many members as possible. A steep decline in the quality of service as the cash-strapped group struggled to face other difficulties has not helped matters. For Sterling Resorts, life at the moment is clearly no holiday.