1) don't fill in confirmation form

2) all the flat owners can send letter to builder to form cooperative society

3) formation of society is better as in case of default by members you can adopt summary procedure for recovery of society dues

4) in case company is formed then in case of default of share holder company has to move court to recover its dues

5) in case conveyance is done by builder it would be in respect of land also

6) once conveyance is executed in favour of company builder will have no rights on said land

7) company can construct fresh building on said land

1) if builder has an excellent reputaion you need not fear

2) further is no unanimity among flat owners for society

3) fill in the confirmation form sought by builder

1. As the name itself suggest, LLP limit liability of its partners. There are many partners involved in the business, amongst whom the risk can be diversified

Limited liability partnerships offer partners flexibility in business ownership. Partners have the authority to decide how they will individually contribute to business operations.

Lesser compliances: Unlike the companies, LLPs are not required to conduct board meeting and general meeting, and even not required to keep AOA and MOA.

Drawbacks of LLPs:

NRI/ Foreign national who wants to incorporate an LLP in India then at least one partner should be a resident of India. Two foreign partners cannot form LLP without having one resident Indian partner along with them.

If a partner wants to transfer his/her ownership rights then he/she has to obtain the consent of all the partners, which generally not an easy task.

But in what way is it going to substitute the society?

2. The rights as a shareholder shall be notified to you in the agreement form itself, if it is not suitable or you are not willing you can very well reject the offer.

3. The builder has to give the information about the proposed limited company in detail and the it should be transparent so that you are not forced to face any obligation of liability due to not understanding the terms properly.

4. These are to be seen in the terms and conditions that are offered to you, you better consult an advocate before signing any form

The builder has taken one time maintenance so there should be no issues on that front. The scheme is of 1000+ homes with an IT park in between. All the scheme maintenance is going to be done by a separate company owned by the builder. There is also no unity in the society members, considering its a huge society.

Until you are not knowing the proper details of the proposed limited company and your role and benefits of shares in it, it would not be advisable to sign any form or agree to his offer.

This is one tactics to earn more by the builder, his reputation is not the question but what is the reason that he is substituting this limited company in lieu of the society.

Actually the builder cannot stop a society being formed because it is by the members of the apartment and has nothing to with the builder, hence better read all the prospects properly and decide.