• Can we form an association before project completion

We are residents who purchased in a premium project (2 cr+ each unit), max 60 units. Our project was supposed to be finished in 2015, but it's delayed beyond any hope. Builder completely mismanaged the fund.
- Many individual units are ready and we 10 residents are staying for more than 2 years now. Builder is promising OC, permanent power connection, club house for 4 years now. but instead of finishing anything, he now started asking very high amount of maintenance (5-15 rs per sqft depending upon his calculation every month) based on fake bills. We refused to pay high amount on lack of transparency so he stopped maintaining it and started harassing us saying you can't maintain it yourself as individual residents are not authorized entity.
- We have filed complaint in NCDRC (all residents together) now for delay compensation and resuming maintaining of the property but due to covid-19 it may take time for hearings.
- Builder responded to our notice that all allegations are wrong and he can ask maintenance without OC, power, power backup and amenities promised.
Question is about forming an association :
1. Can we form association now before completion of project and OC ?
2. Can forming an association jeopardise our consumer case ?
3. By forming an association, are we accepting things as it is ? can builder wash his hands and say now RWA will need to finish things ?
4. Since we have filed the case, builder will not cooperate in forming association so we can't form under KAOA 1972, and only option is KSRA 1960. is that correct ?
Thank you.
Asked 4 years ago in Property Law
Religion: Hindu

3 answers received in 30 minutes.

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15 Answers

1. Forming and registration of of flat owners depends on the provision of law under which its going to be registered. 

2. Under Apartment ownership Act to form an association more than half of the owners are required. 

3. It has no nexus with the merit of consumer forum. 

4. TWA has to manage the daily affairs and doesn't absolve the developer of its liability to finish construction. 

5. Under KAOA you need majority of flat owners to form association. 

Devajyoti Barman
Advocate, Kolkata
22824 Answers
488 Consultations

5.0 on 5.0

1. Yes. 

2. No

3. No he can't

4. Even if he doesn't co-operate still it will be done

Prashant Nayak
Advocate, Mumbai
31951 Answers
179 Consultations

4.1 on 5.0

No, builder has  to give a possession to flat owners then you all can form a association. 


If yours 10 flats are in one single building then you can form a proposed society and ask audit report from builder of past maintenance amounts. 

Ganesh Kadam
Advocate, Pune
12930 Answers
255 Consultations

4.9 on 5.0

No, you cannot form the association. 

Swarupananda Neogi
Advocate, Kolkata
2964 Answers
6 Consultations

4.7 on 5.0

1. Yes you can form an association and get it registered under Karnataka apartment owners act. 

2. That has nothing to do with this association, the case will run on its own basis, forming of an association will not in any manner make an impact to the consumer case.

3. The builder cannot wash away his responsibility like that.

4. No, you can form the association under KAOA also. 

T Kalaiselvan
Advocate, Vellore
84921 Answers
2195 Consultations

5.0 on 5.0

The facts of your case shows that the Builder has cheated you all and did not complete the project within time. 

You have two options and way of taking action against the Builder Civil Court and Criminal charge. 

First part steps have been taken by you NCDRC .

Next is a Civil suit for injunction and suit for declaration under Specific Relief Act and Criminal charge under KOFA against the Builder to redress your grievances for the offence and default committed by Builder in the project. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

5.0 on 5.0

1) dont form association now 

2) wait for case to be disposed of by NCDRC 

 

3) builder is bound to complete project and obtain OC 

 

4) it is builder responsibility to form association 

 

 

Ajay Sethi
Advocate, Mumbai
94722 Answers
7532 Consultations

5.0 on 5.0

1. Yes association can be formed by registering the same with the registrar cooperative Societies office. 

2. Yes, to some extent. Court may not entertain the non maintenance matter after you form an association. 

3. May be,

4. KSRA is not valid at certain fronts 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

1. Yes.

2. No.

3. No. Builder cannot wash off his hands.

4. Yah.

Abhilasha Wanmali
Advocate, Nagpur
1021 Answers
1 Consultation

4.8 on 5.0

MC is payable only after issuance of OC.This is law.

And for delay in delivery of furnished units + no OC, permanent power connection, club house etc, you are entitle to compensation and interest on delay possession.

Yes, Any 7 members can form the society or 4 apartments to form a building and All the owners have to come together to get the association registered.

2. NO

3. Builder is liable to deliver complete delivery of service and cannot raise hand.

NO role of builder in forming an association but OC/declaration deed will require to form under KAOA so form the society.

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

Dear Sir,

The resident association is generally made after the the getting the OC, but since you are united and fighting for the common cause, you may form the association and it will not affect of case. Please have clear specifications in the AOA and MOA of the association that things are not complete and there will be collective demand for the same from the builder and the present association is only for catering of temporary needs. 

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

- As per rule, builder cannot demand maintenance fee without obtaining OC. 

1. Yes, you can form association before completion of project and OC . 

2. Yes

3. No, Builder cannot wash his hands

4. No, you can also form under KAOA 1972 as well. 

Mohammed Shahzad
Advocate, Delhi
13222 Answers
198 Consultations

5.0 on 5.0

A. If you want a form an Association there must be 60 percent strength of the total units else it will become improper process. Hence 60% sale deed must be executed then you can form the association irrespective of OC. 

B. In order to initiate a legal proceedings against the builder, you shall be represent the Association instead of individual once perfect Association formed by complying all the procedure.

C. Mere formation of Association that shall not deemed the residents have accepted all the bluders of the Builders. The objective of the formation of Association is to maintain the apartment complex in order and avoid any damages to the building and to protect the residents right and interest for peaceful enjoyment of their right which acquired the same by virtue of purchase of the flat.

D. Formation of Association is always perfect under the KAOA 1972. Please avoid under the KSRA 1960. The builder must provide all the necessary documents for your formation as it being their mandatory duty.

 

B.T. Ravi
Advocate, Bangalore
943 Answers
96 Consultations

5.0 on 5.0

1. Yes you can form association before getting OC and project completion so that you can sue builder as legal entity of residents and flat owners whose flats are not completed. 

2. No formation of association will not affect your case in consumer forum.

3. No, builder is under legal obligation to give completed project to residents. 

4. Yes you can go for KSRA 1960.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

Without having OC & CC, it is not advisable to form a Society.

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

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