• Society formation issues with residents & non-payment of maintenance

Our issue is:

Builder has not completed some work > due to which few members have not taken possession letter
Builder mentioned that he couldn't complete because of non-payment of 2-year maintenance dues by those same members (9 out of 28 are pending).Members not paying yet even after requesting [So this is DeadLock no.1] No work > No Maintenance= No Maintenance > No work

Builder said if they dont take possession, we cant form society. 
And now other society members like us, are paying more amounts since they are not paying 
Members not ready to take possession NOR pay the due maintenance. [DeadLock No.2]
No Possession > No Society = No society > No Maintenance to pay

We are collecting maintenance as a single decided amount from all flats (because society is not yet formed) Those members are not paying 

Now we cant even form society and take legal action against defaulters and Builder is not ready to interfere. He is asking us to ask the defaulters to pay
They are mostly abroad and outstation. And have said that we don't stay there hence we wont pay maintenance(as society is also not formed) [deadlock 3]
No Society > No Compulsion to Pay Maintenance = No Pending Maintenance > No Society

Finally, They wont pay maintenance > Society not formed > No Society, meaning no legal solution to this

My question is
- How can this be controlled?
- What are the laws on society formation / taking possession/ payment of dues to builder when society is not formed
- How can these defaulters be made to pay maintenance when society By-laws are not present
- can builder refuse to form society? If yes, on what terms?
- can we still form a society without considering those defaulter members in the association?

Details
Pune, 5yr old fully-constructed property (yet society is not formed)
Society falls under grampanchayat area
Asked 5 years ago in Property Law
Religion: Hindu

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10 Answers

File complaint against builder before consumer forum and seek orders to direct builder to form housing society of all flat owners 

 

2) also seek orders to direct builder to complete pending work and execute conveyance in favour of society 

 

3) it is builder responsibility to form society 

 

4) builder has to sue defaulters to recover dues 

Ajay Sethi
Advocate, Mumbai
100008 Answers
8163 Consultations

Any 7 members can form the society. What is the requirement of  builder. Once society is formed, take charge of maintenance corpus and issue notice to defaulter owners to make full payment with interest otherwise electricity, water supply will cut.

Legally, builder cannot demand MC without completing the project and obtain OC. Approch RERA and consume court for relief against builder.

Yogendra Singh Rajawat
Advocate, Jaipur
23085 Answers
31 Consultations

As per RERA, the buyer needs not to pay maintenance charges, till he possesses the apartment,

- Further, the builder is not eligible to claim maintenance charge before the completion of the total facilities, and only after completing everything, the builder can ask for maintenance from the buyer. 

- Further , if builder has given letter of possession, then from that date onward owners are bound to pay the maintenance charge.

- However, as at the time of purchasing the said flat from the builder , the defaulters have signed a maintenance contract ,and thereby they declare to pay the the same, hence they are bound to pay the maintenance to the builder, and after the formation of society as well.

- Further , being an owner of your property , you are not liable tor the recovery the maintenance from the defaulters , and the builder is responsible for the same and to complete the work as well. 

- Hence, being a buyer , you can file a compliant the against the builder on the ground of deficiency of services before the Consumer Court. 

Mohammed Shahzad
Advocate, Delhi
15859 Answers
243 Consultations

you need to file a complaint against the said society to dy registrar or competent authority if any.

you can also file a complaint against society and builder before consumer court.

yes society can be formed and later money can be recovered from the said defaulters through 101 proceedings of MCS Act 1960 

Prashant Nayak
Advocate, Mumbai
34680 Answers
249 Consultations

No problem. 

Please proceed to form Society with the available members of 20 person out of 28.

You may form Society without the cooperation of Builder. 

Please approach Dy. Registrar of Society in your area with forms filled and signed up by each of 20 members with required fees of registration. 

After Registration of Society, claim account due from Builder and non- members. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

You can form ther association with the available members and can frame the bylaws accordingly.

As per bylaws whoever has taken possession are required to pay the maintenance and cannot refuse to pay since they are residing outside.

In that case their maintenance and the amenities provided to them may be disconnected.

After the society is formed, the society can issue legal demand notice to the defaulters demanding the maintenance amount, failing which they may initiate legal action as envisaged in the bylaws.

If the builder is refusing to form the society the members can join together and form the association on their own by observing the necessary formalities in this regard.

 

 

T Kalaiselvan
Advocate, Vellore
90211 Answers
2506 Consultations

issue notice to the builder to form society, if he fails to do so, you can file complaint before consumer form and seek directions to form society and handing over of accounts. A society must be made by you and the builder should hand over the maintenance to you.

Mohammed Mujeeb
Advocate, Hyderabad
19382 Answers
32 Consultations

1. A group of 10 Flat owners can form and register a coop. housing society under the provisions of Maharashtra Coop. Societies Act 1960.  This can be done by the builder or by Flat owners themselves in case of non-cooperation of builders.

2. In case of no Society /Association, Mutually agreeable Maintenance collection can start from date of possession letter and not otherwise, as far as law is concerned, more so since Flat Owners who have not taken possession are not liable to pay any type of Service or Maintenance Charges. PERIOD.

SERVICE CHARGES IN MAHARASHTRA HOUSING SOCIETY:
http://chshelpforum.com/service-charges-of-chs

3. You have an positive option to file a grievance petition against the Builder /Developer, in the local Consumer Court, for their illegal trade practice, negligence, deficiency, harassment, intimidation, cheating etc.... with proper documentary evidences and you can claim damages /compensation & interest on your investment, and for your physical & mental trauma.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

Dear Sir/Madam,

It is suggested that builder be taken in to confidence and the legal notice be served through him to the defaulters and further the case of the recovery be also filed. Then the formation of the society should start and the builder should hand over the possession and assigning rights to the society to recover the amount from the defaulters. If the builder refuses to form the society, the complaint should be filed against him s well, 

Ganesh Singh
Advocate, New Delhi
7172 Answers
16 Consultations

1. Members who havent took possession are not liable to pay maintenance charges and builder is liable to pay maintenance for flats which are not yet delivered to their owners. 

2. Residents and purchaser should file case against builder before RERA for non completion of project.

3. Builder cannot refuse for formation of society.

 

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

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