Hello Sir/Madam, Background - We bought an apartment from a builder in a society which was developed in 3 phases over the last 5 years. Now all the 3 phases are completed and association has to be formed. Builder has built lot of flats for rental cashback and has bought lease for 3 years from the apartment owners and they claim to have rights of 250+ owners in the community of 430+ apartments. When it was time to form the association the builder unilaterally without any notification has formed the association, registered it and also selected the office bearers. The builder has choosen 7 members and the president works for the builder company as GM. Out of 7 members 4 own an apartment here but are not residents and 3 of the members are nominated from builder company and don't even have an apartment in the community. One of the member it states was nominated by his wife itself. Basically, the entire association is under builder control with absolutely no representation from individual owners who bought the apartment here. We feel the main reason to do this is because builder has for the last 5 years when he was maintaining other 2 phases has not submitted audited maintenance expense even once to residents. Also, the corpus fund collected is lying in the bank account of builder for the last 5 years. As an individual apartment owner what can we do to get some rights in RWA formed. We feel we are being controlled and crushed. What should we do legally to get out of this mess? Thanks
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1) file complaint against builder before consumer forum and seek orders to direct builder/RWA to call for elections to MC , submit audited accounts , to hand over corpus to RWA
2) also seek litigation costs and compensation for mental torture undergone by you
you can go against the said builder before consumer court and seek compensation from him for all legalities.
The act of forming an association on his own by placing his own men as office bearers especially those who re not even members or owners is an illegal and arrogant act.
You can gather all the aggrieved members of the apartment owners, neatly draft a complaint against atrocious and illegal act of the builder by venting out all your grievances in this regard and submit the complaint to the registrar of cooperative societies to intervene and to cancel the association formed by the builder, to conduct the election and appoint the office bearers of the association as per bylaws and to take charge of the administration of the association till such time the new association with full fledged elected members have taken over the charge of the association and also by conducting a general meeting subsequently.
If the registrar is also corrupted by the builder, you may approach the IG registration for intervention and proper action as per law against the builder as well as against the registrar.
If the latest step also fails to procure the desired result you can approach cooperative court for relief and remedy in this regard.
Consult a local advocate and proceed as per the suggestions received.
Please approach Dy.registrar of Society and file complaint against Builder, Society office bearers for mis-management and embezzlement of Society Corpus Funds.
Even if you are not being paid attention and results by Dy. Registrar of Society then File Writ Petition in Hig Court and invoke Extraordinary Jurisdiction of High Court to redress your grievances by writ of Mandamus.
Lodge a complaint with the registrar of societies stating the discrepancies in the formation and functioning of the society.
Make complaint to registrar of societies against formation of society and appointment of managing committee on ground that no elections were conducted and procedures were not followed for appointment of managing committee and also some members are not even residents of society so they doesnt have right to become office bearers.
Entire process is defunct and elected office beares are ineligible. Their election process is also illegal. Complain to registrar or approch court for dissolution of office and direct to conduct fair election under the supervision of administrator appointed by court.
First, please lodge a written complaint with the Registrar of Societies, giving full details of the RWA such as registration number, date, list of management committee members and office-bearers and mentioning the irregularities committed in formation of the RWA and requesting the Registrar to constitute an enquiry for cancellation of registration under the relevant provisions of the TN Societies Registration Act. You may follow it up with an RTI query if there be no response or desired action, later.
File a complaint against them in RERA
issue a legal notice through an advocate and file complaint before district consumer court.
Thanks for all the answers. Absolutely appreciate it. The builder has leased 250 out of the 430 apartments from apartment owners including their rights in the association. Is this legal thing to do? And they proudly claim that we will never be able to win the election because they have 250 apartments on their side and hence 250 votes and we will always be on the minority side. Can in a large apartment complex of 400+ apartments can builder gain so much strength, is this even allowed? Are we at the mercy of the builder forever?
Builder cannot lease rights of members of association
at most he can take on lease the flats but not voting rights
you are not at mercy of builder
file complaint against builder before consumer forum and seek orders as mentioned herein above
The builder having leased the apartments from the respective owners is perfectly legal. However, membership rights of owners cannot be leased out. The owners may only issue proxies to the builder to represent them at the annual general meeting of the RWA and vote in the election of office-bearers. The builder cannot legally compel the owners to issue proxies for the purpose. Even after leasing out their apartments the owners still can participate in the AGM of the RWA and vote in the election, by virtue of their memberships. You may convince the apartment owners on this point and actively mobilise their support.
It's not that but if you legally fight with him he will be at his place. No retaliation from buyers make them over confident
Builder is indulging in illegal activities.
Please approach an Advocate who may get proper relief from High Court through writ petition against illegal activities being carried out by the Builder and developer in your case.
As per law, RWA is a voluntary organisation set up from among the elected members of a housing society and is re-elected every year, or after a set period decided by the general body of the RWA through a voice vote.
- Further, since RWA is a legal body, registered under the Societies Registration Act, 1860, hence one can sue against its function, if not performing well.
- Further, as per the Societies Registration Act, at least 10 members should give their names to the memorandum of association, who will occupy posts in the management body. If more residents are interested in becoming members, then elections have to be conducted.
- Further as per rule of the Societies Registration Act, any society registered under this act may sue or be sued in the name of the president, chairman or the principal secretary or trustees, as determined by the rules and regulations of the society and, if no such posts have been established, then in the name of the person appointed by the governing body of the RWA for the occasion.
- Further , any members can raise the issue before the Registrar against the association , if not satisfied.
- Further, the Registrar of Societies is bound to take action against the errant RWA on a legitimate complaint.
- Hence , you can file a complaint to the Registrar of Societies after narrating your concern against the existed RWA.
Tennat have no say in association matters neither can act as proxy. Builder cannot provide such right.
Flats are meant for sale and not to use as residence by builder. Bulide have no voting right and tenants cannot vote in election.
If the builder has leased out flats then he becomes the owner of the flats leased out.
However, the tenants cannot become MC members.
They may exercise their rights as non members in the general meeting for passing resolution.
If there's any resolution passed against your willingness or it is unlawful then the aggrieved members can make a representation to the registrar of cooperative society seeking its intervention and solution for the unlawful decisions taken by association.
Those 250 persons who have taken those flats on lease cannot vote as they are not the permanent members. So file complaint in the office of registrar cooperative Societies of they vote in elections
You may file complaint before district consumer court and seek order against builder..
1. Yes he can lease the flats if he is owner of those flats.
2. Yes he can gain that strength because as per rule he can vote for unsold units also.
That is completely ridiculous and false. Legal remedies are available.