• Accounting opening by proposed housing society

I am resident of Kharghar, Navi Mumbai.  Our society is yet to be registered by the builder. The builder has collected hefty amount (Rs.100/- per sq.ft) last year but till date he has not done society formation and conveyance citing the reason that some members are yet to pay conveyance demanded by him. As per our knowledge, only 4-5 members have not paid.  In the meantime, one year free maintenance is over and the builder is demand 6 months advance maintenance charges Rs. 4.20 per sq.ft. to maintain the society. Since all the residents (50% occupied) are not interested to pay to the builder, we have decided not to pay maintenance to the builder and collect the money from members and maintain the society by ourselves.  An adhoc committee has been formed in a meeting held recently.  However, in the adhoc committee, there are 2 -3 members who have not paid conveyance and the builder is objecting for this adhoc committee.  In this situation, please let us know whether;

1) Forming adhoc committee with defaulters (defaulters in the mind of builder) is legally valid. Whether defaulters can run the adhoc committee.

2) Whether this adhoc committee can open a bank account in the name of proposed society. Is this legal.  The bank has already opened the account in the name of xxxxxx CHS Ltd (Proposed).

3) Whether will there any legal objection from builder, if we collect money to maintain the society.

4) The builder has already issued a letter that maintenance is not his responsibility from July onwards.

Please advis
Asked 1 year ago in Property Law from Navi Mumbai, Maharashtra
Religion: Hindu
1) you should move consumer forum against the builder for failure to form cooperative housing society and for executing conveyance in favour of the society 

2) it is mandatory on part of builder to form cooperative housing society under provisions of Maharashtra ownership of flats act 

3) defaulters should not be part of ad hoc committee 

4) you can open bank account in favour of proposed cooperative hosing society 

5) contact a local lawyer and issue legal notice to builder them move consumer forum against builder 
Ajay Sethi
Advocate, Mumbai
23173 Answers
1217 Consultations
5.0 on 5.0
Hi, you can form the Society and it has to be registered under Society Registration Act.

2. Builder has no role to play here once the property was sold to you and you are authorized by law to form the society.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0
Once the apartment construction work is completed and handed over to the occupants/buyers, the builder has to handover the premises along with the documents of the society which may include the common areas and all other descriptions to the society formed already, he has no further role to play in it.  He should not interfere with the society r the association's administration after his initial period maintenance has come to an end. 
The ad hoc committee or the temporary association, if not registered is no doubt not valid but this issue cannot be questioned by the builder, he has to simply handover the building and the premises along with the master documents to the present committee under proper acknowledgment f that is the only committee available as far as this apartment premises is concerned.
The ad hoc committee can meet in a general body meeting and resolve the formation of association and getting it registered with the registrar of societies.  Opening of bank account is a mere formality and has nothing to do with the registration of the association. 
The defaulters to the builder can very well run the committee if they have not defaulted to the present set up.  The builder after handing over the maintenance to the association, cannot legally claim maintenance but he can very well claim his previous dues from the defaulted members. 
T Kalaiselvan
Advocate, Vellore
13969 Answers
127 Consultations
5.0 on 5.0
1. The formation of adhoc committee does not suffer from the vice of illegality. Defaulters may also be members of the committee, albeit they cannot be a part of the executive body. Nothing prevents the members of society to maintain the society themselves.

2. The constitution of the adhoc committee should be drafted. It is legal to open a bank account in the name of society. 

3. The builder will certainly object. If he goes to court you can contest the proceedings initiated by him.
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
5.0 on 5.0
1. You can file your society yourself without bothering about the builder,

2. Convey a meeting of all the flat members and form the society as per the society Act duly electing your president, secretary and other board members,

3. After forming the society act as per resolution passed in annual general meeting within the frame work of the Act. 
Krishna Kishore Ganguly
Advocate, Kolkata
12084 Answers
228 Consultations
5.0 on 5.0
1) As per the Maharashtra Co-operative Societies Act, 1960, once the builder sells 60% of the flats he is mandatorily required to form a co-operative housing society u/s 9 of the said Act.

2) builder cannot delay formation of society merely because 5 members have not paid conveyance amount .

3) An Ad Hoc committee has no independent legal recognition and in reality is working in the shoes of the builder  An ad hoc committee may be set up by purchasers of units to run the affairs of the building but such a committee has no legal standing. It can only be formed with the permission of the builder . 

4) flat owners who dont have possession letters should not be made members of the ad hoc committee 

5)Adhoc Committee period is only for 1 year ,  the objective of Adhoc Committee was to form the society. Adhco Committee is not a legal body.

6 ) in the event builder is not forming society Chief Promoter of the proposed society shall submit a registration proposal of the co-operative housing society to the concerned Registrar under the category of non- co-operation of builder -

7) in the alternative move consumer forum against the builder for failure to form society 
Ajay Sethi
Advocate, Mumbai
23173 Answers
1217 Consultations
5.0 on 5.0
The registrar of cooperative societies will not be interested in the bank account, the account opened now is for the safety of the funds being lodged in a trust worthy place. 

If the builder is delaying to form the society, all the flat owners can at a meeting declare open a society formed by themselves and go ahead with necessary legal formalities for that, the builder cannot oppose to it at least legally. 
T Kalaiselvan
Advocate, Vellore
13969 Answers
127 Consultations
5.0 on 5.0

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