You need to file a complaint with dy registrar of co-operarive societies or competent authority for justice. You can also approach consumer court for deficiency of service. Co-operarative court also has jurisdiction but its a lengthy procedure
Unreasoble Maintenance charged by Apartment Welfare Association
We have purchased an apartment in a residential community. The community is in such a way that one block is of large size(5000 sft each) while the other blocks has apartments around 2000 sft. There are 16 apartments in our block. While other blocks have 72 apartments in each block. We have recently moved into our new apartment and we were shocked to know that the monthly maintenance of our apartment is costing over 20k along GST while other owners are paying max 7k to 8k for the same amenities. While the rest of the blocks are completely finished and handed over 2 years ago.. our block is still in semi finished and only 50% occupied. When we approached the society to consider reducing our monthly maintenance as it is too high, the society said that the maintenance is decided as per SFT in the AGM and will be the same. We were never informed or consulted as flat owners about these charges and they have not given voting rights to our block owners as the builder has not handed over the corpus fund of our block to the Welfare Association yet. Now the builder is denying collecting Corpus fund from us although it is clearly mentioned in the agreement that they would not register the apartment unless we pay the corpus fund. The builder gave us an all inclusive deal for amenities as well including the corpus fund. But did not collect annual maintenance from us which they usually do. My questions are as follows – 1) What course of action should we take on the Builder? 2) How do we ensure our right in the society until the builder clears the dues to the association? How to keep the association from taking any unwanted action against us such as service disconnections before we solve the issue with the builder? 3) On what grounds can we request the association to make amends on the bye laws for our block to reduce the monthly maintenance. 4) Can we detach our block from the association and form a new association consisting only of our block and still share the costs of security and other monthly costs as per actuals? 5) can we hire 3rd party to audit the affairs of the association? What action can we take on the association if they are misutilising the community funds Thanking in Anticipation
Asked 4 years ago in Property Law
Religion: Hindu
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6 Answers
1) issue legal notice to builder to hand over corpus fund to society . If he fails to do so file complaint against builder before consumer forum and seek orders to direct builder to pay corpus fund
2) maintenance should be equal for all members irrespective of size of flats . Raise issue in AGM
3) accounts of association are to be audited and audited accounts submitted to members
4) you can form new association
1. If you have proof for having deposited the corpus funds to the builder, you can very well issue a notice to the builder about it and instruct him to transfer the same to the association.
2. The association cannot disconnect the essential services for any reason, you can obtain an order of injunction in this regard through court of law in case the association if indulging in such illegal activities.
3. The association will go by the decision taken by the majority members only and it cannot change the bylaws on the request of an individual or small group.
4. If your block members agree and cooperate then you can get yourselves separated from the main assassination by forming an association in respect of your block alone and can frame your own bylaws as per the decision taken in the meeting.
5. If you have evidence for misappropriation or embezzlement or mis-utilisation of funds belonging to the association by some vested interests, you can very well issue a communicative to the management committee of the association and seek its intervention , clarify the issues and rectify the same as per laws.
1) Send a legal notice to the builders asking them to hand over the corpus fund to the association immediately. In case of delay or default, file a suit for specific performance.
2) The association has no legal right to disconnect your water and electricity supplies.
3) Ask to association to convene an extraordinary general meeting to discuss the issue on urgent basis and find a solution. Demand in writing and get acknowledgement.
4) It will only add to the chaos and not solve your problem. Be united against the builder. Remember, the builder will move on to the next project, but you have to live in harmony as a community for life!
5) Audit of association accounts is compulsory under law and it has to be done annually and the report filed with the Registrar of Societies after adopting the report the the AGM.
- Since , you are the first owner of the flat , it means you are a registered member of the society , it means at the time of purchasing the said flat from the builder , you had signed a maintenance contract ,and thereby you declare to pay the the same.
- After, the builder hands over the affairs to the society, the Managing committee of the society takes over the same for handling of the services, and further, it is the duty of society to make rule for the benefit of the flat owners.
- Hence, it is mandatory to follow the rules framed by the society and to pay the maintenance charges accordingly.
- Further, at the time of selling the flats, the builder collects maintenance funds from each buyer, which is not shown in the basic selling price, and the said maintenance fund collected from each apartment owner is deposited as a corpus fund.
- After forming society, this Corpus /maintenance Fund also came into the hands of society, the housing society can use this corpus fund amount for major repairs, maintenance, reconstruction, structural addition or redevelopment.
- Hence, you should raise the issue to use the Corpus fund or its interest, for the maintenance.
- Further, the resident/member who is aggrieved by the arbitrary and unreasonable actions of a Society can file a Suit under Section 6 of the Societies Registration Act, 1960.
Dear Client,
It is true that maintenance charges are legally calculated according to the size of flat in per square feet basis.It is also advisable to approach the welfare association regarding the corpus fund amount and know how exactly the amount was utilized after after it was paid before the registration, before you move to court against the builder.Relevant provisions of Telangana Apartments (Promotion of Construction and Ownership) Act will be applicable to this case.
Thanks & Regards
