Forming of Association for new Property
KRERA has asked us to form an association with landowners even though we the buyer are not interested in doing so since the landowners are co-promoter and are equally responsible to complete the project which is now 6 years delayed. There is a joint development agreement between the builder and the landowners. The builder has given up on the project and landowners want to form an association with allottees under the co-operative socities act. The Karnataka RERA Authority has not given any orders formally in written to form the association with landowners, but during physical hearing the Authority have verbally asked us to form the allocation with landowners under the co-operative socities act. As per the landowners they want to form an association with allottees , take the critical posts i.e president, treasurer and then get the receivables due from the buyers and then ask buyers to share the delta amount required to complete the project on top of the receivables due e.g. Rs 20cr to complete the project, Rs 15cr receivables from some buyers and then remaining 5cr has to be shared and paid by all buyers to complete the project. When we told Authority during physical hearing that we already had a call with landowners and they asked us to pay additional 5cr amount, they yelled at us and told they dont have time and from next hearing we will be barred from hearings and only our lawyer representing us would be allowed. When we enquired with some CAs / lawyers to form this association, first thing they asked is where is the RERA formal written order to do so. 1. So wanted to check is it possible for KRERA Authority to force and ask us to form an association with landowners even though we are not interested? How can we trust and form association with landowners (i.e co-promoters) as they have been seeing the delay in project for 6 years with no action from them. Only after we filed RERA case they came forward. 2. How can we go and form an association with landowners if there is no written formal order from RERA to us to form an association with landowners? 3. If we do go by the verbal ask from RERA to us to form Association with landowners and give them critical posts, can this back fire us in future?
Thank you for the help