Soft possession vs handover of unit
David Baker
(Querist) 12 May 2014
This query is : Resolved
A builder is harassing his customers by threatening them to pay maintenance. He has threatened to charge interest for delay in payment of maintenance charges. He has as yet not provided the OC. He refuses to share maintenance expenses claiming that he is not duty bound to share the same, however he plans to give the same at the time of actual handover. He has collected maintenance charges at the time of handing over the keys of the unit. Now he says that that was only a soft possession. Some of the unit holders are staying in their units since 5 years. The residents have refused to pay maintenance as the maintenance is not up to the mark and secondly the charges for maintenance are too high when compared elsewhere. He has now increased the maintenance charges without the approval of the residents. No audited statements of expenses have been provided. What are the provisions as per MOFA?
T. Kalaiselvan, Advocate
(Expert) 13 May 2014
Under the provisions of the MOFA, the general liabilities of the builder is to make a full disclosure of all outgoings (including ground rent, if any, municipal or local taxes, taxes on income, water charges, electricity charges, revenue assessment, interest on any mortgage, or other encumbrances, if any). The builder is liable to disclose all the details of the accounts towards the maintenance charges collected, if he is reluctant to oblige, you may contemplate to initiate legal action as per the MOFA rules.
