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Legal formation of committee

(Querist) 09 May 2013 This query is : Resolved 
Dear sir, In a society a provisional committee was formed on 22-04-12, but they have not done anything about handover take over. No transiency. No action at all and not taken any meetings etc. Ultimately on 22nd April 13, their term is over.(one year) . Society has caused loss of revenue by way of non-occupancy charges, transfers fees etc. to the great extent.Few members have the approached Dy. Director, registrar of co-op Hsg society Thane to intervene in the matter and requested to help us in forming a New Committee by arranging Elections etc. This matter is pending with tem since 26th Feb 2013 till date.
Now few members once again came out & decided to call a meeting and form a committee.
For this purpose they are also suggesting to contribute Rs 2000/- per member foe meeting expenses. We have about 200 + flat owners. Accordingly a huge amount would be collected which runs in to early 4Foiur Lakhs ++.Pl advise whether, (A) whether this committee would be valid??.(B)Can anyone do this collection (is it Legal)(c)They have no authority, still they are assuring the members that , this amount will be adjusted from maintenance chares payable to the society in future. (d)Is it correct & legal?
What do you suggest, we should do ??.9th May 2013

ajay sethi (Expert) 09 May 2013
contact the builder . let him form a society and call first annual general meeting of members for handing over to the new managing committee elected by members . he should furnish audited accounts to members and hand over the deposits etc collected by hm to members
Raj Kumar Makkad (Expert) 09 May 2013
The society is to be formed by builder only first time and has to handover entire properties/rights thereto with intimation to the registrar, the process not adopted in case of your society so first of all get it done.
vswaminathan (Expert) 12 May 2013
To clarify own thoughts:

It is widely known, though rather lately realised, by one and all,-directly concerned or aggrieved, or otherwise,- including the government of most of the States so also of the Union,- that without forming and having a 'co-operative society' of the flat owners, following the procedure mandated by the applicable special enactment (wherever there is one in force , as in Maharashtra), final conveyance of the property (land and buildings ) to the co-owners (purchasers) can never materialise; to be precise, is bound to prove a non-starter. That seems to explain the unavoidable step taken by the Union government to , as a last but welcome resort, to make the referred right to form a society a “fundamental l right”, by amending the very basic charter . This aspect, including certain later developments have come to be dealt with in detail in the articles (or comments thereon) posted in websites (e.g. Taxguru). For instance, refer, the latest one @ http://taxguru.in/corporate-law/applicability-rti-act-cooperative-societies.html.

As rightly said herein above by an expert, the legal obligation / exclusive responsibility is that of the promoter/seller of flats. Nonetheless, many of the builders are known to have not discharged that obligation/duty, out of sheer ignorance, more often than not a feigned ignorance. The grievances aired and given publicity by the affected people over a period of years in recent times have invariably failed to provoke, much less motivate or galvanise the men in power at the State level into action, through remedial steps to improve upon the situation. The public opinion on this worrisome subject, however, has not been adequately thrust upon them so as to speed up the active steps required of the empowered authorities.

There is material available in plenty in public domain (i.e. at the websites), highlighting the efforts being tirelessly put in by the inspired activists, in the larger interests of the impaired lot -but with no known significant outcome thus far. One of them has particular reference to and in the context of a similar plight of the apartment purchasers, in Karnataka. For a useful insight, recommend the articles and posts on the connected topic of the law on apartments- idling on the statute book- @ http://praja.in/en/blog/m...
ajay sethi (Expert) 12 May 2013
if buidler does not form society even after having sold the flats flat owners can get together and form cooperative society on their own . Maharashtra ownership of flats act imposes duty on builder to from society . Clause 10(1) of MOFA required the Promoter to form a co-operative society as soon as a minimum number of persons required forming a society or company had taken flats.further builder was bound to execute conveyance in favour of society .in event builder failed to do so criminal complaint could be filed against the builder
ajay sethi (Expert) 12 May 2013
Maharashtra Housing (Regulation and Development) Bill, 2012 provides for Setting up of a Housing Regulatory Authority and Housing Appellate Tribunal for redressal of grievances of flat buyers
vswaminathan (Expert) 17 May 2013
FURTHER OWN THOUGHTS, IN VIEW OF THE LATEST DEVELOPMENT RELATED TO THE TOPIC OF DISCUSSION ON HAND, HAVE SINCE BEEN SHARED
@ praja.in, for serving the common good.


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