Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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Dispute with Builder on Society formation

(Querist) 26 December 2009 This query is : Resolved 
Sir,
I am living in Thane,Maharashtra.I had purchased a 1 BHK flat on Ghodbunder Road. The project is to be executed in 2 phases.A 7 story bldg. in which I reside is in First Phase and three 18 story towers in 2nd phase. I had taken the possession on 6-3-08 and paid 18 months maintenance at the rate of Rs.2.25 psf. in advance to builder.The 2nd phase is not yet complete and society is not yet formed by builder.Now the builder has sent a notice for paying next 18 months maintenance charges amounting Rs.35057(Rs.3 psf instead of Rs.2.25 psf as stated in Sale deed Agreement)stating increase in maintenance charges and details of which shall be provided at the time of handover to society.
In the sale Deed and the registry that we have executed, which is totally one sided and has the conditions that the builder is the only arbitrator and what ever decision he takes w.r.t. maintenance will be binding to us. He is the only person to finalise the maintenance and to decide the maintenance charges.
1.Is there any support from the Maharashtra apartment Ownership Act which mentions that the builder should handover the possession to the society though the 2nd phase is not complete.Can we form a society and take over maintenance?
2. What should be my course of action?. Should I pay maintenance at the rate of Rs.2.25 psf as agreed in Sale deed instead of Rs.3 as demanded by the builder till he forms the society and hand over details.If the demand by builder is genuine, I can pay the difference at the time of society formation.But builder is demanding 18%p.a. late charges for any delay.
3. Also builder is charging 2 lacs for open parking and selling it to members without any agreement.Is it legal for him to sell open parking?can I purchase parking after society formation or just pay monthly rent to society.
Please advice.
R.R. KRISHNAA (Expert) 26 December 2009
Certainly you can form a society and collect maintenance. I suggest you to immediately make arrangements for formation of society and issue a legal notice to the builder questioning his rights to act as arbitrator and seek escalated maintenance. If there could be any problem in formation of society, then indivdual owners who have paid considerations can file individual suits for injunction restraining the builder not to construct any building until the other prayers like declaring the right of builder to collect escalated maintenance as not valid and declaring that additional charge of 2 lakhs for car parking as not valid and further declaration that the builder cannot act as arbitrator and the clause entitling him to act as arbitrator is invalid etc etc. But first issue a legal notice.
prakash vathore (Expert) 26 December 2009
i do agree with krishnalegal.
Sachin Bhatia (Expert) 01 January 2010
agree with krishnalegal.


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