Formation of society while the work is pending by builder

Zuzar Lakdawala (Querist) 01 June 2022 This query is : Resolved
CC has been obtained by the developer and they have not provided the OC and people have start staying at the apartments. Around 50 flats have been occupied from some 350 odd flats. Builder has around 20% of work left by way of repairing or reworking. Developer have offered us to create the association and we think that if we make the association then the builder will run away without completing any work. is this true or what rights do we have in such scenario ?

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Residents have occupied flats before the builder has completed all work, with around 20% remaining. The developer is suggesting forming a society, but residents fear this might lead to the builder abandoning the remaining tasks. Experts advise that the builder is legally obligated to finish all work and is liable for any delays or failures. While forming a society with only a portion of flats occupied is legally questionable, it's suggested to proceed with a clause ensuring future owners join. Alternatively, forming a society rather than an association is recommended.

kavksatyanarayana (Expert) 01 June 2022
When there will be 350 flats in the apartment, with 50 flat owners the formation of a housing society/Welfare society is incorrect. If you still wish to form a society, you can add a clause that "the other flat owners will join as members in the said society after completion of the apartment.

SHIRISH PAWAR, 7738990900 (Expert) 02 June 2022
Hello,

As per law builder has to complete all the work. If he fails to complete the work then he is liable for legal action and consequnces. However, instead of formation of association form society.

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