Girish Hodlur (Analyst) 08 February 2010

Formation of Co-op Hsg Society

I stay in Thane on Ghodbunder Road and my building is a year old after possession. There are two wings A & B. The builder had started the process of Society formation in Nov 2009 and had asked a few of the residents to sign the society formation documents which we verified and signed. After which there has been no information from builder regarding the society formation until a few days back when he informed that the name of society has been registered. Now the builder has issued a notice saying that he would charging monthly maintenance till the society is completely functional to which most of the residents have objected. The builder has threathened that he would stop maintaining the society. What rights do the residents have in this case? Is it not the builders responsibility to maintain the utilities till the societ is handed over to the residents. Where can I get the information as to what checks do the residents keep while taking over the society. I would request the experts to please review and advise. I am relatively new to the forum.

Reply Follow

3 Replies

Daksh (Student) 08 February 2010

Dear Girish,

There are two aspect to this. One is the individual contractual relationship of the buyer of the flat with the Builder and second is the collectively the flat owners come together and get themselves Registered as a Society. The builder has represented on your behalf and has processed the application for getting registered but the act of regulation of the affairs of the Society has to be though its Articles by its Member alone.

Hope this satisfies your query.

Best regards

Daksh

Girish Hodlur (Analyst) 08 February 2010

Daksh,

Agreed that the builder has initiated the process of Society formation but is it not his responsibility to maintain the building till the society is handed over to the residents. Although in the agreement there is no clause which says that the builder would maintain after one year of possession as the initial maintenance charges were collected from all residents and was valid for one year. But then the builder should have completed the society formation within one year and handed over the same to the residents which he has not done. Now if he stops maintaining the utilites what should the residents do? Since legally they do not as of yet have the Society letter from the registrar. Also now the builder has started making claims such as income from transmission tower if installed would go builder, car parkings would be still ih his possession etc. Is there some guidelines which the residents can refer to in such cases such as before taking handover, after handover what are the rules & regulations to be followed. Pls advise.

Daksh (Student) 08 February 2010

Dear Girish,

The society shall in any eventuality be formed amongst the buyers/occupants of the flats in the building. Society is nothing but the collective will and still as on date there is nothing to stop you to act collectively. You on one hand expedite the formation of society at Registrars office meanwhile write collectively that henceforth the builder is no more required. If the situation warrants go and get a Stay from Court. Even presuming but not admitting the services of the builder are not required he cannot forcibly retain his right under any circumstance. There ought not to be any estoppel as such.

Best regards

Daksh