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Kishore Kumar (abcd)     25 September 2018

Welfare association vs apartment owners association

Hello Sir,

I live in a multi-storey apartment which was handed over 6 years by the builder. The Fire NOC and OC is still pending from the builder. We have not formed an Apartment Association as yet, as our understanding is that we should only do it after we have received Fire NOC and OC. 

All these years, the maintenance of the apartments were managed by a few bunch of people, but we lacked transparency and audit of the accounts related to maintenance. Also, few owners would deal with cash and few with cheques and without a proper Bank Account, it was managed by the group of people.

Now we realize that it is not a sustainable model and its becoming difficult to continue in that manner and there is lack of transparency. Hence, we would like maintain the building through a body that is legally recognized and would that it brings transparency and the accounts are also auditable. Also, we could use this body to legally take action against the builder for not completing the Fire NOC and OC. So, we are thinking of forming an Association. 

But, the question is 
1) What kind of association can we form? 
       a) Is it advisable to form a Apartment Owners Association in spite of not having Fire NOC and OC?
      b) Or should we go with Welfare Association until the Fire NOC and OC is complete? Once the Fire NOC and OC is completed, we should go ahead with a Apartment Owners Association? 
     c) Which of the association, can we get all the Flat Owners as one group?
2) What is the difference between Welfare Association and Apartment Owners Association? And which is more suited in the short term and long term.
3) If Welfare Association, under which Act should we register? 
      a) Can we make a Welfare Association against "KARNATAKA APARTMENT OWNERSHIP ACT 1972"? 
      b) Or the Welfare Association should only register against "Karnataka Societies Registration Act, 1960"?
      c) Is there any other Act that is more suited?
4) If Apartment Owners Association, which Act is more relevant in the current times ? Also, what 

I would appreciate your responses as this would help us take an informed decision.

Thanks in advance,



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