Several homebuyers in Bengaluru have decided to stop paying monthly common area maintenance charges to unregistered residents’ welfare associations (RWAs). Some others have initiated police complaints levelling criminal charges and charges of misappropriation of funds against the unregistered RWAs. On July 13, Prema Mistry, a homebuyer at Prestige Tranquility apartments, wrote to the Avalahalli police station stating that she will not pay maintenance money to unregistered association members till the court judgement in this matter comes. Recently, a few buyers lodged a first information report against the Prestige Tranquillity Apartment Owners Association (PTAOA) alleging criminal liabilities, including misappropriation of funds, environmental violation and non-registration of association. The case is currently in court. "Prestige Tranquility Apartment Owners Association, registered under the Karnataka Apartment Owners Association (KAOA) Act 1972, is not recognised by the Registrar of Cooperative Societies (RoCS) so they can’t collect maintenance money from us. If PTAOA registers itself in RoCS, we don’t have any problem in paying the maintenance," Mistry says. How can an RWA be registered in Karnataka? Currently, RWAs in Karnataka can be registered under the Karnataka Cooperative Societies Act (KSCA) 1959 and KAOA Act 1972. Every RWA registered in the state will have a competent body for homebuyers' grievances. For KSCA it is the Registrar of Cooperative Societies. However, several RTI applications filed by activists reveal that KAOA 1972 does not have the provisions to register an RWA. Officials at the Karnataka Housing Department on July 14 told Moneycontrol that under the KAOA 1972, only the sale deed can be registered, not the RWA. Defrauded homebuyers According to Anil Kalgi, president of the Bangalore City Flat Owners' Welfare Association, more than 50 percent of associations in the state are "illegally" functioning under KAOA. Arinjoy Ghosh, a homebuyer of Purva Palm Beacon, on July 14, filed an FIR against 13 members of the previously unregistered association (registered under KAOA) Purva Palm Beach Owners Association (PPBOA) for misappropriation of funds collected as maintenance charges. According to documents submitted to the police, the RWA has allegedly defrauded the homebuyers to the tune of Rs 88 lakhs. "However, last year in June, we had some changes in the association board members and we are looking forward to migrating towards KSCA 1959 for the association registration," he says. "The officials at the Registrar of Cooperative Societies said that the RWA is not a registered one, thus they cannot probe into the matter. We were left with no choice but to approach the police, " he says. A list of questions has been sent to the developers, Prestige Group and Puravankara. Moneycontrol will update the story after getting a response. Can unregistered collect maintenance charges? Legal experts say that according to Section 11 of the RERA Act, the developer should enable the formation of an association or society or co-operative society, as the case may be, of the allottees, or a federation of the same, under the laws applicable. Advocate B R Vittal who practices at the Karnataka High Court says, "The Karnataka High Court has already said that money collected by an association that is not registered as a body corporate is unauthorised." Another advocate, Suryanarayana, says the major reason is that any organisation that is not registered legally cannot own a PAN card for bank accounts. In such cases, if any RWA is collecting money for maintenance or for a corpus fund, they will be doing it in their personal capacities. In cases where unregistered RWAs are collecting maintenance charges, advocates say, homebuyers have no other option than pressing a police complaint or a civil case on them.
Stock Market LIVE Updates: Nifty around 19,750, Sensex up 300 pts; HDFC Bank, RIL most active - Moneycontrol
Read More
No comments:
Post a Comment