Builders Have To Form Owners' Association, Says RERA

Published on 25 Feb 2019 by Shivi

The Uttar Pradesh Real Estate Regulatory Authority (UP Rera) has said that the responsibility of forming apartment owners’ Association (AOA) for different housing projects falls on the builder of the project. The authority also said that the builder has to form the AOA within three months of most owners shifting to the flats.

“As per the Rera Act, a builder has to enable the formation of an association or society or cooperative society as the case may be of the allottees or a federation of the same under the applicable laws. A builder will pay all outgoings until the transfer of physical possession of the real estate project to the association of allottees,” Rajiv Kumar, chairperson of UP Rera, said.

“Under the Rera Act, in the absence of local laws, a builder has to form an AOA within a period of three months after a majority of allottees having booked their plot or apartment in the project. As Uttar Pradesh Apartment Act is applicable in the state, a builder will form an AOA as per this act,” Kumar told HT. “An AOA will be formed as per legal norms. Any disputes of AOA elections will be dealt with by the registration authority of the society concerned,” the chairperson added.

In one such dispute, some allottees of Edana, a housing project of Ecotech Infratech Private Limited, had claimed that the builder was not allowing the formation of an AOA. However, Suryaansh Gupta, director, Ecotech Infratech said, “We have already applied for formation of AOA with the registrar of societies.”

Some of the allottees of the project had said that they were not happy with the AOA representative selected by the builder and wanted a different party to take care of the association.

Responding to this, Nitin Tyagi, the AOA president chosen by the builder, said, “We are yet to receive AOA registration. Another group has submitted registration papers. The deputy registrar will decide and allot registration. Our AOA is genuine as we have the builder’s consent.”

Subhash Singh, the deputy registrar of firms, societies and chits, Meerut division, said, “I do not remember this case but such cases do come and we decided them according to rules. We allot registration after verifying the claims of the groups in dispute.”

To this, Kumar added, “Though the builder’s consent for the formation of AOA is not mandatory, but, as it is the responsibility of the builder to enable the formation of AOA and its registration, the builder’s influence cannot be ruled out. The AOA election process should be according to law and transparent.”


Tags: Complaint Under RERA  Property Registration 

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