Bhavin Desai
I am living in Felicita society on Baner Pashan Link Road, Pune. We’ve got our society registered 2 weeks back and first GBM should happen soon.
We’ve a query regarding maintenance that can be collected from builder for unsold flats. 16 out of 120 flats in our society are currently unsold. The builder says that since no one lives in the unsold flats, why should he pay for the maintenance?
Please advise. Is there any bye-law or legal provision for this situation?
I C Naik
This is good question but a bad situation for your Society. Not that there is no satisfactory solution but it requires attention and lot of work. First of all lets be clear about the legal position in respect of unsold flats since your housing society will have to work smartly.
Under MOFA (MAHARASHTRA OWNERSHIP OF FLATS (REGULATION OF THE PROMOTION OF CONSTRUCTION, SALE, MANAGEMENT AND TRANSFER) ACT, 1963) every builder is required to become a member of the housing society being registered as provided under Section 10 of MOFA. Its Sub-Section 1 reads:
“(1)As soon as a minimum number of persons required to form a co-operative society or a company have taken fiats, the promoter shall within the prescribed period submit an application to the Registrar for registration of the organisation of persons who take the flats as a co operative society or, as the case may be, as a company; and the promoter shall join, in respect of the flats which have not been taken, in such application for membership of a co-operative society or as the case may be of. a company. Nothing in this section shall effect the right’ of the promoter to dispose of the remaining flats in accordance with the provisions of this Act.”
So make sure that in the membership register for unsold flats name of the builder is entered. Once the provisional managing committee is constituted take on record the flat numbers which are to be sold by the builder later. Pass a resolution authorizing Secretary calling for application for membership of the Builder as he is so required as per Bye-Law No 19 informing of the following conditions which he is supposed to comply.
1.Tender the value of at least Ten shares of the Society, along with his Application for Membership if not done so far(99% he must not have done it);
2.Tender Entrance Fee of Rs. 100/-, along with the Application for Membership; if not done so far(99% he must not have done it);
In all probability he will not do it. Send a gentle cool stereo-type reminder every week.
When the maintenance Bills are raised raise one Bill for all Unsold flats in the name of the Builder and send it and take acknowledgement on the copy.
It may happen that some flats may be sold and builder must have collected maintenance which other members have paid from one date common to all the members. When this member is admitted make sure that a proper resolution is passed and maintenance collected by builder is collected before conferring this membership. Don’t remain under the impression that builder will pay the Bills of maintenance directly to the Society. He will not pay what he has collected from the purchasers of the unsold flats.
After this the society may end up with litigation with the builder to collect the amounts payable by the builder.
In the first letter the society can also clarify that unsold flats are also under maintenance responsibility of the society and not that if a flat I occupied then only Society incurs expenditure. If the flat is occupied the expenses will be incurred by the member inside the flat but common expenses of the society are not incurred only if a flat is occupied. Once the society is registered expenses will incur irrespective of occupancy.