Q. We took flat possession during Covid in 2020, but the developer has not formed the society till date. He has also not given the amenities mentioned in the purchase agreement. He has also not completed an entire grid in one of the buildings. When we ask for a no objection certificate (NOC) for transferring the power meter in our name, he seeks money, apart from maintenance charge, for giving the same. How can we go ahead against the developer?
Riddhima Ganapathi, Chembur
A. Section 11 of theReal Estate (Regulation and Development) Act (RERA) specifies the functions of promoters i.e. developers. It is their responsibility to form the society within three months once the majority of the flats (over 50%) are sold. Further, he has to complete the project within the completion date submitted to MahaRERA. If the project remains incomplete as on that date, the developer has to seek anextension from MahaRERA with the consent of two-third of allottees. It is their statutory and contractual obligation to complete the project and provide the amenities promised in the agreement.
Technically speaking, allottees should not accept possession and occupy a flat without the Occupation Certificate being in place. However, in practice, allottees take possession of incomplete projects owing to personal constraints. With regards to your grievance of paying money to get an NOC for transferring ownership of power meters, please check your agreement for the charges to be paid.
The developer must have already taken some charges for obtaining the meter. If that is the case, asking for additional charges for giving the NOC is not right. The allottees can collectively or individually file a complaint against the developer with MahaRERA for the non-compliance of the obligations. MahaRERA can grant compensation for the delay in completion of the project and also penalise the developer. The allottees may also consider forming a cooperative housing society, citing the non-cooperation on the developer's part.
Q. We are considering buying an apartment instead of a flat in the society. How is the undivided common interest computed?
Shrividya Venkateswan, Matunga
A. As per section 6 of the Maharashtra Apartment Ownership Act, each apartment owner is entitled to an undivided interest in the common areas and facilities in terms of the percentage mentioned in the deed of declaration. Such percentage is computed on the basis of the value of the apartment in relation to the property value; it should reflect the limited common areas and facilities. Thus, the value for which you will purchase the apartment will be significant to decide your share. Such percentage will be fixed and cannot be altered at a later stage without the consent of all the apartment owners as mentioned in the amended deed of declaration duly executed and registered.
The percentage of the undivided interest in the common areas and facilities cannot be separated from the apartment to which it pertains, and will be deemed to be conveyed or encumbered with the apartment even though such interest is not expressly written in the conveyance or other instrument. The common profits will be distributed and the common expenses will be charged from the apartment owners in accordance with the percentage of such undivided common interest.
Q. Are there any organisations which manage the day-to-day work of the societies and report compliance to the managing committee? We would like to engage one for our society as our members are unable to spare time for this activity?
Nishant Kulkarni, Powai
A. It is the responsibility of the managing committee to look into the society affairs and to comply with the obligations under the Maharashtra Co-operative Societies Act. However, if the members are unable to spare time, you can recruit managers to do the job. Such managers need to be trained and experienced in handling the society matters, applicable laws and procedures. Also, there are various facilities management service providers who render such services on a contractual basis. For big projects, developers generally have their own facilities management companies which manage the societies and a provision to this regard is included in the agreement.
Such provisions may not stand the test of law as it is the prerogative of the societies to appoint the service providers once the society is given the hand over. You may also find some online platforms which provide the software to the societies and also manage the day-to-day affairs. However, the managing committee will not be absolved from its statutory responsibility of society management.
The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat. The questions, in brief, may be sent to fpjchs@gmail.com
