Question 1

Most flats in our building are sold but the builder has not formed the co-operative society. When must he, and what can we do?

Accepted Answer

Under MOFA the promoter must apply to register the society within four months of the date on which the minimum number of purchasers (60 %) have taken flats; for a RERA-registered project he must enable its formation within three months of a majority of flats being booked. If he does not, the purchasers can themselves apply to the Deputy Registrar, and complain to MahaRERA. MOFA s.10 read with Rule 8 of the MOFA Rules 1964 puts the duty on the promoter within four months once the minimum number of persons required to form a society (60 % of flats) have taken flats. For RERA projects, s.11(4)(e) of RERA 2016 requires the promoter to enable formation of the association or society within three months of the majority of allottees having booked, and MahaRERA has directed promoters to do so. Where the promoter defaults, the flat purchasers can apply for registration themselves through a chief promoter elected from among them; the registering authority is the Deputy/Assistant Registrar of Co-operative Societies for the area. A complaint to MahaRERA under s.31 of RERA lies for RERA-registered projects. After registration, the first general meeting must be held within three months (see builder_handover-004).

Question 2

The builder still holds the unsold flats. Must he pay maintenance for them, and can the society levy it?

Accepted Answer

Yes. Until possession is handed to a buyer, the promoter bears the outgoings of unsold flats; once the society is formed he (or his firm) is its member for the unsold flats and must pay the society's charges like any other member. Existing members cannot be asked to absorb his share. MOFA s.6 makes the promoter responsible for outgoings (municipal taxes, water and electricity charges and the like) until the property is transferred; RERA s.11(4)(g) makes him pay all outgoings until physical possession is transferred to the allottee or the association. The 2014 bye-laws expressly contemplate the promoter builder applying for membership in respect of unsold flats and relax some admission conditions for him (BL 19(a) and 19(c) notes) — as a member he is liable for the charges fixed under BL 66 and the society can recover arrears like any member's (s.101 / s.154B-29; see defaulters_recovery). What to do: bill the unsold flats every month, record the builder's arrears, send demand notices, and include them in the recovery application if unpaid.

Question 3

What documents and money must the builder or chief promoter hand over to the new society?

Accepted Answer

The chief promoter must hand over every record and asset of the society: registration papers and bye-laws, bank passbooks and cheque books, accounts and vouchers, membership applications, agreements, plans, minutes, correspondence and cash, with a written handover report. From the builder the society should also obtain the title and approval documents and a full account of maintenance deposits and other sums collected from buyers. BL 89 lists what the chief promoter hands to the provisional committee immediately after it elects its office bearers: the registration application and certificate, registered bye-laws, bank challans, used and unused cheques, pass books, copies of all agreements he signed, his statement of accounts, membership applications, promoters' details, vouchers, cash, the site plan and scheme (plot-purchase societies), minutes of the first general meeting, correspondence with the Registrar and local authority, digital records, and a documents handover report; nothing may be withheld. The draft 2026 bye-laws repeat this (dBL 91). From the builder: under MOFA s.5 the promoter must keep sums taken from purchasers for outgoings and deposits in a separate bank account and account for them, and on handover should transfer the unspent balance with accounts. The approved plans, commencement and occupancy certificates, title documents, and structural and service drawings are needed for conveyance and for later structural audit and redevelopment (dBL 155 lists them in the due-diligence set). Keep them as permanent records (dBL 138).

Question 4

What happens at the first general meeting after the society is registered, and how long does the provisional committee last?

Accepted Answer

The chief promoter must call it within three months of registration on 14 clear days' notice. It admits new members, approves the chief promoter's accounts, sets up a provisional committee, fixes the borrowing limit, authorises the committee to obtain conveyance from the builder, and considers affiliation to the housing federation. The provisional committee holds office for one year or until elections. BL 84-87 (dBL 85-88): meeting within three months of registration (Rule 59), otherwise the Registrar convenes it; 14 clear days' notice to all promoters; business as listed, including authorising the committee to secure conveyance from the promoter builder (BL 87(a)(vi)). If no provisional committee is elected, the Registrar may nominate one for a year (BL 87(b)). The provisional or nominated committee has the full powers of an elected committee (BL 90) and holds office for one year or until regular elections (BL 91; dBL 93), then hands over everything to the elected committee's chairman (BL 92).

Question 5

Our society was registered years ago but the builder has never executed the conveyance. What is the deadline and what can we do?

Accepted Answer

Under MOFA the builder must convey the land and building within the period in the sale agreement, or failing that within four months of the society's registration; under RERA, where no other period applies, within three months of the occupancy certificate. If he does not, the society can apply to the District Deputy Registrar (competent authority) for deemed conveyance. MOFA s.11 read with Rule 9 of the MOFA Rules sets the promoter's duty to convey; s.11(3)-(5) let the society apply to the competent authority — the District Deputy Registrar of Co-operative Societies — who can certify the society as entitled to a unilateral deemed conveyance, which is then registered. RERA s.17 separately obliges the promoter to execute a registered conveyance of the common areas to the association within the period under local law, or within three months of the OC. The society's own obligation is to act: the committee must, with GB approval, take steps for conveyance or deemed conveyance, have the draft deed vetted by the society's advocate, get GB approval and then execute and register it (BL 153; dBL 146, which also makes starting deemed-conveyance proceedings the committee's duty where the promoter defaults). Applications are filed on the Co-operation Department's online deemed-conveyance system. See the conveyance topic for the document list and procedure.

Question 6

The builder never obtained an occupancy certificate (OC). Can we still form a society and get deemed conveyance?

Accepted Answer

Yes. MOFA s.11(3) asks for the occupation certificate with a deemed-conveyance application only "if any", so a missing OC or completion certificate does not by itself block deemed conveyance, and a society can be registered without it. But the missing OC remains a problem for water connections, property tax at normal rates, resale loans and future redevelopment, and the builder remains answerable for it. Obtaining the completion and occupancy certificates is the promoter's duty: MOFA s.3(2)(i) forbids him to give possession before a completion certificate where one is required, and RERA s.11(4)(b) makes him responsible for obtaining the completion or occupancy certificate, or both. The 2014 bye-laws assume possession is handed over only after the OC or completion certificate (BL 76). Where the builder has not obtained it, purchasers can complain to MahaRERA (RERA projects) or the consumer commission, and the society can pursue regularisation with the planning authority at the builder's cost. For deemed conveyance, MOFA s.11(3) requires true copies of the members' registered agreements and "all other relevant documents (including the occupation certificate, if any)"; the Government's document lists for applications follow the same approach. Titles conveyed without an OC may still face planning-authority action for unauthorised work.

Question 7

Within a few years of possession there are leaks and cracks. Can we make the builder repair them?

Accepted Answer

Yes, for a RERA-registered project: a structural defect or defect in workmanship, quality or services reported within five years of handing over possession must be rectified by the promoter free of charge within 30 days, failing which the allottees are entitled to compensation. For older MOFA projects a similar liability arises under the sale agreement and MOFA. RERA s.14(3) sets the five-year defect liability and 30-day rectification period; complaints go to MahaRERA (s.31). MOFA s.4 agreements for pre-RERA projects carry a defect clause, and consumer commissions have entertained such claims. Record the defects with dated photographs, an architect's report and written notices to the builder within the period; the society can act for common-area defects and each member for his flat. Once the defect-liability period is over or the builder cannot be reached, the repairs fall on the society or the member under the bye-law split (see repairs_structure-011).

Question 8

The builder collected "society formation", "development" and maintenance deposits from buyers. Must he hand these to the society?

Accepted Answer

Amounts collected from buyers for the society (share money, entrance fee, formation costs, maintenance and other deposits) are held for that purpose and must be accounted for and the balance handed over when the society takes charge. Amounts that were part of the flat price are not refundable to the society. MOFA s.5 requires the promoter to keep sums received for outgoings, deposits, share money and the like in a separate bank account and to account for them; the society should demand an audited statement of what was collected and spent. The chief promoter's statement of accounts must be approved at the first general meeting (BL 87(a)(iii)) and all cash and bank balances handed over (BL 89). A shortfall can be claimed through MahaRERA, the consumer commission or a civil suit; for chief promoter defaults the Registrar can act under s.88 (misapplied funds).

Question 9

Can the builder sell or allot parking spaces, terraces or other common areas after the society is formed?

Accepted Answer

Open and stilt parking and other common areas are not the builder's to sell once they form part of the society's common areas; the society allots them under its parking rules. Only what is lawfully sold as part of a flat under a registered agreement is recognised. The Supreme Court held in Nahalchand Laloochand v Panchali CHS that stilt parking is a common area and not a separate "flat" the promoter can sell under MOFA. The 2014 bye-laws require the society's general body to frame parking rules and the committee to allot slots, with no right for any member to sell or transfer one (BL 77-80); the draft 2026 bye-laws treat open and stilt slots as common areas and recognise slots attached to a flat under a registered agreement only after verification (dBL 77). The society may not let out common terraces or open spaces (BL 168). RERA defines garages and covered parking separately; "garage" sales in RERA projects depend on the registered documents. See the parking topic.

Question 10

The builder is still a committee member or controls the society through unsold flats. Can he block conveyance or redevelopment decisions?

Accepted Answer

As a member for unsold flats the builder votes like any member, but he cannot vote on matters where he is personally interested, and conveyance is his statutory duty, not a favour the society must negotiate. The society can pursue deemed conveyance without his consent. A committee member must not be present at the consideration of any matter in which he is interested (BL 119), and no officer may have an interest in any contract with the society (BL 115). Conveyance is enforced against the promoter under MOFA s.11 and RERA s.17, and deemed conveyance proceeds on the society's application (builder_handover-005). In redevelopment, the 2019 s.79A directive bars committee members and their relatives from being the developer. If the builder's members dominate the committee, other members can requisition a general body meeting (one-fifth of members, BL 95) and ask the Registrar to intervene.

Question 11

I bought my flat from the builder. Do I have to apply for membership, and when will I get a share certificate?

Accepted Answer

Yes — you apply to the society with the registered agreement for sale, the share money and entrance fee; you are deemed admitted if the society does not decide within three months of a complete application. The share certificate must be issued within six months of allotment. Admission conditions: the prescribed application, value of the shares and entrance fee (June 2026 Rules: at least five shares and ₹500 entrance fee — Rule 106C-4(a); 2014 bye-laws: ten shares and ₹100, BL 19(a)), and a certified copy of the stamped and registered agreement with the promoter (BL 19(a)(vi)). A purchaser under a MOFA s.4 agreement is deemed allotted the flat by the society (BL 74(a)). If the society does not communicate its decision within three months of a complete application, the applicant is deemed admitted (s.22(2); dBL 60(i)). Share certificates are issued within six months of allotment under the society's seal (BL 9-10; dBL 14).

Question 12

What does the builder or chief promoter have to file to register the society under the June 2026 Rules?

Accepted Answer

Two steps. First, an application in Form Y-1 to reserve the name and open a bank account, with the promoters' resolution electing the chief promoter, a copy of one buyer's agreement with the builder, and the architect-certified commencement or completion certificate; the Registrar decides within 30 days. Then, within two months of that permission, the registration application with the bye-laws, member list, bank certificate and fee. Rule 106C-2(1): the name-reservation and bank-account application is made in Form Y-1 with (i) the resolution and minutes of the promoters' meeting electing and authorising the chief promoter, and (ii) for a tenant co-partnership or premises society, a certificate of commencement or building completion certified by an architect (the form's enclosure list also asks for a copy of the builder promoter's agreement with one proposed member). It goes by registered post, hand or electronically; the Registrar enters it in the Form Y-3 register, gives a receipt, may allow amendments, and must decide within 30 days, with reasons if rejecting (106C-2(3)-(6)). Rule 106C-3: within two months of that permission the registration application is made, signed by the chief promoter, with two copies of the proposed bye-laws, the list of share-contributors with amounts and entrance fees, the bank's balance certificate, a scheme showing economic soundness and the property to be held, and the fee — for a tenant co-partnership society ₹2,500 (up to 25 flats), ₹5,000 (26–50), ₹7,500 (51–250) or ₹10,000 (above 250). The builder's statutory duty to enable formation comes from MOFA s.10 and RERA s.11(4)(e) (builder_handover-001).

Question 13

The provisional committee is full of the builder's nominees and no election has been held. What can members do?

Accepted Answer

A provisional committee holds office for one year or until regular elections, whichever the bye-laws allow, and has no right to continue indefinitely. Members can press for the election under the election rules, requisition a general meeting, and complain to the Registrar, who can order the election or appoint an officer to hold it. Under the 2014 bye-laws the first general meeting constitutes a provisional committee (or the Registrar nominates one), which has all the powers of an elected committee and holds office for one year or until regular elections (BL 87(a)(iv), 87(b), 90-91); its chairman must hand over all records and assets to the newly elected committee at its first meeting (BL 92). The draft 2026 bye-laws say one year or until the regular committee is elected, whichever is earlier (dBL 93). For societies up to 250 members the society conducts its own election under the housing-society election rules; larger ones go through the State Co-operative Election Authority. Steps: write to the provisional committee asking it to start the election process; if it does not, one-fifth of members can requisition an SGM; complain to the Deputy Registrar with dates; and watch for decisions the provisional committee takes in the builder's interest (for example on conveyance, parking or unsold-flat dues), which can be challenged. The builder, as a member for unsold flats, may vote but should not vote on matters where he is personally interested (builder_handover-010).

Question 14

The builder left unpaid property tax, water charges and electricity bills from before handover. Who has to pay them?

Accepted Answer

Outgoings up to the time the building is handed over are the promoter's liability under MOFA and RERA. The municipality or utility may still demand the arrears from the property, so the society may have to pay to avoid disconnection, but it can then recover the amount from the builder, preferably after proving the period with the bills. MOFA requires the promoter to pay all outgoings (ground rent, municipal taxes, water and electricity charges, insurance, mortgage interest) until he transfers the property to the organisation of purchasers, and RERA s.11(4)(g) makes him pay all outgoings collected from allottees, and those due before transfer of physical possession, including municipal taxes, water and electricity charges and mortgage interest. Practical steps: (1) obtain the account statements from the municipality, water department and power company showing each period; (2) separate the pre-handover period (builder) from later periods (society/members); (3) demand the builder's share in writing; (4) if a utility threatens disconnection, pay under protest and record it as a receivable from the builder; (5) pursue recovery through a RERA complaint, a consumer complaint or a civil suit, and, where the builder is a member for unsold flats, adjust against his membership account only in the manner the bye-laws permit. Place the amounts before the general body so the auditor can see why they appear as a claim.

Question 15

How can the society actually recover the maintenance the builder owes on his unsold flats?

Accepted Answer

Bill him like any member, send reminders and a demand notice, charge interest within the legal cap, and then use the society's statutory recovery route: an application to the Registrar for a recovery certificate for members' dues (s.154B-29), or a dispute in the Co-operative Court under s.91. RERA and consumer forums are alternatives for amounts owed before handover. Once the society is formed the builder is its member for unsold flats (MOFA s.10) and liable for the same charges as other members (builder_handover-002). Steps: (1) raise monthly bills in the builder's name for each unsold flat, with the same heads as other members; (2) interest on arrears at the rate the general body fixes, not above simple interest of 12 % a year under the June 2026 Rules (Rule 106C-12(4) item 6); (3) written reminders and a demand notice; (4) apply to the Registrar under s.154B-29 for a recovery certificate, which is executed like an arrear of land revenue; or file a dispute under s.91; (5) for outgoings due before the society took over, claim through RERA or a consumer complaint (builder_handover-303). Do not cut essential services to the builder's flats; follow the recovery procedure. See defaulters_recovery for the general s.154B-29 procedure. Keep a separate statement of the builder's dues for the general body and the auditor.

Question 16

We never got an occupancy certificate. What practical problems follow, and how do we push the builder to obtain it?

Accepted Answer

Without an OC the building is technically occupied without permission. Consequences can include penal or higher property tax and water charges, difficulty with permanent water and power connections, bank loans and resale, and trouble in later redevelopment. Obtaining the OC is the promoter's duty: use a written demand, a RERA complaint and, where suitable, a consumer complaint, which the Supreme Court treats as a continuing wrong. MOFA s.3 and RERA s.11(4)(b) put the duty to obtain the occupancy certificate (and completion certificate) on the promoter. The Supreme Court in Samruddhi CHS v Mumbai Mahalaxmi Construction (2022) held that failure to obtain the OC is a deficiency in service and a continuing wrong, so a consumer complaint is not time-barred while the failure continues (see conveyance-006). Steps: (1) find out why the OC was not issued — ask the planning authority for the file (the reasons are often deviations from plans, unpaid charges or missing fire or other NOCs); (2) send the builder a demand with the reasons; (3) file with MahaRERA if the project is registered, or a consumer complaint; (4) record the consequences — extra tax, water charges, blocked loans — as heads of compensation. Society formation and deemed conveyance can proceed without the OC (builder_handover -006). Members should also avoid carrying out their own alterations that make regularisation harder.

Question 17

If the builder will not get the occupancy certificate, can the society apply for it itself?

Accepted Answer

Sometimes. Planning authorities have in some cities allowed a society in possession to apply for an OC or for regularisation, after rectifying deviations, paying pending charges and producing the required NOCs and certificates. It is a local-authority procedure, varies by city and changes over time; check the current policy with the planning authority before spending money. The OC is issued by the planning authority under the Maharashtra Regional and Town Planning Act and the applicable development control regulations, normally on the application of the owner or developer through the licensed architect. Where the developer has disappeared or refuses, the society, once it holds conveyance or deemed conveyance (and so is the owner on record), is better placed to apply. What is usually needed: a licensed architect and structural engineer to survey and certify the building as built; comparison with the last approved plans and a plan for regularising or removing deviations; payment of outstanding premiums, development charges and penalties; fire NOC and other service certificates (builder_handover-307); and the authority's site inspection. Costs paid by the society are a claim against the builder (conveyance-315). Some cities have run specific schemes for old buildings without an OC; ask the ward office or the planning department what is current.

Question 18

Which building-service documents should the society collect from the builder at handover?

Accepted Answer

Beyond the society's own records, collect everything needed to run and insure the building safely: OC and completion certificate, approved and as-built plans, structural design and stability certificate, fire NOC and fire-system test reports, lift licences and maintenance contracts, electrical and DG set approvals, STP or rainwater-harvesting approvals where required, water and power connection papers, and all equipment warranties. The bye-laws list what the chief promoter hands over — registration papers, bye-laws, bank and account records, agreements, membership papers, cash, plans and correspondence, with a handover report (BL 89; dBL 91). They do not list the technical documents the society needs to meet its own legal duties, so ask for them specifically: (1) OC, completion certificate, sanctioned plans with revisions, and as-built drawings including plumbing, drainage and electrical layouts; (2) structural design basis and the structural engineer's stability certificate; (3) fire NOC, the licensed agency's certificate for fire systems and the last test reports (the society must then renew the fire-safety certificate periodically — see safety_fire_lift); (4) lift installation and operating licences under the Maharashtra Lifts Act 2017 and the maintenance contract; (5) electrical inspector's approvals, transformer and DG set permissions; (6) STP, solid-waste and rainwater-harvesting approvals where applicable; (7) water and power connection documents and deposits; (8) warranties, AMC contracts and operating manuals; (9) RERA-project defect-liability contacts. Sign a dated receipt listing each item received and each item pending.

Question 19

At handover the builder asks the society to sign a 'no-claim' or 'full satisfaction' letter. Should we?

Accepted Answer

Do not sign a blanket no-claim. Sign only a receipt listing what has actually been handed over, with a list of pending items and defects, and state that the society's statutory rights (conveyance, defect liability, refunds, compensation) are reserved. A signed waiver may be used against the society later. Statutory duties — conveyance under MOFA s.11 and RERA s.17, the five-year structural defect liability for RERA projects under s.14(3), accounting for deposits collected from buyers — do not depend on the society's goodwill, but a letter saying everything is complete and there are no claims can be cited as evidence of acceptance or waiver, and it complicates any later complaint. A safer handover document: (1) date and names; (2) items received (records, keys, documents, cash, deposits — with amounts); (3) items pending with target dates (OC, conveyance, NOCs, specific defects, amenities); (4) a joint inspection note of visible defects with photographs; (5) an express reservation: "without prejudice to the society's and members' rights under MOFA, RERA and other law". Individual members should take the same care with possession letters for their flats. Get the society's advocate to review the builder's draft before the committee signs, and report the handover to the general body.

Question 20

The builder wants to add floors or change the approved plan after we bought our flats. Can he do it without our consent?

Accepted Answer

Not for a RERA project: alterations or additions to the sanctioned plans, layout or common areas need the prior written consent of at least two-thirds of the allottees (other than the promoter). Under MOFA he cannot make alterations or additional structures without the purchasers' previous consent, except what was disclosed in the agreements. Minor changes required by the authority are treated differently. RERA s.14(1) requires the project to be developed according to the sanctioned plans and specifications approved by the competent authority; s.14(2) bars the promoter from making (i) any additions or alterations to the plans or specifications of an allottee's apartment without that allottee's consent, and (ii) any other alterations or additions to the sanctioned plans, layout or common areas without the previous written consent of at least two-thirds of the allottees, excluding the promoter; minor additions required by architectural or structural reasons are allowed with notice. MOFA s.7 similarly bars alterations after plans are disclosed to purchasers without their consent. What to do: ask the builder for the revised plans and the consent he relies on; object in writing to the planning authority, citing the agreements; file a RERA complaint or seek an injunction in civil court if work begins. Extra floors also affect the society's share of FSI in any future redevelopment (conveyance-312).

Question 21

The clubhouse, gym or garden shown in the brochure has not been built or handed over. What can we do?

Accepted Answer

For a RERA project the promoter is bound by the amenities in his advertisement, brochure and registered project details, and an allottee who suffers loss from a false or incorrect statement can claim compensation or other relief. Collect the brochure, the agreement's amenity schedule and the MahaRERA registration details, and file a complaint. For older projects, the MOFA agreement and a consumer complaint are the routes. RERA s.11(3) makes the promoter give allottees information on sanctioned plans and specifications, and s.12 says that where a person makes an advance or deposit on the basis of information in the notice, advertisement, prospectus or model apartment and suffers loss because it was incorrect or false, the promoter must compensate, and the allottee may withdraw with refund and interest. Amenities also appear in the project's registration on the MahaRERA website and in the agreement's schedule of common areas and amenities. Evidence: brochures, advertisements, screenshots, the MahaRERA project page and quarterly updates, the agreement schedule, and photographs. Remedies: complaint under s.31 for directions to provide the amenity; compensation through the Adjudicating Officer (s.71); interest for delay (s.18). If the builder claims the amenity is his to keep or sell (for example a clubhouse run commercially), check whether it forms part of common areas under the agreements and RERA s.2(n) (see builder_handover-009).

Question 22

Can the society or association itself file a complaint with MahaRERA, or only individual flat buyers?

Accepted Answer

RERA allows a complaint by 'any aggrieved person', which MahaRERA has accepted from associations of allottees and societies on matters common to all — conveyance, common-area amenities, OC, formation of the society, defects in common areas. Individual claims (refund, interest on a particular flat) are best filed by the allottees themselves, possibly together. RERA s.31 lets any aggrieved person file a complaint with the Authority or the Adjudicating Officer for any violation of the Act, rules or regulations against a promoter, allottee or agent; the Explanation to s.31 says "person" includes an association of allottees or any voluntary consumer association. So a registered society, as the association of allottees, can complain on common matters. Before filing: a general-body or committee resolution authorising the complaint and a representative; the MahaRERA project registration number; the agreements and evidence; and the online filing fee. Relief usually sought: directions to form the society or convey (conveyance-310), provide amenities (builder_handover-310), rectify common-area defects under the five-year liability (builder_handover-007), obtain the OC (builder_handover-305), and hand over documents and deposits. Consumer law similarly allows complaints by a recognised consumer association and by one of numerous consumers with the same interest on behalf of all.

Question 23

What remedies does RERA give against a builder, and which forum handles which claim?

Accepted Answer

MahaRERA (the Authority) hears complaints for directions — to complete, form the society, convey, provide amenities, fix defects — and awards interest for delay. The Adjudicating Officer decides compensation. Appeals go to the Maharashtra Real Estate Appellate Tribunal within 60 days, and then to the High Court. Unpaid amounts can be recovered as arrears of land revenue. A working map of RERA remedies: (1) delay in possession — the allottee may withdraw with refund and interest, or stay and receive interest for every month of delay (s.18); (2) structural or workmanship defects reported within five years of possession — rectification within 30 days or compensation (s.14(3)); (3) false advertisement or brochure — compensation or withdrawal (s.12); (4) plan changes without consent (s.14(2)); (5) failure to form the society, convey or hand over documents (s.11(4)(e)-(f), s.17). Forums: the Authority for complaints and directions (s.31, s.37-38); the Adjudicating Officer for compensation, considering factors like the gain to the promoter and loss to the allottee (s.71-72); the Appellate Tribunal on appeal within 60 days (s.43-44); the High Court on questions of law (s.58). Recovery of amounts ordered as arrears of land revenue (s.40). Penalties for non-compliance (s.63). A consumer complaint remains an alternative remedy (s.79 bars civil courts, not consumer forums), but do not pursue the same relief in two places at once.

Question 24

The builder has abandoned our project half-built. Can the buyers' association take over and complete it?

Accepted Answer

For a RERA-registered project, potentially yes. When a registration lapses or is revoked, MahaRERA may, after consulting the Government, have the remaining work done by the competent authority, by the association of allottees or in any other manner it decides; where the registration is revoked, the association has the first right of refusal. Buyers should organise, register their association and approach MahaRERA early. RERA s.7 allows MahaRERA to revoke a project's registration for default, and s.8 provides that on lapse or revocation the Authority may consult the appropriate Government and take such action as it deems fit, including having the remaining development carried out by the competent authority, by the association of allottees or in any other manner it determines; no such order takes effect until the appeal period expires, and where the registration is revoked (not merely lapsed) the association has the first right of refusal. Practical steps: (1) form or register the allottees' association (or society); (2) collect agreements, payments and the MahaRERA project history; (3) file a complaint seeking revocation or action under s.8; (4) get a technical and financial assessment of what remains (a PMC); (5) arrange finance — members' contributions, sale of unsold units if permitted, or lending; (6) check lenders' charges on the project (conveyance-313). If the builder is in insolvency, the homebuyers are financial creditors under the Insolvency and Bankruptcy Code and the process runs through the NCLT instead. Take legal advice before committing members' money.

Question 25

Is there a time limit for the society's claims against the builder?

Accepted Answer

Yes, but it depends on the claim and forum. Consumer complaints must be filed within two years of the cause of action, though a continuing failure — such as not obtaining the OC — keeps the cause alive. RERA's five-year defect period runs from possession. Civil suits follow the Limitation Act. Do not wait: record the date each problem was noticed and act promptly. (1) Consumer Protection Act 2019: a complaint within two years from the date the cause of action arose, with power to condone delay for sufficient cause (s.69). The Supreme Court in Samruddhi (2022) held that failure to obtain the OC is a continuing wrong, so the complaint was in time (builder_handover-305). (2) RERA: the Act sets no general limitation period for complaints, but the promoter's structural-defect liability covers defects brought to his notice within five years of handing over possession (s.14(3)); report defects in writing, with dates, inside that window. (3) Deemed conveyance: MOFA sets no outer limit for the society's application; the duty to convey continues until performed. (4) Civil suits (for example recovery of money or specific performance) follow the Limitation Act 1963, commonly three years from the relevant date. (5) Co-operative disputes under s.91 have their own limitation under the MCS Act. Because the rules differ, write down for each claim when it arose and when the builder refused, and take advice early.

Question 26

When the builder later sells an unsold flat, can the society charge a transfer premium or refuse to admit the buyer?

Accepted Answer

The builder's first sale of an unsold flat is an allotment by the promoter, not a transfer by a member of his interest in the society, so the transfer-premium provisions for resales are generally not applied to it. The buyer applies for membership with the registered agreement, share money and entrance fee, and cannot be refused except on grounds the Act and bye-laws allow. The transfer premium cap (₹25,000 in municipal-corporation areas, ₹10,000 in municipal councils, ₹5,000 elsewhere under the s.79A order of 9 Aug 2001) and the ₹500 transfer fee apply when a member transfers his shares and interest. When the builder sells a flat that he has held as promoter, the buyer's title comes from the promoter's agreement for sale under MOFA/RERA, and Rule 106C-4(b) requires the applicant to produce a certified copy of the stamped and registered agreement with the "Promoter Builder or Transferor". Many societies therefore admit such buyers on share money and entrance fee alone. Where the builder was admitted as a member for the unsold flat and later sells, some societies treat it as a transfer; the general body should settle the policy once and apply it consistently. A society cannot demand donations or other amounts under different names (see transfer entries). Admission decisions follow the ordinary membership rules and timelines.

Question 27

Must the builder contribute to the sinking fund, repairs fund and other funds for his unsold flats, and at what rate?

Accepted Answer

Yes. As a member for unsold flats he pays the same contributions as other members at the rates the general body fixes — including the June 2026 minimums of 0.25 % a year of construction cost for the sinking fund and 0.75 % for the repair and maintenance fund — and his share of any major-repair levy. Rule 106C-11 requires every society to maintain a sinking fund (at least 0.25 % a year of each flat's construction cost as certified by the architect) and a repair and maintenance fund (at least 0.75 % a year), and a major repair fund collected pro rata on area as the general body decides; election fund contributions are collected equally from all members. The builder, holding unsold flats as a member (MOFA s.10), is liable like any other member, and existing members cannot be asked to carry his share (builder_handover-002). Practical points: obtain the architect's certificate of construction cost per flat at handover (the base for these funds); bill the builder for each unsold flat from the date the society took charge; and charge interest on arrears within the 12 % cap (Rule 106C-12(4)). Whether a vacant unsold flat also attracts non-occupancy charges depends on the society's bye-laws and resolution: the Bombay High Court read them as covering a flat kept locked (Mont Blanc CHS, 2007, para 14); any levy is capped at 10 % of service charges (tenants_leave_licence-004).

Question 28

After handover the builder still keeps his site office or stores material in the society's common area. Can we make him leave?

Accepted Answer

Yes, unless his agreements validly reserved that space to him. Common areas pass to the society with the building, and after handover the builder has no more right to use them than any member. Give written notice with a date, and if he does not comply, pursue it through the Registrar, the Co-operative Court, RERA or a civil court as appropriate. Under RERA the common areas (including open spaces, parking areas, community facilities and service areas) go to the association of allottees (s.2(n), s.17), and under MOFA the promoter must convey the land and building with its common areas; the 2014 and draft bye-laws make the committee responsible for maintaining society property. A builder who continues to occupy a common room, stilt area or terrace for his own business after handover is using society property without permission. Steps: (1) check the agreements and conveyance for any reservation in his favour; (2) committee resolution and written notice to remove material and vacate within a stated time, with photographs; (3) if he is a member (for unsold flats), a dispute under s.91 touching the society's property; otherwise a RERA complaint or a civil suit for possession and damages; (4) do not break locks or remove his goods yourselves. Record any rent the committee agrees for a short extension only with general-body approval.

Question 29

The common electricity meter, water connection and lift contracts are still in the builder's name. How do we move them to the society?

Accepted Answer

Apply to each utility for a change of name, with the society's registration certificate, a committee resolution, the builder's no-objection (or proof of handover), the latest paid bill and any deposit documents. Transfer or refund of security deposits the builder paid is a matter to settle with him in the handover accounts. Typical requirements: (1) electricity — change-of-name application to the distribution company (MSEDCL, BEST, Tata Power, Adani, as applicable) with the society's registration certificate, resolution, identity of the authorised signatory, the last paid bill and the builder's no-objection or, if he will not give it, proof that the society is in possession (conveyance or deemed conveyance, handover documents); the security deposit is usually transferred with the connection, and the society should reimburse or account for it against the builder's deposits held from members; (2) water — the municipal water department's change-of-name procedure, after clearing arrears (builder_handover-303); (3) lifts — the licence to work a lift is valid for twenty years and is then renewed for up to five years at a time (Maharashtra Lifts Act 2017 s.8); the Act defines the "owner" as whoever owns, operates or maintains the lift, so inform the Electrical Inspector (Lifts) that the society is now the owner and take a fresh AMC; (4) fire, DG set and other contracts — novation or new contracts. Keep the old account numbers and all correspondence; auditors will look for the deposit balances.

Question 30

The builder's security agency and housekeeping contracts continue after handover. Is the society bound by them?

Accepted Answer

Generally not, unless the society (through its committee or general body) accepted or signed them. Contracts the builder signed in his own name bind him. The society can give notice and appoint its own vendors through its normal procedure, while making sure workers' statutory dues for the builder's period are settled by the builder or the agency. A contract binds its parties. If the builder engaged the agency in his own name before the society took over, the society is not a party, although by continuing to use and pay the agency after handover it may be treated as having accepted the arrangement on the same terms. Good practice at handover: list every running contract (security, housekeeping, lifts, pest control, gardening, STP operation); decide which to continue for a short period, and write to each vendor that from a date the society will contract directly or terminate; obtain from the builder or agency proof of payment of wages, PF, ESI and the Security Guards Board levy where applicable for the builder's period; and appoint new vendors under the society's procurement rules (tenders above the general body's limit — BL 156(c); dBL 147(g)). Private security agencies must hold a licence under the Private Security Agencies (Regulation) Act 2005; check it before signing. See staff_vendors for contract terms.

Question 31

What should the chief promoter's statement of accounts at the first general meeting show, and must members accept it?

Accepted Answer

It should account for every rupee the promoters collected and spent for the society up to about 14 days before the meeting — share money, entrance fees, deposits, bank balance, expenses with vouchers — and the general meeting must consider and approve it. Members can ask questions, require vouchers and refuse approval until discrepancies are explained. The first general meeting receives and approves the statement of accounts prepared by the chief promoter as on the date of the notice, fourteen days before the meeting (BL 87(a)(iii); dBL 88(a)(iii): not earlier than fourteen days before the meeting). The chief promoter must then hand over the statement, vouchers, bank passbooks, cheque books and counterfoils, challans, cash balance and all other records, with a handover report (BL 89; dBL 91). Checks for members: does the share money and entrance fee collected match the list filed with the registration application (Rule 106C-3(2)(a)); does the bank certificate match the balance; are expenses (registration fee, legal, stamp) supported by vouchers; which builder-collected deposits (for example 'society formation' or maintenance deposits) have been transferred to the society (builder_handover- 008). If the statement is incomplete, the meeting can approve it subject to specified corrections or defer it, and the provisional committee should have the first accounts audited. Missing money is recoverable from the person who held it; the Registrar and the Co-operative Court are the forums.

Question 32

How do the 2014 bye-laws, the June 2026 Rules and the draft 2026 bye-laws differ on the builder's handover to the society?

Accepted Answer

The 2014 bye-laws set out the first general meeting, the provisional committee and a detailed list of what the chief promoter hands over. The June 2026 Rules replace the registration forms and fees (Form Y-1, 30-day decision, two-month window) and require a registered agreement with the promoter builder for membership. The draft bye-laws restate the handover with a handover report and a term 'whichever is earlier'. 2014 bye-laws: first general meeting within three months of registration on 14 clear days' notice, convened by the Registrar if the chief promoter fails (BL 84-86); business including admission of members, accounts, provisional committee, borrowing limit and authority to secure conveyance (BL 87); records handed over by the chief promoter, listed item by item and ending with a documents handover report (BL 89); provisional committee's powers and one-year term or until elections (BL 90-91); handover to the elected committee (BL 92). June 2026 Rules (binding): Form Y-1 name reservation with the promoters' resolution and architect-certified CC/BCC, decision within 30 days (106C-2); registration within two months with prescribed fees (106C-3); membership requires a stamped, registered agreement with the promoter builder (106C-4(b)); Co-operative Housing Association for layouts (106C-2(2)). Draft 2026 bye-laws (not in force): same first meeting and handover sequence (dBL 85-94), with the Registrar convening through an authorised officer, records in physical or digital form, a mandatory handover report and the provisional committee's term one year or until election, whichever is earlier.

Question 33

A buyer's agreement with the builder was never registered. Can he still become a member of the society?

Accepted Answer

Since the June 2026 Rules, an applicant for membership must attach a certified copy of a stamped and registered agreement with the promoter builder (or transferor). So the buyer should first get the agreement adjudicated, stamped and registered where the law still allows, or obtain a fresh registered document from the builder. Until then the committee can keep the application pending with reasons. Rule 106C-4(b) conditions admission (other than associate or provisional membership) on the applicant submitting a certified copy of the duly stamped and registered agreement entered into with the promoter builder or transferor, or a registered gift deed or similar legal instrument. For older unregistered agreements: (1) the buyer applies to the Collector of Stamps for adjudication and pays deficit duty (and any penalty, subject to amnesty schemes — conveyance-306); (2) registration of an old document may be time-barred under the Registration Act, in which case a fresh registered deed (for example a deed of confirmation or declaration) executed by the builder is the usual cure; (3) if the builder is uncooperative, the buyer's remedy lies against him (RERA, consumer or civil court). The committee should record its decision and reasons and communicate them within the membership time limits so that the applicant can appeal. People already members before 22 Jun 2026 are not unseated by the new requirement, but it will matter at their next transfer.

Question 34

One wing of our project is complete and occupied while the builder is still building the other. Can our wing form its own society and take charge?

Accepted Answer

Usually yes. Where each building or phase is separately registered or completed, purchasers of a completed building can form their own society and take over its management, with the layout's common areas going later to an apex body. The builder cannot delay the completed wing's society or conveyance until the whole project ends. MOFA's formation duty is triggered by sales in the building (builder_handover-001), and RERA treats each phase registered separately as a standalone project (so its formation and conveyance timelines run separately). The Bombay High Court has refused to let the promoter postpone conveyance to completion of the entire layout (conveyance-003). Practical approach: form the society for the completed wing with its own members; take over its maintenance, records and deposits; obtain conveyance of the building and its proportionate land share (conveyance-004) — or, where the land cannot yet be divided, record in writing how the land and common amenities will pass to the future federation or Co-operative Housing Association (conveyance-311); and protect the wing's residents from construction nuisance and safety risks on the rest of the site, which remain the builder's responsibility. Agree interim arrangements for shared services (water tanks, STP, security) and their cost in writing.

Builder & handoverविकासक व हस्तांतरण