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Should a multi-storied apartment complex association register itself under Societies Act?
Written By murali772 - 30 July, 2009
Bangalore governance housing Group Housing
A reading of the Karnataka Apartment Ownership Act 1972 (KAOA, otherwise called Act no 17 of 1973 - click here) very clearly brings out the fact that that is what is relevant to multi-storied apartment complexes. And, that is what builders are generally following, as required of them as per the Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1972 (otherwise called Act no 16 OF 1973 - click here).
However, there is no authority specified under KAOA to 'register' an association, though the 'Registrar of Co-operative Societies' has been named as the "Competent Authority", but with powers and responsibilities not clearly defined.
Because of this lacuna in the KAOA, there have been suggestions from lawyers to register multi-storeyed apartment complexes under the Karnataka Societies Registration Act, 1960 (KSRA, otherwise called Act 17 of 1960 - click here), where the powers of the Registrar have been fairly well-laid out, including of the appointment of an 'Administrator' if required.
A closer reading of the KSRA however clearly shows that it pertains generally to 'Literary, Scientific, Charitable and other organisations'. The relevant Cl 3 is fairly specific in these respects. Nowhere is there even a mention of 'apartment complexes'. Consequently, if still pursuing registration under this Act, the association will require to change its name to include words like 'welfare', etc, and also amend the 'aims & objects' in its by-laws to include pursuit of some of the activities listed under the clause.
Further, registering under this Act will also enjoin a lot of additional responsibilities on the Managing Committee, like filing of annual returns along-with certified copies of Income & Expenditure statement, Balance Sheet, as also payment of filing fees amounting to 0.2% of the 'transaction value' in the Income & Expenditure statement. Even as it is, it is generally difficult to find competent people to take up office (generally honorary positions) in such associations, and adding more burdens, is only helping deter them further. The new requirement of the Govt of Karnataka that all correspondence and documentation will in future have to be in Kannada, is not making things any easier.
But, the proponents of the suggestion go on to argue that it helps bring about greater discipline, therewith accountability, and therefore it is worth the effort. Whatever, as a very senior lawyer in the city (who also was the Charter President of the association in one of the earlist multi-storied housing complexes, where he resides even today) opined, "no administration can be more transparent than that by a democratically elected 'Managing Committee' functioning according to the guidelines prescribed by a vigilant General Body of members".
COMMENTS
sanjayv - 11 September, 2011 - 11:59
Welcome to Praja Mr. Swami. Could you calrify on what are were trying to say above? I could not figure it out from links on common floor or adda. Could you shed some light on what you mean in more detail... what is it that is not well founded or logical? Could you point those out?
Also, it would be good to know your background Have you lived in an apartment? Have you been in the managing board of one? Are you a lawyer? Thanks.
Dear Mr. Swami,
I am a working professional who lives in an apartment and have served as an office bearer and have the experience of actively participating in getting our apartment association registered under KAOA.
The reason for asking the questions that I did is that someone who has experience living in ana partment will realize that (a) registering under the societies act does not give the governing body any power to run day to day affairs, only obligations.
Registering under KAOA is very difficult unless the builder actively cooperates and takes the necessary POAs etc. right at the beginning.
There is also the question of having proper, detailed bylaws which will avoid the trouble of each association having to draft these from the scratch. Maharashtra for example has a fantastically detailed bylaws which cover most situations and allow the governing bodies with clear procedures to handle almost any issue that crops up. This allows the volunteers to stick to the process of governing and not having to spend time dealing with some of the non sensical issues that crop up from the scratch.
I have reviewed your blog postings etc. and do not believe that anything posted there negates the arguments made herein regarding the lacunae in the acts and their implementation.
If you feel otherwise, kindly provide specific examples andf we can discuss further.
vswami - 12 September, 2011 - 02:03
@sanjayv
I appreciate your prompt response; also noted with pleasure that the points you briefly mention are not different, at least basically, with what I have been solely and lonely crusading and relentlessly fighting for or against, but in my own way , for over a decade now.
Time and health permitting, I am prepared to place myself at the disposal of like-minded people, for carrying on any further dialogue, through communication via this site, or any other feasible,or more convenient mode- say, a tele-conferencing, which may prove to be a better mode.
As regards 'lacunae', the enactments have been faulted to contain, as I myself have noted and recorded in more than one context in my published articles (citation given below), there ARE certain 'lacunae' but in my perception, those have NOTHING TO DO with, or could be rightly regarded to have come in the way of the authorities in regard to the strict implementation and compliance with the requrement of registration i.e, with the Registrar of Co-operative Societies., and with HIM only; with none else. Any registration not done so, entails other consequences- more serious than what can one, as is commonly believed that to entail.
.
I. 4 of my articles published in the Madras Law Journal and Karnataka Law Journal, the citations whereof is as below: –
(2003) 3 MLJ Pg.5 (journal)
(2003)(4) KAR. L.J.Pg.1
(2005)(3) KAR.L.J. pg.17
(2005)(5) KAR.L.J. pg.1
(For ready reference, the Text of 2 of the articles are being forwarded)
II. Posts on websites:
http://www.commonfloor.com/articles/bangalore-apartment-owners-association-123.html/comment-
http://www.mysooru.com/article1.html
RE, the last mentioned art., of which a mentioin has been made in ONE OF the other posts on Praja's site ITSELF, i recall with regret that, though I TOOK THE EXTRA TROUBLE OF GOING OUT OF THE WAY, AND ATTEMPTED TO HAVE HIS ATTENTION FOCUSED ON A VERY CRUCIAL AND VITAL ASPECT - WHICH GOES TO THE VERY ROOT OF THE WHOLE MATTER, BUT MET WITH NO SUCCESS HE DIDN''T EVEN HAVE THE MINIMUM COURTESY OF ACKNOWLEDGING. NOTHING LOST TO ME ANYWAY.!
MANY MORE MAY FOLLOW>....
vswami - 12 September, 2011 - 03:10
Just a quick Rider:
Mr sanjayv, If you don't mind, please look up the lastly updated Blog-
http://vswaminathan-vswaminathan-swamilook.blogspot.com/2011/09/societies-registration-act-v-co.html
wherein I have tried and put in my additional comment on -'lacunae' , as complained of.
RE. the mentioned softcopy of the 2 Art., i shall try to locate and fwd. it to you ASAP, through Admin. I would suggest that, for the sake of completeness and good order, you can send it over also to the others partaking in the subject discussion.
FLATS/APARTMENTS - THE ONGOING DISCUSSION
vswami - 11 September, 2011 - 06:11
The views, expressing doubts, appehensions, etc., in paryticular on 'anamolies' stated to have been observed in the governing enactments, are, in my perception, not well founded or logical. It is my conviction for long, based on sound reasoning, rather well reasoned viewpoints on these aspects, the truly concerned people, it is earnestly recommended , should insightfully go through and take a serious note of, a whole lot of material in public domain; e.g. in the popular websites - 'Common Floor' and 'Adda' ; besides, of course, a few published articles, wherein the legal implications of the 2 enactments - governing the 2 distinct types - 'flat' and 'apartment' have been gone into and analysed in great details, for the benefit of one and all- to be precise, those who have vested interests but endowed with an outlook focused on - 'public interest',- in this context, the 'common interests' of the entire community of 'buyers' / 'consumers', not those of any limited group.
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