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Formation of Apartment Owners Association, Bangalore-Karnataka

Comments(346) Sub Category:Apartment Bye-Laws,Legal,Owners Association Posted On: Mar 18, 2009

Formation, Objectives and Duties of Owners Association

Bangalore is one of the fast growing and metropolitan cities in India. It is also known as Silicon city or garden city. Bangalore attracts people from all over the country with its good climate, architecture and job opportunities. There are number of apartments in Bangalore and builders are building more and more apartments day by day.

Bangalore apartment owner’s association is voluntary association of apartment owners residing in Bangalore. The association may or may not be registered. The registered association can enjoy all the legal benefits.

Act for Registration Apartment Owners Association

An association in Bangalore can be registered under Karnataka Act. There are mainly three Acts which you can register your association. The following are Karnataka Act for registering an association.

    1. The Karnataka Apartment Ownership Act 1972: Act exclusively deals with residential apartment. Law makes each apartment a transferable and heritable property with separate katha and specific undivided interest in land. Disadvantage in forming an association under this Act is that it often difficult to gather all the owners of the apartment one at time for the registration of association. If the owners of apartment give the power of attorney to builder he can submit the entire property to this Act. Find the pdf of act here :Karnataka Apartment Owners Act 1972

 

  1. The Karnataka Societies Registration Act 1960: In Bangalore most of the associations are formed under this Act. The societies formed under this Act are for the promotion of charity, educational, science, art, literature or for the promotion of sports. The Act does not bind anybody who is not a member. The advantage of the Act is it can be formed with minimum 7 members who are not less than 18 years. The association formed under this Act to maintain day to day affairs of maintenance. Both Residential and commercial building owners can become member of the society.
  2. The Ownership Flats Act and The Companies Act: Under this Act a private company can be formed for the maintenance of apartment, both residential and commercial building. All the owners will be issued shares and rules for governing the allotment and transfer of share. This is not effective in Karnataka because the co-operative societies may not have companies as its members.

Formation of Apartment Owners Association

grpsAn association of apartment can be formed by volunteer association of owners of apartment. The association may or may not be registered. By registering the association members can enjoy legal benefits and association gets unique name registered. An apartment owner’s association can be formed under Karnataka Apartment ownership Act 1972 but it needs all the owners of apartment gather at one place at time of registration and it is difficult to gather all owners at one place at a time. The builder can register the association if all owners give power of attorney for forming an association. Most of associations are formed under Karnataka Societies Registration Act 1960.

The following are requirement for formation of an association under Karnataka Societies Registration Act 1960.

  1. Need 7 or more members and must be above 18 years.
  2. Memorandum of association with name and objects of association, details of members of governing body with name, address and occupation.
  3. Bye-laws (rules and regulation) of the association.
  4. Fee for registration

All the applicants need to sign the document in front of Registrar and if the Registrar is satisfied that all the requirements of this Act and the rules made he shall certify that the society is registered and issue a certificate of registration. The Association of apartment owner’s is successfully formed.

Object of Apartment Owners Association

In an apartment there will be common maintenance charge and it has to be meet proportionately by all flat owners. One of the objects of formation of association is to collect these charges and work for welfare of owner’s of apartment. The association formed under Karnataka societies registration Act 1960 is promotion of charity and organize a non-profit organization for welfare of owners in apartment.

Duties and Powers of Apartment Owners Association

All the owners of apartment complex are members of the association but people other than owners who reside or occupy an apartment will have to pay maintenance charges for enjoying common facilities but does not have right to vote unless authorized by owner of apartment in writing. The members other than owners are known as associate members and owners are known as members. All the members of association form general body.

General body consists of all the members of association who are owners of apartment complex. General body elects members by and from general body as Management committee. Management committee consist a President, Vice-President, Secretary, Treasurer and other members. Management committee represents association before all official and non-official bodies concerning building and other member’s rights and interests.

Each and every member has his own duties and rights in an association. Here are some duties of each member.

  • Management Committee
  1. Organize social, cultural and recreational facilities for the members or people in the apartment.
  2. Represent members of association and protect rights and interests.
  3. Open and maintain bank accounts of association
  4. Work for welfare of residents in association and co-operate with other association for common and mutual benefits.
  5. Ensure the monies are used for the maintenance of building and promote charitable feeling among members. Encourage religious, social, cultural and educational activities.
  6. Keeping safe custody of documents relating to land and buildings, license issued etc.
  7. Conduct meeting, discuss the problems and provide adequate solutions.
  • President
  1. He/She is the person who has can sue or defend any legal action against association.
  2. Ensure the income and expense of association is for welfare for members of association.
  3. Enters into contracts approved or assigned by the committee.
  • Treasurer
  1. Maintain funds and documents relating to association in safe custody.
  2. Operate income and expenses of association and empowered to operate bank accounts of association.
  3. Maintain petty cash to meet expenses and maintenance of apartment.
  • Secretary
  1. Organizing and conducting general body meeting of association members.
  2. Attending meeting representing association
  3. Taking and maintaining minutes for meeting.
  4. Collecting and analyzing information from members.
  • Members

Following are important rights and duties of members of association.

1.Attend general body meeting

2.Right to vote

3.Pay the dues decided by the general body and abide by the bye-laws.

PS: Sample of Byelaws for formation of apartment association

*Data gathered for information purposes, use of same is at readers discretion, author claims no liabilities for the same.

 

 

346 Responses to “Formation of Apartment Owners Association, Bangalore-Karnataka”

  1. Anjan Sinha says:

    How we registered our Flat owners association at guskara burdwan

  2. Anjan Sinha says:

    How we can registered our Flat owner’s association at Guskara, Burdwan, West Bengal

  3. A.V.B. Menon says:

    Sir, Aug 25

    The recent reports on problems of disposal of Waste/garbage in Bangalore are alarming. One of the most effective remedies to the problem lies in the much discussed aspect of ‘Segregation of Wet and Dry Waste at the very Source’ at the level of individual Households and Apartments, Commercial establishments like Shops, Hotels, Malls, Corporate and Govt. offices and Factories/Industrial establishments all of which generate waste. It is to be seen and carefully studied how far such segregation is presently being done at these sources. Unless this is done at the very first point of origin of waste, it is impractical to expect the Corporation authority – BBMP – to have this done effectively even by outsourcing or on contract, considering the scale of waste generated daily and the magnitude of the task involved.

    The major hurdle in making Households, which may account for the major share of the waste, is the cost involved in their having to put wet and dry garbage into separate bags daily as it involves additional expenditure on bags. Hence this scheme has to be enforced in a phased manner. To start with, all Commercial and other establishments could be mandated to do such segregation in a systematic manner if it is not already being done. In the second phase, all multi-storeyed/high-rise Residential/Apartment buildings and individual houses in identified areas ( who are in a position to afford the additional expenditure ) should be brought under the scheme, and these categories may also account for a sizeable share of the waste.

    Simultaneously, a fool-proof method should be put in place at the second and third stages of collection/carriage of the segregated waste. These stages will be where each building will gather the waste from various units in the building in segregated manner and then hand over to Trucks/Lorries ( which also need to have arrangement to collect and keep separately wet and dry waste, and carry the waste in segregated manner ).
    Does the Residents’ Assn Apex body or BBMP have any information on how many of Apartment buildings and other categories like Hotels, Restaurants, Malls, Corporate offices, etc have put in place the system of segregation of waste at the very source — say, each apartment, household, hotel, mall, etc. ? This needs concerted action and is to be pursued vigorously by all Stakeholders concerned in co-operation with BBMP as the people residing in/near areas / landfills where Waste is being dumped are facing serious, genuine problems.

    A.V.B. Menon, Langford Town, Bangalore ( Mobile : 99801 66422 )

  4. peterdsouza says:

    may i know where flat owners association can be registered

  5. Vilva Sabarikanth says:

    Hi,

    What is the limit for the cash expenses from the Apartment Association?

    Can we buy the items like Electrical Fittings, Plumbing Fittings for common area in cash?

    How about the payments to the vendors? Can this be in Cash mode, to save the service tax?

    Thanks,
    Vilva

    • Deepak says:

      Cash expenses should be restricted to below 20,000 to avoid any complexities. Do not encourage cash payment to avoid service tax. You will not get the benefit of reducing your income under income tax. Please call up on 9886111814 for further queries

  6. vswami says:

    > “who says” so, is left to anyone guessing, for lifetime !!

    Be that as it may, whosoever “says” so must obviously be one who has made no attempt , much less any homework, even to know that there is a special law in force. Further, never ever read and / or understood what that law clearly says.

    For instance, in Karnataka, it is an Act called, in short, KAOA.

    Now, to be specific:

    1. “..owners association in any state may be registered under – the Societies Registration Act.”

    C: Seems to make neither any sense, even remotely, nor appeals to so-called ‘common sense’ (- which every human is presumed to have been endowed with, by nature, in the normal course).
    Not to mince words or waste time, or saving an attempt at dilating, it is preferred to invite attention of everyone concerned to the latest published article, etc. @ following links>
    Citizen Matters, Bangalore: The apartment law you must know

    Citizen Matters, Bangalore: Justice Hegde releases ‘Living in …

    Ultimately, none, except, perhaps the CREATOR HIMSELF, can come to help, in case anyone truthfully concerned or bothered were still left with a ‘mental block’ (blank)!

    Nonetheless, for trying and seeking clarity, suggest asking self: Will anyone consider it prudent or sane, and venture, to buy “shares” in an entity, which, though required by law, is knowingly not ‘registered’ as a ‘company’ under the Companies Act; instead, were it registered say, under the Partnership Act (despite, a non-starter)?

    2. “Apartment owners association may or may not be registered but the registered association can enjoy all the legal benefits. [...]”

    C: What is said is clumsily; might / is bound to confuse.

    Giving the benefit of doubt, what presumably was intended to be conveyed, rightly so, are these: The law mandates “owners’ association” to be “registered’ in accordance with the law. If not so registered, the purchasers of apartments cannot become the “owners” as per the law.

    If so, it cannot be lawfully and rightly “transferred” or even “inherited”; also, not be mortgaged and bank loan secured.

    Note: In the above referred article, also this aspect has been reasonably explained.

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  13. Mr .MURTHY says:

    Is it legal to collect extra one time membership fee of Rs/500,by a newly formed association inspite of paying Rs/10,000,as association fee.kindly reply

  14. Adam Jackso says:

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  15. Ram says:

    I am staying in apartment where only 7 houses are there.. we would like to create an association and register?

  16. Ram says:

    I am staying in apartment where only 7 houses are there.. we would like to create an association and register? is it possible? how do I do it?

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  18. Antonio Somogyi says:

    Wow! This could be one of the most helpful blogs we’ve ever come across on the subject. Basically magnificent post! I’m also an expert in this topic therefore I can understand your effort.

  19. veena S says:

    As per our lawyer we need to pay bribe to register our association. Is it necessary to pay bribe?

  20. Gopal Shastry says:

    Is is mandatory that a gated community in South Bangalore, started occupation in 2009, has to be regiaterd under KAOA or can it be registered under Socieities Act? What r the benefits and disadvantages of these TWO with relation to the Apartment Owners over the years. Appreciate a response and clarifications.

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