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Formation of Apartment Owners Association, Bangalore-Karnataka

Comments(347) 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 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 a 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 of Apartment Owners Association

An association in Bangalore can be registered under the Karnataka Act. There are mainly three Acts which you can register your association, as given below:

    1. The Karnataka Apartment Ownership Act 1972: This Act exclusively deals with residential apartments. The law makes each apartment a transferable and heritable property with separate katha and specific undivided interest in land. The disadvantage in forming an association under this Act is that it is often difficult to gather all the owners of the apartment one at time for the registration of the association. If the owners of all apartments give the power of attorney to the 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 owners’ 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 that it can be formed with a minimum of seven members who are not less than 18 years. The association is formed under this Act to maintain day to day affairs regarding maintenance. Both Residential and commercial building owners can become members 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 apartments, that include both residential and commercial buildings. 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 an apartment can be formed by the voluntary association of the owners of an apartment. The association may or may not be registered. By registering the association, members can enjoy legal benefits and the association gets its unique name registered as well. An apartment owners’ association can be formed under the Karnataka Apartment Ownership Act 1972; but it needs all the owners of the apartment to gather at one place at the time of registration. Considering that 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 associations are formed under the Karnataka Societies Registration Act 1960.

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

  1. Need seven or more members who must be above 18 years.
  2. Memorandum of association with name and the objects of association, details of members of the governing body with their 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 the Registrar. If the Registrar is satisfied that all the requirements of this Act are adhered to, he shall certify that the society is registered and issue a certificate of registration. The Association of apartment owners is now successfully formed.

Objects of Apartment Owners Association

In an apartment, there will be common maintenance charges and it has to be met proportionately by all flat owners. One of the objects of formation of an association is to collect these charges and work for the welfare of the e owners of the apartment. The association formed under the Karnataka Societies Registration Act, 1960 is to promote charity and organize a non-profit organization for the welfare of the owners in the apartment.

Duties and Powers of the Apartment Owners Association

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

General body consists of all the members of the association who are owners of the apartment complex. The General body elects members by and from the general body to form the Management committee. The Management committee consists of a President, Vice-President, Secretary, Treasurer and other members. The Management committee represents the association before all official and non-official bodies associated with the building and looks after members’ 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 the association and protect their rights and interests.
  3. Open and maintain bank accounts of the association
  4. Work for the welfare of residents in the association and co-operate with other associations for common and mutual benefits.
  5. Ensure that funds are used for the maintenance of the building and promote charitable feeling among members. Encourage religious, social, cultural and educational activities.
  6. Keep safe custody of documents relating to land and buildings, license issued etc.
  7. Conduct meetings, 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 that the income and expenses of the association is used for the welfare for members of the association.
  3. Enters into contracts approved or assigned by the committee.
  • Treasurer
  1. Maintain funds and documents relating to the association in safe custody.
  2. Operate income and expenses and bank accounts of the association.
  3. Maintain petty cash to meet expenses and maintenance of the apartment.
  • Secretary
  1. Organizing and conducting general body meeting of association members.
  2. Attending meetings representing the association
  3. Taking and maintaining minutes of the meeting.
  4. Collecting and analyzing information from members.
  • Members

Following are important rights and duties of members of the association:

1.Attend general body meetings

2.Right to vote

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

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.

 

 

347 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:

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  19. Shanthi says:

    We’re a gaggle of volunteers and starting a new scheme in our community.
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    You’ve done an impressive activity and our whole neighborhood shall be grateful to you.

  20. veena S says:

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

  21. 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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