Formation of Apartment Owners Association in Hyderabad

Hyderabad is the most populous city of the South Indian state of Telangana. The city is regarded as a blend of traditionality with modernity.The city is administered by a nagar nigam called Greater Hyderabad Municipal Corporation (GHMC). The apartment owners in India can voluntarily form an Apartment Owners Association for the maintenance of the apartment and its  amenities. The association may or may not be registered. The registered association can enjoy all the legal benefits.

Apartment Owners Association

Apartment Owners Association plays a vital role in maintaining the apartment and its amenities. Each apartment complex has its own Apartment Owners Association. An apartment is a residential unit or place with basic amenities such as lift, laundry, security, car parking, gym, playground, house keeping etc. In an apartment, there are common areas that are not owned by any one person, but serves a common, useful purpose for a group of owners or residents. Common maintenance charge has to be met proportionately by all flat owners. The main objective of formation of the Apartment Owners Association is to collect maintenance charge and work for the welfare of apartment owners. The association may or may not be registered. A registered association can enjoy all legal benefits.

Act for Registration of Apartment Owners Association

• Societies Registration Act 1860: An apartment owners association in any state may be registered under – the Societies Registration Act 1860. Societies Registration Act is a Central Act which was passed in 1860 and is still in force. However, it has been repealed in many States which have their own Acts.

• Andhra Pradesh and Telangana Societies Registration Act 2001: Andhra Pradesh and Telangana Societies Registration Act , 2001 extends to both the states of Andhra Pradesh and Telangana. This Act which was formerly calle Andhra Pradesh Societies Registration Act , 2001, has been subsequently renamed including Telangana, following the formation of the new State, to which Hyderabad belongs. Any seven or more persons forming a society with the objective of promotion of art, fine art, charity,crafts, religion, sports (excluding games of chance), literature, culture, science , political education,philosophy or diffusion of any knowledge or any public purpose may be registered under this Act. Any apartment owners association in Hyderabad or societies situated in Andhra Pradesh and Telangana can be registered under this Act.

Formation of Apartment Owners Association

An apartment owners association may or may not be registered. The registered association can sue or defend any legal action against the association on behalf of the association. The registered association can enjoy all the legal benefits. Any seven or more persons associated with the Apartment Owners Association can register a society under the Andhra Pradesh and Telangana Societies Registration Act 2001, by subscribing their names to the memorandum of association.

Every owner of the apartment complex is a member of the Association. To register an Apartment Owners Association, enclose the bye-laws (rules and regulations) of the association and a memorandum with the following details: desired name of the association, aims and objectives of the association, and who in the association will be authorized to correspond with the Registrar of Societies (typically the President of the Association). All applicants need to sign on the application, along with a witness’ signature.

If the memorandum and bye-laws are in accordance with the legal requirements, then the same can be registered. The memorandum and bye-laws have to be printed or type-written and signed by the members. Registration of Apartment Owners Association can be done either at the state level (i.e., in the office of the Registrar of Societies) or at the district level (in the office of the District Magistrate or the local office of the Registrar of Societies).The procedure varies from state to state. However, generally the application should be submitted together with bye-laws and the Memorandum of association, declaration by the members of the association and along with the prescribed registration fee.

Roles in the association

• General body and  Member of the Association: All apartment owners in an apartment complex are members of the association and form a general body. The general body can alter, amend or add bye-laws, with the approval and consent of at least 13 members voting in the general body. All members of the association are bound by the bye-laws.

• Management Committee: The General body elects members by and from the general body to form the Management committee.The Management committee is typically composed of a President, a Vice President, a Secretary, a Treasurer (together known as the Executive Committee) and 8 other members. The period of office of the elected members is typically 12 months. Management committee represents the association before all official and non-official bodies concerning the building and other members’ rights and interests.

• Associate Members: The Associate members are residents or persons, other than the owner, who is wholly residing, occupying or is otherwise in lawful possession of any apartment.The Associate member pays maintenance charges to use common facilities, but does not have the right to vote, unless authorized by the owner in writing.

Any Apartment Owners Association in Hyderabad or societies situated in Andhra Pradesh and Telangana can be registered under Andhra .Pradesh and Telangana Societies Registration Act 2001. A member of the association has the right to vote and attend all General Body meetings. All members of the association are bound by the bye-laws of the association. The work of the Management committee is reviewed by the General Body or member of Association at the annual general body meeting or any other meeting. Managing Committee can organize social and cultural events, recreational facilities for residents or join hands with any other association for common and mutual benefits. It is the duty of the Managing Committee to keep in its custody all original documents connected to the land and building as well as licenses issued by any authorities relating to the apartment complex.