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Rajesh D (Manager)     30 March 2014

Apartment owner association

I wish to know if Apartment Owner's Association is a legal body and has any legal authority to collect maintenance charges, security deposits or to impose penalties. Also does it have any authority to collect money for building repair and restoration work. Is it more of an administrator without any legal authority. Also can it initiate legal action against a Apartment owner if he fails to pay dues.

Thanks in advance.



Learning

 3 Replies

Prashant Kanha (Advocate Uttar Pradesh )     30 March 2014

NOTE: the answer is general. For specific reply quote your city name. It is the joint responsibility of the promoter and the apartment owners to form an Association. The Association of Apartment Owners is created for administration of the affairs in relation to the apartments and the property appurtenant thereto and for the management of common areas and facilities. YES, it is a legally recognized body under law ( The Apartment act of concerned state). It is registered body under concerned apartment act itself. YES, it has right to collect collect maintenance charges, security deposits, BUT it has NO authority to impose penalty until and unless it does not have such a clause in its BYE-LAWS, provided that it has been approved by competent Authority as well. YES, it also has a right to collect dues. The Association of Apartment Owners may approach the Competent Authority with a request for recovery of amount lying unpaid from an owner for a period of more than 12 months and which is due towards the common expenses payable in respect of an apartment, and the Competent Authority, on being satisfied it can take appropriate action for its recovery as arrears of land revenue.

Prashant Kanha (Advocate Uttar Pradesh )     30 March 2014

NOTE: the answer is general. For specific reply quote your city name. It is the joint responsibility of the promoter and the apartment owners to form an Association. The Association of Apartment Owners is created for administration of the affairs in relation to the apartments and the property appurtenant thereto and for the management of common areas and facilities. YES, it is a legally recognized body under law ( The Apartment act of concerned state). It is registered body under concerned apartment act itself. YES, it has right to collect collect maintenance charges, security deposits, BUT it has NO authority to impose penalty until and unless it does not have such a clause in its BYE-LAWS, provided that it has been approved by competent Authority as well. YES, it also has a right to collect dues. The Association of Apartment Owners may approach the Competent Authority with a request for recovery of amount lying unpaid from an owner for a period of more than 12 months and which is due towards the common expenses payable in respect of an apartment, and the Competent Authority, on being satisfied it can take appropriate action for its recovery as arrears of land revenue.

Rajesh D (Manager)     30 March 2014

Hey ... Many Thanks Adv. Prashant.  I reside in Navi Mumbai, Maharashtra. My Apt. owners Asso. decided to erect weather sheets on terrace to prevent leakage due to monsoons by passing a resolution in the AGM (which was adjourned due to insufficient quorum and held 30 min. later at same place, day and date). I could not remain present. The weather sheets would benefit only third floor residents whereas in the AGM it was decided to collect Rs. 10K per member from all members. Many members are against this. My point of contention is that this is technically not a right solution. No architect / engineer was consulted. Can I contest them, challenge the AGM decision or decide not to pay?


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