UKD 21 November 2019

Builder forcing to form the association

Can builder force to form the association when only 15 pct of possession completed and 50pct of amenities not yet completed and asking us to bear the cost of maintenance of the building ? What should be flat owners next step in this situation ? Background 180 flat apartment, construction started in 2011. JDA between builder and land owners got cancelled in 2014 when construction was 50 pct complete. Land owners changed the name of project and resumed construction and charged extra money which all buyers agreed to pay. Basic construction completed last year. Around 20 flat are possessed out of 180 , total 60 flats are registered but vacant. Around 100 flats are still unsold. Builder ( venture of 3 different people) want us to form the association and start bearing the cost of maintenance which is more than 1lac per month for apartment. With only 20 flats occupied, it is difficult for us to bear the burden. What law says about it and what should be our next step ?

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SHIRISH PAWAR, 7738990900 (Advocate) 21 November 2019

Dear Mr. ukd,

To hand over the project to society is builder's obligation and he has to do it as soon as possible. Once the society is formed the unsold maintainance has to be born by builder and for other it will be outstanding for them.

However without completion of project how OC is issued?

For incomplete contrcution you have to initiate legal action against builder.

Regards,