Promoter responsibility for formation of allottees

With the introduction of the RERA Act, 2016, the promoter has been assigned with many duties and obligations which needs to be fulfilled by him in respect of the project concerned to avoid any contraventions.
As per Section 11 (4) (e) of the RERA Act, 2016, the promoter is responsible to form the association or society or co-operative society under the laws applicable to carry out the project in a smooth manner.
The proviso to Section 11 (4) (e) of the RERA Act, 2016 states, that in the absence of local laws, the association of allottees shall be formed within a period of 3 months of the majority of allottees having booked their apartment in the project.

General state rules regarding this formation
1. Authorities like MAHARERA, KRERA, Goa RERA, GUJRERA, HRERA, APRERA has the same general rules regarding this formation.

2. As per Rule 2 (c) of the MAHARERA Rules, 2017, it has been named as an Apex Body or Federation, an independent body formed by and consisting of all the Co-operative Societies registered under the Maharashtra Co-operative Societies Act, 1960, companies registered under the Companies Act, 2013, constituted of the allottee in various buildings within a layout, where each such co-operative society or company or any other legal entity, as the case may be, which cooperate in the maintenance and administration of common areas and amenities provided in the layout while independently retaining control of its own internal affairs and administration in respect of each of the buildings for which they are formed.

3. As per Rules 2 (b) of the KRERA/ HRERA/ APRERA/ GUJRERA Rules, 2017, an association of allottees, means collective of the allottees of a registered real estate project, acting as a group to serve the cause of its members and shall include the authorized representatives of the allottee.

4. As per Rule 2 (d) of the TNRERA Rules, 2017, “Association” means the association of allottees formed as per the provisions in the Tamil Nadu Apartment Ownership Act, 1994.

5. Rule 10 of the TNRERA Rules, 2017 mandates that the association of allottees shall be formed, registered and governed by the provisions laid down in the Tamil Nadu Apartment Ownership Act, 1994.

6. As per Rule 9 (1) (i) of the MAHARERA Rules, 2017, where a co-operative society or association of allottees needs to be constituted in respect of single building not being part of a layout or in case of layout of more than 1 building or wing of 1 building in the layout, the promoter shall submit the application on behalf of the concerned legal entity to the Registrar within 3 months from the date on which 51% of the total number of allottees in such a building or wing, have booked their apartment.

7. As per Rule 9 (1) (ii) of the MAHARERA Rules, 2017, where a promoter is required to form an apex body consisting of all such entities in the layout formed as per Rule 9 (1) (i) of the MAHARERA Rules, 2017, he shall submit the application to the Registrar for the registration of an Apex body in the formation of federation or holding entity within the period of 3 months from the date of receipt of the occupancy certificate of the last building which was to be constructed as per the layout.

8. As per Rule 9(1) (iii) of the MAHARERA Rules, 2017, any violation of the above 2 rules can authorize the authority to pass an order to apply for the formation of such legal entity or may authorize the allottees to apply for the same.

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Tags: MAHARERA,  TNRERA Rules, obligations,  GUJRERA, KRERA.