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Builder not registering cooperative society and other issues with the builder. What can we do?

29 December 2014 Dhaval Kodrani, Pune

I am looking for the valuable suggestions from you experts on the below issues.

We have a society which possession was started from November 2012 but builder has not yet formed society even when 90% flats are sold and occupied. Every time when we are checking with him, he is giving false commitment and saying it will be formed in next 2 months.

In initial phase of the project he has shown golf course box by putting net and garden in around the golf course net. Same was shown in his all exhibitions, advertisement boards and pamphlets used for sale and that plot is inside the boundary wall of the society. Now from last few months he is saying that plot was not part of this project from beginning and also putting boundary wall from two side inside the earlier boundary wall to cover that plot and saying our internal road from main gate to this plot is submitted as public road.

Apart from above issue he is using common spaces for parking allotment to existing and new buyers and also putting shade to it. Due to this we are losing all open spaces which was promised during sale to us.

Please suggest what action we can take on both the issues, we are trying to form society in non-cooperation mode as builder is not helping to us but again that will take at least 3-4 months period but we want to take some action right now on current issue as group of people/all residents.

Thank you all in advance

Advice from society consultant

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Comments (13)

  1. Societyhive support
    29 December 2014

    Dear Dhaval,

    We’d recommend you to register your society ASAP.

    You can register cooperative society without the builder as well. You need 60% of total members to register a society. You can get refund from the builder for the amount if you have paid for the society registration. You can also approach the cooperative office in your area to seek help. They will help you with forms and steps for society registration.

    For your other points of builder not delivering as promised: you can approach the consumer court for redressal. Be sure to collect good documentary evidence for it. Often times we notice that problem happens when consumers sign the agreement document without reading it properly or taking legal advise before signing. It becomes difficult to prove in court of law when you have already signed documents where you should not have.

    We will be able to comment further only after reviewing all documents and understanding your situation in detail.

    In general, for dealing with the builder is such a situation, please understand that there are two angles:
    1. Legal angle: while your case may be strong, you have understand the practicality and take the next steps appropriately.
    2. Operations angle: as you mentioned, many families are already moved in. Are you prepared to take care of the operations if the builder stops running the infrastructure?

    We’d advise you to get help from professionals looking at your post.

    We can confirm:
    1. You can register a cooperative society with or without the builder
    2. (if required) You can take over the society operations from the builder even when he has not met his promises. Taking over does not relieve him from his liabilities. But you need to be careful about each step.

    Some related info is at following pages:

  2. Victor
    12 January 2015

    Need urgent help forming a society on mumbai bandra west builder not formed a soceity since 1986 due to only 3 people who have purchased flat and balance with builder

  3. Societyhive support
    12 January 2015

    Dear Victor,

    You can contact the cooperative registrar office in your area and get your society registered. Society can be registered without the builder as well.

    However, in your case you may not have that choice if number of flats is too low. Condominium (apartment owners association) can be registered though.

    Below two pages will help you further:

    Can you register society without builder?:

    How to register a cooperative society in Maharashtra?:

  4. UdayPrabhu
    14 April 2015

    Dear Friends;

    Non-registrationof the CHS under Section 10 of The Maharashtra Ownership Flat Act of 1963 is a CriminalOffence;

    If you wish you can file a Private -Criminal Complaint for Braech of Trust & Contract, Cheating, Criminal Mis-Appropriationof funds;

    Simultanesously; you can File an Application for Reservation of your favourite CHS name/ Then file proposal for Registration after getting name approved & bank account opened and all share money + entrance fees of pariticpating memebrs deposited.

    Believe with the above you will now be in a better position to forma CHS which is your fundamental right & enjoy all the Economical & Financial benefits accruing from you property which the Builder / Developers as Promoters are enjoying unjustly.

    With best Wishes;


    05 May 2017

    If society is not registerd. In that case common area property tax is pay by whom...?

  6. Udhey
    06 May 2017

    Dear AARTI -ji;

    Honestly as per Section 6 R/w 3 & 5 = 16 of The MOFA'1963 applicable in your case; Promoter is fully responsible for paying all outgoings including taxes in respect of the flats until he transfers the property to the flat owner/society/company, etc.

    Please issue causation notice for the same and arrange to file a police Complaint too; That should be rewarding for you then;

    Best Regards;


  7. Anita
    25 August 2017

    Ours is a NA Plot. The Builder was paid a life time corpus initially for upkeep and maintenance of common area and facilities.
    RERA having come into effect, the builder has approached us to form Society, which is good but he wants us to pay for Society formation/ registration/ share money/legal charges.
    Can he ask for money because, he already has taken corpus, should he not use that fund rather than ask for more money? Thank you

  8. Udhe
    11 September 2017

    Dear Anita-ji;

    Believe he cannot claim the same now have received full corpus for maintenance then and it being an ongoing project;

    Suggest you all come tog ether and for a Cooperative society and then take him under class action suit / Complaint before the Apex Consumer Commission if your amount/ value of land exceeds Rs One crore collectively;

    I am sure that will be rewarding; Prior to that you may have to get your agreements checked properly including the Schema used for marketing / promotions therein;

    Best Regards;


  9. sachin shinde
    12 November 2017

    my self sachin my property is in boisar location from last 7 years but society is still not handover . our sector is about 450 flats about 75% flats r in rental in which and rental flat owner r in outside area residential owner r take fallow up from builder and consumer court but no result s r found . builder works r in pending still and OC of our sector r not have to builder.
    in this case we what action have take ?
    if we do non cooperation society then what effects are observed.
    if any society forming frm have then suggest me.

  10. UdayPrabhu
    13 November 2017

    Dear Shri Sachin-ji;

    In response to your below mentioned query; I am answering as under;

    Please arrange to get a Legal- Causation Notice issued to the Builder / Developer for all the deficiencies as per MOFA & Indian Penal Codes, with copies to all the authorities involved including Local Police, too;

    Simultaneously; please move the consumer courts with your complaints in class action suit for all the deficiencies and seeking compensatory claims for completing all of his deficiencies’ / promises including impounding of any agreements for sale concluded after sale to your members and reinstatement of land if subdivided thereon, correspondingly.

    Best of Luck in your endeavours;


  11. chetan
    23 March 2018

    My self residing at kharghar,ours society is not yet registered,people are taying by collecting common amount for all 1bhk & 1rk,it hapens i owned flat of 1rk ,society is asking common amount which is out of my pocket,not stayed there , or not avail the services of electricity or water for hardly 3 months max.what should i do?
    I asked people who are residing ,why society is not registered,they are saying documents are happened for 3 years,still society has not formed.

  12. UdayPrabhu
    23 March 2018


    I can understand your predicaments;

    Please quickly arrange to

    1) Get proposed society formed & established ;

    2) Private Complaint before Local Police UNDER IPC of Land Grabbing, Cheating & Misappropriation of your above Assets;

    3) If No FIR is lodged within 15 days move before The Metropolitan Magistrate for above & violation of Sec 3,5,6,7,7A,10 of MOFA;

    4) File a Civil Suit for Specific Performance of Contract with above stand & interim orders to reinstate / maintain status quo;

    5) file a consumer complaint at apex commission as class action suit for violation of contractual & Statutory obligations & seek exemplary compensation for economical & financial losses inflicted.

    Please keep all of us informed if you all so wish;

    Best of Luck in your beautiful Endeavours


  13. Moushumi Mitra
    09 April 2018

    First and foremost all the promises are they written or verbal . Next get a good lawyer to check your agreement . Third please do a rti building department to find out about your specific queries. Thirdly approach MESWA it's a govt body at andheri West laram centre

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