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Builder did not form society at possession and have now done deed of apartment


21 August 2014 Prashant Pharate, Pune

Builder did not form society or apartment after final completion letter on 30.05.2012 because he wants to sell terrace which is illegal. He has already sold out 1 terrace.
On 03.02.2014, 17 members out of 21 decided to form society against builder and send first notice which builder rejected.

Then we approached Co-op department Pune and deputy registrar sent him 2nd notice on 07.03.2014.

After this notice Builder started deed of declaration on 09.03.2014

On 13.03.2014 builder done deed of apartment with the help of 4 members out of 21 members.

In between deputy registrar asked builder and one promoter from our society to present for hearings. After 3-4 hearings and almost 5-6 months later District Deputy Registrar's final decision on 30.6.2014

Is after registration of apartment from builder, we can't form society. Two registrations against same property not allowed. Though Deputy Registrar was aware of the decision why he took 3-4 hearings. He could have told us straight forward that it's impossible to form society now. But he did not. What he achieved by wasting our time, money. I can't mention it here what he has achieved.

Isn't it injustice to us? After 4 years from possession and after 2 years from completion

Letter when members started this process. There is no value to majority of members. There is no value for date we started first. If Builder do deed of apartment of 1 member, society can't be form. Isn't it unfair? What is this non sense?

There is no value for 17 members (Majority) but 1 builder and 1 member can form deed of apartment and after that society can't be form. What is this?

At one side government of Maharashtra supporting and calling people to come forward for conveyance deed and at other side you see the rules against common man and in favor of builders. We daily read article from newspaper on this. Minimum 5 members require, within 4 months from completion Apartment or society must be form where these rules here are in this case.

We should all come forward to stop this. We need your help.

This needs to change. Common man can't bear this all now. Enough is enough.
Present laws of co-operative housing department are in favor of builders. Please help us. There are many societies in Maharashtra facing such issues.

Please suggest. We will be really thankful to you.

Why these laws/rules is in favor of builders? Dep. registrar should not give stay to form cooperative housing society in this matter.

Advice from society consultant


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Comments (35)


  1. Societyhive support
    22 August 2014

    Dear Prashant,

    Sorry to know that but if deed of apartment is executed then you are at a loss. Your lawyer should have guided you.

    Answer
  2. Prashant Pharate
    22 August 2014

    Hi,

    Thanks for your reply.

    We consulted 3-4 lawyers and all said it's corruption and you have to pay for that.
    We want to fight against this. Please help me.

    My question is: Why registration office not verify that builder is doing registration of apartment after how many months? How many members are in favor of apartment?

    Because in our case we are in majority wants to form society. We started process first. We sent him notice first and now order is against us. What is this.
    If this is the case and If builder want there won't be society formation. Builder can always prefer deed of apartment with single flat owner registration also.

    Regards,
    Prashant

  3. Societyhive support
    22 August 2014

    I do understand your view point.
    Sorry but only respite is to appeal in the matter. All the best!

  4. BE
    25 August 2015

    Registar wasted your time in sending notices. He could have simply logged your application in the system with application no and then sent notice if any. In that case builder would have stuck and told that CHS application is logged so no new AOA can be applied.

  5. sd
    24 September 2015

    Hi Prashant,

    We are almost in the same situation. Pls contact us or send your no to us.

    Thanks,

    Sd

    7738052822
    bhoomienclavechs@gmail.com
    Pune

  6. Ramesh
    24 September 2015

    Since buyers are in majority and builder is in minority , you can change chief promoter

  7. Prashant
    19 January 2016

    Hi Societyhive,

    You were right. We fought case in Registrar office Pune after dep. registrar gave first order against us and Now Joint registrar also gave same order that once Deed of apartment is done then on same property soc can not be registrar. There is no value for majority of people want to form society and their opinion and even though we started this process first. So even if one deed of apartment is done builder can form apartment. Very bad.

    But if Registrar knows things before in advance he could have tell us and could save our time and money. These f..king laws are in favor of builder and people in the system knows that they will get money if case will go on Tarik pe tarik. We should some how stop this f..king system and corruption.

    Very disappointed. :(

  8. BE
    22 January 2016

    Our case have take da turn now we logged application on 13 Oct.....after this builder got 04 no of apt deed signed from owners out of 56....we are only getting dates only now and our 5th gearing is on 27 jan 16....

    I dont know when we looged our application and got the case no also.....how builder get the apt deed signed in prop erty registar office....Now showing those 04 apt deeds builder will get AOA formed from the same DDR who looge dour appliication and sent 5 hearing notices....

  9. BE
    22 January 2016

    Prashant/Society hive,

    Pls tell me one thing did u get any case no at DDR office when u submitted application... We have a case no.... I dont know if there is any value of the same....
    Did he ever received your application ? Or just sent blank notices to builder , I mean without case no...
    Because getting a case no is a government record of receipt of society formation request.....

    Our case - Step by Step

    1. We submit docs at DDR office.
    2. DDR sends some intimation to Builder to meet him and clarify his stand. Builder delays, avoids.
    3. We get a case no recorded on 13 Oct 15 as our society formation request with docs.
    4. DDR sends 04 notices to builder with our case no on it. Builder avoids and in the mean time gets 04 owners apartment deeds at Property registrars office.
    5. Our 5th hearing is on 27 jan 2016.
    6. Will DDR consider our case and form society with a majority 50 people or on the basis of 04 Apartment deed he will form AOA ??? Remember we have a case no recorded....

    Thanks In advance.....

  10. Prashant
    29 January 2016

    @BE of course yes. Case no is 52/2014
    Your case is same like us. Now your case is at end stage and now builder will show his money power and you know how our system and people are.

    I am very sad to say that now registrar will give you same order like us. That on the same property deed of declaration is done by builder and also 4 deed of apartment and those are legal document and so on the same property society which is another legal document can not done.

    Builder can show even single deed of apartment and that is legal and we can not do anything. This is fu.king law. We should all come together and fight against this in front of Joint Registrar office and with help of Media if they can support us.

  11. RM
    25 February 2016

    Our case is somewhat similar (not sure about the deed part), the builder has not formed society for the past 6 years and now when we initiated society formation, dy registrar later sent us a letter saying builder has taken objection and hence hearings would be conducted, after 3 months and several RTIs and letters later got to know that no objection was filed by the builder, although letter from dy registrar claimed builder has taken objection, instead an objection from one of the flat owner who is with the builder was filed, first the builder did not bother to provide the documents submitted and when we asked the Dy Registrar he said he will send a letter to the builder. The builder terminated the agreement after 6 years saying most of the flat owners are not paying maintenance although reason for with holding maintenance was failure to maintain building, builder hasn't paid property tax, water tax for past 6 years, also chained the stilt parking and has not provided many services which were mentioned in the agreement, also as per court rulings builder cannot terminate the agreement unilaterally.

    The Dy Registrar keeps on delaying, already been 5-6 months. Last hearing he said that he will close the case and pass on to the Registrar but builder's men deliberately did not come so he asked us to come for one more hearing and will surely close the case and when we finally went he said that one flat owner has taken objection so will need to conduct more hearings with that flat owner too and has postponed it. Question is why did he have to wait for that flat owner for 5-6 months when he had taken objection many months back? We were without water for nearly 2 years due to the builder not paying taxes and now are being harassed by the builder and the Dy Registrar who clearly appears to be favouring the builder. Builder's men were representing the builder for 4 months and he did not even bother to ask them for the authority letter. When we asked they sent a back dated authority letter and the dy registrar office readily accepted it. Luckily we have the RTI details.

    We have a majority with only 1 flat owner with the builder, 2 abstaining as builder has threatened them, rest 14 together.

  12. Prashant
    26 February 2016

    1 flat owner is enough for builder to win the case. We have very bakwas law. If builder register deed of apartment of that flat owner then you are at loss. Dy registrar/Registrar delays case deliberately until they get good enough money from builder. We fought case, given our time and lost case and everybody knows this law is in favor of builder nobody coming front to fight against it.
    So do not waste your time and money. Nothing is going to happen in your favor. If you can do then stop the person who is helping builder.
    And last but not least come forward to fight against this stupid law and corrupted Registrar.

  13. RM
    29 February 2016

    I doubt about the deed part as builder is trying his all to delay and also trying to negotiate a settlement or break our unity but has failed to do so. He sent several letters stating that our agreement has been terminated and we all should evacuate but we showed various court judgements on how he cannot unilaterally terminate the same.

    The laws in some cases (like yours) clearly favour the builder. Ours is a water tight case, at this time, and the worst at this moment can be done is further delay, we are soon going to approach the consumer court regarding all this and if needed will drag the dy registrar for not following basic procedures and delaying our case especially when forming the society is a fundamental right and we have complied with all directions.

    There were times when the dy registrar was away for duty work etc and the builder's men knew when he would be away unlike us who used to drive all the way down to the Dy Registrar office and then used to find out that hearing is postponed.

  14. Prashant
    01 March 2016

    All the Best for your case. I agree with your point that Dy. Registrar not doing their job. We also faced such issues like Registrar did not come for hearing and builder man was already aware. I know Dy Registrar intentionally delaying case though builder has not replying properly. He get money from builder. We are also thinking to go co-operative court. I will update on this. But please do update here and try to make awareness about the co-operative law and help many other people. I also wrote on https://grievances.maharashtra.gov.in/en which is Chief Minister Fadanvis initiative and it is just show off. nothing else. Agar government ko such main kuch karna hai to aise Registrar ko nikal de jo builder se paise kha rahe hai and change the law favoring builder and help common people.

    I request you to educate people around you on this and help them to not to spend money to advocate, and do not waste time

  15. RM
    20 April 2016

    So after several hearings we got a letter from Dy. Registrar stating that our request for formation of society is refused as builder had sent form to us and we did not fill the form and also did not pay maintenance. Asked given permission to builder to approach within a month to form society i.e. only person is with builder rest are against him and Dy. Registrar gives permission to the builder for a very lame reason.

    Note: Builder did not do proper maintenance of building too.

    What should be our next course of action? We are planning to approach DDR.

  16. Prashant
    22 April 2016

    I am not getting your concern?

  17. RM
    22 April 2016

    Hello Prashant,
    Sorry about the confusion.

    In our last and final hearing with the dy registrar the dy registrar had said orally that he is giving us permission to open bank account etc but after 3 weeks we got a letter stating that permission is being given to builder as he had submitted application first (he submitted application when we started correspondence with builder for lack of maintenance of building and society formation). The dy reg knew about the correspondence but stated many did not pay maintenance and did not return the filled form for society formation sent by builder whereas he should have seen that builder did not bother about society formation for 6 years since getting part OC, got full OC 2 years back.
    Also builder did not kept his promise of maintaining building and providing basic amenities.
    We are going to appeal but this ruling was very demoralising.

  18. Prashant
    23 April 2016

    What is the issue now? What you want? Society formation is your aim? Registrar are taking money from builder. They know this very well. This is not going to change as there is chain in this system. The law which is in favor of builder is not going to change. Because they get money. There is no use of fighting against this. Nothing gonna change

  19. av
    04 July 2016

    wow, this is so much similar to where we are heading unfortunately. so far we felt our lawyers would know all this - but we are at a stage where 4-5 hearings hve happened builder has not showed up, and just recently one of the members / flat owners signed deed of aggrement with the builder .. reading at the thread about looks like we are done !!! ridiculous

  20. Prashant
    06 July 2016

    One deed of apartment and you are finished. This is really ridiculous. We gave up now and not fighting because there is no use of wasting time and money. Registrar and Advocate knows this law and they will not tell you the truth until you get frustrate, you waste your time and money.

  21. MILIND DESHPANDE
    16 August 2016

    Dear Prashant,

    Your predicament is understaindable. Under MOFA (section 10 & 11) flat purchasers have two rights - get a society formed & subsequently get deemed or unilateral conveyance through the competent authority i.e. District Deputu Regustrar. This is possible only if the purcahsers & the builder have agreed to form a society in their agreements.

    In case the builders & the flat purchaser has agreed to form an Association of Apartment owners, then unfortunately the right to get the association formed through competent authority is not provided in MOFA. Purchaser have to wait for the builder to form an asscoiation through the Deed of Declaration and only then the purchasers get a right of Deemed Conveyance under section 11 of MOFA.

    However this problem shall be sson solved when the Real Estate Regulatory Authority (RERA) will be formed shortly. Under section 11(e) of RERA one can file a complaint & request the authority to direct the promoter / builder to form an asscoaition. The RERA authority will give a notice to the builders to file his say but eventually direct the builder to form an assciation of alartment owners & subsequent Deed of Apartment. In case the builder does not comply, he shall be penalised heavily under the act and in this case the authority can direct the DDR to form a society & convey the project under Deemed Conveyance.

  22. Prashant
    17 August 2016

    Milind thanks for reply. This is good news RERA. Hope this will form soon

  23. Sairam
    07 September 2016

    I owns a dilapidated building it's empty no one living there there are nearly 20 flat owners in building they want me to do society registration they did not when they bought its time for redevelopment I own entire building and 10 flats my father died 4 months ago now we don't have own Home in city we on rent now flat owners creating issues they want to form society and cast us out what should I do.

  24. SANDEEP NAIK
    29 September 2016

    Whether resolution passed in AGM/SPLAGM by the CHS MANAGING COMMITTEE is binding on the members if the society does not does not possess CONVEYANCE DEED ?

  25. Santosh Phenany
    28 November 2016

    Dear Prashant,

    We are in a similar situation like you and wish you seek inputs and advice. Please let me have your email/contact no.

    Regards,

    Santosh

  26. Vikram
    30 November 2016

    we have file for society formation with DDR , Maha Govt in 2013. We had many hearings with DDR, builder and many exchange of letters. DDR told builder to form Society but Builder formed and Apartment Condominium in 2016 with 5 flat owners. How do we get the Apartment Condominium cancelled ? What is the best step?

  27. RM
    13 December 2016

    Update: After waiting for 9 months for society formation the builder has not managed to do that as 1 month time was given. All the flat owners have refused to sign with the builder and now our hearing is going to happen with DDR on 15th Dec. Now one of the flat owner had gone to meet the builder regarding recovery of dues case builder has filed against them and builder confidently told them that DDR will again reject our case and you will never get your society made unless I want it to happen. We have already hired a lawyer and he will be attending the hearings, we have majority, we have opened the society bank account, the builder has not even managed 4 signatures and yet he is the one who is confident. Shame on our Govt officials.

  28. chairperson
    31 December 2016

    G & S Associates (gada group) in Pune also did the same thing for their project VAARAHI at katraj Kondhwa Road.

  29. chairperson
    31 December 2016

    G & S Associates (gada group) in Pune also did the same thing for their project VAARAHI at katraj Kondhwa Road.

  30. Thakare
    01 February 2017

    1. Make your complaint to PMO office, 2. then keep follow up with DDR, registrar office, 3. make FIR against builder as per MOFA act, 4. file criminal case against builder, 5. go to consumer court,

  31. thakARE
    01 February 2017

    you have to read your aggrement dacument neatly whether he has mentioned about formation of the society or deed of apartment. If not consumes have full right to go against the decision given by DDR and can be challenged in the co-operative court.

  32. Merine John
    18 July 2017

    We are also in the similar predicament. Our complex consists of 374 flats, of Which 55flatsare builder's unsold flats. The builder in our flat sale agreement clearly has written that he will form a society immediately after obtaining OC, he has similarly given an undertaking to BMC stating the same. We got OC in 2013.

    Builder then in 2015, without our consent created a new flat agreement and used the same, to sell his remaining flats. He in 2016 formed a company using this new agreement, without taking our consent. He then they the company filed a caveat with the deputy registrar asking that if flat owners approach the authority for society registration, then their side should be heard first, before passing any order.

    He even refused to provide audited statement foe the.maintenance account for the past five years. He keeps on charging shortfall, and now again he has charged us short fall again from 2012.

    Deputy registrar gave name reservation and bank account opening permission, in flat owners favour without hearing builder's side, despite there being a caveat.

    The builder then filed a revision petition before joint.registrar stating that their Right to be heard was violated by deputy registrar and therefore the order passed by deputy registrar be stayed.

    In the meantime, builder was going on sending us notices for maintenance. Finally in one notice he agreed to dissolve the company, and form society, but we had to pay the entire maintenance money, and give him one years time.

    Joint registrar heard both of our side, now got both sides written responses, he passed an interim stay order. Now it's 4months the order is still pending, we are still waiting for the final order.

    In the meantime, the builder has now formed a interim committee with about 27 flat owners, and opened a bank account for them for collecting our maintenance, and builder has stated in the notice that this interim committee will manage the day to day maintenance.majority of flat owners have opposed this as well.

    We have written to PMO, SEBI, Registrar of Companies, we have also initiated an online petition to CM asking them to make due changes in the implementation of law.

    https://www.change.org/p/chief-minister-of-maharashtra-and-minister-of-cooperation-request-for-review-in-the-implementation-of-registration-of-housing-societies?recruiter=301352281&utm_source=share_petition&utm_medium=whatsapp

    Please do sign on the petition and share.

    My query is,
    1) can we withhold maintenance till builder gives us audited accounts of maintenance, and does society registration?
    We have written letters to the builder stating the same

    2) As the joint registrar is delaying, passing of final order, can I put RTI and ask for the reason of delay in passing of final order. ?
    3) is there any way we can address this delay by joint registrar.

  33. Gogate
    10 August 2017

    hello,

    Our society is fighting the case on same issue i.e. Builder formed an Apartment and People want society. Our case is at Highcourt , Mumbai and sheduled for final hearing . Mumbai highcourt has already ruled in the favour of residents for formation of society in other cases. If any body wants Details can contact us.

  34. Ajay
    21 October 2017

    Mr Gogate,we want to start action against builder for not forming society for 8 yes. Please share all the steps you followed. Many thanks.
    Ajay

  35. Satyajit R. Kakade
    13 December 2017

    Mr. Prashant, if 17 members had made a decision to form society and filed application before the Co-operative Registrar for formation of society, it was incumbent upon the registrar to form society even through deed of declaration was executed by the builder. In your case it can be seen that only 4 apartment owners had executed deed of declaration, whereas minimum five apartment owners are required for execution of declaration deed. So also, only after you filed an application for formation of society, the Developer executed the Declaration Deed which is contrary to the provision of law.
    As per Rule 8 of Maharashtra flat Ownership Act, it is the flat owners who would decide as to whether to form society or apartment ownership. So also, there are High Court Rulings in this favour.
    Can you specify what was provided in the agreement clause for formation of society or apartment ownership in your agreement.

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