9 Jun 2016 11:41 AM GMT
A big inquiry here is that why the builders in Mumbai are recently wanting to go for ‘Apartment Owners’ Association' arrangement and are attempting to maintain a strategic distance from the age-old 'Society' structure?The reason is that the builders/developers have a lot of personal GAINS in doing so, which are as listed below: The builder/developer is interested in utilizing the extra...
A big inquiry here is that why the builders in Mumbai are recently wanting to go for ‘Apartment Owners’ Association' arrangement and are attempting to maintain a strategic distance from the age-old 'Society' structure?
The reason is that the builders/developers have a lot of personal GAINS in doing so, which are as listed below:
Contrasts between a Society and Condominium (Apartment Owners’ Association)
In spite of the fact that the essential motivation behind both the arrangements is comparable, there are numerous contrasts between a Society and Condominium. A portion of the differences are as under:
Though there are minor cosmetic individualized features in favour of apartment owners in Maharashtra Ownership Apartment Act, 1970; but majorly, the Maharashtra Ownership Apartment Act, 1970 benefits the builders and developers. It has become too handy to the builders to usurp the rights of the apartment purchasers. The situation is worse if the builder decides to stay in the redeveloped building as he continues to play the role of an owner though his ownership has ended the moment he has decided to sell the flats under MOFA 1963.
Lack of unity among the apartment purchasers, vulnerability of the purchasers for some freebies are the points which make the builders continue to smile though there are going to be protests by some affected purchasers. The builders fail to understand that even MOFA-1963 allows for prosecution of the builders and developers in case of promises made by them in ‘Agreement for sale’ differ from their subsequent acts thereof in a bid to usurp the rights of the purchasers. Again, the comfort of the builder is that, if one goes for litigation, it takes a long time and they still prefer to play a role of MOGAMBO.
Hence, purchasers need to be careful and the safest bet is to urge the Developers to form a Co-operative Housing Society just under the Provisions of Maharashtra Co-operative Societies Act, 1960 in light of a legitimate concern for flat owners.
Iyer, S. (2015). Why Co-op Housing Society is better than Apartment Owners Association in Maharashtra.
Maharashtra Apartment Ownership Act 1970
Maharashtra Ownership Flat Act 1963 (MOFA 1963).
Dr.V.V.L.N. Sastry is a Researcher in Law (Criminal Justice) at Walden University, U.S.A.
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