Association Formation under UP Apartment Act 2010

Let us look at a couple of issues which require clarifications as per UP Apartment Act 2010. The first issue is related with when the apartment owners’ association may form. The second issue is with respect to raising of the maintenance bill by the association.

Contrary to misconception, the association does not need two years to form. There are two things to be considered.

An association may be formed as a society anytime by the apartments’ owners. It is however mandatory for the association to be registered under the following conditions as per the UP Apartment Act 2010:

14.(2) It shall be the joint responsibility of the promoter and the apartment owners to form an Association. The promoter shall get the Association registered when such number of apartments have been handed over to the owners which is necessary to form an association or 33% of apartments, whichever is more, by way of sale, transfer or possession, provided the building has been completed alongwith all infrastructure services and completion certificate obtained from the local authority.

It means that the association needs to be formed mandatorily if more 33% apartments have been handed over. The next issue when can the association take charge of the maintenance. The answer is that the as soon the condition in the above clause is fulfilled, the association can take over the maintenance. Please see the clause below

14.(5)On formation of the Association of the Apartment Owners under sub-section (2) above, the management of the affairs of the apartments regarding their common areas and facilities shall be deemed to be transferred from the promoter to the Association which shall thereupon maintain them, Provided that till all the apartments are sold or transferred, the promoter shall proportionately share the maintenance cost of common areas and facilities.

For the issue of the maintenance bills, an association is required to issue a monthly statement of the assessment towards a member’s contribution under the UP Apartment Rules 2010. A large number of associations use prepaid electricity metering. Quite a few of them do not however issue a monthly statement for the maintenance charges. An association is expected to issue a monthly bill / statement including assessment (bill amount) and payments.

Our platform enables issuing monthly statement even though the society prepaid system is not equipped for the same. Of course there are more things needs for monthly generation of bills and payments which are facilitated by our platform

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0 #4 smartcom 2016-06-07 15:46
When promoter does not show any interest, the society can still be formed and the society can take over the project and start maintaining the same. There would be legal issues in the same, but you can handle the issues when they occur. Of course the promoter may not pay the security back. The promoter would not pay maintenance of its share. Noting can be done till the society the legally formed under the Apartment Act. You may right in your bye laws that the society has right to recover dues of its members by disposing off their properties.
0 #3 smartcom 2016-04-18 23:32
The associations which have been registered prior to UP apartment act 2010, can always update their bye laws in conformity with the 2010 act.
+3 #2 Suneel Bhatnagar 2016-04-17 19:02
What will happen to the RWAs that are already registered and functioning before the enactment of UP Apartment Act 2010. Do they stand scrapped? If so , new Associations Of Apartment Owners will be required to be formed and registered. They will start functioning only thereafter. Until new Associations are formed, how to look after the maintenance work and funds management.

0 #1 smartcom 2015-11-02 14:07
Please confirm your state. We can then advise you.

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