We are in dispute with our builder who has neglected maintenance of our building and also has not formed society for several years. Recently he asked all flat owners to pay 5 % VAT on agreement value as per the MVAT ruling for underconstruction flat between 2006 to 2010. Many including me have paid the VAT amount (more than 1.5 lakhs) as ordered by the builder and we also asked him to disclose his VAT registration details, issue of receipt, method of calculation of VAT and reason behind it but he straight away mentioned in the letter that he is not obliged to disclose these details and also that he has terminated our agreement for non payment of maintenance (builder hasn’t given more than 1.3 lakh rupees to us on various works which we undertook and had promised to pay us so we stopped paying maintenance). Question is we being the one who is paying the VAT can the builder withhold such details? We feel that the builder has paid as per construction material cost calculation while he is charging us VAT on agreement value. We are in process of approaching the consumer court for deficiency in service.
Also we had approached the Dy Registrar for society formation (non-cooperation) with more than 70% majority (60% is required) and after postponing the hearings for 8 months for several flimsy reason the Dy. Registrar announced that builder gets the first right to form society and also since builder made application first and hence our application is being rejected.
We feel that this was a partisan behaviour on part of the Dy Registrar as the builder has not formed society for more than 6 years. When we started correspondence for society formation and negligence in maintenance with the builder did he went and made a name sake application for society formation whereas we had approached the Dy. Registrar 10 days later with signatures of 70% flat owners.
The Dy Reg gave the builder 1 month but he has not managed to reach the 60% figure. What should be our next course of action? Should we approach the Dy Registrar or should we appeal to the Jt Registrar? Any other suggestion is welcome.
I C Naik
You apply to the concerned District Deputy Registrar for two matters under MOFA under Section 10 and 11 (Relevant portion) reproduced below ;
SECTION 10: PROMOTER TO TAKE STEPS FOR FORMATION OF COOPERATIVE SOCIETY OR COMPANY
(1)As soon as a minimum number of persons required to form a co-operative society or a company have taken fiats, the promoter shall within the prescribed period submit an application to the Registrar for registration of the organisation of persons who take the flats as a co operative society or, as the case may be, as a company; and the promoter shall join, in respect of the flats which have not been taken, in such application for membership of a co-operative society or as the case may be of. a company. Nothing in this section shall effect the right’ of the promoter to dispose of the remaining flats in accordance with the provisions of this Act.
(2)xxx
“Provided that, if -the promoter fails within the prescribed period to submit an application to the Registrar for registration of society in the manner provided in the Maharashtra Co-operative Societies Act, 1960, the Competent Authority may, upon receiving an application from the promoter, direct the District Deputy Registrar, Deputy Registrar or, as the case may be, Assistant Registrar concerned, to register the society:
Provided further that, no such direction to register any society under the preceding proviso shall be given to the District Deputy Registrar, Deputy Registrar “or, as the case may be, Assistant Registrar, by the Competent Authority without first verifying authenticity of the, applicants ‘ request and giving the concerned promoter a reasonable opportunity of being heard
SECTION 11: PROMOTER TO CONVEY TITLE, ETC. AND EXECUTE
DOCUMENTS, ACCORDING TO AGREEMENT
(11)xxxx
(2) It shall be the duty of the-promoter to file with the Competent Authority, within the prescribed period, a copy of the conveyance executed by him under sub-section (1).
(3) If the promoter fails to execute the conveyance in favour of the Co-operative society formed under section 10 or, as the case may he, the Company or the association of apartment owners, as provided by sub-section (2), within the prescribed period, the members of such Co-operative society or, as the case may be, the Company or the association of apartment owners may, make an application, in writing, to the concerned Competent Authority accompanied by the true copies of the registered agreements for sale, executed with the promoter by each individual member of the society or the Company or the association, who have purchased the flats and all other relevant documents (including the occupation certificate, if any), for issuing a certificate that such society, or as the case may be, Company or association, is entitled to have an unilateral deemed conveyance, executed in their favour and to have
it registered.
(4) The Competent Authority, on receiving such application, within reasonable time and in any case not later than six months, after making such enquiry as deemed necessary and after verifying the authenticity of the documents submitted and after giving the promoter a reasonable opportunity of being heard, on being satisfied that it is a fit case for issuing such certificate, shall issue a certificate to the Sub-Registrar or any other appropriate Registration Officer under the Registration Act, 1908, certifying that it is a fit case for enforcing unilateral execution of conveyance deed conveying the right, title and interest of the promoter in the land and building in favour v of the applicant, as deemed conveyance.
(5) On submission by such society or as the case may be, the Company or the association of apartment owners, to the Sub-Registrar or the concerned appropriate Registration Officer appointed under the Registration Act, 16 of 1908, the certificate issued by the Competent Authority alongwith the unilateral instrument of conveyance, the Sub-Registrar or the concerned appropriate registration Officer shall, notwithstanding anything contained in the Registration Act, 1908, issue summons to the promoter to show cause why such unilateral instrument should not be registered as ‘ deemed conveyance ‘ and after giving the promoter and the applicants a reasonable opportunity of being heard, on being satisfied that it was fit case for unilateral conveyance, register that instrument as ‘deemed conveyance’.”.
Do go through a Lawyer. Also pursue case before District Consumer Court for damages for deficient Services.
